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2. By: - Mithilesh Trivedi 2 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. FMCGs 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 Indias 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 5. FMCG Products Detergents SoapsBeverages Shampoos Confectionaries Creams 5 (Rs. 12,000 Cr.) (Rs. 2,700 Cr.) (Rs. 4,000 Cr.) (Rs. 3,500 Cr.) (3,400 Cr.) (Rs. 2,100 cr.) 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 7. 7 MARKET SCENARIO 8. CHANGING LIFESTYLE 0 10 20 30 40 50 60 70 80 90 100 0 2.1 48.6 22 38 28 6.6 86.1 88.6 91.5 5.5 74.9 31.5 52.1 59.9 15.5 90.7 91.4 97.4 0.6 37.6 17.8 31.9 14.6 2.8 84.1 87.4 88.9 ALL INDIA URBAN % RURAL % SOURCE:HLL INVESTOR MEET 2010 8 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 10. 10 9 11. 11 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. Nestl India Ltd. 1,068.6 Everyday, Nescaf, 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 20. TOP 3 FMCG COMPANIES IN INDIA 20 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. FMCGs GDP Contribution in India 23 FMCG sectors contribution to the countrys 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 25. 53% 20% 15% 10% 2% 0 0 00 Indian FMCG Market segment Food and Beverages Personal Care Tabacco Household Care Lightining 25 26. Growth Drivers Large Market FDI Support Increasing per Capita Income of Urban population Changing Profit & Mind Set of Consumer Growing Popularity of organized Retail Rise of Rural Consumer 26 27. Advantage India LARGE AND GROWING YOUTH POPULATION EMERGENCE OF ORGANISEDRETAIL BUSINESS GROWING URBANISATION SIGNIFICANT INCREASE IN CONSUMPTION LEVELS INFRASTRUCTURE DEVELOPMENT 27 28. 28 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 30. Bibliography30 Google Govt. Websites FDI Policy of India www.ibef.org http://seminarprojects.com/Thread-fmcg-in- indian-economy#ixzz2aDXescyL 31. 31 32. 32 33. Questions 33