Domestic FMCG Players –   Emerging Giants      Debu Bhatnagar         17.04.10                       YFactor
The FMCG Landscape                 YFactor
FMCG - MNC Leader Board                     Turnover (Rs Cr) HUL                     20,000+ Nestle                   5,00...
The MNC Landscape• HUL is still the „Big Daddy‟ but is steadily losing  dominance. Limited local flexibility• ITC is behav...
Established Indian FMCG Players                       Turnover (Rs Cr) Nirma                      3,000 Dabur             ...
Emerging Indian FMCG        Players• Sub 500 Cr Companies• Experiencing Rapid Growth  especially in the last 7-10 years   ...
Super               Vasmol from                              Co T/O                Hygienic                              1...
What makes them tick?                    YFactor
The „Big Daddy‟ Story• Losing Focus: HUL on Detergents   – Nirma• Dominance Woes: Nirma in Detergents   – Ghari   – Power•...
The Indian Market• „Bottom of the Pyramid‟ – increasing numbers  entering the consumption economy• „Climb the ladder‟ – co...
Category Pointers• Exploitable• Emerging• Vacated                             YFactor
Exploitable Categories• „Unique to India‟ Propositions• „Below the radar‟ Brands                                   YFactor
„Unique to India‟•   Legacy                            •   Indian habits and Perceptions     – Amrutanjan                 ...
Below the Radar Brands• Exploit “interstitial” spaces that the vast Indian market  offers• Regional focus• More wholesale ...
Emerging Categories• Ready to Cook/Eat  – ID Special; Meatzza• Deodorants, Perfumery and Male  Grooming  – Park Avenue  – ...
Vacated Categories• Clothes Blue: Robin  – Ujala• Shaving Cream: Erasmic  – Vi John                             YFactor
MNC Woes• In the „70s and „80s HLL behaved like an  Indian Company with Global Systems  and People  – Rin  – Fair & Lovely...
Today….• There is no difference in the quality of  people and systems between HUL,  Dabur and Marico• HUL is caught in a t...
David to Goliath…• Courage is being scared to death – but  saddling up anyway: John Wayne• Lack of money is no obstacle. L...
Call Us!                                 Thank You                           YFactor Marketing Pvt. Ltd.         1176, Sec...
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Domestic Fmcg Players Emerging Giants

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Domestic FMCG Companies are growing rapidly in India - find out why

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Domestic Fmcg Players Emerging Giants

