1. The document discusses Fast Moving Consumer Goods (FMCG) sector in India. It touches on key aspects like top companies, market size, opportunities and challenges. 2. FMCG refers to daily necessity products like food, beverages, personal care items that have high turnover. India's FMCG market is the 4th largest and growing. 3. Top companies include Hindustan Unilever, ITC, Nestle, Amul, Dabur etc. The sector sees growth opportunities in rural India and with rising incomes while threats include regulatory changes.

1. FMCG
FAST MOVING CONSUMER GOODS
BY -PRANESH J K
USN – 1DY14MBA16
MBA(VTU)

2. Starting from one cup of coffee in the morning right
up to that relaxing malt beverage at night, we rely
heavily on FMCG. Everything from toothpaste to
processed foods and health drinks to body care
products comes from FMCG.
It refers to consumers non-durable goods
 Sold quickly at relatively low cost.
Generally sold at large quantities.
This sector touches every aspects of human life from
from looks to hygiene to palate.

3.  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.
INTRODUCTION

4. This sector mainly consists of sub segments viz:
Personal care, Food & Beverages, household products.
Perfumes Chocolates Soaps
Shampoos Energy drinks Detergents

5. India is an important market for FMCG players
The Indian FMCG sector is the 4th largest in the
economy with total market size of around US$ 13.1
billion.
Due to increasing competition among companies, FMCG
has extended its branches to rural and semi urban
areas.
This has increased employment opportunity in wide
range.
Scope

6.  The fast moving consumer goods (FMCG) segment is
the fourth largest sector in the Indian economy
 The market size of FMCG in India is expected to grow
from US$ 30 billion in 2011 to US$ 74 billion in 2018
 FMCG’s GDP contribution rises by 24%, FMCG, sector’s
contribution to the country’s GDP now stands at 24.3
per cent.
Evaluation of FMCG sector

7. The FMCG sector in India generated revenues worth
US$ 34.8 billion in 2011, a growth of 15.2 per cent as
compared to the previous year. Over 2006-11, the
sector's revenues posted a compound annual growth
rate (CAGR) of 17.3 per cent. Food products are the
leading segment, accounting for 43 per cent of the
overall market. Personal care (22 per cent) and fabric
care (12 per cent) are the other leading segments.
A report by the Financial Derivatives Company, FDC,
says, “The FMCG sector remains one of the fastest
growing sectors of the economy and we believe
opportunities still exists in this sector. The size of the
market is heavily influenced by the country’s
demographic dynamics and the profound influence that
western culture is having on consumer tastes.”

8. 1.Hindustan Unilever Ltd.
TOP TEN FMCG COMPANIES

9.  It is India's largest consumer goods company based in Mumbai,
Maharashtra.
 It is owned by the British-Dutch company Unilever which
controls 52% majority stake in HUL.
 HUL was formed in 1933.
 Its products include foods, beverages, cleaning
agents and personal care products.
 Revenue22,116 crore (US$4.03 billion)(2011-2012)
 Net income2,691 crore (US$489.76 million)(2011-2012)
 Employees-16,500 (2011)
 Hindustan Unilever's distribution covers over 2 million retail
outlets across India directly and its products are available in
over 6.4 million outlets in the country. As per Nielsen market
research data, two out of three Indians use HUL products.
 In 2012, HUL was recognized as one of the world's most
innovative companies by Forbes. With a ranking of number 6, it
was the highest ranked FMCG company.

10. 2.ITC (Indian Tobacco Company)

11. • It was formed in 1970 by Henry Overton Wills and Yogesh Chander Deveshwar,
(Chairman).
• Headquarters in Kolkata, West Bengal, India.
• In FMCG, ITC has a strong presence in :
• Cigarettes: W.D. & H.O. Wills, Gold Flake Kings, Gold Flake Premium, Navy
Cut, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular, Citric Twist, Mild
& Ultra Mild), 555,Benson & Hedges, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky
Strike, Players and Flake.
• Foods: (Kitchens of India; Aashirvaad, Minto, Sunfeast, Candyman, Bingo,
Yippee, Sunfeast Pasta brands in Ready to Eat, Staples, Biscuits, Confectionery,
Noodles and Snack Foods).
• Apparel: (Wills Lifestyle and John Players brands)
• Personal care: (Fiama di Wills; Vivel; Essenza di Wills; Superia; Vivel di Wills brands of
products in perfumes, hair care and skincare)
• Stationery: (Classmate and PaperKraft brands)
• Safety Matches and Agarbattis: [Ship ; Mangaldeep; Aim brands]

