SlideShare une entreprise Scribd logo
1  sur  17
Télécharger pour lire hors ligne
INDUSTRY TYPE
TABLEOF CONTENT
I. INTRODUCTION
II. INDIA’S FMCG SECTOR
III. MAJORCOMPETITORS
IV. TRENDS
V. SWOTANALYSIS
VI. MARKETING STRATIGIES
 FMCG is popularly known as consumer
packaged goods.
 Items in this category includes all the
consumables(except groceries).
 Meant for daily or frequent consumption.
 Product with quick turnover
 Relatively lower costs.
 Profit on FMCG product is relatively small
but they are sold in large quantities
thereby large profits.
DURABLE PRODUCTS NON-DURABLE PRODUCTS
 A good that doesnot quickly
wear out.
 Example-
cleaning
Cosmetics,
products,
Teeth
shaving
products, etc.
 Goods that are meant to be
consumed immediately.
food,
 Example- Packaged
Beverages,light bulbs, etc.
VARIOUS
CATEGORIES
Food and Beverages
Eg:soft drinks, tea,
coffee, bakery items
Personal Care
Eg:oral care, hair
care, skin care,
cosmetics
Household Care
Eg:laundry soap,dish
washer,mosquito
repellent
 4th largest sectorin Indian economy.
 Createsemployment for more than 3million people.
 Revenue sincelast 10yearshasgrown at a rate of 21.4%every
year. Revenue for 2020 isexpected to be US$103B.
FMCG
Household &
Personal Care
Healthcare
Food &
Beverages
31%
19%
50%
Hindustan
Unilever
12%
Nestlé 3%
Britannia 3%
Patanjali Ayurved 4%
Market Shareby Revenue
ITC 14%
 Urban sectoraccountsfor 55%of revenue generated by FMCGin
India.
 Rural sector in India is growing at a faster pace.
 Due to improved distribution channels and manufacturing, demand for
quality goods and services have improved.
 Growth rate as of 2019 :-
Urban sector 5%
Rural sector 8%
URBAN
55%
RURAL
45%
GST 5%
Sugar,cereal,tea,
coffee,milk powder,
oil, honey....
GST 12%
Processed items,
ketchup, dryfruits
(packed), ghee,
butter.....
GST 18%
Biscuits,pasta,jam,
cornflakes,hairoil,
shampoo,detergent
,pastes,soap....
GST 28%
Soft drinks,tobacco,
pan masala, bidi,
chewing gum.....
 Estimated number
of online users by
2025 – 850millions.
 Retail market is
expected to reach US
$1.1trillion by 2020.
 Patanjali isrankedas
the most trusted
FMCGin India.
Reached US$
52.75Bin FY18.
Rural FMCG
market – US$
23.63Bin FY18.
Expected to
reach US$
103.70B by
2025.
Rural FMCG is
expected – US$
220B by 2025
Online FMCG
market to
reach US$ 45B
by 2021.
CURRENT
FORECAST
SOURCE: IBEF
Hindustan Unilever Limited isIndia’s fast-moving
consumergoods(FMCG) company and hasa
wide Product list with a Historical presencein
India of over 80 years. Nine Out of ten Indian
householdsuseone or more of HULBrands.
Divisions – Home Care, Beauty & PersonalCare
and Foodsand Refreshment.
ITCLimited wasincorporated onAugust 24,1910,
under the name Imperial Tobacco Company of
India Limited. Asthe Company’s ownership
progressivelyIndianised, the name of the
Company waschanged to India Tobacco
Company Limited in 1970and then to I.T.C.
Limited in 1974.ITCLimited hassustainedits
