Household market in india

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An detailed overview of Indian Household sector in Global prospecticve

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Household market in india

  1. 1. www.datamonitor.com Datamonitor USA 245 Fifth Avenue 4th Floor New York, NY 10016 USA t: +1 212 686 7400 f: +1 212 686 2626 e: usinfo@datamonitor.com Datamonitor Europe 119 Farringdon Road London EC1R 3DA United Kingdom t: +44 20 7551 9000 f: +44 20 7675 7500 e: eurinfo@datamonitor.com Datamonitor Middle East and North Africa Datamonitor PO Box 24893 Dubai, UAE t: +49 69 9754 4517 f: +49 69 9754 4900 e: datamonitormena@ datamonitor.com Datamonitor Asia Pacific Level 46, 2 Park Street Sydney, NSW 2000 Australia t: +61 2 8705 6900 f: +61 2 8705 6901 e: apinfo@datamonitor.com India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 1 INDUSTRY PROFILE Household Products in India Reference Code: 0102-2080 Publication Date: November 2010
  2. 2. EXECUTIVE SUMMARY India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 2 EXECUTIVE SUMMARY Market value The Indian household products market grew by 6.7% in 2009 to reach a value of $2,691.5 million. Market value forecast In 2014, the Indian household products market is forecast to have a value of $3,599.7 million, an increase of 33.7% since 2009. Market segmentation I Textile washing products is the largest segment of the household products market in India, accounting for 64.4% of the market's total value. Market segmentation II India accounts for 7% of the Asia-Pacific household products market value. Market share Unilever is the leading player in the Indian household products market, generating a 28.8% share of the market's value. Market rivalry The Indian household products market is fairly fragmented with the top three players accounting for 43.8% of the total market value.
  3. 3. CONTENTS India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 3 TABLE OF CONTENTS EXECUTIVE SUMMARY 2 MARKET OVERVIEW 6 Market definition 6 Research highlights 7 Market analysis 8 MARKET VALUE 9 MARKET SEGMENTATION I 10 MARKET SEGMENTATION II 11 MARKET SHARE 12 COMPETITIVE LANDSCAPE 13 LEADING COMPANIES 15 Unilever 15 Nirma Limited 19 Procter & Gamble Company, The 23 MARKET DISTRIBUTION 27 MARKET FORECASTS 28 Market value forecast 28 MACROECONOMIC INDICATORS 29 APPENDIX 31 Methodology 31 Industry associations 32 Related Datamonitor research 32 Disclaimer 34 ABOUT DATAMONITOR 35 Premium Reports 35 Summary Reports 35 Datamonitor consulting 35
  4. 4. CONTENTS India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 4 LIST OF TABLES Table 1: India household products market value: $ million, 2005–09 9 Table 2: India household products market segmentation I:% share, by value, 2009 10 Table 3: India household products market segmentation II: % share, by value, 2009 11 Table 4: India household products market share: % share, by value, 2009 12 Table 5: Unilever: key facts 15 Table 6: Unilever: key financials ($) 17 Table 7: Unilever: key financials (€) 17 Table 8: Unilever: key financial ratios 17 Table 9: Nirma Limited: key facts 19 Table 10: Nirma Limited: key financials ($) 20 Table 11: Nirma Limited: key financials (Rs.) 20 Table 12: Nirma Limited: key financial ratios 21 Table 13: Procter & Gamble Company, The: key facts 23 Table 14: Procter & Gamble Company, The: key financials ($) 25 Table 15: Procter & Gamble Company, The: key financial ratios 25 Table 16: India household products market distribution: % share, by value, 2009 27 Table 17: India household products market value forecast: $ million, 2009–14 28 Table 18: India size of population (million), 2005–09 29 Table 19: India gdp (constant 2000 prices, $ billion), 2005–09 29 Table 20: India gdp (current prices, $ billion), 2005–09 29 Table 21: India inflation, 2005–09 30 Table 22: India consumer price index (absolute), 2005–09 30 Table 23: India exchange rate, 2005–09 30
  5. 5. CONTENTS India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 5 LIST OF FIGURES Figure 1: India household products market value: $ million, 2005–09 9 Figure 2: India household products market segmentation I:% share, by value, 2009 10 Figure 3: India household products market segmentation II: % share, by value, 2009 11 Figure 4: India household products market share: % share, by value, 2009 12 Figure 5: Unilever: revenues & profitability 18 Figure 6: Unilever: assets & liabilities 18 Figure 7: Nirma Limited: revenues & profitability 21 Figure 8: Nirma Limited: assets & liabilities 22 Figure 9: Procter & Gamble Company, The: revenues & profitability 26 Figure 10: Procter & Gamble Company, The: assets & liabilities 26 Figure 11: India household products market distribution: % share, by value, 2009 27 Figure 12: India household products market value forecast: $ million, 2009–14 28
  6. 6. MARKET OVERVIEW India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 6 MARKET OVERVIEW Market definition The household products market consists of retail sales of air fresheners, dishwashing products, general purpose cleaners, textile washing products, toilet care products and other products which includes bleach, furniture polish, insecticides and scouring products. The market is valued according to retail selling price (RSP) and includes any applicable taxes. Any currency conversions used in the creation of this report have been calculated using 2009 annual average exchange rates. For the purpose of this report Asia-Pacific is deemed to comprise Australia, China, Japan, India, Singapore, South Korea and Taiwan.
