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1. 1

2. By: -
Mithilesh Trivedi 2

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1. INTRODUCTION
2. FMCG Product
3. Global Scenario
4. Market Scenario of India
5. Opportunities for FMCG Sector
6. Top 3 Indian Companies
7. Top 3 FMCG Companies in India
8. FMCG’s contribution to GDP
9. FDI Policy
10.Market Segment
11.Growth Drivers
12.Advantage to India
13.SWOT
Road map of the presentation

4. FMCG SECTOR generally deals with FMCG products or ‘Fast
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 3million employment opportunities
FMCG Market is in excess of Rs. 85,000 Crores
It includes household care, personal care , food & beverages
FMCG Industry is characterized by a well established distribution
network, low operating cost, lower per capital consumption and
intense competition between the organized and unorganized
segments
4
INTRODUCTION

5. FMCG Products
Detergents
SoapsBeverages
Shampoos
Confectionaries
Creams
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(Rs. 12,000 Cr.) (Rs. 2,700 Cr.)
(Rs. 4,000 Cr.) (Rs. 3,500 Cr.) (3,400 Cr.)
(Rs. 2,100 cr.)

6. Per Capita Consumption(US$)
GLOBAL SCENARIO
0
2
4
6
8
10
12
India China Thailand South Africa
Laundry Shampoo
Skincare Deodrants
Per capita consumption in (US$)
6

7. 7
MARKET
SCENARIO

8. CHANGING LIFESTYLE
0
10
20
30
40
50
60
70
80
90
100
0 2.1
48.6
22
38
28
6.6
86.1
88.6
91.5
5.5
74.9
31.5
52.1
59.9
15.5
90.7 91.4
97.4
0.6
37.6
17.8
31.9
14.6
2.8
84.1 87.4 88.9
ALL INDIA URBAN % RURAL %
SOURCE:HLL INVESTOR MEET 2010
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9. GROWTH
PROSPECTS
 India has a population of more than 1.210 Billions which is just
behind China
 According to the estimates, by 2030 India population will be
around 1.450billion
 It will surpass China to become the World largest in terms of
population
 FMCG Industry which is directly related to the population is
expected to maintain a robust growth rate
 An overall industry size will become Rs. 620,000 crores by 2020
with 17 per cent growth every year
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10. 10
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11. 11

12. Vast Rural Market:-
Rural India accounts for more than 700 Million
consumers, or ~70 per cent of the Indian population
and accounts for ~55 per cent of the total FMCG
market
The working rural population is approximately 400
Millions. There is an untapped market and most of
the FMCG Companies are taking different steps to
capture rural market share
The market for FMCG products in rural India is esti-
mated ~ 55 per cent and is projected to touch ~ 65 per
cent within a year
12

13. SECTORAL OPPORTUNITIES
 There are 4 Major Key Sectoral opportunities for
Indian FMCG Sector are:
Dairy Based Products
Packaged Food
Oral Care
Beverages
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14. 14
Major players
Company Sales as on 31 March 2012
(US$ mn)
Product segment
Britannia Industries Ltd 785.5 Tiger, Good Day, Marie Gold
Colgate Palmolive India Ltd 408.8 Colgate, Palmolive, Axion, Dish Wash
Dabur India Ltd 706.5 Dabur Amla, Vatika, Fem, Dabur Gulabri,
Dabur Chyawanprash, Hajmola
GlaxoSmithKline Consumer
Healthcare India Ltd
421.9 Horlicks, Boost, Maltova, Eno, Iodex
Godrej Consumer Products Ltd
(GCPL)
425.2 Ezee, Godrej Dish Wash Cinthol, Color Soft
FairGlow, No 1, KeshKala.
Gujarat Cooperative Milk
Marketing Federation (AMUL)
1,700 Amul
Hindustan Unilever Ltd. 3,700.8 Lakme, Lifebuoy, Lux, Pepsodent, Sunsilk,
Ponds, Rexona, Vaseline, Fair and Lovely,
Dove, Pears, Active Wheel, Rin, Surf Excel.
Indian Tobacco Co. Ltd. 758.7 Aashirvaad, Sunfeast, Fiama Di Wills, Vivel.
Nestlé India Ltd. 1,068.6 Everyday, Nescafé, Classic, Maggi, KitKat,
Munch.

15. 15
COMPANY Market share
Hindustan uniliver ltd. 36.4%
Indian tobacco company 30%
Nestle 8.2%
Britannia 6%
Dabur 4.3%
Others 15.1%
36.4
30
8.3
6
15.1
SALES
HUL ITC Britannia
Dabur Others
14

16. 3 Major Indian Companies
 HINDUSTAN UNILEVER
 AMUL
 DABUR INDIA LIMITED
16

17. No 1 company in India
Sales turnover of Rs 3,700.8 crores
Produces 35 different brands with 15,000
employees
17

18. 4th largest company in India
Sales turnover of Rs 2745.74 crores
It has 15 different brands with 20,000
employees
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19. 6th largest company in India
Sales turnover of 2,396 crores
It has 32 different brands with 6,500
employees
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20. TOP 3 FMCG COMPANIES IN
INDIA
20

21.  The Company has 21 product categories out of which only 8 product
have presence in India
 In India Proctor & Gamble has two subsidiaries: P&G Hygiene and
Health Care Ltd. and P&G Home Products Ltd.
 P&G Hygiene and Health Care Limited has a turnover of more than
Rs. 500 crores
21

22. ITC is one of India's foremost private sector companies with a
market capitalization of over US $ 30 bln and a turnover of US
$ 6 billion
ITC is rated among the World's Best Big Companies
ITC ranks among India's 10 Most Valuable (company)Brands
While ITC is an outstanding market leader in
cigarettes, Hotels, Paperboards, Packaging and Agri-Export
22

23. FMCG’s GDP Contribution in
India
23
 FMCG sector’s contribution to the country’s GDP stood at
2.15% with the market size of US$25billion(2007-08)
 India is 12th largest consuming country in the world(2010)
 In 2010,India had the market size of US$353billion
 It is projected to grow at 11.5% by 2014 with the
market size of US$543billion

24. 24 FDI Policy
100% FDI in all Retail Sector
 24% foreign equity is permitted in the small-scale
sector
 It helps all FMCG companies to grow up at higher
level

25. 53%
20%
15%
10%
2%
0 0 00
Indian FMCG Market segment
Food and Beverages
Personal Care
Tabacco
Household Care
Lightining
25

26. Growth
Drivers
Large
Market
FDI
Support
Increasing per
Capita Income
of Urban
population
Changing
Profit &
Mind Set of
Consumer
Growing
Popularity
of
organized
Retail
Rise of
Rural
Consumer
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27. Advantage
India
LARGE AND
GROWING YOUTH
POPULATION
EMERGENCE OF
ORGANISEDRETAIL
BUSINESS
GROWING
URBANISATION
SIGNIFICANT
INCREASE IN
CONSUMPTION
LEVELS
INFRASTRUCTURE
DEVELOPMENT
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29. 29 Strength
strengths
Weakness  High advertisement cost
 Low export level
 Lower scope of investing in technology
opportunities  Large domestic market
 Rising income level
 Online social network
Threat  Tax and regulatory structure
 Rural demand is cyclical in nature
 Different Monsoon
 Low operational cost
 Well established distribution network
 Strong brand &large market

30. Bibliography30
Google
Govt. Websites
FDI Policy of India
www.ibef.org
http://seminarprojects.com/Thread-fmcg-in-
indian-economy#ixzz2aDXescyL

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33. Questions
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