The document provides an overview of the fast moving consumer goods (FMCG) sector in India. Some key points:
- The FMCG market in India is expected to grow at a CAGR of 20.6% from 2016 to 2020, reaching $103.7 billion by 2020 from $49 billion in 2016.
- Total consumption expenditure in India is set to increase at a CAGR of 22.57% from 2016-2021, reaching nearly $3,600 billion by 2020 from $1,595 billion in 2016.
- The rural FMCG market in India is expected to grow to $220 billion by 2025 from $29.4 billion in 2016, as rising incomes and growing
Looking into the concept that governs the demand and supply of FMCG. Insights into the market size and worth. Talks about some leading FMCG and companies that manufacture them.
Retail Marketing in Rural India – Factors in Favour and StrategiesDr. Amarjeet Singh
Retail industry now accounting for 10% of the
country’s GDP undergoes dynamic changes boosting its
growth still further. The sector grows impressively leading
to production of wide range of products and services.
Rural markets provide great scope for marketers due to
increased revenue and purchase power of the rural
population in India. The rural income is expected to
increase faster due to government policies supporting
agriculture and the earning population that has
temporarily moved out of rural villages to cities for
employment in non-agricultural sectors. Technology in
agriculture has helped to produce quality crops and the
market is ready to give high prices for such products.
Around 60% of the students in the colleges are first
generation graduates who have moved out of their villages
for tertiary education. Thus the life style, likes and
preferences of the rural population keeps changing.
However the huge rural segment is much different from
that of the urban segment and the marketers need to
approach with sustained efforts and special models. The
highly fragmented rural segment’s needs are majorly filled
by unorganized family run Kirana stores and Maligai
shops. The share of organised retail in the country has
risen by 60% and the same is expected to have impact on
the rural market as well. The paper focuses on the growth
of retail market in India, the emerging factors in favour of
rural retail and suggests strategies for rural retailing.
India’s strong consumption story relies on its demographic structure, which, at this
point in time, is highly favourable compared to most other emerging nations. As per
the UN population statistics, this favourable demographic dividend will last for another
25–30 years. Before that, most other emerging nations would have already begun to
witness a slowdown in the growth of young (working-age) population.
The ensuing benefits with regard to the rising income and household spending would
provide a significant boost to the consumption-driven growth story of India. A glimpse
of the changing pattern of India’s consumption is already visible in the breakdown
of private final consumption spending data provided by the government. There is
a marked increase in spending on lifestyle products and services such as hotels,
mobiles, transportation and other miscellaneous goods. As against that, spending on
essentials has only remained stable.
International retailers are well aware of these benefits that the Indian economy offers.
Barring few legislative challenges that could be tackled through the policy reforms and
opening up of the retail sector, retailers have often expressed their intention to enter
and invest in India’s attractive retail sector. This is very well reflected in AT Kearney’s
Global Retail Development Index 2012, where India ranks as the fifth most attractive
retail market for international retailers. The retail sector is a significant contributor to India’s economic activity. Though a
direct measurement of the retail sector is difficult to derive through government
statistics, the trade, hotels and restaurant sectors come close to giving us an
estimate of its contribution. That component, in which retail (both organised and
unorganised) is the dominant activity, accounts for around 18% of India’s GDP.
Within the services sector of India, this component is the largest contributor
to the economy. Many institutions, however, may not agree with this possibly
understated measurement of the retail sector, as it may not accurately account
for the unorganised sector. For instance, as per the estimates of the Associated
Chamber of Commerce and Industry (ASSOCHAM) presented in one of its retail
reports of 2012, the contribution of both organised and unorganised retail stood
at 22% of GDP. This would mean that Indian retail sector size should measure
closer to INR 19.2 trillion in 2012. Leading research institutions such as AT
Kearney and ASSOCHAM estimate this sector to grow at around 15% y-o-y over
the next three–five years as against a 12%–13% nominal growth of India’s GDP
estimated by the International Monetary Fund (IMF). Going by that logic, the retail
sector should reach a size of INR 34 trillion by 2016. This is a significant growth.
The sector is also an important contributor towards the socioeconomic well-being
of the economy as it employs close to 9.4% of India’s labour force, as per the
association.
Looking into the concept that governs the demand and supply of FMCG. Insights into the market size and worth. Talks about some leading FMCG and companies that manufacture them.
Retail Marketing in Rural India – Factors in Favour and StrategiesDr. Amarjeet Singh
Retail industry now accounting for 10% of the
country’s GDP undergoes dynamic changes boosting its
growth still further. The sector grows impressively leading
to production of wide range of products and services.
Rural markets provide great scope for marketers due to
increased revenue and purchase power of the rural
population in India. The rural income is expected to
increase faster due to government policies supporting
agriculture and the earning population that has
temporarily moved out of rural villages to cities for
employment in non-agricultural sectors. Technology in
agriculture has helped to produce quality crops and the
market is ready to give high prices for such products.
Around 60% of the students in the colleges are first
generation graduates who have moved out of their villages
for tertiary education. Thus the life style, likes and
preferences of the rural population keeps changing.
However the huge rural segment is much different from
that of the urban segment and the marketers need to
approach with sustained efforts and special models. The
highly fragmented rural segment’s needs are majorly filled
by unorganized family run Kirana stores and Maligai
shops. The share of organised retail in the country has
risen by 60% and the same is expected to have impact on
the rural market as well. The paper focuses on the growth
of retail market in India, the emerging factors in favour of
rural retail and suggests strategies for rural retailing.
