The document provides an overview of the Fast Moving Consumer Goods (FMCG) industry in India. Some key points: - FMCG includes packaged foods, beverages, drugs and other consumables that are sold quickly and at low costs. Profit margins are small but volumes are high, making it a low margin-high volume business. - India's FMCG market size was over US$ 51.4 billion in 2017 and is expected to grow at a 20.6% CAGR to over US$ 103.7 billion by 2020. Rural FMCG market size was US$ 29.7 billion in 2017. - The FMCG sector contributes around 3.1% to India's GDP currently

1. AboutCompany–www.premast.com
MANAGERIAL ACCOUNTING
FMCG
INDUSTRY
Financial
Analysis

2. INTRODUCTION

3. Introduction
FMCG include non-
durable goods such as
packaged foods,
beverages, over-the-
counter drugs and
many other
consumables.
Profit margin on FMCG
products is relatively
small, they’re generally
sold in large quantities
& is a classic case of
low margin-high volume
business.
FMCG sector is the 4th
largest contributor to
Indian economy with a
market size of more
than US$ 51.4 billion in
2017.
Fast-moving consumer
goods or Consumer
Packaged Goods
(CPG) are products that
are sold quickly and at
relatively low cost

4. India’s FMCG Sector at a Glance
51.4 billion $India’s FMCG Market size in 2017
20.6%Indian FMCG market is expected to grow at a CAGR of
29.7 billion $ Rural FMCG Market size in 2017
3.1%FMCG Sector’s Contribution to India’s GDP in 2017
103.7 billion $ By 2020 it is expected to reach

5. CAGR

6. Market Breakup
*Data of FY 2016-17

7. COMPANY ANALYSIS

8. SANDHYA
02
ADITYA SIDDHARTH
04 05
Presenters
ELISSA
01
NAVITHA
03

10. Introduction
Listed amongst the
most trusted &
valuable brands by
Millward Brown,
WPP Group
Estimated market share of
38% & annual revenues
in excess of 9000 Cr.
Britannia Ind. Ltd. is
an Indian food-
products corporation
with a legacy of over
100 years
5 million retail outlets
across the country
and a reach over 50%
of Indian homes

11. Timeline
Established with an
investment of ₹ 295
in Kolkata
Name changed
from Britannia
Biscuits Co. to
Britannia
Industries Ltd.
Voted in top 300 small
companies by Forbes
Global
Awarded the Global
Performance
Excellence Award by
Asia Pacific Quality
Organization
Entered a JV with
Chipita S.A for
manufacture and sale
of RTE Croissants
1892
1979
2000
2012
2017

12. Products
01
02
03
04
Biscuits
Breads
Cake & Rusk Products
Dairy Products

13. Company Analysis
227%Increment in Shareholder’s Fund from 2012-2016
37%Increment in Current Liabilities from 2012-2016
88% Decrement in Non-Current Liabilities from 2012-2016
65%Increment in Current Assets from 2012-2016
103% Increment in Non-Current Assets from 2012-2016

14. Company Analysis
2012 2013 2014 2015 2016
Current Assets 857.98 826.09 860.06 1429.31 1417.39
Current Liabilities 979.26 1120.81 958.43 1202.45 1342.70
Current Ratio 0.88 0.74 0.90 1.19 1.06
Total Liabilities 1152.30 1332.71 990.98 1226.37 1367.10
Total Assets 1672.34 1883.47 1844.44 2461.99 3067.26
Debt Ratio 0.69 0.71 0.54 0.50 0.45
Total Revenue 5032.72 5670.96 6946.30 7263.52 8046.11
Total Assets 1672.34 1883.47 1844.44 2461.99 3067.26
Asset Turnover (times) 3.01 3.01 3.77 2.95 2.62
Total Debt 1152.30 1120.81 1844.44 2461.99 3067.26
Total Equity 520.04 550.76 853.46 1235.62 1700.16
Debt-Equity Ratio 2.22 2.04 2.16 1.99 1.80

15. Company Analysis
0.00%
10.00%
20.00%
30.00%
40.00%
MARKET SHARE
MARKET
SHARE

16. BCG Matrix
GROWTH
SHARE

18. Introduction
Revenues of over Rs
7,680 Cr & Market
Capitalization of over
Rs 48,800 Cr
Available in over 120
countries & it's overseas
revenues are over 30%
of the total turnover
India’s most trusted name
and the world’s largest
Ayurvedic and Natural
Health Care Company
Dabur was founded
in 1884 by
S.K.Burman &
Sidharth Burman

