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  3. 3. ABOUT FMCG INDUSTRY IT IS alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular interval. Some of the prime activities of FMCG industry are selling, marketing, financing, purchasing, etc. The industry also engaged in operations, supply chain, production and general management. FMCG INDUSTRY ECONOMY FMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also very high. The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP). WHAT ARE THE FIRST MOVING CONSUMER GOODS(FMCG)? CATEGORY PRODUCT Household Care Fabric wash (laundry soaps and synthetic, detergents); household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish). Food & beverage Health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; soft drinks; processed fruits, vegetables; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc.
  4. 4. Personal Care Oral care, hair care, skin care, personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; feminine hygiene; paper products. Common FMCG products Some common FMCG product categories include food and dairy products, glassware, paper products, pharmaceuticals, consumer electronics, packaged food products, plastic goods, printing and stationery, household products, photography, drinks etc. and some of the examples of FMCG products are coffee, tea, dry cells, greeting cards, gifts, detergents, tobacco and cigarettes, watches, soaps etc. FMCG SECTOR IN INDIA The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost. Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the untapped market potential. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-TI INDIA-A LARGE CONSUMER GOODS SPENDER An average Indian spends around 40 per cent of his income on grocery and 8 per cent on personal care products. The large share of fast moving consumer goods (FMCG) in total individual spending along with the large population base is another factor that makes India
  5. 5. one of the largest FMCG markets. Even on an international scale, total consumer expenditure on food in India at US$ 120 billion is amongst the largest in the emerging markets, next only to China. INDIAN COMPETITIVENESS & COMPARISON WITH THE WORLD MARKET The following factors make India a competitive player in FMCG sector:  Availability of raw materials- Because of the diverse agro-climatic conditions in India, there is a large raw material base suitable for food processing industries. India is the largest producer of livestock, milk, sugarcane, coconut, spices and cashew and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic soda and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage.  Labor cost comparison-
  6. 6. Low cost labor gives India a competitive advantage. India's labor cost is amongst the lowest in the world, after China & Indonesia. Low labor costs give the advantage of low cost of production. Many MNC's have established their plants in India to outsource for domestic and export markets.  Presence across value chain- Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage. For example, Amul supplies milk as well as dairy products like cheese, butter, etc. INDIAN FMCG INDUSTRY SET TO GROW 16% DURING 2008-09 The Indian FMCG industry is expected to grow 16% during 2008-09 with rising disposable income, changing lifestyle and rapid urbanization. The Federation of Indian Chambers of Commerce and Industry (FICCI) predicted that the Indian FMCG industry sales would grow 16% during 2008-09, reported .FICCI also revealed that during 2007-08, the Indian FMCG industry sales are estimated to grow 14.5% to reach RS 854.7 Billion. Within the Indian FMCG industry, there are few sectors that will grow more than 20% during 2008-2009, like shaving cream at 23%, skin/fairness cream at 22%, shampoos at 21.3%, skin care & cosmetics at 20%, tooth powder at 22% and other care products. The prediction of higher sales growth of FMCG products is based on strong economic fundamentals such as rising disposable income of people. Now people can afford to spend on quality FMCG products. Moreover, increasing salaries, along with rising trend of perks in the corporate sector at regular intervals, have increased people’s spending power on lifestyle products. Even government employees too are expending on lifestyle products helping FMCG sector to grow rapidly. Apart from this, India is rapidly changing into an urban country and with that, people’s preference for lifestyle products is growing. Hence, the Indian FMCG industry is experiencing strong growth in some categories such as skin care, anti-aging solution, deodorants,
  7. 7. fairness products and men’s products. In addition, the emergence of organized retail such as supermarkets, and shopping malls is also playing an important role in bringing boom in the Indian FMCG market. The young generation of consumers is driving the demand for lifestyle products. Consumers are at the front seat changing and redefining the branding and marketing strategy and marketplace for the retail products that are ultimately boosting the retail sales in the country .However, the fear of dissociation with earlier consumers still persists as they embrace and prefer to stick to established brands only. The main reason for this dissociation is weak distribution channels and marketing strategy in the country. According to a Research Analyst at RNCOS, “The demand for lifestyle products is boosted by the rising aspiration and modern facilities. As the spending power of consumers is going up, the sales of FMCG products in India will rise too. Therefore, companies need to improve the quality of products and employ right marketing mix by implementing new technologies such as Customer Relationship Management.” CRITICAL OPERATING RULES IN INDIAN FMCG SECTOR  Heavy launch costs on new products launch on Advertisements, free samples and product promotion.  Majority of the product classes require very low investment in fixed assets.  Existence of contract manufacturing  Marketing assumes a significant place in the brand building process.  Providing good price points is the key to success.
