The document discusses the Fast-Moving Consumer Goods (FMCG) sector in India, highlighting its significance as the 4th largest sector in the Indian economy, with major players like Hindustan Unilever, Nestle, and Marico. It outlines key trends, challenges, and organizational structures of prominent companies in the sector. Additionally, it touches upon aspects of departmentalization, centralization vs decentralization, and growth prospects for FMCG companies amid competitive pressures.

1. GLOBAL BUSINESS SCHOOL, HUBLI –
580025
ACADEMIC YEAR: 2018 - 2020
 Subject: Principal Of Management
 Semester : Mba 1st Semester
Class:Sunway
Name Of Student Roll No
Meghana Kalmady SU -24
Abhijith Patil SU- 01
Savita Shindhe SU - 38
Shridevi .V.Iyengar SU- 46

2. INDUSTRY
FMCG INDUSTRY

3. INTRODCUTON
 Fast Moving Consumer Goods(FMCG) Sector is
the 4th largest sector in the indian economy with
Household and Personal Care accounting for 50
per cent of FMCG sales in India.
 Frequently Purchased Goods, relatively low cost ,
replaced within a year, quick turnover, also
known as Consumer packaged Goods (CPG)

4. SEGMENTS OF FMCG
 Household Care – ( Fabric wash, Household
cleaners )
 Personal Care – ( Oral care, Hair care , Skin
Care, perfumes, feminine hygiene, paper
products)
 Food and Beverages –( Drinking water, Fruit
and vegetables , tea, coffee and dairy products,
Chocolates and Ice Cream)

5. MARKET SHARE
 The Retail market in India is estimated to reach US$ 1.1
trillion by 2020 from US$ 840 billion in 2017, with modern
trade expected to grow at 20 per cent - 25 per cent per
annum, which is likely to boost revenues of FMCG
companies.
 Revenues of FMCG sector reached Rs 3.4 lakh crore
(US$ 52.75 billion) in 2018 and are estimated to reach
US$ 103.7 billion in 2020. The sector witnessed growth
of 16.5 per cent in value terms between July September
2018; supported by moderate inflation, increase in private
consumption and rural income.

6. CURRENT INDUSTRY TREND

7. FMCG – GROWTH RATE

8. MAJOR PLAYERS
HINDUSTAN UNILEVER LIMITED
COLGATE- PALMOLVE
NESTLE INDIA
ITC LIMITED
BRITANNIA INDUSTRIES LTD
Marico

9. CHALLENGES OF FMCG
COMPANIES
Branding and Innovation
Intense competition
Abundance Of counterfeit goods
Increasing Consumer Awareness
Environment issues

10. HINDUSTAN UNILEVER LIMITED

11. COMPANY PROFILE
• Hindustan Unilever Limited (HUL) is India's largest Fast
Moving Consumer Goods company with a heritage of over
80 years in India and touches the lives of two out of three
Indians.
• HUL works to create a better future every day and helps
people feel good, look good and get more out of life with
brands and services that are good for them and good for
others.
• The Company has about 18,000 employees and has a sales
of INR 34619 cores (financial year 2017-18). Unilever has
over 67% shareholding HUL.
• One of the country largest and recognised a “ Golden Super
Star Trading House”
• In 1931, first Indian subsidiary Hindustan vanaspathi
manufacturing company, followed by Lever Brothers India
Limited (1933) and United Traders limited (1935).
• The company was renamed in June 2007 as "Hindustan
Unilever Limited

12. ORGANISATION STRUCTURE

13. DEPARTMENTALIZATION
 There are 5 types of Departmentalization
1. Functional Departmentalization
2. Product Departmentalization
3. Geographical Departmentalization
4. Customer Departmentalization
5. Process Departmentalization

15. DECENTRALIZATION/
CENTRALIZATION
In the Organisation there is never
completely Decentralization and
Centralized
In unilever Geographic And Customer
Departments have Decentralized
structure.

16. SPAN OF CONTROL
 Span Of Control refers to the number of
subordinates who reports directly to the single
manger or supervisor.
 There is wider span of control in the organisation
 There are less layers of management to pass a
message reaches more employees faster.

17. LINE AND STAFF AUTHORITY
 There is line authority between the organisation.
 the all director reports to the Chairman and there
are divided into work by departments

18. EMAMI LIMITED
INTRODUCTION
 Emami limited is an Indian producer of Fast Moving
Consumer Goods, such as cosmetics and health
and baby products. The company is based in
Kolkata.
 Founded In 1974 founders are Mr. R.S.Agrawal and
Mr. R.S Goenka(joint Chairman)
 Emami covers all the states with 29 deports across
India.