19. Timeline
Birth of Dabur:
Launches health
care products
Dabur becomes a
full-fledged
company: Dabur
India (Dr. S. K.
Burman) Pvt. Ltd
Dabur India Ltd’s
turnover crosses the
Rs 1,000 Crore mark
Dabur makes its first
overseas acquisition
Market Capitalization
crosses the $5-Billion
mark
1884
1936
2000
2010
2013

20. Products
01
02
03
04
Food
Personal Care Brands
Healthcare Brands
Homecare Brands

21. Company Analysis
134%Increment in Shareholder’s Fund from 2013-2017
4%Increment in Current Liabilities from 2013-2017
372%Increment in Non-Current Liabilities from 2013-2017
4%Decrement in Current Assets from 2013-2017
263% Increment in Non-Current Assets from 2013-2017

22. Company Analysis
2013 2014 2015 2016 2017
Current Assets 1852.56 1969.85 1590.22 1834.16 1784.44
Current Liabilities 1158.54 1136.68 1064.69 1208.21 1207.00
Current Ratio 1.60 1.73 1.49 1.52 1.48
Quick Assets 1352.24 1411.65 1039.62 1218.60 1185.17
Current Liabilities 1158.54 1136.68 1064.69 1208.21 1207.00
Quick Ratio 1.17 1.24 0.98 1.01 0.98
Net Sales 6146.00 7073.00 7806.00 7851.00 7680.00
Net Working Capital 694.02 833.17 525.53 625.95 577.44
Wor. Cap. Turnover (times) 8.86 8.49 14.85 12.54 13.30
Total Debt 1232.84 1219.46 1179.56 1335.44 1557.97
Total Equity 1565.61 1902.34 2516.04 3094.29 3657.88
Debt-Equity Ratio 0.79 0.64 0.47 0.43 0.43

23. Company Analysis
Net Sales
0
2,000
4,000
6,000
8,000
FY13 FY14 FY15 FY16 FY17
Net Sales
0 1,000 2,000 3,000 4,000 5,000
FY13
FY14
FY15
FY16
FY17
Shareholders Funds
0.00
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
FY13 FY14 FY15 FY16 FY17
Total Revenue
0
100
200
300
400
FY13 FY14 FY15 FY16 FY17
Income

24. BCG Matrix
GROWTH
SHARE

26. Introduction
Company has
about 18,000
employees
Over 35 brands
spanning 20 distinct
categories
It is a subsidiary of Unilever, a
British-Dutch company
HUL is an
Indian consumer
goods company
based in Mumbai

27. Unilever set up its
first Indian
subsidiary,
Hindustan Vanaspati
Manufacturing
Company
Lever Brothers
India Limited was
Incorporated
United Traders
Limited was set up
These three
companies merged
to form Hindustan
Lever Limited
The Company name
was formally
changed to
Hindustan Unilever
Limited
1931
1933
1935
1956
2007
Timeline

28. Products
01
02
03
04
Food
Personal Care Brands
Water Purifier Brand
Homecare Brands

29. Company Analysis
142%Increment in Shareholder’s Fund from 2013-2017
5%Decrement in Current Liabilities from 2013-2017
10% Decrement in Non-Current Liabilities from 2013-2017
2%Increment in Current Assets from 2013-2017
35% Increment in Non-Current Assets from 2013-2017

30. Company Analysis
2013 2014 2015 2016 2017
Current Assets 7,569.99 8,852.47 9,263.55 9,552 9,411
Current Liabilities 7,655.86 8,603.84 8,782.82 6,652 7,202
Current Ratio 0.99 1.03 1.05 1.44 1.31
Quick Assets 5,043.00 6,104.94 6,660.87 7,024 7,049
Current Liabilities 7,655.86 8,603.84 8,782.82 6,652 7,202
Quick Ratio 0.66 0.71 0.76 1.06 0.98
Cost of Goods Sold 26,680 28,947 32,086 32,929 33,895
Average Inventory 2187.16 2637.26 2675.11 2565.34 2445
Stock Turnover (times) 12.20 10.98 11.99 12.84 13.86
Total Debt 1182.59 1117.51 1126.46 989 1059
Total Equity 2,674.02 3,277.05 3,724.78 6,279.00 6,490.00
Debt-Equity Ratio 0.44 0.34 0.30 0.16 0.16

31. Company Analysis
GROSS SALES
RESERVES & SURPLUSTOTAL REVENUE
PROFIT FOR THE YEAR

32. BCG Matrix
GROWTH
SHARE

34. Introduction
Major FMCG Co. due
to expansion of
product portfolio
40 brands with over 400
industrial and
consumer products
Name changed to PDI Ind.
after merger with Kondivita
Industries
Established as
Parekh DyeChem
Ind.