India’s strong consumption story relies on its demographic structure, which, at this
point in time, is highly favourable compared to most other emerging nations. As per
the UN population statistics, this favourable demographic dividend will last for another
25–30 years. Before that, most other emerging nations would have already begun to
witness a slowdown in the growth of young (working-age) population.
The ensuing benefits with regard to the rising income and household spending would
provide a significant boost to the consumption-driven growth story of India. A glimpse
of the changing pattern of India’s consumption is already visible in the breakdown
of private final consumption spending data provided by the government. There is
a marked increase in spending on lifestyle products and services such as hotels,
mobiles, transportation and other miscellaneous goods. As against that, spending on
essentials has only remained stable.
International retailers are well aware of these benefits that the Indian economy offers.
Barring few legislative challenges that could be tackled through the policy reforms and
opening up of the retail sector, retailers have often expressed their intention to enter
and invest in India’s attractive retail sector. This is very well reflected in AT Kearney’s
Global Retail Development Index 2012, where India ranks as the fifth most attractive
retail market for international retailers. The retail sector is a significant contributor to India’s economic activity. Though a
direct measurement of the retail sector is difficult to derive through government
statistics, the trade, hotels and restaurant sectors come close to giving us an
estimate of its contribution. That component, in which retail (both organised and
unorganised) is the dominant activity, accounts for around 18% of India’s GDP.
Within the services sector of India, this component is the largest contributor
to the economy. Many institutions, however, may not agree with this possibly
understated measurement of the retail sector, as it may not accurately account
for the unorganised sector. For instance, as per the estimates of the Associated
Chamber of Commerce and Industry (ASSOCHAM) presented in one of its retail
reports of 2012, the contribution of both organised and unorganised retail stood
at 22% of GDP. This would mean that Indian retail sector size should measure
closer to INR 19.2 trillion in 2012. Leading research institutions such as AT
Kearney and ASSOCHAM estimate this sector to grow at around 15% y-o-y over
the next three–five years as against a 12%–13% nominal growth of India’s GDP
estimated by the International Monetary Fund (IMF). Going by that logic, the retail
sector should reach a size of INR 34 trillion by 2016. This is a significant growth.
The sector is also an important contributor towards the socioeconomic well-being
of the economy as it employs close to 9.4% of India’s labour force, as per the
association.
This report includes company information about P&G, its competitor analysis, product portfolio, digital marketing, distribution channels and Pantene Pro-V total Damage care shampoo analysis, its 4P, STP and SWOT analysis
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
2. Table of Content
Advantage India…………………..….……. 4
Market Overview and Trends………..…….6
Strategies adopted……………....………...16
Growth Drivers…….………………............19
Case Studies……….……….......…………31
Industry Organisations……….……….......35
Porters Five Forces Framework…….……15
Executive Summary……………….….…….3
Opportunities.....…………………………...28
Useful Information……….……….......…...37
3. For updated information, please visit www.ibef.orgFMCG3
EXECUTIVE SUMMARY
Total consumption expenditure (US$ billion)
1,595
3,600
0
1,000
2,000
3,000
4,000
2016 2020F
Rural FMCG market in India (US$ billion)
29 100
220
0
50
100
150
200
250
2016 2020F 2025F
FMCG market in India (US$ billion)
Source: World Bank, Emami Reports, Dabur Reports, AC Nielsen
Notes: F- Forecast
49
104
0
50
100
150
2016 2020F
Favourable demographics and rise in income level to boost FMCG
market
FMCG market in India is expected to grow at a CAGR of 20.6 per
cent and is expected to reach US$ 103.7 billion by 2020 from US$
49 billion in 2016
Total consumption expenditure is set to increase at a CAGR of 22.57
per cent from 2016-2021.
Total consumption expenditure is expected to reach nearly US$
3600 billion by 2020 from US$ 1,595 billion in 2016
Rise in rural consumption to drive the FMCG market
The rural FMCG market in India is expected to grow to US$ 220
billion by 2025 from US$ 29.4 billion in 2016
CAGR 20.6%
CAGR 22.6%
5. For updated information, please visit www.ibef.orgFMCG5
ADVANTAGE INDIA
Rising incomes and growing youth
population have been key growth drivers
of the sector. Brand consciousness has
also aided demand
India’s consumer spending is expected to
increase to US$ 3.6 trillion by 2020 and
India’s contribution to global consumption
is expected to more than double to 5.8 per
cent by 2020.*
Tier II/III cities are witnessing faster
growth in modern trade
Low penetration levels in rural market offers
room for growth
Disposable income in rural India has
increased due to the direct cash transfer
scheme
Exports is another growing segment
E-commerce companies like Amazon are
strengthening their business in FMCG
sector, by positioning their platform pantry
as front line offering to drive daily products
sales.
Many players are expanding into new
geographies and categories
Modern retail share is expected to triple its
growth from US$60 billion in 2015 to US$180
billion in 2020
With an investment of US$ 254.50 million,
Wipro is diversifying and expanding its product
range in energy drinks, detergents and fabric
conditioners.
Patanjali will spend US$743.72 million in
various food parks in Maharashtra, M.P.
Assam, Andhra Pradesh and Uttar Pradesh.