position asone of the fastest-growing FMCG
businessesin thecountry.
Nestlé isthe world’s largest food and beverage
company. Thecompany hasmore than 2000
brands ranging from global iconsto local favorites,
and are present in 191countries around the world.
After more than a century-old associationwith
the country, today, NESTLÉIndia hasa presence
acrossIndia with 8manufacturing facilities and
4 branch offices.It isthe third Largest in Top
FMCGCompanies in India
Britannia IndustriesLtd isamong the most trusted
food brands in India with a wide and growing
portfolio of products in the food segmentcovering
Biscuit, Bread, Cake, Rusk,Dairy and Adjacencies.
Britannia Industriesisone of India’s leading food
companieswith a 100year legacy.
HUL ITC Britannia NESTLE
MARKET
CAPITALISATION
510000 Cr. 239000 Cr. 92000 Cr. 155000 Cr.
DEBT EQUITY
RATIO (%)
0 0 0.35 0.8
PROFIT
(2019-20)
6738 Cr. 15136 Cr. 1485 Cr. 1969 Cr.
INVENTORY
TURNOVER RATIO
(%)
5.45 2.17 9.33 4.20
EARNING PER
SHARE (Rs.)
32 12.5 61 201
 Population hasbeen diverging towards premium products.
 Risein the income of the middleclass.
1. INCREASEIN NUMBER OFGOVERNMENTINITIATIVES
 Subsidized Farm loans.
 Direct Benefit Transfer and development of infrastructure
in rural areas.
 Union budget 2019-20 ,the focushasbeen shifting
towards urbanization.
2. CHANGESIN LIFESTYLEAND TRADITIONAL CULTURE
3. CHANGESIN POLICIESAND REGULATIONS
 Global companies operating in the FMCGindustry are eyeing India markets.
 Relaxation of licenserules and approval of 100%Foreign Direct Investment.
100%FDI in single-brand retail stores
50% FDI in multi-brand stores
 Regulatory framework are one of the main changes.
 GSTcouncil hasreduced the tax rate down to 5%
on processedfood items.
 Personal care product – GSTreduced to 18%
4. RISINGADVERTISEMENTCOSTBYFMCG COMPANIES
 Companies have increased their expenditure costfor salespromotion and
advertisement by 10-20%
 More and more investments are made by companies in advertisement.
Establishing strong
customer base
Reducing market
competition
 Operational costs for FMCG sectors in India are relatively low.
 Presence of established distribution networks in both URBAN and
RURAL areas.
 Favourable government policies.
 Low labour costs as compared to others.
STRENGHTS
WEAKNESS
 There is lower scope of investing in technology and achieving
economic of scales, especially in small sector.
 There are low exports levels.
 Advertising costs are really high.
OPPORTUNITIES
 Rising income levels of peoples.
 Large domestic markets.
 Opportunity in food sector.
 Large untapped markets available, especially the
rural areas.
STRENGHTS
 Removal of import restrictions resulting in replacing of
domestic brands.
 Tax and regulatory structure.
 Rural demand is cyclical in nature and also depends upon
monsoon.
 Intense and increasing competition from local as well as
MNCs.
 Steadily rising fuel costs, leading to increased distribution
costs.