19. ORGANISATION STRUCTURE

20. SPAN OF CONTROL
 Span Of Control refers to the number of
subordinates who reports directly to the single
manger or supervisor.
 President – 4
 Vice President Creative Services – 4
 Vice President accounts Services - 1
 Vice President Marketing Services – 3
 Vice President Management and Finance – 2

21. DEPARTMENTALIZATION
There are 4 division
Creative Department
 accounts Services
Marketing Services
Management and Finance

22. DECENTRALIZATION
There is Decentralization of company
The Company is full Authority Of
delegation.
There is Divide the work.

23. LINE AUTHORITY AND STAFF AUTHORITY
Line Authority is President
All vice President Of Departmation

24. NESTLE
Organization structure

25. Introduction:-
Nestle is a Swiss multinational nutritional and health related consumer goods
company Headquarters in vevey , Switzerland . It is the largest food company in the world
Nestle was farmed in 1905 by the merger of the Anglo Swiss milk company,
Established in 1866 by Henry Nestle &brothers George page & Charles page.
• Nestle’s CEO sees Decentralization as key.
• Nestle market its products in 130 Countries across the world.
• Nestle manufactures around 10,000 different products and employs some 2,50,000
people.
• Nestle sells over a billion products every day.

26. Nestle System and Organizational Structure
A company’s Organizational chart typically demonstrates relation between
people within Organization. Such relation might include managers to sub-worker ,
directors to managing directors, Chief executive officers to various departments,
and so forth. When an organization chat grows to large it can be split into smaller
charts for separate departments within the organization.
The different types of organization charts includes:-
• Hierarchical
• Matrix
• Flat (also know as Horizontal)
• The Matrix Structure serves Nestle well
• For global Organization, the ability to organize around geographical
market’s and also around products is an advantage
• It has a manager in charge of a product line, but each product line is also
coordinated with a manager in charge of specific geographical area

28. Nestle Organization chart:-
In Organization chart, we can see that the management of Nestle is also
divided into 3 types,
 Top level management
 Middle level management
 Low level management
Top level management:-
It contains Board of Directors, Chief Executive or Managing Director . The top
management is the final source of authority and it manages aims and policies for an initiative.
It delicates more time on planning and coordinating functions.
The role of top level management
 It prepares strategic policies &plans for the initiative.
 It appoints the Executive for middle level for instance departmental managers.
Span of Control
Span of Control refers to the number of people who report directly to each manager. As
Nestle is a Centralized Organization so , span control is a key determinant how closely
managers can interact with and supervise that employees.

29. 1944-81
• Nestle’s growth in the developing world partially offset a slowdown in the company’s
traditional market’s. Nestle made it second venture outside the food industry acquiring
Alcon Laboratories.
1981-1995
• Nestle divested a number of business 1980/1984. In 1984 Nestle’s improved bottom
line allowed the company to launch a new round of acquisitions the most important
being American food giant carnation.
2003+
• The year 2003 started well with the acquisitions Movenpick Ice cream enhancing
Nestle’s position as one of the world market leaders in this product category. In 2006
Jenny Craig and uncle Toby’s were added to the Nestle portfolio and 2007 saw Novartis
Medical nutrition, Gerber and Henniez join the company.

30. NARROW SPAN OF CONTROL
Chief exe
officer
Nestle health
Science
Chairman
MARKETING
RESEARCH
PROUDUCT&
SERVICES
PRODUCTION
PLANNING
PRODUCT
DEVELOPME
NT
PRESIDENT
VP FINANCE
VP
Marketing
FINANCE
MANAGER
ACCOUNTING
AUDIT
RECRUITMENT
TRAINING
CREDIT &
COLLECTION

31. MARICO LIMITED®
 Introduction
 industry : consumer goods
 founded : Bombay, Maharashtra, India in 2nd April 1990
 Founder : harsh mariwala
 Area serve : world wide
 Key person : saugata gupta
 Revenue : Rs5,733.3 crore
 Number of employees : 2402 (2016)
 Website : www.marico.com
 Marico has 8 factories in India located.
BACK GROUND OF MARICO LIMITED
 Marico is a leading Indian company with business interests in manufacturing and retailing
personal consumer products as well as providing services in the beauty space. The company’s
history can be traced back to 1948 when the Mumbai based Mariwala family having a
presence in the trading business set up Bombay oil.

