One of the fastest growing sector in early 1980’s till 1990’s. The dream of every creative man, any investor, advertising agency, or B-school graduate to work in or for FMCG company. After 1990’s, o FMCG started losing their sheen due to introduction of other product types o Total lack of imagination on the part of FMCG companies. During 2010, Consumers willingness to upgrade to better, value added products helped FMCG.
INTRODUCTION FMCG SECTOR generally deals with fmcg products or first moving consumer goods. Fmcg products have a quick turnover and relatively low cost . India’s fmcg sector is 4th largest Sector in the economy and contribute to around 3mln employment opportunities. Its principle constituents are household care, personal care , food & beverages. FMCG Industry is characterized by a well established distribution network, low penetration levels, low operating cost, lower per capital consumption and intense competition between the organized and unorganized segments.
GROWTH PROSPECTSLarge Market:- 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.
MARKET OPPORTUNITIESVast Rural Market:- Rural India accounts for more than 700 Million consumers, or ~70 per cent of the Indian population and accounts for ~50 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 ~ 52 per cent and is projected to touch ~ 60 per cent within a year.
Hindustan Unilever Ltd is the largest player in the industry and has the widest market coverage. Cheap labor and quality product & services have helped India to represent as a cost ad-vantage over other Countries. Multi National Companies out-source its product requirements from its Indian company to have a cost advantage.
SECTORAL OPPORTUNITIES There are 4 Major Key Sectoral opportunities for Indian FMCG Sector are: Dairy Based Products Packaged Food Oral Care Beverages
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 recognised 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”.
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. P&G Hygiene and Health Care Limited has a turnover of more than Rs. 500 crores
ITC ITC is one of Indias 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 Worlds Best Big Companies. ITC ranks among Indias 10 Most Valuable (company)Brands. While ITC is an outstanding market leader in cigarettes, Hotels, Paperboards, Packaging and Agri-Export.
Future prospect The only threats to this strong growth trajectory remain the high portion of unorganized trade, the limited distribution network of new entrants and the pressure on profit margins due to increasing competition. But these are likely to be of diminished importance as proportion of organized trade increases and players invest in improving distribution. Going forward, the industry prospects remain attractive, and new graduates can hope to leverage the training and on-the-job learning at the leading players in various functional roles, across the Metros as well as the interior heartlands on India.
OBJECTIVES HUL P&G ITCSTRENGTH Strong brand large scale market Brand portfolio & large segment& gross profit market share ManagementWEAKNESS Low exports level & losing their market high advertising cost share &Quality control Unrelated diversificationOPPERTUNITIES Large domestic Beauty product for Rural market market & rising men & online social consumer level networkTHREATS Tax and regulatory Unilever Increasing tax in structure & mimic of cigarttes & health brands hazards
HUL P& G ITCFocus on diversified Focuses on children Focuses on farmersgroup of customers
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.