Contenu connexe

Tendances

FMCG sector in india
FMCG sector in indiaFMCG sector in india
FMCG sector in indiaSagar Bhatt
 
Fast Moving Consumer Goods
Fast Moving Consumer GoodsFast Moving Consumer Goods
Fast Moving Consumer GoodsAdnan Khan
 
Fmcg industry in india
Fmcg industry in indiaFmcg industry in india
Fmcg industry in indiaArnoldDsouza16
 
Fmcg sector india
Fmcg sector indiaFmcg sector india
Fmcg sector indiaADARSHPES
 
Fast Moving Consumer Goods (FMCG) Summit Issues and Opportunities - FMCG Ind...
Fast Moving Consumer Goods (FMCG) Summit  Issues and Opportunities - FMCG Ind...Fast Moving Consumer Goods (FMCG) Summit  Issues and Opportunities - FMCG Ind...
Fast Moving Consumer Goods (FMCG) Summit Issues and Opportunities - FMCG Ind...Resurgent India
 
Indian fmcg sector
Indian fmcg sectorIndian fmcg sector
Indian fmcg sectorVikalp Mehta
 
Fast Moving Consumer Goods (FMCG) Summit - Issues and Opportunities - Full Re...
Fast Moving Consumer Goods (FMCG) Summit - Issues and Opportunities - Full Re...Fast Moving Consumer Goods (FMCG) Summit - Issues and Opportunities - Full Re...
Fast Moving Consumer Goods (FMCG) Summit - Issues and Opportunities - Full Re...Resurgent India
 
FMCG: SWOT Analysis
FMCG: SWOT AnalysisFMCG: SWOT Analysis
FMCG: SWOT AnalysisSagar Sharma
 
FMCG Industry Analysis
FMCG Industry AnalysisFMCG Industry Analysis
FMCG Industry AnalysisArindam Das
 
India FMCG Sector Report May 2014
India FMCG Sector Report May 2014India FMCG Sector Report May 2014
India FMCG Sector Report May 2014iimjobs.com
 

Tendances (20)

FMCG sector in india
FMCG sector in indiaFMCG sector in india
FMCG sector in india
 
Fast Moving Consumer Goods
Fast Moving Consumer GoodsFast Moving Consumer Goods
Fast Moving Consumer Goods
 
Fmcg industry in india
Fmcg industry in indiaFmcg industry in india
Fmcg industry in india
 
Fmcg sector india
Fmcg sector indiaFmcg sector india
Fmcg sector india
 
Fast Moving Consumer Goods (FMCG) Summit Issues and Opportunities - FMCG Ind...
Fast Moving Consumer Goods (FMCG) Summit  Issues and Opportunities - FMCG Ind...Fast Moving Consumer Goods (FMCG) Summit  Issues and Opportunities - FMCG Ind...
Fast Moving Consumer Goods (FMCG) Summit Issues and Opportunities - FMCG Ind...
 
Indian fmcg sector
Indian fmcg sectorIndian fmcg sector
Indian fmcg sector
 
Fast Moving Consumer Goods (FMCG) Summit - Issues and Opportunities - Full Re...
Fast Moving Consumer Goods (FMCG) Summit - Issues and Opportunities - Full Re...Fast Moving Consumer Goods (FMCG) Summit - Issues and Opportunities - Full Re...
Fast Moving Consumer Goods (FMCG) Summit - Issues and Opportunities - Full Re...
 
FMCG: SWOT Analysis
FMCG: SWOT AnalysisFMCG: SWOT Analysis
FMCG: SWOT Analysis
 
FMCG Industry Analysis
FMCG Industry AnalysisFMCG Industry Analysis
FMCG Industry Analysis
 
India FMCG Sector Report May 2014
India FMCG Sector Report May 2014India FMCG Sector Report May 2014
India FMCG Sector Report May 2014
 
FMCG New Opportunities
FMCG New OpportunitiesFMCG New Opportunities
FMCG New Opportunities
 
Fmcg ppt
Fmcg pptFmcg ppt
Fmcg ppt
 
Fmcg sector in india
Fmcg sector in indiaFmcg sector in india
Fmcg sector in india
 
FMCG Sector Report March 2018
FMCG Sector Report March 2018FMCG Sector Report March 2018
FMCG Sector Report March 2018
 
Fmcg INDIA INDUSTRY ANALYSIS
Fmcg INDIA INDUSTRY ANALYSISFmcg INDIA INDUSTRY ANALYSIS
Fmcg INDIA INDUSTRY ANALYSIS
 
FMCG Sector of INDIA
FMCG Sector of INDIAFMCG Sector of INDIA
FMCG Sector of INDIA
 
FMCG Sector Report January 2018
FMCG Sector Report January 2018FMCG Sector Report January 2018
FMCG Sector Report January 2018
 
FMCG Sector
FMCG SectorFMCG Sector
FMCG Sector
 
Fmcg
FmcgFmcg
Fmcg
 
FMCG
FMCGFMCG
FMCG
 

Similaire à SMALL PPT ON FMCG SECTOR (ORAL CARE)