32. GROWTH RATE OF MARICO LIMITED MARKET SHARE OF MARICO LIMITED
Source : equitymaster.com

33. TREND OF THE MARICO WITH IT’S
CHALLENGE‘S
 Marico will increase the number of digital brand launches in
the future
 This coming as the online market for FMCG product grows
 Male grooming, premium female hair nourishment are some
areas of interest for marico
 The company also stet up investment in entrepreneur drive,
online start-ups
Challenge's facing by marico limited
 With entry to the skincare segment, marico will compete with
the likes of HUL and P&G
 Political uncertainty in West Asia
 33% of Marico's revenue still comes from its core coconut oils
business as compare to 45% five years back
 Marico has limited experience in the male grooming market in
india.

34. ORGANIZATION STRUCTURE OF MARICO
:

35. Harsha
mariwala
Saugata gupt Vijay
subramaniam
Ajay pawha Malind
sarwate
SPAN OF CONTROL OF MARICO LIMITED
Marico is the decentralization in
nature
The dispersion or distribution of functions and powers
a decentralization of powers specifically, government : the
delegation of power from a central authority to regional and local
authorities the decentralization of the state's public school system
government decentralization.

36. LINE AND STAFF AUTHORITY OF MARICO
Source : IBEF

37. DABUR
Dabur is one of the India’s largest Ayurvedic medicine and natural consumer
products manufacturer. which was found in the year 1884. Dabur demerged its
Pharma business in 2003 and hived it off into a separate company, Dabur Pharma
Ltd. German company Fresenius SE bought a 73.27% equity stake in Dabur Pharma
in June 2008 at Rs 76.50 a share.
 Stock price : DABUR (NSE)₹ 418.90 -3.10 (-0.73%)
4 Jan, 3:30 pm IST - Disclaimer
 CEO : Sunil Duggal (Jun 2002–)
 Headquarters : Ghaziabad, Uttar Pradesh
 Owner : Burman family
 Founder : S.K. Burman
 Area served : world wide
 Key people : Anand Burnman(chairman)
Sunil Duggal (CEO)
 Website : www.dabur.com
 Products : Health supplements(dabur honey),hair oils(amla,vatika),oral
care(Dabur Red paste)

39. SPAN OF CONTROL :

40.  Span of control of Dabur Company is continued by hierarchy
of BURMAN Family.( where as the present chairman is Anandh
Burman & but the CEO is Sunil Duggal.The span of Control
Flow Chairman(3),Chief Executive Officer’s(5),Marketing
Head(6),Finanace and Commercial Head(4),HR(3),Quality
Control(3),Manufacturing and shop Maintenance(3).
 Departmentalization is done on the basis of Function’s
(production ,marketing,Financing,Human Resource
Management) And geographical departmentaion(In
Ahmdabhad, kolkatta, chennai, Banglore)
Product departmentation: Health supplements(dabur honey),hair
oils(amla),oral care(dabur red paste),skin care(dabur
gulabri),shampoos,foods.etc

41. LINE AND STAFF AUTHORITY
 Line and Staff authority means authority to advise but not to direct ,
other managers : Directors and unit heads , and vice president.
 Co-ordination among department :
 Marketing : (Regional manager,Branch manager,marketing
executives,customer support officers,assistants)
 Finance & commercial(Accountants,assistant managers,store
executives)
 Human Resource: HR(managers,executives,supervisors.)
 Quality controls: Assistant managers, senior officers.
 Manufacturing and shop maintenance: assistant manager,senior
officer,supervisors.
Centralization and Decentalization : - Decentarlisation : Here
there is a systematic deligation of authority or power, to individuals or
units at all levels of an organization.

42. LEADERSHIP
STYLE

43. GEAT PERSONALITY FROM MARICO
 Saugata serves as md and CEO at
marico limited responsible for
driving the company’s growth and
operations both nationally and
internationally. he has helped
transform marico into a high
performing business with a
commitment to sustainable
development. in seeking to win
amongst the consumers, he has
taken the company forward in
developing top quartile capability
and processes while continuing to
focus on best in class governance
and risk management while driving
growth

44. MR. RS AGARWAL
 Mr. RS Agarwal and Mr. RS Goenka
 Radhe Shyam Agarwal (also known as R S Agarwal)
is an Indian entrepreneur, co-founder and executive
chairman of Emami , a global group of company
engaged in the business of FMCG , paper, real
estate, edible oils, health care and cement. Radhe is
among the top 100 richest Indians and was listed
by Forbes as having a net worth of $1.43 billion in
2015.

45. Thank
You