  1. 1. Domestic FMCG Players – Emerging Giants Debu Bhatnagar 17.04.10 YFactor
  2. 2. The FMCG Landscape YFactor
  3. 3. FMCG - MNC Leader Board Turnover (Rs Cr) HUL 20,000+ Nestle 5,000 Britannia (?) 3,000 ITC Consumer <3,000 Colgate Palmolive <2,000 Reckitt Benckiser <2,000 Cadbury <2,000 P&G <1,000 Perfetti <1000 J&J Consumer <1000 Henkel <500 Lotte <500 L‟Oreal <500 YFactor
  4. 4. The MNC Landscape• HUL is still the „Big Daddy‟ but is steadily losing dominance. Limited local flexibility• ITC is behaving like a local company in the FMCG space• Reckitt Benckiser and Colgate driven by profit• New MNCs are in focused areas – confectionery and personal care companies have done well• A host of others: Kelloggs, Heinz and many imported brands jostling for space YFactor
  5. 5. Established Indian FMCG Players Turnover (Rs Cr) Nirma 3,000 Dabur 2,500 Marico 2,000 Ghari Detergents Approx 1,500 Godrej 1,100 Emami 750 CavinKare Approx 600 Jyothy Laboratories Approx 550 YFactor
  6. 6. Emerging Indian FMCG Players• Sub 500 Cr Companies• Experiencing Rapid Growth especially in the last 7-10 years YFactor
  7. 7. Super Vasmol from Co T/O Hygienic 122 Cr Research Institute Co T/O 161 Cr Keo Color Karpin Mate from from Heena Dey‟s Exports Medicals Co T/O 96 Co T/O Cr 111 CrHimgange Cooling Hair OilCo T/O 88 Cr YFactor
  8. 8. What makes them tick? YFactor
  9. 9. The „Big Daddy‟ Story• Losing Focus: HUL on Detergents – Nirma• Dominance Woes: Nirma in Detergents – Ghari – Power• Money on the Table: Pepsi/Frito in extruded snacks, Reckitt Benckiser in mosquito coils, Colgate in toothpaste – Prakash Snacks with Yellow Diamond Snacks – Bingo Mad Angles from ITC – Bharat Box with Chakravyooh Mosquito Coils – Anchor Toothpaste YFactor
  10. 10. The Indian Market• „Bottom of the Pyramid‟ – increasing numbers entering the consumption economy• „Climb the ladder‟ – constant growth in economic power at all levels• „Retail and Media Revolution‟ – drives consumer choice and information• „Dilli Chalo‟ – increasing urbanisation ‘The mother of all markets’ – Rapidly increasing demand for ALL classes of products YFactor
  11. 11. Category Pointers• Exploitable• Emerging• Vacated YFactor
  12. 12. Exploitable Categories• „Unique to India‟ Propositions• „Below the radar‟ Brands YFactor
  13. 13. „Unique to India‟• Legacy • Indian habits and Perceptions – Amrutanjan – Oil Based Hair Dye – Super – Boroline Vasmol – Jabakusum – „Cooling‟ Hair Oil• „Indian‟ Categories – Kali Mehndi – Fairness Cream – not any – Kajal, Bindi, Sindhoor more! – Chywanprash, Hajmola – Hair Oil – many times bigger – Kesh Nikhar than shampoo! • Indian Taste• Herbal/Ayurvedic/Unani – Snack Foods Products – Masalas – Shahnaz Husain – Idli Dosa Batter – Rooh Afza, Safi YFactor
  14. 14. Below the Radar Brands• Exploit “interstitial” spaces that the vast Indian market offers• Regional focus• More wholesale oriented distribution• Tier 2-3-4 towns• Lower price Lissa Soap from Raipur• Higher trade margins• Positive product tweaks – Perfume – Packaging YFactor
  15. 15. Emerging Categories• Ready to Cook/Eat – ID Special; Meatzza• Deodorants, Perfumery and Male Grooming – Park Avenue – Wild Stone – Z Talc YFactor
  16. 16. Vacated Categories• Clothes Blue: Robin – Ujala• Shaving Cream: Erasmic – Vi John YFactor
  17. 17. MNC Woes• In the „70s and „80s HLL behaved like an Indian Company with Global Systems and People – Rin – Fair & Lovely – Wheel was the last hurrah• They attracted the best talent and there was a vast gap between them and the closest Indian competitor YFactor
  18. 18. Today….• There is no difference in the quality of people and systems between HUL, Dabur and Marico• HUL is caught in a trap of its own making – Power Brands = Low Innovation – Central Control = Bureaucracy – All things to all people = nothing to nobody – Media vs Market YFactor
  19. 19. David to Goliath…• Courage is being scared to death – but saddling up anyway: John Wayne• Lack of money is no obstacle. Lack of ideas is: Ken Hakuta• Gift Karsanbhai Patel an overhead slide projector: Hindustan Lever in the ‘80s And when all else fails….. YFactor
  20. 20. Call Us! Thank You YFactor Marketing Pvt. Ltd. 1176, Sector A, Pocket A, Vasant Kunj, New Delhi 110070, INDIATel: +91 11 2613 6369; Mob: +91 97177 74290 (Debu); +91 98197 23242 (Shashi) debu.bhatnagar@yfactor.in; shashi.kalathil@yfactor.in YFactor

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