Similaire à SMALL PPT ON FMCG SECTOR (ORAL CARE) (20)

Fmcg ppt
Fmcg pptFmcg ppt
Fmcg ppt
 
FMCG sector.docx
FMCG sector.docxFMCG sector.docx
FMCG sector.docx
 
ITC SAVLON -( MBA MARKETING PROJECT) BY:ANKIT MODI
ITC SAVLON -( MBA MARKETING PROJECT) BY:ANKIT MODIITC SAVLON -( MBA MARKETING PROJECT) BY:ANKIT MODI
ITC SAVLON -( MBA MARKETING PROJECT) BY:ANKIT MODI
 
Fmcg
FmcgFmcg
Fmcg
 
Fmcg sector in india
Fmcg sector in india Fmcg sector in india
Fmcg sector in india
 
ITC Financial Report
ITC Financial ReportITC Financial Report
ITC Financial Report
 
Indian FMCG Industry Presentation
Indian FMCG Industry PresentationIndian FMCG Industry Presentation
Indian FMCG Industry Presentation
 
Beacon Nov.2013
Beacon Nov.2013Beacon Nov.2013
Beacon Nov.2013
 
Aii
AiiAii
Aii
 
Fmcg ppt
Fmcg pptFmcg ppt
Fmcg ppt
 
Hul report
Hul reportHul report
Hul report
 
Fmcg presentation
Fmcg presentationFmcg presentation
Fmcg presentation
 
Fmcgppt 110609053453-phpapp01
Fmcgppt 110609053453-phpapp01Fmcgppt 110609053453-phpapp01
Fmcgppt 110609053453-phpapp01
 
Project report on goodrej
Project   report on goodrejProject   report on goodrej
Project report on goodrej
 
Strategic management
Strategic managementStrategic management
Strategic management
 
Strategic management of ITC
Strategic management of ITCStrategic management of ITC
Strategic management of ITC
 
Strategic management
Strategic managementStrategic management
Strategic management
 
The distruptor
The distruptorThe distruptor
The distruptor
 
HUL vs P&G
HUL vs P&GHUL vs P&G
HUL vs P&G
 
Top 10 fmcg companies in india
Top 10 fmcg companies in indiaTop 10 fmcg companies in india
Top 10 fmcg companies in india
 

Plus de R S

Market price and output determinantion
Market price and output determinantionMarket price and output determinantion
Market price and output determinantionR S
 
Cost of production
Cost of productionCost of production
Cost of productionR S
 
Elasticity of demand and supply
Elasticity of demand and supplyElasticity of demand and supply
Elasticity of demand and supplyR S
 
Demand and supply market forces
Demand and supply   market forcesDemand and supply   market forces
Demand and supply market forcesR S
 
Theory of consumer choice
Theory of consumer choiceTheory of consumer choice
Theory of consumer choiceR S
 
Introduction of economics
Introduction of economicsIntroduction of economics
Introduction of economicsR S
 
Indian economy
Indian economyIndian economy
Indian economyR S
 
Demand and supply case of tea
Demand and supply case of teaDemand and supply case of tea
Demand and supply case of teaR S
 
SWOT ANALYSIS ON YOURSELF
SWOT ANALYSIS ON YOURSELFSWOT ANALYSIS ON YOURSELF
SWOT ANALYSIS ON YOURSELFR S
 
E BUSINESS V/S E COMMERECE
E BUSINESS V/S E COMMERECEE BUSINESS V/S E COMMERECE
E BUSINESS V/S E COMMERECER S
 
Vi (VODAFONE & IDEA MERGER)
Vi (VODAFONE & IDEA MERGER)Vi (VODAFONE & IDEA MERGER)
Vi (VODAFONE & IDEA MERGER)R S
 

Plus de R S (11)

Market price and output determinantion
Market price and output determinantionMarket price and output determinantion
Market price and output determinantion
 
Cost of production
Cost of productionCost of production
Cost of production
 
Elasticity of demand and supply
Elasticity of demand and supplyElasticity of demand and supply
Elasticity of demand and supply
 
