Uploaded byDeepak Kumawat
ITC Ltd.
The Indian FMCG sector, valued at approximately USD 7 billion for major companies like Hindustan Unilever and ITC, is experiencing significant growth, driven by rising income levels and expanded rural markets. Households and personal care dominate the market, while challenges include low export levels and stringent government regulations. The sector is expected to reach a retail market valuation of USD 1 trillion by 2020, with organization reforms benefiting established players.
ITC Ltd.
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- 2. Hindustan Unilever Limited(HUL) ITC Limited Patanjali Ayurved Parle Agro Amul Godrej Group Colgate-Palmolive Turnover – 7.0 Billion Dollar Turnover – 789 Million Dollar Turnover – 1 Billion dollar (Appox) Turnover – 2.15 Billion Dollar Turnover – 4.0 Billion Dollar Turnover – 0.78 Billion Dollar Turnover – 4 Billion Dollar • FMCG is the fourth 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 percent) and Food & Beverages (19 per cent) comes next in terms of market share • Retail market in India is estimated to reach USD1 trillion by 2020 from USD600 billion in 2016, with modern trade expected to grow at 20 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. INDIAN FMCG SECTOR
- 3. Strength -Low operational costs. -Presenceof established distribution networks in both urban and rural areas -Presence of well-known brands in FMCG sector SWOT FMCG Weakness -Lower scope of investing in technology and achieving economies of scale, especially in small sectors -Low exports levels Threats -Removal of import restrictions resulting in replacing of domestic brands -Slowdown in rural demand -Tax and regulatory structure -Very Difficult to revive back if products fails. Opportunities -Untapped rural market -Rising income levels, i.e. increase in purchasing power of consumers -Large domestic market- a population of over one billion. -Export potential, High consumer goods spending 30.2 34.8 36.8 44.9 47.3 49 103.7 2010 2011 2012 2013 2015 2016 2020F STRONG GROWTH IN THE INDIAN FMCG SECTOR The combined revenue of seven leading Indian FMCG companies during 2015-16 stood at USD 11,066.46 million. In the long run, with the system becoming more transparent & easily compliable, demonetisation is expected to benefit organised players in the FMCG industry. Source-www.ibef.org
- 4. Goods and Service Tax (GST)Excise duty Relaxation of license rules TRAI advertising regulations SETU Scheme Food Security Bill (FSB) Government Policies & Impacts Future Prospects CAGR: 20.6% 49 103.7 2016 2020F USD billion Favourable demographics and rise in income level to boost FMCG market 1411 3600 2014 2020F 29.4 100 2016 2025F USD billion Total consumption expenditure set to increase Rise in rural consumption to drive the FMCG market Source-www.ibef.org
- 6. Swot AnalysisStrengths -Strong andexperienced management -Strong brand presence, excellent products advertising -Employees over 25,000 people -Excellent research and development facilities Weaknesses Dependant on its tobacco revenues Opportunities -Consumption Of personal care products -Tap rural markets and increase penetration in urban areas Threats -Strict govt regulations and policies regarding cigarettes. -Intense and increasing competition amongst other FMCG companies. Company management Y C DEVESHWAR CHAIRMAN SANJIV PURI CEO NAKUL ANAND RAJIV TANDON Executive Directors B SUMANT President, FMCG Businesses
- 7. Cigarettes Food PersonalCare Lifestyle Retailing Education & Stationary Safety Matches & Incense sticks Insignia India Kings Lucky Strike Classic Gold Flake Navy Cut Players Scissors Capstan Berkeley Bristol Flake Silk Cut Duke & Royal. Products & Services Aashirvaad Candyman Sunfeast GumOn Bingo! Yippee! Kitchens of India B Natural Mint-o Essenza Di Wills Fiama Di Wills Engage Vivel Savlon Shower to Shower Vivel Cell renew Wills Lifestyle & John Players. Lifestyle Retailing Classmate & Paperkraft Education & Stationary Aim i Kno Mangaldeep Safety Matches & Incense sticks 2013-14 2014-15 2015-16 2016-17 (Q3) 52759 40909 38558 49247 54690 40439 10431 11668 43813 12405 11455 Profit Gross Revenue(ITC) Gross Revenue(FMCG) 6% 7% Financials Details Source-www.itcportal.com
- 8. Job Profile Marketing Operations •Sales Trainee • Logistics Trainee Integrity Intellectual rigour A 'will do' attitude Team skills Ability to think strategically High energy Creativity Leadership Skill Sets Required Criteria: 50% across HSC and SSC is mandatory for the resume to be considered Challenges 50 warehouses and 70 factories spread across the country and over 1200 trucks transporting ITC's goods on a daily basis!!! ITC is responsible for distribution of 18 product categories, 75 sub product categories to over 2 million outlets distributed over 1 lakh markets. 24 FMCG product categories, 77 sub product categories, largest FMCG sales and distribution network (1 lakh+ markets, 2 million+ outlets) ITC's Paperboards and Specialty Paper Division (PSPD) and the Packaging and Printing Business (PPB)provide you the opportunity to experience the dynamics of Business to Business marketing.
- 9. • Customer engagement •Relationship building • Market research • Product development • Branding • Niche advertising • Promotion and constantly drives innovation, growth and value. • Helps to gain strong marketing and sales skills. Responsibilities Expected to perform execution of orders, inventory and placement of vehicles Warehouse Service, Expected to deal with distributors, supervisors and salesmen and hence must display strong leadership qualities. Marketing Operations Career Growth Marketing Operations • Enable you work in close coordination with sales, production, logistics. • Category specific and unique "Route to Market" models, coupled with best in class technology such as APO, I2- SCS, SAP,
- 10. Dealing with Internationalalliances. Promoting Eco medical, Traditional crafts. Planning to launch some other serives with their e-choupal program like: - Micro- credit -Health -Education Develop rural market to promote other products Future Plans Hindustan Unilever Limited ITC Limited NESTLE India Parle Agro Amul Godrej Group Colgate-Palmolive Competitors Patanjali Ayurved Thank You 281.20 13.00 281.25 12.80 Mar 17, 16:00 BSE Mar 17, 15:56 NSE (4.85%) (4.77%)