  7. 7. MARKET OVERVIEW India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 7 Research highlights The Indian household products market generated total revenues of $2.7 billion in 2009, representing a compound annual growth rate (CAGR) of 7.2% for the period spanning 2005-2009. Textile washing products sales proved the most lucrative for the Indian household products market in 2009, generating total revenues of $1.7 billion, equivalent to 64.4% of the market's overall value. The performance of the market is forecast to decelerate, with an anticipated CAGR of 6.0% for the five- year period 2009-2014, which is expected to lead the market to a value of $3.6 billion by the end of 2014.
  8. 8. MARKET OVERVIEW India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 8 Market analysis The Indian household products market grew at a strong rate during the period 2005-2009, led by strong sales growth in the toilet care and dishwashing products categories. Overall market growth is expected to decelerate in the forthcoming five years. The Indian household products market generated total revenues of $2.7 billion in 2009, representing a compound annual growth rate (CAGR) of 7.2% for the period spanning 2005-2009. In comparison, the Chinese and Japanese markets grew with CAGRs of 7.9% and 2% respectively, over the same period, to reach respective values of $17.3 billion and $18.1 billion in 2009. Textile washing products sales proved the most lucrative for the Indian household products market in 2009, generating total revenues of $1.7 billion, equivalent to 64.4% of the market's overall value. In comparison, sales of dishwashing products generated revenues of $220.1 million in 2009, equating to 8.2% of the market's aggregate revenues. The performance of the market is forecast to decelerate, with an anticipated CAGR of 6% for the five-year period 2009-2014, which is expected to lead the market to a value of $3.6 billion by the end of 2014. Comparatively, the Chinese and Japanese markets will grow with CAGRs of 6.3% and 1.9% respectively, over the same period, to reach respective values of $23.4 billion and $19.8 billion in 2014.
  9. 9. MARKET VALUE India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 9 MARKET VALUE The Indian household products market grew by 6.7% in 2009 to reach a value of $2,691.5 million. The compound annual growth rate of the market in the period 2005–09 was 7.2%. Table 1: India household products market value: $ million, 2005–09 Year $ million Rs. million € million % Growth 2005 2,039.8 99,643.7 1,466.9 2006 2,196.3 107,291.5 1,579.5 7.7% 2007 2,364.1 115,488.1 1,700.2 7.6% 2008 2,523.2 123,260.5 1,814.6 6.7% 2009 2,691.5 131,480.9 1,935.6 6.7% CAGR: 2005–09 7.2% Source: Datamonitor D A T A M O N I T O R Figure 1: India household products market value: $ million, 2005–09 Source: Datamonitor D A T A M O N I T O R
  10. 10. MARKET SEGMENTATION I India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 10 MARKET SEGMENTATION I Textile washing products is the largest segment of the household products market in India, accounting for 64.4% of the market's total value. The dishwashing products segment accounts for a further 8.2% of the market. Table 2: India household products market segmentation I:% share, by value, 2009 Category % Share Textile washing products 64.4% Dishwashing products 8.2% General purpose cleaners 4.8% Toilet care 1.3% Air fresheners 0.7% Other 20.7% Total 100% Source: Datamonitor D A T A M O N I T O R Figure 2: India household products market segmentation I:% share, by value, 2009 Source: Datamonitor D A T A M O N I T O R
  11. 11. MARKET SEGMENTATION II India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 11 MARKET SEGMENTATION II India accounts for 7% of the Asia-Pacific household products market value. China accounts for a further 39.4% of the Asia-Pacific market. Table 3: India household products market segmentation II: % share, by value, 2009 Category % Share China 39.4% Japan 38.0% India 7.0% South Korea 5.5% Rest of Asia-Pacific 10.0% Total 100% Source: Datamonitor D A T A M O N I T O R Figure 3: India household products market segmentation II: % share, by value, 2009 Source: Datamonitor D A T A M O N I T O R
  12. 12. MARKET SHARE India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 12 MARKET SHARE Unilever is the leading player in the Indian household products market, generating a 28.8% share of the market's value. Nirma Limited accounts for a further 8.7% of the market. Table 4: India household products market share: % share, by value, 2009 Company % Share Unilever 28.8% Nirma Limited 8.7% Procter & Gamble Company, The 6.4% Others 56.2% Total 100% Source: Datamonitor D A T A M O N I T O R Figure 4: India household products market share: % share, by value, 2009 Source: Datamonitor D A T A M O N I T O R