Demand and supply market forces
Demand and supply   market forcesDemand and supply   market forces
Demand and supply market forces
 
Theory of consumer choice
Theory of consumer choiceTheory of consumer choice
Theory of consumer choice
 
Introduction of economics
Introduction of economicsIntroduction of economics
Introduction of economics
 
Indian economy
Indian economyIndian economy
Indian economy
 
Demand and supply case of tea
Demand and supply case of teaDemand and supply case of tea
Demand and supply case of tea
 
SWOT ANALYSIS ON YOURSELF
SWOT ANALYSIS ON YOURSELFSWOT ANALYSIS ON YOURSELF
SWOT ANALYSIS ON YOURSELF
 
E BUSINESS V/S E COMMERECE
E BUSINESS V/S E COMMERECEE BUSINESS V/S E COMMERECE
E BUSINESS V/S E COMMERECE
 
Vi (VODAFONE & IDEA MERGER)
Vi (VODAFONE & IDEA MERGER)Vi (VODAFONE & IDEA MERGER)
Vi (VODAFONE & IDEA MERGER)
 

Dernier

Juan Pablo Sugiura - eCommerce Day Bolivia 2024
Juan Pablo Sugiura - eCommerce Day Bolivia 2024Juan Pablo Sugiura - eCommerce Day Bolivia 2024
Juan Pablo Sugiura - eCommerce Day Bolivia 2024eCommerce Institute
 
The Real Story Of Project Manager/Scrum Master From Where It Came?!
The Real Story Of Project Manager/Scrum Master From Where It Came?!The Real Story Of Project Manager/Scrum Master From Where It Came?!
The Real Story Of Project Manager/Scrum Master From Where It Came?!Loay Mohamed Ibrahim Aly
 
Communication Accommodation Theory Kaylyn Benton.pptx
Communication Accommodation Theory Kaylyn Benton.pptxCommunication Accommodation Theory Kaylyn Benton.pptx
Communication Accommodation Theory Kaylyn Benton.pptxkb31670
 
Machine learning workshop, CZU Prague 2024
Machine learning workshop, CZU Prague 2024Machine learning workshop, CZU Prague 2024
Machine learning workshop, CZU Prague 2024Gokulks007
 
Dynamics of Professional Presentationpdf
Dynamics of Professional PresentationpdfDynamics of Professional Presentationpdf
Dynamics of Professional Presentationpdfravleel42
 
Communication Accommodation Theory Kaylyn Benton.pptx
Communication Accommodation Theory Kaylyn Benton.pptxCommunication Accommodation Theory Kaylyn Benton.pptx
Communication Accommodation Theory Kaylyn Benton.pptxkb31670
 
Burning Issue presentation of Zhazgul N. , Cycle 54
Burning Issue presentation of Zhazgul N. , Cycle 54Burning Issue presentation of Zhazgul N. , Cycle 54
Burning Issue presentation of Zhazgul N. , Cycle 54ZhazgulNurdinova
 
ISO 25964-1Working Group ISO/TC 46/SC 9/WG 8
ISO 25964-1Working Group ISO/TC 46/SC 9/WG 8ISO 25964-1Working Group ISO/TC 46/SC 9/WG 8
ISO 25964-1Working Group ISO/TC 46/SC 9/WG 8Access Innovations, Inc.
 

Dernier (8)

Juan Pablo Sugiura - eCommerce Day Bolivia 2024
Juan Pablo Sugiura - eCommerce Day Bolivia 2024Juan Pablo Sugiura - eCommerce Day Bolivia 2024
Juan Pablo Sugiura - eCommerce Day Bolivia 2024
 
The Real Story Of Project Manager/Scrum Master From Where It Came?!
The Real Story Of Project Manager/Scrum Master From Where It Came?!The Real Story Of Project Manager/Scrum Master From Where It Came?!
The Real Story Of Project Manager/Scrum Master From Where It Came?!
 