Investment approval of up to 100 per cent
foreign equity in single brand retail and 51
per cent in multi-brand retail
Initiatives like Food Security Bill and direct
cash transfer subsidies reach about 40 per
cent of households in India
The minimum capitalisation for foreign
FMCG companies to invest in India is
US$100 million
ADVANTAGE
INDIA
Source: Emami
Note: E – Estimated, F – Forecast, * - as per a report by BCG and CII
7. For updated information, please visit www.ibef.orgFMCG7
EVOLUTION OF FMCG IN INDIA
Source: Dabur Annual Report, Economic Times, Emami Annual Report, McKinsey Global Institute, CII, Boston Consulting Group Report
FY00 FY17
Indian FMCG Industry – US$ 9
billion
Market size of chocolates -
<US$ 100 million
Market size of personal care -
<US$ 3 billion
HUL’s share in FMCG market
(personal care) - >50%
Indian FMCG Industry – US$
49 billion
Market size of chocolates –
US$ 1,766.6 million
Market size of personal care –
US$ 12.58 billion
HUL’s share in FMCG market
(personal care) – 37.4%
FMCG is the 4th largest sector in the Indian economy
Household and Personal Care is the leading segment,
accounting for 50 per cent of the overall market. Hair
care (23 per cent) and Food and Beverages (19 per
cent) comes next in terms of market share
Growing awareness, easier access and changing
lifestyles have been the key growth drivers for the
sector
The number of online users in India is likely to cross
850 million by 2025.
Retail market in India is estimated to reach US$ 1.1
trillion by 2020 from US$ 672 billion in 2016, with
modern trade expected to grow at 20 per cent - 25 per
cent per annum, which is likely to boost revenues of
FMCG companies
People are gracefully embracing Ayurveda products,
which has resulted in growth of FMCG major, Patanjali
Ayurveda, with a revenue of US$ 1.57 billion in FY17.
The company aims to expand globally in the next 5 to
10 years.
8. For updated information, please visit www.ibef.orgFMCG8
THREE MAIN SEGMENTS OF FMCG
Food and Beverages Healthcare
Household and Personal
Care
It accounts for 19 per cent
of the sector.
This segment includes
health beverages,
staples/cereals, bakery
products, snacks,
chocolates, ice cream,
tea/coffee/soft drinks,
processed fruits and
vegetables, dairy
products, and branded
flour
It accounts for 31 per
cent of the sector.
This segment includes
OTC products and
ethicals.
It accounts for 50 per cent
of the sector.
This segment includes oral
care, hair care, skin care,
cosmetics/deodorants,
perfumes, feminine
hygiene and paper
products, Fabric wash,
household cleaners
FMCG
Note: OTC is over the counter products; ethicals are a range of pharma products,
Data as of March 2016
Source: Dabur
9. For updated information, please visit www.ibef.orgFMCG9
Note: F – Forecast, ^ - according to Euromonitor International, #As per ICICI securities
Source: Dabur, AC Nielsen
The FMCG sector in India generated revenues worth US$ 49 billion
in 2016.
By 2020, the revenues of the sector are forecasted to reach US$ 104
billion
In the long run, with the system becoming more transparent and
easily compliable, demonetisation is expected to benefit organised
players in the FMCG industry.
The sector is estimated to have witnessed revenue growth of 14.8
per cent in October-December 2017, supported by improvement in
consumer sentiment and rise in rural demand.#
Direct selling sector in India is expected to reach Rs 159.3 billion
(US$ 2.5 billion) by 2021, if provided with a conducive environment
through reforms and regulation.
Edible oil market in India grew by 25.6 per cent in 2017 to cross Rs
1.3 trillion (US$ 20.08 billion). ^
The focus on agriculture, MSMEs, education, healthcare,
infrastructure and employment under the Union Budget 2018-19 is
expected to directly impact the FMCG sector. These initiatives are
expected to increase the disposable income in the hands of the
common people, especially in the rural area, which will be beneficial
for the sector.
The FMCG sector is expected to register net revenue growth of 11.8
per cent in Q4 March 2018 due to accelerated volume growth, GST
led savings and higher leverage benefits.
Visakhapatnam port traffic (million tonnes)Trends in FMCG revenues over the years (US$ billion)
31.6
33.3
35.7
38.8
43.1
49.0
57.4
68.4
83.3
103.7
0.0
20.0
40.0
60.0
80.0
100.0
120.0
2011
2012
2013
2014
2015
2016
2017F
2018F
2019F
2020F
STRONG GROWTH IN INDIAN FMCG SECTOR
10. For updated information, please visit www.ibef.orgFMCG10
FOOD AND PERSONAL CARE ACCOUNT FOR 2/3rd
SHARE IN REVENUES
Source: Dabur
Visakhapatnam port traffic (million tonnes)Revenue share of India (FY16) Hair Care is the leading segment, accounting for 23 per cent of the
overall market in terms of revenue.
Food Products is the 2nd leading segment of the sector accounting
for 19 per cent followed by health supplements and oral care which
has a market share of 16 per cent and 15 per cent, respectively.
As of FY17, the contribution of herbal products to the overall
personal care products market in India stood at 6-7 per cent and is
estimated to grow to 10 per cent by FY20.
The beauty, cosmetics and grooming market in India is expected to
reach US$ 20 billion by 2025 from US$ 6.5 billion currently.
As increasing number of customers are adopting the natural way of
life, demand for Ayurvedic and herbal products is expected to grow
at a strong rate going forward.
23%
18%
18%
15%
9%
6%
6%
5%
Haircare Foods Health Supplements
Oral Care OTC & Ethicals Home Care
Digestives Skin Care
23%
11. For updated information, please visit www.ibef.orgFMCG11
URBAN MARKET ACCOUNTS FOR MAJOR CHUNK OF
REVENUES
Source: BCG , KPMG- indiaretailing.com, Deloitte Report, Winning in India’s Retail Sector
Urban – Rural industry Breakup (FY2016-17)
Note: E – estimate, ^ - as per a report by State Bank of India
Accounting for a revenue share of around 60 per cent, rural segment
is the largest contributor to the overall revenue generated by the
FMCG sector in India and recorded a market size of around US$
29.4 billion in 2016-17.