  13. 13. COMPETITIVE LANDSCAPE India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 13 COMPETITIVE LANDSCAPE The household products market will be analyzed taking manufacturers of household products as players. The key buyers will be taken as retailers, and chemical companies as the key suppliers. The Indian household products market is fairly fragmented with the top three players accounting for 43.8% of the total market value. The Indian household products market has the presence of leading players like Unilever, Nirma and Procter & Gamble. Independent retailers are dominant in the market, and the smaller ones in particular may not exert very strong buyer power. The fact that manufacturers of household products are able to source some of their raw materials from only a relatively small number of suppliers boosts supplier power. The existence of strong brands and the scale economies associated with the high-volume production facilities prevent the threat of new entrants from becoming a significant factor. High exit barriers and fixed costs tend to increase rivalry between manufacturers. In general, the intensity of competition in the global household products market is assessed as moderate. In the Indian household products market, the main distribution channels of the household products are independent retailers with the distribution share of about 86% of the market value. Thus, the size of the average buyer is significant, which enhances their negotiating position and therefore increases buyer power. Household products are usually differentiated (in terms of color, brand, strengths, fragrance, etc.) but their overall function is fairly standardized. Such lack of distinction of products increases buyer power. A form of backward integration within the market is possible with buyers developing their own brands of private-label household products. Switching costs for buyers are not particularly high, although retailers are generally required to stock products of many different manufacturers to provide for customers' varied preferences, which may diminish buyer power. Overall, buyer power is moderate in the Indian household products market. Inputs to the household products market include a wide range of specialized chemicals and also packaging materials. Major chemical manufacturers serve to increase overall supplier power as they may have the ability to negotiate favorable deals with manufacturers. Supplier power is also increased by the fact that chemical manufacturers supply to a number of industries, which reduces their reliance on revenues from the household products market. However, a number of household products manufacturers have exhibited backward integration by producing raw materials required in the production of household products. Some companies may be restricted to certain product formulas and this makes them reliant on suppliers that can provide specific inputs that may be difficult to substitute. This tends to increase supplier power even more. Overall supplier power in this market is assessed as moderate. The household products market is difficult to enter on a small scale as the manufacturers of most household products utilize inherently large-scale processes that require significant capital input to set up. Also, producers need to distribute their products widely, which generally involves channels such as supermarkets. These retail chains may have considerable buyer power, which reduces the prices that manufacturers of household products can obtain. Such a factor may discourage smaller potential new
  14. 14. COMPETITIVE LANDSCAPE India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 14 entrants, because in order to maintain profitability in the face of such buyer power, scale economies are important. In addition to the aforementioned entry barriers, the cost of advertising, which is crucial for success in this market, should also be considered as a deterrent for new entrants. Overall the likelihood of new entrants is moderate. The main threat of substitutes in the household products market is posed by homemade alternatives. End-users may prefer these on the grounds of price, or because they can control what ingredients are used in their preparation. However, any substitutes for household products need to be prepared, which is a relatively time-consuming process requiring specific knowledge, and may not provide the desired results, reducing the threat of household products substitutes. Furthermore, as the manufacturers are now aware of the increasing demand for environmentally friendly and allergy free alternatives, they are incorporating these qualities into their products, which, combined with their greater convenience, reduces the threat of substitutes. Overall, the threat of substitutes in this market is moderate. In the household products market, competitors are usually large, well-known, geographically-diversified companies that operate in a number of other business areas such as personal care or pharmaceuticals, which weakens rivalry between market players. These consumer products are generally mass-market items, implying high fixed costs for large-scale production facilities, and investment in research and development. Exit costs may also be high, for example, quite specialized fixed assets may need to be disposed of. High fixed- and exit costs increase rivalry within the market. Moreover, players are fairly similar to one another and offer fundamentally similar products, which intensify rivalry even further. However, some household products manufacturers have developed strong brands, allowing them to differentiate their products to some extent. Overall, rivalry in this market is moderate.
