Looking into the concept that governs the demand and supply of FMCG. Insights into the market size and worth. Talks about some leading FMCG and companies that manufacture them.

1. Presented by
Group 2

2. What is FMCG ?
• Fast-moving consumer goods (FMCG)
or consumer packaged goods (CPG) are products
that are sold quickly and at relatively low cost.
• Fast moving consumer goods have a short shelf
life, either as a result of high consumer demand
or because the product deteriorates rapidly.
• Some FMCGs, such as meat, fruits and vegetables,
dairy products, and baked goods, are highly
perishable.

3. Salient features
• Frequent purchase
• Low involvement (little or no effort to choose the
item)
• Low price
• Short shelf life
• Rapid consumption

4. Examples of FMCG
• Processed Foods: Processed food such as breakfast cereal.
• Beverages: Packaged beverages such as fruit juice and
bottled water.
• Dry Goods: Dry goods include things such as coffee, tea,
sugar and beans.
• Prepared Meals: Prepared ready to foods such as MTR.
• Toiletries: Toiletries such as toothpaste.

5. • Over-the-counter Medications: Basic medications that are
available without a prescription.
• Fresh Food: Fresh food such as fruits and vegetables that
are perishable.
• Frozen Food: Frozen items such as ice cream that require a
temperature-controlled supply chain.
• Consumer Electronics: Although consumer electronics are
typically durable, fast selling ideas such as memory cards or
headphones may be considered FMCG.
• Office Supplies: Consumable office supplies such as pens
and paper.

6. FMCG market in India

8. Facts and Figures
• The growing purchasing power and rising
influence of the social media have enabled Indian
consumers to splurge on good things.
• The Indian consumer sector has grown at an
annual rate of 5.7 per cent between FY2005 to FY
2015. India’s nominal year-on-year expenditure
growth of 12 per cent, which is more than double
the global anticipated rate of 5 per cent, will lead
to India becoming the third largest consumer
market by 2025.

10. • The Indian fast-moving consumer goods (FMCG)
companies have performed better than their
multinational peers as the combined revenue of
country's seven leading FMCG companies stood
at US$ 11.1 billion in FY 2015-16, as compared
with US$ 9.4 billion revenue generated by select
seven Multinational Companies.
• The number of online fashion shoppers in India is
expected to double to 130-135 million by 2020,
to be driven by growth of fashion industry in
India and growing use of mobile for online
shopping.

11. Future of FMCG in India
• The Government of India has allowed 100 per cent
Foreign Direct Investment (FDI) in online retail of goods
and services through the automatic route, thereby
providing clarity on the existing businesses of e-
commerce companies operating in India.
• With the demand for skilled labour growing among
Indian industries, the government plans to train 500
million people by 2022 and is also encouraging private
players and entrepreneurs to invest in the venture.

12. • In the Union Budget 2017, the government has
proposed to spend more on the rural side with an
aim to double the farmer’s income in five years.
• Another major factor propelling the demand for
food services in India is the growing youth
population, primarily in the country’s urban
regions.
• Mr Mark Mobius, Executive Chairman, Templeton
EM, opined that the Goods and Services Tax (GST)
will lead to mergers and rise of world class
consumer companies in India.

13. Major FMCG Brands

14. Investments
• Indian fast-moving consumer goods (FMCG) major, Patanjali
Ayurved, is targeting a 10-fold growth in sales and is set to
achieve a turnover of Rs 1 lakh crore (US$ 15.53 billion)
over the next five years.
• Amazon India has set up seven new warehouses in India,
which will be used exclusively for large appliances and
furniture, with an aim to boost the sales of its high-priced
products such as televisions, refrigerators and furniture.
• iD Fresh Food India Pvt Ltd, plans to expand its product
range, and will be launching two new types of ready-to-
cook batters, as it aims to reach a revenue of Rs 1,000 crore
(US$ 155.27 million) by the year 2020.