Semi-urban and urban segments are growing at a rapid pace and
accounted for a revenue share of 40 per cent in the overall revenues
recorded by FMCG sector in India.
In the last few years, the FMCG market has grown at a faster pace in
rural India compared with urban India.
FMCG products account for 50 per cent of total rural spending.
Demand for quality goods and services has been going up in rural
areas of India, on the back of improved distribution channels of
manufacturing and FMCG companies.^
60%
40%
US$ 49 billion
Rural Urban
12. For updated information, please visit www.ibef.orgFMCG12
RURAL SEGMENT IS QUICKLY CATCHING UP
In FY17, rural India accounted for 60 per cent of the total FMCG
market.
Total rural income, which is currently at around US$ 572 billion, is
projected to reach US$ 1.8 trillion by FY21. India’s rural per capita
disposable income is estimated to increase at a CAGR of 4.4 per
cent to US$ 631 by 2020.
As income levels are rising, there is also a clear uptrend in the
share of non-food expenditure in rural India.
The Fast Moving Consumer Goods (FMCG) sector in rural and
semi-urban India is estimated to cross US$ 220 billion by 2025
Amongst the leading retailers, Dabur generates over 40-45 per
cent of its domestic revenue from rural sales. HUL rural revenue
accounts for 45 per cent of its overall sales while other companies
earn 30- 35 per cent of their revenues from rural areas.
Note: F-Forecast
Source: AC Nielsen, Dabur Reports, Goderej Group, McKinsey Global Institute
Rural FMCG Market (US$ billion)
9.0
10.4
12.3
12.1
14.8
18.9
29.4
220.0
0.0
50.0
100.0
150.0
200.0
250.0
2009
2010
2011
2012
2013
2015
2016
2025F
13. For updated information, please visit www.ibef.orgFMCG13
INCREASING SALES OF TOP FMCG COMPANIES
Sales (US$ million)
Source: Company Websites
Consumer products manufacturers ITC, Godrej Consumer
Products Limited (GCPL) and HUL reported healthy net sales in
FY17.
Aggregate financial performance of the leading 10 FMCG
companies over the past 8 quarters displays that the industry
has grown at an average 16-21 per cent in the past 2 years.
In December 2016, Godrej Consumer Products Ltd (GCPL)
acquired remaining 49 per cent in Kenyan Co Charm Industries
Reckitt Benckiser, posted 14 per cent growth in sales in FY16,
on the back of a forced distribution push in rural market, in
support from the Swach Bharat Campaign.
Biscuits and confectionery maker - Parle Products, is aiming to
increase its market share in the premium biscuits category from
15 per cent in 2016—17 to around 20 per cent by 2017-18.
Indian biscuits giant, Britannia Industries Ltd (BIL), is setting up
its largest plant ever, in Ranjangaon, Maharashtra, with an
investment of Rs 1,000 crore (US$ 156.89 million). The plant
will have an annual capacity of 120,000 tonne and will be
completed within the next two years.
735.04
1,288.70
951.02
5,254.60
5,572.15
798.41
1,255.10
946.56
5,410.73
6,115.48
-
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
6,000.00
7,000.00
GCPL
Dabur
Marico
HUL
ITC(FMCG)
FY16 FY17
14. For updated information, please visit www.ibef.orgFMCG14
MARKET SHARE OF COMPANIES IN A FEW FMCG
CATEGORIES
Market leader Other Leading Players
Hair oil 30% 19%
Shampoo 47% 27%
Oral care 54.9% 30% 14%
Skin care 54% 12% 3%
Fruit juice 60% 30%
15. For updated information, please visit www.ibef.orgFMCG15
Porter’s Five Force Framework Analysis
Low – Big FMCG companies are able to
dictate the prices through local sourcing
from a fragmented group of key
commodity suppliers
Bargaining Power of Suppliers
High – Presence of multiple brands
Narrow product differentiation under many
brands
Price war
Threat of Substitutes
High – Private label brands by retailers
are priced at a discount to mainframe
brands limits competition for the weak
brands
Highly fragmented industry as more
MNCs are entering
Competitive Rivalry
Medium – Huge investments in setting up
distribution network and promoting brands
Spending on advertisements is aggressive
Threat of New Entrants
High – Low switching cost induces the
customers’ product shift
Influence of marketing strategies
Availability of same or similar alternatives
Bargaining Power of Buyers
Positive Impact
Neutral Impact
Negative Impact
17. For updated information, please visit www.ibef.orgFMCG17
STRATEGIES AND INITIATIVES…(1/2)
FMCG companies are trying to influence consumers with intelligent deals
Firms like ITC offers combo deals to the consumers. For example, in the case of soaps and cosmetics; 4 soap cases are
offered at the price of 3, selling the range of deodorants for men and women at a discounted price
Amazon India is planning to invest significantly over the coming months for expanding its grocery and food business,
launching more products and categories and forming new partnerships with huge grocery and supermarket chains.
Promotions and
offers
The internet enables consumers to make their own research on the kind of products or commodities they want to
purchase. 1 in 3 FMCG shoppers goes online 1st and then to the stores.
Almost half of the automobile consumers follow Research Online Purchase Offline (ROPO) method
Research online
Purchase offline
Indian consumers have become choosy and are less likely to stay loyal to a brand
Dabur has launched its sugar free variant for Chyawanprash in India
As of March 2017, ITC, which ventured in coffee and chocolates segment under the Fabelle and Sunbean brands is
planning to launch another premium range of items. By doing so, the company is planning to compete with brands like
Nestle and Cadbury.