  15. 15. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 15 LEADING COMPANIES Unilever Table 5: Unilever: key facts Head office: Unilever House, 100 Victoria Embankment, London EC4Y 0DY, GBR Telephone: 44 20 7822 5252 Fax: 44 20 7822 5951 Website: www.unilever.com Financial year-end: December Ticker: UL, ULVR Stock exchange: New York, London Source: company website D A T A M O N I T O R Unilever is a global manufacturer and marketer of consumer goods in the food, personal and homecare segments. Unilever operates under a dual structure. The group has two parent companies: Unilever NV and Unilever plc. Unilever NV is a public limited company registered in the Netherlands, while Unilever plc is a public limited company registered in the UK and Wales. The two parent companies, Unilever NV and Unilever plc, along with the group companies, operate as a single economic entity: Unilever. It operates through subsidiaries in Germany, Switzerland, France, the UK, the US, and China and has operations in over 170 countries. The group's primary operating segments comprises three geographic regions: Asia, Africa, Central and Eastern Europe; the Americas; and Western Europe. Although Unilever's operations are managed on a geographical basis, the group manages its products under four categories: savory, dressings and spreads; ice cream and beverages; personal care; and home care and other operations. These categories are Unilever’s principal product areas. The savory, dressings and spreads product category includes products like soups, bouillons, sauces, snacks, mayonnaise, salad dressings, olive oil, margarines, spreads and cooking products such as liquid margarines, and frozen food products. Unilever's major brands in this segment includes: Knorr, Hellmann's, Becel/Flora (Healthy Heart), Rama/Blue Band (Family Goodness), Calve, Wish-Bone, Amora, Ragu and Bertolli. The company markets its frozen food products under Findus, Sagit, Cogesal and Iglo brand names among others. The ice cream and beverages product category includes sales of ice cream, tea-based beverages, weight management products, and nutritionally enhanced staples sold in developing markets. Unilever's major
  16. 16. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 16 brands in ice cream are sold under the international Heart brand which includes Cornetto, Magnum, Carte d’Or and Solero, Wall’s, Kibon, Algida and Ola. Its tea-based beverage brands include Lipton, Brooke Bond and PG Tips. In addition, Unilever has weight management products such as Slim Fast, and nutritionally enhanced products include Annapurna and AdeS brands. The personal care product category offers skin care and hair care products; deodorants and anti- perspirants; and oral care products. The company offers six global brands are the core of company's business in the mass skin care, daily hair care and deodorants product areas that includes Dove, Lux, Rexona (including Sure and Degree), Sunsilk (including Seda/Sedal), Axe/Lynx and Pond’s. Other key brands include Suave, Clear, Lifebuoy and Vaseline, along with Signal and Close Up in the oral care category. In September 2009, the company announced a binding offer to acquire the personal care business of the Sara Lee Corporation. The Sara Lee brand includes Sanex, Radox and Duschdas. Home care and other operations include household products, such as laundry tablets, powders and liquids, soap bars and cleaning products. Unilever's global brands in home care products include Cif, Comfort, Domestos, Omo, Radiant, Surf and Sunlight brands. It also owns tea plantations to support its consumer brands. In India, it operates through its subsidiary Hindustan Unilever Ltd, and sells its home care products through brands such as Surf Excel, Rin, Wheel, and Sunlight. Key Metrics Unilever generated revenues of $55.4 billion in the financial year (FY) ended December 2009, a decrease of 1.7% as compared to 2008. The company's net income reached $4.7 billion in FY2009, a decrease of 33% over 2008. Unilever’s home care and other category accounted for 17.5% of the total revenues in FY2009. During the FY2009, home care and other segment recorded revenues of $9.7 billion, a decrease of 3.4% over 2008. Asia, Africa and Central & Eastern Europe (including India), Unilever's largest geographical market, accounted for 37.4% of the total revenues in FY2009. Revenues from Asia, Africa and Central & Eastern Europe reached $20.7 billion in FY2009, an increase of 2.9% over 2008.