Communication Accommodation Theory Kaylyn Benton.pptx
Communication Accommodation Theory Kaylyn Benton.pptxCommunication Accommodation Theory Kaylyn Benton.pptx
Communication Accommodation Theory Kaylyn Benton.pptx
 
Machine learning workshop, CZU Prague 2024
Machine learning workshop, CZU Prague 2024Machine learning workshop, CZU Prague 2024
Machine learning workshop, CZU Prague 2024
 
Dynamics of Professional Presentationpdf
Dynamics of Professional PresentationpdfDynamics of Professional Presentationpdf
Dynamics of Professional Presentationpdf
 
Communication Accommodation Theory Kaylyn Benton.pptx
Communication Accommodation Theory Kaylyn Benton.pptxCommunication Accommodation Theory Kaylyn Benton.pptx
Communication Accommodation Theory Kaylyn Benton.pptx
 
Burning Issue presentation of Zhazgul N. , Cycle 54
Burning Issue presentation of Zhazgul N. , Cycle 54Burning Issue presentation of Zhazgul N. , Cycle 54
Burning Issue presentation of Zhazgul N. , Cycle 54
 
ISO 25964-1Working Group ISO/TC 46/SC 9/WG 8
ISO 25964-1Working Group ISO/TC 46/SC 9/WG 8ISO 25964-1Working Group ISO/TC 46/SC 9/WG 8
ISO 25964-1Working Group ISO/TC 46/SC 9/WG 8
 

SMALL PPT ON FMCG SECTOR (ORAL CARE)