Production
innovation
Source: AC Nielsen
Indian textile retailer, Raymond, plans to relaunch its FMCG brand, Park Avenue, in West Asia and SAARC countries,
under its initiative ‘One Park Avenue’ aimed at repositioning its male grooming brand.
As of January 2018, Carlsberg India Pvt Ltd has started a new brewery in Karnataka that will manufacture all of the
company's existing brands with annual capacity of 80 million litres.
Expansion
18. For updated information, please visit www.ibef.orgFMCG18
STRATEGIES AND INITIATIVES…(2/2)
Product Flanking: Introduction of different combinations of products at different prices, to cover as many market
segments as possible
Emami, has decided to rework on its overseas strategy by planning manufacturing and acquisitions in overseas markets.
The company plans to re-work on its product portfolio by getting into new categories with higher buying preference and
revamp its distribution networks.
Customisation
FMCG companies are looking to invest in energy efficient plants to benefit the society and lower costs in the long
term.
Dabur reduced its raw water consumption by 11 per cent and reduced generation of hazardous wastes by 47 per cent in
FY17.
HUL’s energy consumption reduced by 30 per cent over the past five years and renewable energy accounted for about
28 per cent of its energy consumption.
Green
initiatives
to lower
costs
In January 2018, Eveready Industries India has entered into a joint venture with Wings Group, a large conglomerate and
one of the major FMCG companies in Indonesia called, Universal Wellbeing. Through this JV with Universal Wellbeing,
Eveready has planned marketing and distribution of a large basket of FMCG products in India.
Joint Venture
In January 2018, Switzerland-based FMCG giant, Nestle, has forayed into India’s pet care segment by introducing a
range of premium dog food, called ‘Purina Supercoat’, under its subsidiary, Nestle Purina. As per the company, there are
19 million pets in India, so the pet food industry has a lot of potential and the industry is estimated to double by 2023.
Product/
Category
Expansion
20. For updated information, please visit www.ibef.orgFMCG20
GROWTH DRIVERS FOR RETAIL IN INDIA
FMCG
Growth
Drivers
Rising
incomes
driving
purchases Desire to
experiment
with brands
Growing rural
markets
Growth of
modern trade
Strong
distribution
channel
Availability of
online
grocery
stores
Increasing
consumer
demand
Greater
awareness of
products,
brands
Government
reforms to
encourage
FDI inflow
and market
sentiment
Evolving
consumer
lifestyle
New product
launches
Source: Dabur
21. For updated information, please visit www.ibef.orgFMCG21
GROWTH DRIVERS FOR INDIA’s FMCG SECTOR
Organised sector growth is expected to
grow as the share of unorganised market
in the FMCG sector fall with increased
level of brand consciousness
Growth in modern retail will augment the
growth of organised FMCG sector
Low penetration levels of branded products
in categories like instant foods indicating a
scope for volume growth
Investment in this sector attracts investors
as the FMCG products have demand
throughout the year.
Availability of products has become way
more easier as internet and different
channels of sales has made the
accessibility of desired product to customers
more convenient at required time and place
Online grocery stores and online retail
stores like Grofers, Flipkart, Amazon
making the FMCG product s more readily
available
Rural consumption has increased, led by a
combination of increasing incomes and
higher aspiration levels, there is an
increased demand for branded products in
rural India
Huge untapped rural market
Godrej is launching OneRural programme
to generate more revenues from rural
areas
Rural India accounts for 60 per cent of the
total FMCG market, as of May 2017.
GROWTH DRIVERS
Source: Dabur
22. For updated information, please visit www.ibef.orgFMCG22
HIGHER INCOMES AID GROWTH IN URBAN AND
RURAL MARKETS
Incomes have risen at a brisk pace in India and will continue rising
given the country’s strong economic growth prospects. According to
IMF, nominal per capita income is estimated to grow at a CAGR of
4.94 per cent during 2010-19F
An important consequence of rising incomes is growing appetite for
premium products, primarily in the urban segment
As the proportion of ‘working age population’ in total population
increases, per capita income and GDP are expected to surge.
Source: IMF, World Bank
1,461.7
1,447.0
1,452.2
1,573.1
1,596.5
1,709.6
-2.0%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
1,300
1,350
1,400
1,450
1,500
1,550
1,600
1,650
1,700
1,750
2011
2012
2013
2014
2015
2016
GDP per capita, current prices Growth Rate
India’s GDP per capita (Current US$)*
23. For updated information, please visit www.ibef.orgFMCG23
8,365
1,332
1,330
1,142
776
127
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
Foodprocessing
PaperPulp
Soap,Cosmetic&Toiletpreperations
RetailTrading
VegetableOils
Tea,Coffee
FDI INFLOWS RISE OVER THE YEARS
Source: DIPP, Media articles
Cumulative FDI inflows – April 2000 to December 2017 (US$ million)
100 per cent FDI is allowed in food processing and single-brand
retail and 51 per cent in multi-brand retail.
This would bolster employment and supply chains, and also
provide high visibility for FMCG brands in organised retail
markets, bolstering consumer spending and encouraging more
product launches
The sector witnessed healthy FDI inflows of US$ 13,071.82
million during April 2000 to December 2017.
Within FMCG, food processing was the largest recipient; its
share was 63.49 per cent
US based dairy giant - Schreiber Dynamix Dairies, opened its
1st fully-automated infant nutrition plant, at Baramati,
Maharashtra, with an investment of US$ 37.18 million.