  17. 17. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 17 Table 6: Unilever: key financials ($) $ million 2005 2006 2007 2008 2009 Revenues 53,397.0 55,122.6 55,880.5 56,347.7 55,374.3 Net income (loss) 5,236.7 6,598.0 5,406.3 6,990.1 4,686.0 Total assets 54,925.2 51,549.0 51,868.8 50,255.9 51,471.2 Total liabilities 42,737.4 35,319.0 34,043.9 35,833.5 34,039.7 Employees 206,000 179,000 174,000 174,000 163,000 Source: company filings D A T A M O N I T O R Table 7: Unilever: key financials (€) € million 2005 2006 2007 2008 2009 Revenues 38,401.0 39,642.0 40,187.0 40,523.0 39,823.0 Net income (loss) 3,766.0 4,745.0 3,888.0 5,027.0 3,370.0 Total assets 39,500.0 37,072.0 37,302.0 36,142.0 37,016.0 Total liabilities 30,735.0 25,400.0 24,483.0 25,770.0 24,480.0 Source: company filings D A T A M O N I T O R Table 8: Unilever: key financial ratios Ratio 2005 2006 2007 2008 2009 Profit margin 9.8% 12.0% 9.7% 12.4% 8.5% Revenue growth 3.3% 3.2% 1.4% 0.8% (1.7%) Asset growth 7.2% (6.1%) 0.6% (3.1%) 2.4% Liabilities growth 5.2% (17.4%) (3.6%) 5.3% (5.0%) Debt/asset ratio 77.8% 68.5% 65.6% 71.3% 66.1% Return on assets 9.9% 12.4% 10.5% 13.7% 9.2% Revenue per employee $259,209 $307,948 $321,152 $323,837 $339,720 Profit per employee $25,421 $36,860 $31,071 $40,173 $28,749 Source: company filings D A T A M O N I T O R
  18. 18. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 18 Figure 5: Unilever: revenues & profitability Source: company filings D A T A M O N I T O R Figure 6: Unilever: assets & liabilities Source: company filings D A T A M O N I T O R
  19. 19. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 19 Nirma Limited Table 9: Nirma Limited: key facts Head office: Nirma House, Ashram Road, Ahmedabad, Gujarat 380 009, IND Telephone: 91 79 27546565 Fax: 91 79 27546603 Website: www.nirma.co.in Financial year-end: March Ticker: 500308 Stock exchange: Bombay Source: company website D A T A M O N I T O R Nirma is engaged in manufacturing of consumer and industrial products. It produces consumer products such as soaps, detergents salts and scouring products under the brand name Nirma. Additionally, the company, through its integrated operations, produces industrial products including soda ash and linear alkyl benzene (LAB) in India. It also produces and sells other allied chemicals like sulphuric acid, alfa olefin sulphonate, glycerine, single super phosphate, and edible salt. Nirma markets its products through its wholly-owned subsidiary Nirma Consumer Care Limited. The company has operations in India and the US. The company operates in four segments: soaps and surfactants; pharma business; processed minerals; and other businesses. The soaps and surfactants division produces detergents, toilet soap and its ingredients. Its products include beauty soaps, premium soaps, carbolic soaps, and detergent powders and cakes. The pharma business offers medical devices such as syringes and needles. It also provides critical care products such as amino acids, lipids, and propofals. The processed minerals segment produces natural soda ash, boron and sodium sulphate through its subsidiaries, including Searles Valley Minerals and Searles Valley Minerals Operations. Processed minerals are manufactured in the US based production facilities and are marketed mainly in the US, Latin America and Europe. Nirma's other businesses provide single super phosphate, vaccum salt, iodized salt, tooth paste, and oil.