35. Fevicol was born
Pidilite
established as a
brand
Fevicol listed among
Top-15 Indian brands
Records 1000 Cr.
turnover
Awarded most
promising company of
the year
1959
1990
1997
2004
2016
Timeline

36. Products
01
02
03
04
Adhesives
Maintenance Products
Stationary Products
Construction

37. Company Analysis
110%Increment in Shareholder’s Fund from 2013-2017
14%Increment in Current Liabilities from 2013-2017
130% Increment in Non-Current Liabilities from 2013-2017
118%Increment in Current Assets from 2013-2017
39% Increment in Non-Current Assets from 2013-2017

38. Company Analysis
2017 2016 2015 2014 2013
Current Liabilities 3133.99 2148.24 1670.68 1641.6 1435.97
Current Assets 1022.41 961.44 958.04 885.92 896.64
Current Ratio 3.07 2.23 1.74 1.85 1.6
Current Liabilities 2413.13 1519.24 1029.64 1041.92 912.4
Quick Assets 1022.41 961.44 958.04 885.92 896.64
Quick Ratio 2.36 1.58 1.07 1.18 1.02
Sales 5298.65 5066.53 4681.45 3878.24 3331.69
Stock 720.86 629 641.04 599.68 523.57
Stock Turnover (times) 7.79 8.54 7.56 7.14 7.03
Total Debt 97.51 84.28 58.42 45.93 50.99
Total Equity 3470.91 2782.91 2270.58 1952.62 1651.53
Debt-Equity Ratio 0.03 0.03 0.03 0.02 0.03

39. Company Analysis
GROSS SALES

40. BCG Matrix
GROWTH
SHARE

42. Introduction
Nestle India is a
subsidiary of Nestle
SA, set up its first
factory in Moga &
has 8 factories in
India
Started trading in India as
The Nestle Anglo-Swiss
condensed company.
Ranked #33 on the
2016 edition of Forbes
Global 2000 list of
largest public
companies.
Nestle SA is a Swiss
Co. and is World’s
largest & most
diversified food Co.

43. Inception of Nestle
SA
Started trading in
India as The
Nestle Anglo-
Swiss
condensed
company
Nestle India’s First
factory in Moga,
Punjab
Latest factory in
Tahiwal, HP
Ranked #33 on the
Forbes Global 2000 list
of largest public
companies
1905
1912
1961
2012
2016
Timeline

44. Products
01
02
03
04
Infant Product Brands
Beverages
Ready to Cook
Products
Confectionary Brands

45. Company Analysis
68%Increment in Shareholder’s Fund from 2012-2016
43%Increment in Current Liabilities from 2012-2016
3% Decrement in Non-Current Liabilities from 2012-2016
120%Increment in Current Assets from 2012-2016
4% Decrement in Non-Current Assets from 2012-2016

46. Company Analysis
2016 2015 2014 2013 2012
Current Liabilities 16,327.00 14,816.00 13,554.50 13,471.80 11,387.30
Current Assets 32,789.90 24,854.80 19,636.70 23,017.20 14,901.20
Current Ratio 2.01 1.68 1.45 1.71 1.31
Current Liabilities 16,327.00 14,816.00 13,554.50 13,471.80 11,387.30
Quick Assets 23,358.10 16,646.70 11,195.70 15,657.90 7,445.40
Quick Ratio 1.43 1.12 0.83 1.16 0.65
Sales 91,592.80 81,232.70 98,062.70 90,619.00 83,022.60
Stock 9,431.80 8,208.10 8,441.00 7,359.30 7,455.80
Stock Turnover (times) 9.71 9.9 11.62 12.31 11.14
Total Debt 21,595.70 17,868.90 16,268.40 25,983.40 22,267.80
Total Equity 30,018.70 27,896.20 28,291.00 23,588.10 17,915.60
Debt-Equity Ratio 0.72 0.64 0.58 1.1 1.24