Britannia has signed an MoU with a Greek baker – Chipita, to
produce bakery items. The venture is worth an investment of
US$ 11 million, in which Britannia will be looking after functions
like logistics costs, supply-chain and distribution network
The Hershey Co plans to invest US$ 50 million over the next
five years in India, its fastest growing core market outside of
US. The company is also planning to make India an export hub
for Hershey products.
The bottling arm of Coca-Cola India, Hindustan Coca-Cola
Beverages (HCCB) is planning to increase its retail reach by
one million new outlets and is targeting a revenue of US$ 2.5
billion by 2020.
24. For updated information, please visit www.ibef.orgFMCG24
POLICY AND REGULATORY FRAMEWORK
The rate of GST on services lies between 0-18 per cent and on goods lies between 0-28 per cent
Major consumer product manufacturing companies like PepsiCo, Dabur, Hindustan Unilever etc. are aligning their
supply chains, IT infrastructure and warehousing systems ahead of unified GST regime, so as to facilitate
seamless interstate movement of goods.
Prices of commodities in the FMCG sector, like soaps, shampoo, detergents, biscuits, savory snacks etc
decreased after the implementation of GST, leading to a 3-8 per cent decrease in prices of goods at modern retail
stores.
The GST is expected to transform logistics in the FMCG sector into a modern and efficient model as all major
corporations are remodeling their operations into larger logistics and warehousing.
Warehousing cost for FMCG companies is estimated to fall by 25-30 per cent backed by the implementation of the
GST. The number of warehouses will decrease from 45-50 to 25-30 and the size of warehouses will become
larger.
Excise duty on instant tea, quick brewing black tea, and ice tea would be decreased to reduce the retail price by
30 per cent
Excise duty on other beverages and lemonade would be decreased to reduce retail sale price by 35 per cent
Excise duty on various tobacco products other than beedi would be increased, resulting in retail price of tobacco
products going up by 10-15 per cent
Goods and Service Tax
(GST)
Excise duty
The standard deduction of Rs 40,000 (US$ 618) for transport allowance and reimbursement of miscellaneous
medical expenses, will increase the disposable income in the hands of the common people.
The customs duty on import of products such as shaving and after-shave preparations, fruit juices and vegetable
juices, edible oils of vegetable origin are expected to boost the domestic sector.
Union Budget
2018-19
25. For updated information, please visit www.ibef.orgFMCG25
POLICY AND REGULATORY FRAMEWORK
In October 2009, the government amended the Sugarcane Control Order, 1966, and replaced the Statutory
Minimum Price (SMP) of sugarcane with Fair and Remunerative Price (FRP) and the State-Advised Price (SAP)
The government approved 51 per cent FDI in multi-brand retail in 2006, which will boost the nascent organised
retail market in the country
It also allowed 100 per cent FDI in the cash and carry segment and in single-brand retail
Statutory Minimum Price
FDI in organised retail
FSB would reduce prices of food grains for Below Poverty Line (BPL) households, allowing them to spend
resources on other goods and services, including FMCG products
This is expected to trigger higher consumption spends, particularly in rural India, which is an important market for
most FMCG companies
Food Security Bill (FSB)
FMCG companies, which are top advertisers on television (above 50 per cent share), are likely to face the twin
risks of reduced inventory to advertise, which could be cut by 25–30 per cent, and increased prices as
broadcasters hike prices
Telecom Regulatory
Authority of India (TRAI)
advertising regulations
Government has initiated Self Employment and Talent Utilisation (SETU) scheme to boost young entrepreneurs.
Government has invested US$ 163.73 million for this scheme
SETU Scheme
Source: SBI, Union Budget 2015-16
Industrial license is not required for almost all food and agro-processing industries, barring certain items such as
beer, potable alcohol and wines, cane sugar and hydrogenated animal fats and oils as well as items reserved for
exclusive manufacture in the small-scale sector
Relaxation of license
rules
26. For updated information, please visit www.ibef.orgFMCG26
NEW GOODS AND SERVICE TAX (GST) WOULD
SIMPLIFY TAX STRUCTURE
Introduction of GST as a unified tax
regime will lead to a re-evaluation of
procurement and distribution
arrangements
Removal of excise duty on products
would result in cash flow improvements
The rate of GST on services is likely to
be 16 per cent and on goods to be 20
per cent
Elimination of tax cascading is expected
to lower input costs and improve
profitability
Application of tax at all points of supply
chain is likely to require adjustments to
profit margins, especially for distributors
and retailers
Tax refunds on goods purchased for
resale implies a significant reduction in
the inventory cost of distribution
Distributors are also expected to
experience cash flow from collection of
GST in their sales, before remitting it to
the government at the end of the tax-
filing period
Changes need to be made to
accounting and IT systems in order to
record transactions in line with GST
requirements and appropriate measures
need to be taken to ensure smooth
transition to the GST
It is estimated that India will gain US$
15 billion a year by implementing the
Goods and Services Tax
Goods and
Service Tax
(GST)
Source: GST India
27. For updated information, please visit www.ibef.orgFMCG27
KEY M&A DEALS IN THE INDUSTRY
Target name (segment) Acquirer name (segment)
Merger/
Acquisition
Year
D&A Cosmetics Proprietary Ltd and Atlanta
Body & Health Products Proprietary Ltd
Dabur India Acqusition 2017
Helios Lifestyle Pvt Ltd Emami Ltd
Acquisition