  20. 20. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 20 The company's manufacturing facilities are located at Mandali in District Mehsana, Moraiya in District Ahmedabad, Alindra in District Vadodara, Kalatalav in District Bhavnagar, Sachana in District Ahmedabad and Searles Valley, Ridgcrest in the US. Key Metrics Nirma generated revenues of $945.8 million in the financial year ended March 2010, an increase of 1% as compared to the previous year. The company's net income totaled $51 million in fiscal 2010, an increase of 87.5% over 2009. The soaps and surfactants segment accounted for 56.4% of the total sales generated by the company in FY2010. This segment generated revenues of $533.4 million in FY2010, a decrease of 1.2% as compared to 2009. India accounted for 67.5% of the total revenues in FY2010. Revenues from India reached $638.3 million in FY2010, an increase of 2.9% over 2009. Table 10: Nirma Limited: key financials ($) $ million 2006 2007 2008 2009 2010 Revenues 449.1 468.9 549.5 936.5 945.8 Net income (loss) 49.5 46.4 45.5 27.2 51.0 Total assets 613.6 717.0 956.4 1,046.5 1,036.5 Total liabilities 195.1 219.0 425.8 522.1 458.1 Source: company filings D A T A M O N I T O R Table 11: Nirma Limited: key financials (Rs.) Rs. million 2006 2007 2008 2009 2010 Revenues 21,940.2 22,907.9 26,844.6 45,748.2 46,203.8 Net income (loss) 2,419.9 2,264.2 2,225.1 1,330.0 2,493.3 Total assets 29,974.1 35,025.4 46,720.5 51,120.5 50,631.9 Total liabilities 9,533.0 10,700.1 20,800.9 25,505.8 22,378.3 Source: company filings D A T A M O N I T O R
  21. 21. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 21 Table 12: Nirma Limited: key financial ratios Ratio 2006 2007 2008 2009 2010 Profit margin 11.0% 9.9% 8.3% 2.9% 5.4% Revenue growth 4.6% 4.4% 17.2% 70.4% 1.0% Asset growth (0.8%) 16.9% 33.4% 9.4% (1.0%) Liabilities growth (17.2%) 12.2% 94.4% 22.6% (12.3%) Debt/asset ratio 31.8% 30.5% 44.5% 49.9% 44.2% Return on assets 8.0% 7.0% 5.4% 2.7% 4.9% Source: company filings D A T A M O N I T O R Figure 7: Nirma Limited: revenues & profitability Source: company filings D A T A M O N I T O R
  22. 22. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 22 Figure 8: Nirma Limited: assets & liabilities Source: company filings D A T A M O N I T O R
  23. 23. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 23 Procter & Gamble Company, The Table 13: Procter & Gamble Company, The: key facts Head office: 1 Procter & Gamble Plaza, Cincinnati, Ohio 45202, USA Telephone: 1 513 983 1100 Fax: 1 513 983 4381 Website: www.pg.com Financial year-end: June Ticker: PG Stock exchange: NYSE Source: company website D A T A M O N I T O R The Procter & Gamble Company (P&G) is a global manufacturer and marketer of consumer products. The company markets more than 300 brands in over 180 countries spanning the Americas, Europe, the Middle East and Africa (EMEA), and Asian region. The company is organized into three Global Business Units (GBUs) and a Global Operations group. The three GBUs are beauty, health and well-being, and household care. The Global Operations group consists of the Market Development Organization (MDO) and Global Business Services (GBS). The beauty GBU includes the beauty and the grooming businesses. The beauty business is comprised of cosmetics, deodorants, prestige fragrances, hair care, personal cleansing and skin care. The key deodorant brands offered by the company include Secret, Old Spice, Tag and Gillette. It also includes the deodorant brands such as Show Time, After Hours, Pure Sport, Glacial Falls, Aqua Reef, Mountain Rush, Arctic Force and Pacific Surge among others. The grooming business includes blades and razors, electric hair removal devices, face and shave products and home appliances. The key brands marketed by the grooming segment include Braun, Fusion, Gillette and Mach3. The health and well-being GBU includes the health care; and the snacks and pet care businesses. The health care business includes feminine care, oral care, personal health care and pharmaceuticals. The key brands marketed by the segment comprise Always, Crest, and Oral-B. The snacks and pet care business includes pet food and snacks. The segment markets its products under the brands Eukanuba, lams and Pringles. In the snacks business, the company sells potato chips through its Pringles brand.
  24. 24. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 24 The household care GBU includes the fabric care and home care; as well as the baby care and family care businesses. The fabric care and home care business includes air care, batteries, dish care, fabric care and surface care. The segment markets its products under Ariel, Dawn, Downy, Duracell, Gain and Tide brands. The dish care products are offered under Cascade, Dawn and Joy brands. The baby care and family care business offers baby wipes, bath tissue, diapers, facial tissue and paper towels under the following brands: Bounty, Charmin and Pampers. The MDO segment is responsible for developing go-to-market plans at the local level. The MDO includes dedicated retail customer, trade channel and country-specific teams. The GBS segment provides technology, processes and standard data tools to enable the GBUs and the MDO to better understand the business and better serve consumers and customers. The company is organized along five geographic regions: North America, Western Europe, Central & Eastern Europe/Middle East/Africa (CEEMEA), Latin America, and Asia. The company's North American operation covers Canada, Puerto Rico and the US regions. P&G has a presence in every country in Western Europe. In Western Europe, the company operates about 35 manufacturing plants and markets over 100 brands. P&G's CEEMEA includes the Balkans, Central Europe North, Central Europe South, Eastern Europe, Middle East, Sub Sahara, Turkey/Caucasia and the Central Asian Republics. In Latin America, the company operates 19 manufacturing sites, 12 distribution centers and a service center in 14 countries. P&G's Asian operation covers China, Japan, Korea, Hong Kong, India, Australia, New Zealand, Indonesia, Philippines, Singapore, Taiwan, Vietnam, Thailand, Sri Lanka, Malaysia and Bangladesh. In India, P&G operates in the household products segment through P&G Home Products Limited. The company’s fabric care products include detergents and fabric cleaning soaps. Its key brands include Ariel and Tide. Key Metrics The Procter & Gamble Company generated revenues of $78.9 billion in the financial year (FY) ended June 2010, an increase of 2.9% as compared to 2009. The company's net income totaled $12.7 billion in FY2010, a decrease of 5.2% over 2009. The household care GBU accounted for 48.8% of the total sales achieved by the company in FY2010. The household care GBU (including fabric care and home care; and baby care and family care businesses) generated revenues of $38.5 billion in FY2010, an increase of 3.4% over 2009.
