3. FMCG
The Fast moving consumer goods (FMCG) industry
or consumer packaged goods (CPG) industry is
mainly responsible for producing, distributing and
marketing fast-moving consumer goods.
4. Introduction
➢The Indian FMCG sector is the fourth largest sector in the
economy.
➢Healthcare accounts for 31-32%
➢Household and personal care products accounts for 50%
of the sales in the industry.
➢Beverage accounts for the remaining 18-19%
➢14 million Retail stores in India in that 4% of them being
larger than 500 sq ft size
6. Challenges in the FMCG industry
• Transportation problems
• Warehousing
• Packaging (cost)
• Media Problems
• Seasonal Marketing
• Low Per Capita Income
• Distribution
7. Rural consumer durables
The Consumer Durables industry consists of durable goods and
appliances for domestic use such as televisions, refrigerators,
air-conditioners and washing machines.
The consumer durables industry can be broadly classified into two
segments:
Consumer Electronics and
Consumer Appliances.
8. CONSUMER DURABLES
WHITE GOODS BROWN GOODS CONSUMER
ELECTRONICS
•Air conditioners
•Refrigerators
•Washing machine
•Sewing machine
•Watches and
clocks
•Cleaning
equipment
•Other domestic
appliances
•Microwave oven
•Cooking range
•Chimneys
•Mixers
•Grinders
•Electronic fans
•Irons
• Tvs
•Audio-video
systems
•Electronic
accessories
•Personal
computers
•Mobile phones
•Digital cameras
•Dvds
•Camcorders
10. The rural market is growing faster than the urban markets.
A survey carried out by RMAI (Receivables Management Association
International) has revealed that 59 per cent of durables sales come
from rural markets.
The study further stated that the television segment in the rural and
small towns witnessed a growth of 29 per cent,
• Microwave ovens 26 per cent,
• Air conditioners 17 per cent,
• Washing machines 15 per cent and
• Refrigerators 12 per cent.
Around 35% of total sales of consumer durables come from rural and semi urban market
This growth is on the back of entry-level products and largely driven
by rural and semi-urban markets.
11. Rural Banking
Today, rural banking includes a set of various financial institutions, particularly regional
rural banks (RRBs), cooperatives, commercial banks, self-help groups, and land
development banks.
12. Evolution of rural banking after independence
• In 1969, the Government of India decided to nationalise the banks under the
Banking Regulation Act, 1949.
• After independence, the evolution of the banking system in India continued
pretty much the same as before.
• A total of 14 banks were nationalised, including the Reserve Bank of India (RBI).
Central Bank of India: 1911
Bank of India: 1906
Punjab National Bank: 1894
13. Phase 1: The Pre-Independence Phase
• There were almost 600 banks present in India before independence.
• The first bank to be established as the Bank of Hindustan was founded in 1770
in Calcutta.
• A few other banks that were established in the 19th century.
Such as Allahabad Bank (Est. 1865)
Punjab National Bank (Est. 1894),
have survived the test of time and exist even today.
14. Phase 2: The Post-Independence Phase
• After independence, the evolution of the banking system in India continued
pretty much the same as before.
• In 1969, the Government of India decided to nationalise the banks under the
Banking Regulation Act, 1949.
NABARD (1982) – to support agricultural activities
EXIM (1982) – to promote export and import
National Housing Board – to finance housing projects
SIDBI – to fund small-scale industries (Small Industries Development Bank of India)
15. Evolution of rural banking
Regional Rural Banks were established under the provisions of an ordinance
passed on 26 September 1975 and the RRB Act 1976 to provide sufficient banking
and credit facility for agriculture and other rural sectors.
The RRBs were owned by the central government, state government, and the
sponsoring bank with 50%, 15%, and 35% shareholding respectively.
Rural banking refers to providing banking services to individuals living in rural
areas. Rural banking has become integral to the Indian financial markets with a
majority of Indian population still living in rural or semi-urban areas.
16. Functions of Regional Rural Banking
• Providing banking facilities to rural and semi-urban areas
• Carrying out government operations like disbursement of wages of MGNREGA
workers, distribution of pensions etc.
• Providing para-banking facilities like locker facilities debit and credit cards,
mobile banking internet banking etc.
• RRBs grant loan and advances to small farmers and agricultural laborers.
• RRBs provide banking services at the doorsteps of the rural people
particularly in those areas which are not served by any commercial bank.
17. • The RRBs charge a lower rate of interest and thus they reduce the cost of
credit in the rural areas.
• RRBs provide loan and other financial assistance to entrepreneurs in villages.
• Encourage the saving habit among the rural and semi-urban population.
• A rural bank focuses on providing savings and credit services to people who
live in rural areas.
18. The other Regional Rural Bank in India are
• Haryana State Cooperative Apex Bank Limited
• National Bank for Agriculture and Rural Development (NABARD)
• Sindhanaur Urban Souharda Cooperative Bank
• United Bank of India
• Syndicate Bank:
19. Challenges in marketing of Banking
services in Rural market
• Lack of Adequate financial market (Customers expensive to reach)
• Low value of loans for poor sections (Low value of financial products)
• Low density of population
• Lack of collateral (Physical assets)
• Underdevelopment of Rural infrastructure
• Procedures and delay in loan sanctioning
• Lack of financial discipline(Government forego the loan repayment)
• Poor judicial, legal & enforcement system (Recoveries)
• Rural interest subsidy
20. Opportunities for banking in rural
areas
• Amendment in market committee (APMC) (Clutches of traders & intermediaries)
• Investment on Agri Export zone, cold chains, warehouses, Infrastructure
• Banks to increase the lending to the rural sector (Govt encouragement )
• Increased flow of money in rural area.
• Sourcing agricultural produce from India for global market
• Encouragement for organic foods, herbal products etc
• Export operation