(30% stake)
2017
Godfrey Phillips India (GPI) (packed tea
brands)
Goodricke Group Ltd Acquisition 2017
HyperCity Future Retail (Future Group) Acquisition 2017
Godrej Industries Godrej Agrovet Ltd. Increase in stake 2017
Argencos, Argentina (Hair care products)
Godrej Consumer Products Ltd (Home and
personal care)
Acquisition 2016
Issue Group, Argentina (Hair products) GCPL (Home and personal care) Acquisition 2016
Tura, Nigeria (Soap and cleaning products ) GCPL (Home and personal care) Acquisition 2015
Frika Hair (Pty) Ltd, Africa
Godrej Consumer Products Ltd (Home and
personal care)
Acquisition 2015
Megasari, Indonesia (Soap and cleaning
products )
GCPL (Home and personal care) Acquisition 2014
Olyana Holding LLC (Tea)
UK-based Borelli Tea Holdings Ltd, a wholly-
owned unit of Mcleod Russel India Ltd
Acquisition 2014
Varun Beverages Pearl Drinking - Bottling business Acquisition 2013
Garden Namkeens Pvt Ltd (Food - misc.) Cavinkare Pvt Ltd (Food) Acquisition 2012
Bacardi Martini India Ltd’s 26% shares from
Gemini Distillery Private Ltd (Beverages)
Bacardi Martini BV, Netherlands (Beverages) Acquisition 2011
Vale Do Ivai SA Acucar E Alcool (sugar and
ethanol)
Vale Do Ivai SA Acucar E Alcool (sugar and
ethanol)
Vale Do Ivai SA
Acucar E Alcool
(sugar and ethanol)
Vale Do Ivai SA
Acucar E Alcool
(sugar and ethanol)
Source: Bloomberg, Economic Times, Business Standard
29. For updated information, please visit www.ibef.orgFMCG29
GROWTH OPPORTUNITIES IN THE INDIAN FMCG
INDUSTRY
Leading players of consumer products have a strong distribution network in rural India; they also stand to gain from the
contribution of technological advances like internet and e-commerce to better logistics. Godrej is focusing on rural market
for household insecticides segment. At present, Godrej accounts for 25 per cent of the household insecticides sales from
rural areas
Rural FMCG market size is expected to touch US$ 220 billion by 2025
Rural Market
Indian consumers are highly adaptable to new and innovative products. For instance there has been an easy acceptance of
men’s fairness creams, flavoured yoghurt, cuppa mania noodles, gel based facial bleach, drinking yogurt, sugar free
Chyawanprash
Innovative
products
With the rise in disposable incomes, mid and high-income consumers in urban areas have shifted their purchase trend
from essential to premium products
Premium brands are manufacturing smaller packs of premium products. Example: Dove soap is available in 50g packaging
Nestle is looking to expand its portfolio in premium durables cereals, pet care, coffee, and skin health accessing the
potential in India.
Premium products
Indian and multinational FMCG players can leverage India as a strategic sourcing hub for cost-competitive product
development and manufacturing to cater to international markets
Sourcing base
Low penetration levels offer room for growth across consumption categories
Major players are focusing on rural markets to increase their penetration in those areas
Penetration
Source: Assorted articles and reports, AC Nielsen
It is estimated that 40 per cent of all FMCG purchases in India will be online by 2020, thereby making it a US$ 5-6 billion
business opportunity. ^
Online FMCG
Note: ^ - as per Boston Consulting Group (BCG) and Google
30. For updated information, please visit www.ibef.orgFMCG30
INCREASING FMCG SHARE IN MODERN RETAIL
Growth of India’s FMCG purchased through modern trade
is surpassing growth of FMCG purchased in general trade
In 2015, market size of the organised FMCG sector was 9 per
cent of the overall organised retail market and is expected to
reach 30 per cent by 2020. This represents the influence of
modern retail over the FMCG sector
Share of the modern retail in FMCG sales is estimated to be 12
per cent by 2016.
FMCG companies are partnering with major retail players to
increase brand communication and boost their share in modern
retail
Modern retail is expected to reach US$ 180 billion in 2020 from
US$ 60 billion in 2015. Traditional retail is expected to grow at 10
per cent and modern retail growth rate is expected to be 20 per
cent in future. Overall retail market is expected to have 12 per
cent growth rate per annum
Source: TCS report, AC Nielsen
9%
91%
FMCG share
Modern Traditional
30%
70%
2020 E
2015
Note:^ - as per latest available data
32. For updated information, please visit www.ibef.orgFMCG32
EMAMI – ONE OF THE FASTEST GROWING FMCG
COMPANIES
Emami’s Sales and PAT (US$ million)
273.3
310.2
312.8
302.1
367.8
400.9
397.4
50.2
55.2
58.0
66.7
80.6
54.8
52.8
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
400.0
450.0
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Sales PAT
Source: Company website, Annual Report, Media sources
CAGR 5.49%
Niche category player and innovator
Key brands are strong market leaders in their respective
categories
Portfolio includes Zandu, one of the strongest Ayurvedic brands
Over 80 per cent of business comes from wellness categories
During FY11-17, net sales of the company grew at CAGR of 5.49
per cent reaching US$ 397.4 million in FY1 7 and the profit after
tax reaching US$ 52.83 million
Emami has increased focus on OTC products, concentrating on
advertising, distribution and product launches. These initiatives
are expected to increase revenue contribution to 8 per cent from
6 per cent by FY16
Emami plans to make investments in start-ups. The company has
created a new division to evaluate and fund such initiatives
The company has invested into Brillare Science through
compulsory convertible preference shares which result in 26%
equity stake with Brillare. Emami’s strategy is to explore the
professional personal care segment through channels like hi-end
salons.
Emami will acquire 30 per cent stake in Helios Lifestyle Pvt Ltd by
December 2018, thereby marking the company’s entry in the
male grooming segment.