12. 3.Nestlé India

13.  It is a multinational nutritional and health-related consumer
goods company headquartered in Vevey, Switzerland. It is the largest
food company in the world measured by revenues.
 Nestlé was listed No. 1 in the Fortune Global 500 as the world's most
profitable corporation.
 Nestlé's products include baby food, bottled water, breakfast cereals,
coffee, confectionery, dairy products, ice cream, pet foods and snacks.
 Nestlé's india’s first production facility was set up in 1961 at moga
(punjab)
 The Nestlé india head office is located at Gurgaon along with other
branch offices in Delhi,Mumbai,Chennai and kolkata.
 It has 2,50,000 employees,500 factories and 8000 range of products
across the globe.

14. 4. AMUL

15.  Amul is an Indian dairy cooperative, based at Anand in the state of Gujarat,
India.
 Gujarat Co-operative Milk Marketing Federation Ltd Formed in 1946,
 It has also ventured into markets overseas.
 Amul's product range includes milk powders, milk, butter, ghee,
cheese, Masti Dahi, Yoghurt, Buttermilk, chocolate, ice cream and others.
 Revenue US$2.15 billion (2010–11)
 AMUL has the largest distribution network for any FMCG company. It has
nearly 50 sales offices spread all over the country, more than 5 000
wholesale dealers and more than 700 000 retailers.
 It has Largest milk handling capacity in Asia.

16. 5.Dabur India

17.  Dabur India Limited is the fourth largest FMCG Company in India with interests in
Health Care, Personal Care and Food Products.
 It is public company listed in NSC and BSC.
 it has 17 ultra-modern manufacturing units spread around the globe and its
products marketed in over 60 countries.
 Products-Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola & Real.
 It is most famous for Dabur Chyawanprash and Hajmola.
 Founded in 1884 and the Founder is Dr. S K Burman,in kolkata (west bangal)
and The company headquarters are in Ghaziabad,Uttar Pradesh, India.
 Net income(INR) 1475 Crore (2008-09).Total assets(INR) 1559 crore (2008-
09).Employees3000 (Approx.)

18. 6.Asian Paints (India)

19.  7.Cadbury India

20. 8.Britannia Industries

21. 9.Procter & Gamble Hygiene and
Health Care

22. 10.MARICO INDUSTRIES

23. Strengths-
• Low operational costs.
• Presence of established distribution networks in both urban and rural areas.
• Presence of well-known brands in FMCG sector.
• Favourable governmental Policy:
Indian Government has passed the policies aimed at attaining international
competitiveness through lifting of the quantitative restrictions, reducing excise
duties, 100 per cent export oriented units can be set up by government
approval and use of foreign brand names etc.
• Foreign Direct Investment (FDI):
Automatic investment approval up to 100 per cent foreign equity or 100 per
cent for NRI and Overseas Corporate Bodies investment is allowed for most of
the food processing sector except malted food, alcoholic beverages and those
reserved for small scale industries (SSI).

24. Opportunities-
• Untapped rural market, changing life style.
• Rising income levels, i.e. increase in purchasing power of consumers.
• Large domestic market with more population of median age 25.
• High consumer goods spending.
• India is the largest milk producer in the world, yet only around 15 per cent of
the milk is processed. The organized liquid milk business is in its infancy and
also has large long-term growth potential. Even investment opportunities exist
in value-added products like desserts, puddings etc.
• Only about 10-12 per cent of output is processed and consumed in packaged
form, thus highlighting the huge potential.
• India is under penetrated in many FMCG categories as shown in below
diagram. With rise in per capita incomes and awareness, the growth potential is
huge.
• Lower price and smaller packs are also likely to drive potential up trading for
major FMCG products

25. Weakness-
Lower scope of investing in technology and achieving
economies of scale, especially in small sectors
• Low exports levels
• "Me-tooʺ products, which illegally mimic the labels of
the established brands. These products narrow the
scope of FMCG products in rural and semi-urban
market.

26. Threats-
• Removal of import restrictions resulting in replacing
of domestic brands
• Tax and regulatory structure
• Rural demand is cyclical in nature and also depends
upon monsoon.