47. Company Analysis

48. BCG Matrix
GROWTH
SHARE

49. Maggi Issue
Presence of MSG
Presence of lead
Release of a non-
standardized food
0203
01

50. INDUSTRY ANALYSIS

51. Porter’s 9 Forces
Supplier’s
Bargaining
Power
Threat of
Substitutes
Threat
to/of New
Entrant
Political
Shift
Buyer’s
Bargaining
Power
Economical
Shift
Socio-Cultural
Shift
Technological
Shift
Industry
Competition

52. Critical Success Factors
Innovation01
02
03
04
05
06Operating Efficiency
Differentiation
Brand Equity
Pricing Power
Market Share
Critical Success
Factors

53. Growth Rate: Past & Future
Expected to grow at a
CAGR of nearly 21%
between 2016 and
2020
Rural market is
estimated to grow at a
CAGR of 14.6% during
the period 2016-2025
Penetration of modern
retail is expected to rise
at a CAGR of 24.6% by
2020
Over the last decade
grown at an annual
average of 15%
Fluctuations due to
inflation, demonetization
and GST from the past 3-
5 years
Latest growth figure
was 5.1 % in the urban
market and 6.9% in the
rural market
Growth Rate in the Past Expected Growth Rate

54. Effect of Demonetization & GST
01
The sales growth in value terms decelerated from a
high of 9.9% in October’16 to around 3% in the rest of
the quarter.
02
20-40% fall in sales of biscuits, salty snacks, shampoos
and washing powders while sales of refined oil,
beverages and packaged tea fell about 3-4%
Effect of Demonetization on FMCG Industry
01
The total current tax rate for the FMCG industry was
around 22-24% under GST, the tax rate comes to an
average of 18-20%
02
Higher tax rates for shampoos and detergents
impacted the firms negatively as these products are
mass consumption items and are used daily.
Effect of GST on FMCG Industry

55. Revision of Tax Rates after GST
Product Pre GST Post GST
Soaps 27% 18%
Hair Oils 27% 18%
Sugar Confectionery 21% 18%
Toothpaste 27% 18%
Toothpowder 17% 12%
Wheat 2.5% 0%
Rice 2.75% 0%
Unbranded Flour 3.5% 0%
Mineral Water 27% 18%
Vegetable Oils 6% 5%
Milk Powder 6% 5%
Sugar 6% 5%
Tea 6% 5%
*CST, Octroi, entry tax has not been considered in the pre-GST rate

56. Comparison of Industry & Company Ratios
Ind. Avg. Pidilite Nestle Dabur HUL Britannia
Current
Ratio
1.90 3.07 2.01 1.48 1.31 1.06
Quick
Ratio
1.19 2.36 1.43 0.98 0.98 0.48
Debt-
Equity
Ratio
0.46 0.03 0.72 0.43 0.16 1.80
Stock
Turnover
(times)
8.49 7.79 9.71 8.83 13.86 13.96

57. CONCLUSION

58. Conclusion
Lorem ipsum dolor sit amet, duis eu.
Metus tortor. Eu ut lorem, est sodales
amet.
This sector will continue to see growth as it depends on an
ever-increasing internal market for consumption, and demand
for these goods remains more or less constant, irrespective of
recession or inflation.
Availability of key raw materials, cheaper labor costs and
presence across the entire value chain gives Indian FMCG
industry a competitive advantage.
Penetration level as well as per capita consumption in most
product categories like jams, toothpaste, skin care, hair wash
etc. in India is low, indicating the untapped market potential.
Increasing Indian population, particularly the middle class and
the rural segments, presents an opportunity to makers of
branded products to convert consumers to branded products.

59. REFERENCES
• https://www.ibef.org/industry/fmcg.aspx
• http://www.careratings.com/upload/NewsFiles/SplAnalysis/FMCG_July%202
017.pdf
• https://www.ibef.org/download/FMCG-July-2017.pdf
• https://www.nestle.in/investors/stockandfinancials/annualreports
• https://www.hul.co.in/investor-relations/annual-reports/
• https://www.dabur.com/in/en-us/investor/financial-
information/reports/annual-reports
• http://www.pidilite.com/annual-reports/
• http://britannia.co.in/investors

60. THANK
YOU