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Domestic Fmcg Players Emerging Giants

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Domestic FMCG Companies are growing rapidly in India - find out why

Domestic FMCG Companies are growing rapidly in India - find out why

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  • 1. Domestic FMCG Players – Emerging Giants Debu Bhatnagar 17.04.10 YFactor
  • 2. The FMCG Landscape YFactor
  • 3. FMCG - MNC Leader Board Turnover (Rs Cr) HUL 20,000+ Nestle 5,000 Britannia (?) 3,000 ITC Consumer <3,000 Colgate Palmolive <2,000 Reckitt Benckiser <2,000 Cadbury <2,000 P&G <1,000 Perfetti <1000 J&J Consumer <1000 Henkel <500 Lotte <500 L‟Oreal <500 YFactor
  • 4. The MNC Landscape• HUL is still the „Big Daddy‟ but is steadily losing dominance. Limited local flexibility• ITC is behaving like a local company in the FMCG space• Reckitt Benckiser and Colgate driven by profit• New MNCs are in focused areas – confectionery and personal care companies have done well• A host of others: Kelloggs, Heinz and many imported brands jostling for space YFactor
  • 5. Established Indian FMCG Players Turnover (Rs Cr) Nirma 3,000 Dabur 2,500 Marico 2,000 Ghari Detergents Approx 1,500 Godrej 1,100 Emami 750 CavinKare Approx 600 Jyothy Laboratories Approx 550 YFactor
  • 6. Emerging Indian FMCG Players• Sub 500 Cr Companies• Experiencing Rapid Growth especially in the last 7-10 years YFactor
  • 7. Super Vasmol from Co T/O Hygienic 122 Cr Research Institute Co T/O 161 Cr Keo Color Karpin Mate from from Heena Dey‟s Exports Medicals Co T/O 96 Co T/O Cr 111 CrHimgange Cooling Hair OilCo T/O 88 Cr YFactor
  • 8. What makes them tick? YFactor
  • 9. The „Big Daddy‟ Story• Losing Focus: HUL on Detergents – Nirma• Dominance Woes: Nirma in Detergents – Ghari – Power• Money on the Table: Pepsi/Frito in extruded snacks, Reckitt Benckiser in mosquito coils, Colgate in toothpaste – Prakash Snacks with Yellow Diamond Snacks – Bingo Mad Angles from ITC – Bharat Box with Chakravyooh Mosquito Coils – Anchor Toothpaste YFactor
  • 10. The Indian Market• „Bottom of the Pyramid‟ – increasing numbers entering the consumption economy• „Climb the ladder‟ – constant growth in economic power at all levels• „Retail and Media Revolution‟ – drives consumer choice and information• „Dilli Chalo‟ – increasing urbanisation ‘The mother of all markets’ – Rapidly increasing demand for ALL classes of products YFactor
  • 11. Category Pointers• Exploitable• Emerging• Vacated YFactor
  • 12. Exploitable Categories• „Unique to India‟ Propositions• „Below the radar‟ Brands YFactor
  • 13. „Unique to India‟• Legacy • Indian habits and Perceptions – Amrutanjan – Oil Based Hair Dye – Super – Boroline Vasmol – Jabakusum – „Cooling‟ Hair Oil• „Indian‟ Categories – Kali Mehndi – Fairness Cream – not any – Kajal, Bindi, Sindhoor more! – Chywanprash, Hajmola – Hair Oil – many times bigger – Kesh Nikhar than shampoo! • Indian Taste• Herbal/Ayurvedic/Unani – Snack Foods Products – Masalas – Shahnaz Husain – Idli Dosa Batter – Rooh Afza, Safi YFactor
  • 14. Below the Radar Brands• Exploit “interstitial” spaces that the vast Indian market offers• Regional focus• More wholesale oriented distribution• Tier 2-3-4 towns• Lower price Lissa Soap from Raipur• Higher trade margins• Positive product tweaks – Perfume – Packaging YFactor
  • 15. Emerging Categories• Ready to Cook/Eat – ID Special; Meatzza• Deodorants, Perfumery and Male Grooming – Park Avenue – Wild Stone – Z Talc YFactor
  • 16. Vacated Categories• Clothes Blue: Robin – Ujala• Shaving Cream: Erasmic – Vi John YFactor
  • 17. MNC Woes• In the „70s and „80s HLL behaved like an Indian Company with Global Systems and People – Rin – Fair & Lovely – Wheel was the last hurrah• They attracted the best talent and there was a vast gap between them and the closest Indian competitor YFactor
  • 18. Today….• There is no difference in the quality of people and systems between HUL, Dabur and Marico• HUL is caught in a trap of its own making – Power Brands = Low Innovation – Central Control = Bureaucracy – All things to all people = nothing to nobody – Media vs Market YFactor
  • 19. David to Goliath…• Courage is being scared to death – but saddling up anyway: John Wayne• Lack of money is no obstacle. Lack of ideas is: Ken Hakuta• Gift Karsanbhai Patel an overhead slide projector: Hindustan Lever in the ‘80s And when all else fails….. YFactor
  • 20. Call Us! Thank You YFactor Marketing Pvt. Ltd. 1176, Sector A, Pocket A, Vasant Kunj, New Delhi 110070, INDIATel: +91 11 2613 6369; Mob: +91 97177 74290 (Debu); +91 98197 23242 (Shashi) debu.bhatnagar@yfactor.in; shashi.kalathil@yfactor.in YFactor