3. contents
Introduction
Key players of FMCG
Growth of FMCG
Market Opportunity
Threats to FMCG industry
Conclusion
4. Introduction
The first moving consumer goods(FMCG) segment is the
Fourth largest sector in the Indian economy. The market
size of FMCG in India is estimated to grow from US $ 74
million in 2018 . Food products is the leading segment,
accounting for 43% of the overall market.
FMCG goods are popularly known as consumer packaged
goods. Items in this category include all consumable(other
than groceries / pulses) people buy at regular intervals .The
most common in the list are toilets soaps, detergent
,shampoos,toothpaste,shaving products package,
household accessories and extents to certain electronic
goods. These items are meant for daily consumption .
6. HUL
HUL was formed in 1933 as Lever Brothers India Limited and
came into being in 1956 as Hindustan Lever Limited through a
merger of Lever brothers, Hindustan Vanaspati Mfg. Co. Ltd. and
United Traders Ltd.
One of the country’s largest exporters and recognized as a golden
super star trading house by govt. of India.
The mission-”add vitality to life”
The company was renamed in June 2007 as “Hindustan Unilever
Limited
7. HUL deals in foods ,beverages,detergent,water
purifier .Its revenue is Rs.30,170 cr(US $4.5
billion).And its net income Rs 4,315 cr (US $ 640
million) .
Most trusted brand of HUL in the top 100 list( their
ranking in brackets) are:LUX(6),SURF
EXCEL(7),CLINIC PLUS (8),VASELIN (70)
8. P&G
The Company has 21 product categories out of which only
8 product have presence in India.
In India Proctor & Gamble has two subsidiaries: P&G
Hygiene and Health Care Ltd. and P&G Home Products
Ltd(GILLETTE,ARIEL,DURACELL,OLAY,H&S)
P&G Hygiene and Health Care Limited has a turnover of
more than Rs. 500 crores.
9. ITC
ITC is one of India's foremost private sector companies with a
market capitalization of over US $ 30 bln and a turnover of US
$ 6 bln.
ITC is rated among the World's Best Big Companies.
ITC ranks among India's 10 Most Valuable (company)Brands.
While ITC is an outstanding market leader in cigarettes, Hotels,
Paperboards, Packaging and Agri-Export.
10. GROWTH PROSPECT
India has a population of more than 1.150 Billions which is just behind
China.
According to the estimates, by 2030 India population will be around 1.450
Billion and will surpass China to become the World largest in terms of
population. FMCG Industry which is directly related to the population is
expected to maintain a robust growth rate.
While demonetization is being looked upon as a temporary aberration,
slowdown in consumer demand is expected to improve in the rural
markets, which will be the main trigger for FMCG consumption in 2017.
“The biggest driver for growth in the FMCG industry comes from the
rural markets, at almost 70 per cent. Today, however, both rural and
urban markets have slowed down between 3-4 per cent,” says Vivek
Gambhir, Managing Director of Godrej Consumer Products.
An overall industry size will become Rs. 620,000 crores by 2020 with 17
per cent growth every year
11.
12.
13. MARKET Opportunity
Rural India accounts for more than 700 Million
consumers, or ~70 per cent of the Indian population
and accounts for ~55 per cent of the total FMCG
market
The working rural population is approximately 400
Millions. There is an untapped market and most of the
FMCG Companies are taking different steps to
capture rural market share
The market for FMCG products in rural India is esti-
mated ~ 55 per cent and is projected to touch ~ 65 per
cent within a year
14. SECTORAL Opportunities
There are 4 Major Key Sectoral opportunities for
Indian FMCG Sector are:
Dairy Based Products
Packaged Food
Oral Care
Beverages
16. Patanjali is a holy threat to India's FMCG Industries.
Recently baba Ram Dev’s patanjali auyerveda made headlines by
becoming the third largest seller of FMCG products.
The no.1 is still HUL followed by P&G where as patanjali was
followed by rivals like GCPL, Dabur, Emami and few others.
Seldom does a new company becomes a focal point at strategy
meetings of FMCG giants. A company can take up to several
decades to establish itself in the FMCG sector. Yet patanjali
auyrveda set up merely a decade ago is challenging MNCS like
HUL,NESTLE etc
Over the last few years Patanjali auyerveda has emerged out of
nowhere to become one of INDIA’s leading FMCG brands.
According to news report, Patanjali’s revenue is above 5000 cr.
Currently the company is present in all kind of product segments
,from food to personal care to home care to hygine.
17. The results, presented in a report by ValueNotes - titled Patanjali
is here to stay! - has given some very interesting and surprising
inputs. As per the research :
46 per cent of the respondents began using Patanjali products
after recommendations from friends or relatives.
The early adopters were mostly aged between 45 and 75, and their
recommendations carry weight with the younger generation.
The brand is strongly associated with health - high quality herbal
and natural products.
The firm's toothpaste brand had the highest consumption with
80 per cent of the respondents being satisfied with the product
(47 per cent of them were very satisfied).
In just about a decade, Patanjali has emerged as one of the top
FMCG players in the country - seriously challenging the likes of
Unilever, Colgate, P&G, Dabur and Godrej in several categories.
In doing so, the company has created its own rules and re-written
others - especially around branding and distribution - both
fundamental to success in consumer products.
18. conclusion
More and more people these days have started involving
themselves in this field as; it creates tremendous job
opportunities for them. It is a steady, diverse and a highly
profitable industry where a person can do a lot of work.
The jobs in this field range from sales and supply chain,
investment, promotion, H.R development, and general
management. It also allows you to trade directly with the
various traders online.