The document provides an overview of the fast moving consumer goods (FMCG) industry in India. It discusses that the FMCG sector is the fourth largest sector in the Indian economy, with a total market size of around US$13.1 billion. Food products account for 43% of the overall FMCG market. The sector provides around 3 million employment opportunities and is expected to grow significantly in the coming years due to India's growing population and rising incomes. Some of the top FMCG companies in India include Hindustan Unilever, ITC, Nestle, and Dabur. The FMCG industry contributes substantially to the Indian economy through employment, taxes, and linkages with other sectors such as agriculture, packaging and

1. A STUDY ON
FAST MOVING CONSUMER GOODS
INDUSTRY
PRESENTED BY,
SREERAJ
STREAM-S3,MBA 1

2. OVER THE YEARS…
• Oneof thefastest growing sector in early 1980’still 1990’s.
• The dream of every creative man, any investor, advertising agency,
or B-school graduateto work in or for FMCG company.
• After 1990’s,
 FMCG started losing their sheen due to introduction of other
product types
 Total lack of imagination on thepart of FMCG companies.
• During 2010, Consumers willingness to upgrade to better, value
added productshelped FMCG.
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3. INTRODUCTION
• Fast-moving consumer goods (FMCG) also known as consumer
packaged products are products that are sold quickly and at
relatively low cost.
• FMCG productshaveaquick turnover and relatively low cost .
• India’s FMCG sector is 4th
largest Sector in the economy and
contributeto around 3mn employment opportunities.
• Examples include non-durable goods such as soft drinks, toiletries,
and grocery items.
• Though the absolute profit made on FMCG products is relatively
small, they are generally sold in large quantities, and so the
cumulativeprofit on such productscan besubstantial. 3
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4. SCOPE
Indiaisan important market for FMCG players
The Indian FMCG sector is the 4th
largest in the economy with total
market sizeof around US$ 13.1 billion.
Due to increasing competition among companies, FMCG has
started penetrating rural and semi urban areas.
Thishasincreased employment opportunity in widerange.
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5. SIGNIFICANCE OF FMCG SECTOR
• Strong MNC presence.
• Intense competition between organized and
unorganized players.
• Easy availability of important raw
materials.
• Cheaper labour cost.
• Largemarket 5
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6. MARKET SCENARIO
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7. Evaluation of fMCG sECtor
• The fast moving consumer goods (FMCG) segment is the fourth largest
sector in theIndian economy.
• The market size of FMCG in India is expected to grow from US$ 30
billion in 2011 to US$ 74 billion in 2018.
• FMCG’s GDP contribution rises by 24%, FMCG sector’s contribution to
thecountry’sGDPnow standsat 24.3 per cent.
• Food products is the leading segment, accounting for 43% of overall
market.
• Personal care (22%) & Fabric care (12%) come next in terms of market
share
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8. MarKEt sEGMEnt
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9. The FMCG sector in India generated revenues worth US$ 34.8
billion in 2011, a growth of 15.2 per cent as compared to the
previous year. Over 2006-11, the sector's revenues posted a
compound annual growth rate (CAGR) of 17.3 per cent. Food
products are the leading segment, accounting for 43 per cent of the
overall market. Personal care (22 per cent) and fabric care (12 per
cent) aretheother leading segments.
 A report by the Financial Derivatives Company, FDC, says, “The
FMCG sector remains one of the fastest growing sectors of the
economy and we believe opportunities still exists in this sector. The
size of the market is heavily influenced by the country’s
demographic dynamics and the profound influence that western
cultureishaving on consumer tastes.”
9SREERAJ

10. GroWtH ProsPECts
Large Market
• India has a population of more than 1.150 billion, which is just
behind China.
• According to the estimates, by 2030, Indian population will be
around 1.450 billion and will surpass China to become the world’s
largest in termsof population.
• FMCG Industry which is directly related to the population is
expected to maintain arobust growth rate.
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11. 11
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Study conducted by UN Population Division, Medium Variant