  8. 8. SWOT ANALYSIS OF FMCG INDUSTRY  Strengths:  Low operational costs.  Presence of established distribution networks in both urban and rural areas  Presence of well-known brands in FMCG sector  Weaknesses:  Lower scope of investing in technology and achieving economies of scale, especially in small sectors.  Low exports levels.  quot;Me-tooquot; products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.  Opportunities:  Untapped rural market.  Rising income levels i.e. increase in purchasing power of consumers.  Large domestic market- a population of over one billion.  Export potential  High consumer goods spending  Threats:  Removal of import restrictions resulting in replacing of domestic brands  Slowdown in rural demand, Tax and regulatory structure
  9. 9. ABOUT CARGILL Cargill is an international provider of food, agricultural and risk management products and services. We are committed to using our knowledge and experience to collaborate with customers to help them succeed. In India, Cargill operates a number of businesses and employs several hundred people. Our expansive operations include the handling, shipping and processing of a wide range of products, including refined oils, grain and oilseeds, sugar, cotton and animal feed. In addition, Cargill develops flavor systems and operates a value investing business. Our presence in India has been growing since we began operations in 1987.Cargill maintains a number of businesses in India, with operations including the handling, shipping and processing of a wide range of products, including refined oils, grain and oilseeds, sugar, cotton and animal feed. In addition, Cargill develops flavor systems and operates a value investing business. Our presence in India has been growing since we began a joint venture operation in 1987. MILESTONE OF CARGILL IN INDIA 1987 Cargill Seeds - a joint venture operation - commenced in India. 1994 Cargill starts its fertilizer/crop nutrients operations in India. 1997 Cargill launches its primary sugar and edible oils trading business in India. 1998 Commences grain and oil seeds business in India. 2001 Launches food business under Cargill Foods – launch of brand “Nature Fresh”. Cargill acquires the Food Flavors business from Duckworth Group UK, and 2003 Duckworth Flavors India becomes part of Cargill India. Cargill sets up green field edible oil refineries at Kandla and Paradip. Cargill launches one stop agri-shops – Saathi Krishi Samadhaan Kendra’s. 2004 Cargill diversifies its fertilizer business into a joint venture with IMC global. Cargill India's DAP business renamed as Mosaic India. Cargill acquires Parakh Foods with brand quot;Geminiquot; and sets up a new 2005 Business Unit called Cargill Refined Oils India. This is first business unit with headquarters in India.
