1. Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than
groceries/pulses) that one needs to buy at regular intervals. These are items which are used
daily, and so have a quick rate of consumption, and a high return. FMCG can broadly be
categorized into three segments which are:
1. Household items as soaps, detergents, household accessories, etc,
2. Personal care items as shampoos, toothpaste, shaving products, etc and finally
3. Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks
etc.
Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt
Benckiser, Unilever, Procter & Gamble, Coca-Cola, Carlsberg, Kleenex, General Mills,
Pepsi, Gillette etc.
Overview
The burgeoning middle class Indian population, as well as the rural sector, present a huge
potential for this sector. The FMCG sector in India is at present, the fourth largest sector with
a total market size in excess of USD 13 billion as of 2012. This sector is expected to grow to
a USD 33 billion industry by 2015 and to a whooping USD 100 billion by the year 2025.
This sector is characterized by strong MNC presence and a well established distribution
network. In India the easy availability of raw materials as well as cheap labour makes it an
ideal destination for this sector. There is also intense competition between the organised and
unorganised segments and the fight to keep operational costs low.
A look at some factors that will drive growth in this sector:
Increasing rate of urbanization, expected to see major growth in coming years.
Rise in disposable incomes, resulting in premium brands having faster growth and
deeper penetration.
Innovative and stronger channels of distribution to the rural segment, leading to
deeper penetration into this segment.
Increase in rural non-agricultural income and benefits from government welfare
programmes.
Investment in stock markets of FMCG companies, which are expected to grow
constantly.
Some of the challenges this sector is likely to face are:
Increasing rate of inflation, which is likely to lead to higher cost of raw materials.
The standardization of packaging norms that is likely to be implemented by the
Government by Jan 2013 is expected to increase cost of beverages, cereals, edible oil,
detergent, flour, salt, aerated drinks and mineral water.
Steadily rising fuel costs, leading to increased distribution costs.
The present slow-down in the economy may lower demand of FMCG products,
particularly in the premium sector, leading to reduced volumes.
The declining value of rupee against other currencies may reduce margins of many
companies, as Marico, Godrej Consumer Products, Colgate, Dabur, etc who import
raw materials.

2. In conclusion:
This sector will continue to see growth as it depends on an ever-increasing internal market for
consumption, and demand for these goods remains more or less constant, irrespective of
recession or inflation. Hence this sector will grow, though it may not be a smooth growth
path, due to the present world-wide economic slowdown, rising inflation and fall of the
rupee. This sector will see good growth in the long run and hiring will continue to remain
robust.
Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged
goods. Items in this category include all consumables (other than groceries/pulses) people
buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos,
toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and
extends to certain electronic goods. These items are meant for daily of frequent consumption
and have a high return. The Indian FMCG sector is the fourth largest sector in the economy
with a total market size in excess of US$ 13.1 billion.It has a strong MNC presence and is
characterised by a wellestablished distribution network, intense competition between the
organised and unorganised segments and low operational cost. Availability of key raw
materials, cheaper labour costs and presence across the entire value chain gives India a
competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003 to
US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product
categories like jams, toothpaste, skin care, hair wash etc in India is low indicating the
untapped market potential. Burgeoning Indian population, particularly the middle class and
the rural segments, presents an opportunity to makers of branded products to convert
consumers to branded products. Growth is also likely to come from consumer 'upgrading' in
the matured product categories. With 200 million people expected to shift to processed and
packaged food by 2010, India needs around US$ 28 billion of investment in the food-
processing industry.
Anywhere, any time, every day. We make the products that make people smile. We have:
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Several billion dollar-plus brands
Operations in more than 80 countries
100,000 employees worldwide
Estimated 2011 revenues of approximately $35 billion
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Our team
Chairman
C Y Pal
Chairman - Non Executive
Managing Director

3. Mr.AnandKripalu
President, India & South East Asia
Non-Executive Directors
Harsh Mariwala
Radhakrishnan B. Menon
Executive Directors
Mr.Atul Bhatia Mr.Chadramouli (Mouli) Venkatesan
Director – Research & Development Director – Snacking and Strategy, South Asia &
Indo-China
Mr. Neel Kant Mr. Narayan Sundaraman
Director – Supply Chain Director – Powered Beverages, Gum & Candy

4. Mr.FransRyden Mr. Rajesh Ramanathan
Director – Finance Director – Human Resources
Mr. Sunil Taldar Ms.Sree Patel
Director – Sales and International Director – Legal Affairs
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