Few relative slides about FMCG sector in India, FMCG stands for Fast moving consumer goods.

1. FMCG

2. Sagar Bhatt
H L institute of Commerce, Ahmedabad
Mail – sagar.bhatt17@gmail.com

4. 1. What is FMCG ?
- A brief Introduction
 Full form – Fast Moving consumer goods
 India’s FMCG sector is 4th largest Sector in the
economy and generating 3 million employment
opportunities.
 Includes - household care, personal care , food &
beverages, etc..
 FMCG products have a quick turnover and
relatively low cost.
 India is 12th largest consuming country in the world
as at 2010.
 These products are sold quickly and generally
consumed at regular basis.

6. Scope & Growth in India
 Market size : $13.1 billion, 4th Largest in the world.
 Expected market size (by ‘18) : $ 74 billion.
 Fastest growing segment : Hair care, household care, male
grooming, female hygiene, and the chocolates and
confectionery categories, quick service restaurant chains,
apparels, foot wear retailers.
 Better growth prospectus for Indian rural FMCG market, due to
presence of 12.2% of world population in Indian villages.. &
due to farm sector in focus, rural income can be boosted.
 Within the food segment, it is estimated that processed foods,
bakery, and dairy are long-term growth categories in both rural
and urban areas.

7.  Firms can launch new segment of products, due to increasing
demand.
For ex. Procter & Gamble.
 Hypermarkets and supermarkets, market share – 5-7 %
Expected to double to :– 10-12%.
 E-Commerce has become an important medium of buying and
has a significant impact on the way consumers buy and
consume.
 With an ongoing time, consumers have started demanding
healthy and hygiene products.
For ex. Saffola, mouth wash, sanitizers, Other low
cholesterol oils and healthy products.
 “With the increase in income levels and choices, the
demand for premium products will take a hike” said
director at Cadbury India Ltd.

8. Operating environment & Govt
policy
Favourable policies by Indian Government- policies attaining
international competitiveness, reducing excise duties &100%
export oriented units can be set up by government approval and
use of foreign brand names etc.
1. Foreign direct investment- Automatic investment approval up to
100 per cent foreign equity or 100 per cent for NRI and
Overseas Corporate Bodies investment is allowed for most of
the food processing sector except malted food, alcoholic
beverages and those reserved for small scale industries (SSI).
2. Removal of quantitative restrictions and reservation policies
3. Food Laws

9. MAJOR PLAYERS
COMPANY SALES (in Rs.)
(2014)
LOGO
ITC Ltd. 29901 crores
Hindustan Unilever Ltd. 28019 crores
Nestle 9101 crores
Dabur 4349 crores
Goorej Consumer Care Pvt.
Ltd.
3581 crores
Colgate-Palmolive Co. 3159 crores
Marico 1069 crores
Procter & Gamble 1700 crores
Britannia Ltd. 5615 crores
Emami Ltd. 1627 crores

10. FMCG market capitalisation in 2013
0
50,000
100,000
150,000
200,000
250,000
300,000
ITC Ltd HUL Nestle India
In Crores
In Crores
2,56,769
49,768

11. 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.

12. 12
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. Future prospects
OPPORTUNITIES
 By 2020,expected to become 400,000 crores.
 With the increase in population and income levels, supply will
be satisfied with more demand.
 With the initiative of Make in India, a green signal to FMCG
industries.
 Rising income levels, i.e. increase in purchasing power of
consumers.
 Large domestic market with more population of median age 25.
 High consumer goods spending.
 With rise in per capita incomes and awareness, the growth
potential is huge.
 Lower price and smaller packs are also likely to drive potential
up trading for major FMCG products.

15. RISKS
 Removal of import restrictions resulting in replacing of domestic
brands.
 Tax and regulatory structure.
 Rural demand is seasonal in nature.
 Ban on excessive advertising, because of TRAI regulations.
 No advertising available for Alcoholic drinks & Smoking
products.

17. CONCLUSION
 It is concluded from this study that FMCG
sector is growing and will continue to grow very
fast.
 This sector provides quality and quantity with
reasonable cost to the consumers not doing
away with its competitive edge.
 Consumer satisfaction is its ultimate objective.