  25. 25. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 25 Table 14: Procter & Gamble Company, The: key financials ($) $ million 2006 2007 2008 2009 2010 Revenues 68,222.0 74,832.0 79,257.0 76,694.0 78,938.0 Net income (loss) 8,684.0 10,340.0 12,075.0 13,436.0 12,736.0 Total assets 135,695.0 138,014.0 143,992.0 134,833.0 128,172.0 Total liabilities 72,787.0 71,254.0 74,498.0 71,451.0 66,733.0 Employees 138,000 138,000 138,000 135,000 127,000 Source: company filings D A T A M O N I T O R Table 15: Procter & Gamble Company, The: key financial ratios Ratio 2006 2007 2008 2009 2010 Profit margin 12.7% 13.8% 15.2% 17.5% 16.1% Revenue growth 20.2% 9.7% 5.9% (3.2%) 2.9% Asset growth 120.5% 1.7% 4.3% (6.4%) (4.9%) Liabilities growth 69.1% (2.1%) 4.6% (4.1%) (6.6%) Debt/asset ratio 53.6% 51.6% 51.7% 53.0% 52.1% Return on assets 8.8% 7.6% 8.6% 9.6% 9.7% Revenue per employee $494,362 $542,261 $574,326 $568,104 $621,559 Profit per employee $62,928 $74,928 $87,500 $99,526 $100,283 Source: company filings D A T A M O N I T O R
  26. 26. LEADING COMPANIES India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 26 Figure 9: Procter & Gamble Company, The: revenues & profitability Source: company filings D A T A M O N I T O R Figure 10: Procter & Gamble Company, The: assets & liabilities Source: company filings D A T A M O N I T O R
  27. 27. DISTRIBUTION India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 27 MARKET DISTRIBUTION Independent Retailers form the leading distribution channel in the Indian household products market, accounting for a 86% share of the total market's value. Supermarkets / hypermarkets accounts for a further 7.6% of the market. Table 16: India household products market distribution: % share, by value, 2009 Channel % Share Independent Retailers 86.0% Supermarkets / hypermarkets 7.6% Convenience Stores 5.9% Others 0.6% Total 100% Source: Datamonitor D A T A M O N I T O R Figure 11: India household products market distribution: % share, by value, 2009 Source: Datamonitor D A T A M O N I T O R
  28. 28. MARKET FORECASTS India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 28 MARKET FORECASTS Market value forecast In 2014, the Indian household products market is forecast to have a value of $3,599.7 million, an increase of 33.7% since 2009. The compound annual growth rate of the market in the period 2009–14 is predicted to be 6%. Table 17: India household products market value forecast: $ million, 2009–14 Year $ million Rs. million € million % Growth 2009 2,691.5 131,480.9 1,935.6 6.7% 2010 2,866.2 140,015.7 2,061.3 6.5% 2011 3,039.5 148,481.3 2,185.9 6.0% 2012 3,217.4 157,169.2 2,313.8 5.9% 2013 3,403.5 166,261.4 2,447.7 5.8% 2014 3,599.7 175,846.3 2,588.8 5.8% CAGR: 2009–14 6.0% Source: Datamonitor D A T A M O N I T O R Figure 12: India household products market value forecast: $ million, 2009–14 Source: Datamonitor D A T A M O N I T O R
  29. 29. MACROECONOMIC INDICATORS India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 29 MACROECONOMIC INDICATORS Table 18: India size of population (million), 2005–09 Year Population (million) % Growth 2005 1,091.0 1.6% 2006 1,107.6 1.5% 2007 1,124.1 1.5% 2008 1,140.6 1.5% 2009 1,156.9 1.4% Source: Datamonitor D A T A M O N I T O R Table 19: India gdp (constant 2000 prices, $ billion), 2005–09 Year Constant 2000 Prices, $ billion % Growth 2005 648.8 9.1% 2006 711.8 9.7% 2007 776.8 9.1% 2008 832.5 7.2% 2009 892.5 7.2% Source: Datamonitor D A T A M O N I T O R Table 20: India gdp (current prices, $ billion), 2005–09 Year Current Prices, $ billion % Growth 2005 764.4 15.7% 2006 872.7 14.2% 2007 1,127.4 29.2% 2008 1,244.6 10.4% 2009 1,403.0 12.7% Source: Datamonitor D A T A M O N I T O R
  30. 30. MACROECONOMIC INDICATORS India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 30 Table 21: India inflation, 2005–09 Year Inflation Rate (%) 2005 3.3% 2006 6.9% 2007 8.1% 2008 8.4% 2009 10.9% Source: Datamonitor D A T A M O N I T O R Table 22: India consumer price index (absolute), 2005–09 Year Consumer Price Index (2000 = 100) % Growth 2005 115.6 3.3% 2006 123.6 6.9% 2007 133.6 8.1% 2008 144.8 8.4% 2009 160.6 10.9% Source: Datamonitor D A T A M O N I T O R Table 23: India exchange rate, 2005–09 Year Exchange rate ($/Rs.) Exchange rate (€/Rs.) 2005 44.1154 54.8337 2006 45.3188 56.8596 2007 41.3570 56.5898 2008 43.8145 64.1115 2009 48.8500 67.9264 Source: Datamonitor D A T A M O N I T O R