  • 2. TABLEOF CONTENT I. INTRODUCTION II. INDIA’S FMCG SECTOR III. MAJORCOMPETITORS IV. TRENDS V. SWOTANALYSIS VI. MARKETING STRATIGIES
  • 3.  FMCG is popularly known as consumer packaged goods.  Items in this category includes all the consumables(except groceries).  Meant for daily or frequent consumption.  Product with quick turnover  Relatively lower costs.  Profit on FMCG product is relatively small but they are sold in large quantities thereby large profits.
  • 4. DURABLE PRODUCTS NON-DURABLE PRODUCTS  A good that doesnot quickly wear out.  Example- cleaning Cosmetics, products, Teeth shaving products, etc.  Goods that are meant to be consumed immediately. food,  Example- Packaged Beverages,light bulbs, etc.
  • 5. VARIOUS CATEGORIES Food and Beverages Eg:soft drinks, tea, coffee, bakery items Personal Care Eg:oral care, hair care, skin care, cosmetics Household Care Eg:laundry soap,dish washer,mosquito repellent
  • 6.  4th largest sectorin Indian economy.  Createsemployment for more than 3million people.  Revenue sincelast 10yearshasgrown at a rate of 21.4%every year. Revenue for 2020 isexpected to be US$103B. FMCG Household & Personal Care Healthcare Food & Beverages 31% 19% 50% Hindustan Unilever 12% Nestlé 3% Britannia 3% Patanjali Ayurved 4% Market Shareby Revenue ITC 14%
  • 7.  Urban sectoraccountsfor 55%of revenue generated by FMCGin India.  Rural sector in India is growing at a faster pace.  Due to improved distribution channels and manufacturing, demand for quality goods and services have improved.  Growth rate as of 2019 :- Urban sector 5% Rural sector 8% URBAN 55% RURAL 45%
  • 8. GST 5% Sugar,cereal,tea, coffee,milk powder, oil, honey.... GST 12% Processed items, ketchup, dryfruits (packed), ghee, butter..... GST 18% Biscuits,pasta,jam, cornflakes,hairoil, shampoo,detergent ,pastes,soap.... GST 28% Soft drinks,tobacco, pan masala, bidi, chewing gum.....
  • 9.  Estimated number of online users by 2025 – 850millions.  Retail market is expected to reach US $1.1trillion by 2020.  Patanjali isrankedas the most trusted FMCGin India. Reached US$ 52.75Bin FY18. Rural FMCG market – US$ 23.63Bin FY18. Expected to reach US$ 103.70B by 2025. Rural FMCG is expected – US$ 220B by 2025 Online FMCG market to reach US$ 45B by 2021. CURRENT FORECAST SOURCE: IBEF
  • 10. Hindustan Unilever Limited isIndia’s fast-moving consumergoods(FMCG) company and hasa wide Product list with a Historical presencein India of over 80 years. Nine Out of ten Indian householdsuseone or more of HULBrands. Divisions – Home Care, Beauty & PersonalCare and Foodsand Refreshment. ITCLimited wasincorporated onAugust 24,1910, under the name Imperial Tobacco Company of India Limited. Asthe Company’s ownership progressivelyIndianised, the name of the Company waschanged to India Tobacco Company Limited in 1970and then to I.T.C. Limited in 1974.ITCLimited hassustainedits position asone of the fastest-growing FMCG businessesin thecountry.
  • 11. Nestlé isthe world’s largest food and beverage company. Thecompany hasmore than 2000 brands ranging from global iconsto local favorites, and are present in 191countries around the world. After more than a century-old associationwith the country, today, NESTLÉIndia hasa presence acrossIndia with 8manufacturing facilities and 4 branch offices.It isthe third Largest in Top FMCGCompanies in India Britannia IndustriesLtd isamong the most trusted food brands in India with a wide and growing portfolio of products in the food segmentcovering Biscuit, Bread, Cake, Rusk,Dairy and Adjacencies. Britannia Industriesisone of India’s leading food companieswith a 100year legacy.
  • 12. HUL ITC Britannia NESTLE MARKET CAPITALISATION 510000 Cr. 239000 Cr. 92000 Cr. 155000 Cr. DEBT EQUITY RATIO (%) 0 0 0.35 0.8 PROFIT (2019-20) 6738 Cr. 15136 Cr. 1485 Cr. 1969 Cr. INVENTORY TURNOVER RATIO (%) 5.45 2.17 9.33 4.20 EARNING PER SHARE (Rs.) 32 12.5 61 201
  • 13.  Population hasbeen diverging towards premium products.  Risein the income of the middleclass. 1. INCREASEIN NUMBER OFGOVERNMENTINITIATIVES  Subsidized Farm loans.  Direct Benefit Transfer and development of infrastructure in rural areas.  Union budget 2019-20 ,the focushasbeen shifting towards urbanization. 2. CHANGESIN LIFESTYLEAND TRADITIONAL CULTURE
  • 14. 3. CHANGESIN POLICIESAND REGULATIONS  Global companies operating in the FMCGindustry are eyeing India markets.  Relaxation of licenserules and approval of 100%Foreign Direct Investment. 100%FDI in single-brand retail stores 50% FDI in multi-brand stores  Regulatory framework are one of the main changes.  GSTcouncil hasreduced the tax rate down to 5% on processedfood items.  Personal care product – GSTreduced to 18%
  • 15. 4. RISINGADVERTISEMENTCOSTBYFMCG COMPANIES  Companies have increased their expenditure costfor salespromotion and advertisement by 10-20%  More and more investments are made by companies in advertisement. Establishing strong customer base Reducing market competition
  • 16.  Operational costs for FMCG sectors in India are relatively low.  Presence of established distribution networks in both URBAN and RURAL areas.  Favourable government policies.  Low labour costs as compared to others. STRENGHTS WEAKNESS  There is lower scope of investing in technology and achieving economic of scales, especially in small sector.  There are low exports levels.  Advertising costs are really high.
  • 17. OPPORTUNITIES  Rising income levels of peoples.  Large domestic markets.  Opportunity in food sector.  Large untapped markets available, especially the rural areas. STRENGHTS  Removal of import restrictions resulting in replacing of domestic brands.  Tax and regulatory structure.  Rural demand is cyclical in nature and also depends upon monsoon.  Intense and increasing competition from local as well as MNCs.  Steadily rising fuel costs, leading to increased distribution costs.