1. Short FMCG Analysis Date: 29/09/2015
Swaroop Pandao swarooppandao@gmail.com
Indian FMCG Industry
In the Economy, India’s FMCG is fourth largest.
CAGR = 16.2%
FMCG to GDP = 2.6%
100% FDI in electronic hardware manufacturing sector
FMCG maintained margins at 15.8% despite rising raw material costs
Segments Food and
Beverages
Personal
Care
Household
Care
Tobacco Other
Products
CAGR 13.4% 10.12% 9.23% 8.84% 7.94%
Share (%) 52% 20% 10% 15% 3%
Products Vegetables,
Fruit, grain,
dairy
products, etc.
Face wash,
Powder,
Cream oil,
Razors,
Shampoo,
etc.
Laundry
Soaps,
Detergents,
Air
fresheners,
Floor
cleaners, etc.
Tobacco,
Cigarettes,
etc.
Market
Leaders
Nestle, Dabur
India,
Britannia
Hindustan
Unilever
Limited
Hindustan
Unilever
Limited,
P&G
Hygiene
ITC
SWOT Analysis:
Strengths
Low operational costs
Distribution network
Presence of well-known brands
Favourable Government policies
Opportunities
Untapped rural market
Increasing purchasing power
Large domestic market
Export potential
Weaknesses
Low scope of technical investments
Low export levels
Threats
Removal of import restrictions
Slowdown in rural demand
Growth Engines Growth Inhibitors
Growing Rural and urban market
FDI support
Advertising and media coverage
Innovation in core products
Rising per capita disposable income
Wide distribution network
High competition between large and
small players
Ineffective use of technology
Taylor made products with attractive
packaging
Reach and role of distribution