  31. 31. APPENDIX India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 31 APPENDIX Methodology Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: - National/Governmental statistics - International data (official international sources) - National and International trade associations - Broker and analyst reports - Company Annual Reports - Business information libraries and databases Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
  32. 32. APPENDIX India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 32 Industry associations International Association for Soaps, Detergents & Maintenance Products Square Marie-Louise 49, B-1000 Brussels, Belgium Tel.: 33 2 230 8371 Fax: 33 2 230 8288 www.aise-net.org Related Datamonitor research Industry profiles Global Household Products Household Products in Asia-Pacific Household Products in Europe Household Products in the United Kingdom Household Products in Sweden Household Products in Spain Household Products in Norway Household Products in the Netherlands Household Products in Italy Household Products in Germany Household Products in France Household Products in Denmark Household Products in Belgium Household Products in Russia Household Products in Poland Household Products in Hungary Household Products in the Czech Republic Household Products in Australia Household Products in Taiwan Household Products in South Korea
  33. 33. APPENDIX India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 33 Household Products in Singapore Household Products in Japan Household Products in China Household Products in Brazil Household Products in the United States Household Products in Mexico Household Products in Canada Household Products in South Africa
  34. 34. APPENDIX India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 34 Disclaimer All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
  35. 35. ABOUT DATAMONITOR India - Household Products 0102 - 2080 - 2009 © Datamonitor. This profile is a licensed product and is not to be photocopied Page 35 ABOUT DATAMONITOR The Datamonitor Group is a world-leading provider of premium global business information, delivering independent data, analysis and opinion across the Automotive, Consumer Markets, Energy & Utilities, Financial Services, Logistics & Express, Pharmaceutical & Healthcare, Retail, Technology and Telecoms industries. Combining our industry knowledge and experience, we assist over 6,000 of the world’s leading companies in making better strategic and operational decisions. Delivered online via our user-friendly web platforms, our market intelligence products and services ensure that you will achieve your desired commercial goals by giving you the insight you need to best respond to your competitive environment. Premium Reports Datamonitor's premium reports are based on primary research with industry panels and consumers. We gather information on market segmentation, market growth and pricing, competitors and products. Our experts then interpret this data to produce detailed forecasts and actionable recommendations, helping you create new business opportunities and ideas. Summary Reports Our series of company, industry and country profiles complements our premium products, providing top-level information on 30,000 companies, 3,000 industries and 100 countries. While they do not contain the highly detailed breakdowns found in premium reports, profiles give you the most important qualitative and quantitative summary information you need - including predictions and forecasts. Datamonitor consulting We hope that the data and analysis in this profile will help you make informed and imaginative business decisions. If you have further requirements, Datamonitor’s consulting team may be able to help you. For more information about Datamonitor’s consulting capabilities, please contact us directly at consulting@datamonitor.com.

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