  10. 10. Cargill launches Saanjhi Unnati Program in Rajasthan for development of malt barley in active collaboration with the Government of Rajasthan and SAB Miller. Cargill starts its sugar off shoring business to support the execution activities 2006 of Cargill Netherlands. Cargill sets up CarVal India Pvt. Ltd. Cargill enters into a joint venture in a project for setting up a green field sugar refinery in South India. Cargill enters into joint ventures with local soybean crushers in Maharashtra, Rajasthan and Madhya Pradesh. Cargill enters into a joint venture and subsequently owns and leads a shrimp feed manufacturing business in Rajahmundry in Andhra Pradesh. 2007 Cargill launches cotton trading business in India. 2008 an independently managed subsidiary Cargill, Black river advisor India, begins operations in India. CARGILL GROUP OF COMPANIES Cargill Refined Oils India imports, refines, sells and markets a wide range of vegetable oils and fats to wholesale trade, industrial and household consumers across India. they own and operate three vegetable oil refineries located at Paradip (Orissa), Kandla (Gujarat) and Kurkumbh (Maharashtra). Cargill Refined Oils India has been operating within India since 2005 and employs more than 750 people. These are  (K2)Cargill India,post-bhimasar,taluka-anjan,kutch- 370240(Gujarat)  (kk)Cargill India,e-4,e-45,midc,kurkumbh-413802(Maharashtra)  (Pd)Cargill India,oil terminal road, atharbanki,jagatsinghpur- 754142 (paradip)
  11. 11. (PD)CARGILL INDIA PVT.LTD. PARADIP UNIT This is the paradip production unit  REPORTING AUTHORITY-  Mr.Harihar Rout, HR Manager. Cargill India  Mr.Bhanuprakash Rout, Production Manager. Cargill India
  12. 12.  PRODUCT-  Edible oil BRAND There are 11 product were producing in paradip unit of Cargill India. These are as follows- 1.NATURE FRESH ACTILITE SOYABIN GEMINI SUN FLOWER GEMINI SOYABIN GEMINI VANASPATI GHEE 2. NATURE FRESH ACTILTE SUN FLOWER GEMINI SUN FLOWER
  13. 13. 3. NATURE FRESH PALM 4. NATURE FRESH OLINE 5. NATURE FRESH PALMOLINE 6. NATURE FRESH MUSTARD 7. NATURE FRESH VANASPATI  For government purpose paradip unit is producing two products. 1. NEFED (For Orissa) 2. MMTC (For West Bengle, Sikim, Nagaland) NEW PRODUCT DEVLOPEMENT The paradip unit of Cargill India is developing two new products. Such as- 1. GEMINI VANASPATI GHEE. 2. NATURE FRESH VANASPATI. COMPANY SIZE Basically the company size of paradip unit is defined in two ways. Such as- 1. According to employee-There are 325 employees are working in paradip unit of Cargill India. 2. According to financial status-The total financial strength of paradip unit of Cargill India is state 110 crore. TECHONOLOGY Cargill India paradip unit is applying new food technology for producing better quality product which will be more demanded in market.
  14. 14. TARGET MARKET The target market of Cargill India of paradip unit is outside Orissa. So these are 3 target markets, such as- 1. GUJRAT 2. CHHATTISGARH 3. KAKINADA CUSTOMER BASE The products of paradip unit is costly than the other two unit of India. So its product are preferred by the rich people or high income level people. COMPETITORS The target market of Cargill India of paradip unit is preferable outside Orissa, but in Orissa he has two competitors- 1. RUCHI INFRASTRUCTER LTD. 2. GOKUL GROUP OF COMPANIES. So from these two competitor POTENTIAL COMPETITOR is RUCHI INFRASTRUCTER LTD. CURRENT BUSINESS STRATEGIES There are three current business strategies of paradip unit. 1. Company wants to increase the salary of worker for increasing his production. 2. Development of safety precaution of worker. 3. Development of the food technology.
  15. 15. PRICING STRATEGY The fixing of price of the product is depending on the share price of crude oil & price is determined by head of the department. STRENGTH OF THE COMPANY The strength of the company is food safety, because Cargill India of paradip unit had got 13 positions in food safety through all over world.  CONCLUSION- Cargill India is one of the top MNC (product-edible oil) in all over world & Cargill is committed to being a global leader in corporate responsibility by nourishing the people and possibilities that reside in communities where they do business. The employment policy of Cargill India is non-discrimination towards all employees and applicants for employment. All aspects of employment with Cargill are governed by merit, competence, suitability and qualifications, and will not in any manner be influenced by gender, age, race, colour, religion, national origin or disability. THE INTERNAL MOBILITY FACTOR STATE THAT TO seek to offer employees career opportunities within Cargill India and promote an open environment where employees can acquire new skills and learning. For employees who meet the criteria and are willing to accept roles with higher responsibilities, THEY provide avenues for growth & movement across Cargill businesses and geographies. THE Learning and development opportunities At Cargill HAS committed to attracting, retaining and training high performing people who embrace the company’s vision and values. IT means to achieve this is by maximizing training and development to ensure that employees have the competencies required to accomplish their business objectives as well as develop their career in the company. Training opportunities include on-the-job learning, participating in company programs and courses, and attending external programs based on nomination by managers or peers. Employees also participate in performance management programs to create a road map for their individual success at Cargill and alignment with organizational goals.