The Indian FMCG industry grows at a CAGR of 16.2% and contributes 2.6% to India's GDP. Food and beverages is the largest segment, accounting for 52% of the market and growing at a CAGR of 13.4%. Personal care and household care are the next largest segments. The FMCG industry maintained margins of 15.8% despite rising input costs. Key strengths include a large domestic market, low operational costs, and well-known brands, while opportunities lie in tapping the rural market and increasing purchasing power. Threats include the removal of import restrictions and a potential slowdown in rural demand.

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