33. For updated information, please visit www.ibef.orgFMCG33
DABUR – RIDING ON STRONG BRAND EQUITY IN
INDIA
Source: Dabur Annual Report
Dabur’s sales growth (US$ million)
894.3
1,126.3
1,132.4
1,172.9
1,295.6
1,288.7
1,204.9
124.9
136.5
139.9
151.0
177.5
191.8
200.4
-
200.0
400.0
600.0
800.0
1,000.0
1,200.0
1,400.0
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Sales PAT
CAGR 4.35%
Among top four FMCG companies in India
14 brands with turnover of US$ 16.6 million with 3 brands over
US$ 165.9 million
Wide distribution network covering 2.8 million retailers across the
country
17 world-class manufacturing plants catering to needs of diverse
markets
Dabur’s Vision Plan for 2011-15, successfully got completed with
the sales of US$ 1,295.6 million recording a growth of 9.7 per
cent
In 2017, Dabur registered sales of FMCG products worth US$
1,204.93 million growing at a CAGR of 4.35 per cent over FY11-
17.
The company plans to acquire the personal care, hair care and
creams businesses of CTL group based in South Africa, at an
estimated cost of US$ 1.5 million
As of May 2017, NewU, a beauty retail venture of Dabur,
launched Sri Lankan beauty products brand - Spice Island, in
India to strengthen their portfolio.
34. For updated information, please visit www.ibef.orgFMCG34
Source: Company Reports
CAGR 4.43%
ITC – LEADING FOOD AND BEVERAGES COMPANY
ITC’s sales growth (US$ million)
4,515.5
4,566.0
4,911.0
5,455.0
5,985.9
5,572.1
6,115.5
982.5
1,182.8
1,291.1
1,347.4
1,499.3
1,486.6
1,857.8
1,093.3
1,314.4
1,365.9
1,457.4
1,593.9
1,504.0
1,600.5
-
1,000.0
2,000.0
3,000.0
4,000.0
5,000.0
6,000.0
7,000.0
FY11
FY12
FY13
FY14
FY15
FY16
FY17
Sales (Total) Sales (FMCG) PAT
ITC is one of the foremost company in private sector in terms of
sustained value creation, operating profits and cash profits
It is the only India-based FMCG company to feature in Forbes
2000 List in 2016.
ITC is a market leader in its traditional businesses of Cigarettes,
Hotels, Paperboards, Packaging and Agri-Exports
The company is rapidly gaining market share even in its nascent
businesses of Packaged Foods and Confectionery, Branded
Apparel, Personal Care and Stationery
ITC’s total sales increased at a CAGR of 4.43 per cent between
FY11 and FY17 to reach net sales of US$ 6,115.48 million
The company is planning to expand further in the FMCG sector
due to the growth in opportunities in the sector. The company has
planned an investment package worth Rs 25,000 crore (US$ 3.88
billion), of which it will invest Rs 10,000 crore (US$ 1.55 billion) to
expand its food processing segment.
ITC proposed an investment of Rs 1,100 crore (US$ 169.91
million) in Uttar Pradesh at the state’s investor summit 2018.
36. For updated information, please visit www.ibef.orgFMCG36
INDUSTRY ORGANISATIONS
Visakhapatnam port traffic (million tonnes)Indian Dairy Association All India Bread Manufacturers’ Association
PHD House, 4/2, Siri Institutional Area, August Kranti
Marg, New Delhi –110016
Phone: 91-11-26515137; Fax: 91-11-26855450
E-mail: aibma@rediffmail.com; mallika@phdcci.in
Website: www.aibma.com
Secretary (Establishment)
Indian Dairy Association, Sector-IV, New Delhi –110022
Phone: 91-11-26170781, 26165355, 26179780
Fax: 91 11 26174719
E-mail: ida@nde.vsnl.net.in
Website: www.indairyasso.org
All India Food Preservers’ Association
206, Aurobindo Place Market Complex
Hauz Khas, New Delhi –110016
Phone: 91-11-26510860, 26518848; Fax: 91-11-
26510860
Website: www.aifpa.net
Indian Soap and Toiletries Manufacturers’ Association
Raheja Centre, 6th Floor, Room No 614, Backbay
Reclamation, Mumbai – 400021
Phone: 91-22-2824115; Fax: 91-22-22853649
E-mail: istma@bom3.vsnl.net.in
38. For updated information, please visit www.ibef.orgFMCG38
GLOSSARY
FDI: Foreign Direct Investment
MSP: Minimum Selling Price
NREGA: National Rural Employment Guarantee Act
FY: Indian Financial Year (April to March)
- So FY09 implies April 2008 to March 2009
SEZ: Special Economic Zone
MoU: Memorandum of Understanding
Wherever applicable, numbers have been rounded off to the nearest whole number
39. For updated information, please visit www.ibef.orgFMCG39
EXCHANGE RATES
Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)
Year INR INR Equivalent of one US$
2004–05 44.81
2005–06 44.14
2006–07 45.14
2007–08 40.27
2008–09 46.14
2009–10 47.42
2010–11 45.62
2011–12 46.88
2012–13 54.31
2013–14 60.28
2014-15 61.06
2015-16 65.46
2016-17 67.09
2017-18 64.45
Year INR Equivalent of one US$
2005 43.98
2006 45.18
2007 41.34
2008 43.62
2009 48.42
2010 45.72
2011 46.85
2012 53.46
2013 58.44
2014 61.03
2015 64.15
2016 67.21
2017 65.12
Source: Reserve Bank of India
40. For updated information, please visit www.ibef.orgFMCG40
DISCLAIMER
India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation
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