3. 3
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
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
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
9
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
13
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
18
19. 6th largest company in India
Sales turnover of 2,396 crores
It has 32 different brands with 6,500
employees
19
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
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