12. MarKEt sEGMEntation
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13. ECONOMIC CONTRIBUTION
Employment
• Direct employment is estimated at approximately 6% of turnover,
i.e. US$ 1.5 billion (Rs. 7,000 crores)
• Approximately 12-13 million retail stores in India, out of which 9
million are FMCG kirana stores. Thus the sector is responsible for
thelivelihood of almost 13 million people
Fiscal contribution
• Cascading Multiple Taxes by the FMCG sector(Import duty,
service tax, CST, incometax). 30% revenueof thesector goesinto
both direct and indirect taxes. estimated size of $25 billion (Rs.
120,000 crores), that would constitute a contribution to the
exchequer of approximately US$ 6.5 billion (Rs. 31,000 crores).
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14. Social contribution
• Create employment for people with lower educational qualifications.
FMCG firms have also undertaken some specific projects to integrate
with upcountry and rural areas for both inputs and for distribution as
well asto fulfil CSR.
Someexamples:
• ITC echoupal and Choupal Sagar:- sells both agricultural inputs and
daily needs products. . ITC’s rural e-network enables farmer
connectivity and provides an easy way for farmers to get better
profitability and control through accessto timely information.
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15. Contribution to OtherSectors
1.Agriculture - Its intake of agricultural output as raw material
is estimated to constitute roughly 9% of total turnover for the
sector. That would put its total value to agriculture at US$ 2.2
billion (Rs. 10,500crores).
2. Third Party Logistics - The third-party logistics market for the
FMCG sector in India has been growing at a CAGR of 12%
since 2002, and is estimated to be worth US$ 63 million (Rs. 300
crores). It is anticipated to double by 2011, and be worth over US$
146 million (Rs. 700 crores) by 2012, agrowth of 211% from 2002.
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16. 3. Ancillary Industries:-
a. Manufacturing – Almost 9-10% of total sector’s production is
outsourcedto contract manufacturingunits taking the total size
to $ 1.7 – 2 billion (Rs. 8,000 – Rs. 9,500 crores), approximately.
b. Distribution–
i. ITC services 1.1 million outlets at an average frequency of three
days, including those in villages with population of 2,000, and
has1,000 wholesaledealers.
ii. Marico reaches 1.6 million outlets, through almost 900 direct
distributors, 100+ super distributors, catering to almost 2,500
small stockistsand 4,600 van markets. 16

17. 4. Packaging Industry - The packaging industry for the FMCG
sector alone is worth US$ 2.9 billion (Rs. 14,000 crores), and
isexpected to grow faster dueto thegrowth of privatelabel FMCG
products.
5. Media Industry - The media industry has a lot to gain from
the FMCG sector. Around 40% of media industry earnings
from advertising (US$ 5 billion) are estimated to come from the
FMCG sector, acontribution of US$ 2 billion (Rs. 9,500 crores).
6. Tourism Industry - Penetration of familiar brands across the
length and breadth of the country provides comfort and
reassuranceof quality to both domestic and international tourists.
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18. FACTORS INFLUENCING GROWTH OF FMCG
SECTOR IN INDIA
LARGEAND
GROWING
YOUTH
POPULATION
INFLUENCING
FACTORS
INFRASTRUCTUR
EDEVELOPMENT
SIGNIFICANT
INCREASEIN
CONSUMPTION
LEVELS
GROWING
URBANISATIO
N
EMERGENCEOF
ORGANISED
RETAIL
BUSINESS
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19.  Low operational cost
 Well established distribution
network
 Strong brand &large market
 High advertisement cost
 Low export level
 Lowerscope of investing in
technology
 Large domestic market
 Rising income level
 Online social network
 Tax and regulatory structure
 Rural demand is cyclical in
nature
 Different Monsoon
STRENGTHS WEAKNESS
OPPORTUNITIES THREATS
SWOT ANALYSIS
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20. TOP TEN FMCG COMPANIES
1.Hindustan Unilever Ltd.
2.ITC (Indian Tobacco Company)
3.NestleIndia
4. Amul
5.Dabur India
6.Asian Paints(India)
7.Cadbury India
8.BritanniaIndustries
9.Procter & GambleHygieneand Health Care
10.Marico Industries 20
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21. cONcLUSION
• More and more people these days have started involving
themselves in this field as it creates tremendous job
opportunities for them. It is a steady, diverse and a highly
profitableindustry whereaperson can do alot of work.
• The jobs in this field range from sales and supply chain,
investment, promotion, HR development, and general
management. It also allows you to trade directly with the
varioustradersonline.
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22. THANK YOU