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An

Assignment
on
FMCG Industry
Submitted By:

Navneet Kumar Singh


Roll No-1082
IISE, Lucknow

Fast Moving Consumer Goods (FMCG)


FMCG are products that have a quick shelf turnover, at relatively low
cost and
don't require a lot of thought, time and financial investment to
purchase. The
margin of profit on every individual FMCG product is less. However the
huge
number of goods sold is what makes the difference. Hence profit in
FMCG goods
always translates to number of goods sold.
Fast Moving Consumer Goods is a classification that refers to a wide
range of
frequently purchased consumer products including: toiletries, soaps,
cosmetics,
teeth cleaning products, shaving products, detergents, other non-
durables such
as glassware, bulbs, batteries, paper products and plastic goods, such
as
buckets.
‘Fast Moving’ is in opposition to consumer durables such as kitchen
appliances
that are generally replaced less than once a year. The category may
include
pharmaceuticals, consumer electronics and packaged food products
and drinks,
although these are often categorized separately.
The term Consumer Packaged Goods (CPG) is used interchangeably
with Fast
Moving Consumer Goods (FMCG).
Three of the largest and best known examples of Fast Moving
Consumer Goods
companies are Nestlé, Unilever and Procter & Gamble. Examples of
FMCGs are
soft drinks, tissue paper, and chocolate bars. Examples of FMCG
brands are
Coca-Cola, Kleenex, Pepsi and Believe.
The FMCG sector represents consumer goods required for daily or
frequent use.
The main segments of this sector are personal care (oral care, hair
care, soaps,
cosmetics, toiletries), household care (fabric wash and household
cleaners),
branded and packaged food, beverages (health beverages, soft drinks,
staples,
cereals, dairy products, chocolates, bakery products) and tobacco.
The Indian FMCG sector is an important contributor to the country's
GDP. It is the
fourth largest sector in the economy and is responsible for 5% of the
total factory
employment in India. The industry also creates employment for 3 m
people in
downstream activities, much of which is disbursed in small towns and
rural India.
This industry has witnessed strong growth in the past decade. This has
been due
to liberalization, urbanization, increase in the disposable incomes and
altered
lifestyle. Furthermore, the boom has also been fuelled by the reduction
in excise
duties, de-reservation from the small-scale sector and the concerted
efforts of
personal care companies to attract the burgeoning affluent segment in
the
middle-class through product and packaging innovations.
Unlike the perception that the FMCG sector is a producer of luxury
items targeted
at the elite, in reality, the sector meets the every day needs of the
masses. The
lower-middle income group accounts for over 60% of the sector's sales.
Rural
markets account for 56% of the total domestic FMCG demand.
Many of the global FMCG majors have been present in the country for
many
decades. But in the last ten years, many of the smaller rung Indian
FMCG
companies have gained in scale. As a result, the unorganized and
regional
players have witnessed erosion in market share.

History of FMCG in India


In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have
been a dominant force in the FMCG sector well supported by relatively
less
competition and high entry barriers (import duty was high). These
companies
were, therefore, able to charge a premium for their products. In this
context, the
margins were also on the higher side. With the gradual opening up of
the
economy over the last decade, FMCG companies have been forced to
fight for a
market share. In the process, margins have been compromised, more
so in the
last six years (FMCG sector witnessed decline in demand).
Current Scenario
The growth potential for FMCG companies looks promising over the
longterm
horizon, as the per-capita consumption of almost all products in the
country
is amongst the lowest in the world. As per the Consumer Survey by
KSATechnopak,
of the total consumption expenditure, almost 40% and 8% was
accounted by groceries and personal care products respectively. Rapid
urbanization, increased literacy and rising per capita income are the
key growth
drivers for the sector. Around 45% of the population in India is below
20 years of
age and the proportion of the young population is expected to increase
in the
next five years. Aspiration levels in this age group have been fuelled
by greater
media exposure, unleashing a latent demand with more money and a
new
mindset. In this backdrop, industry estimates suggest that the industry
could
triple in value by 2015 (by some estimates, the industry could double
in size by
2010).
In our view, testing times for the FMCG sector are over and driving
rural
penetration will be the key going forward. Due to infrastructure
constraints (this
influences the cost-effectiveness of the supply chain), companies were
unable to
grow faster. Although companies like HLL and ITC have dedicated
initiatives
targeted at the rural market, these are still at a relatively nascent
stage.
The bottlenecks of the conventional distribution system are likely to be
removed
once organized retailing gains in scale. Currently, organized retailing
accounts for
just 3% of total retail sales and is likely to touch 10% over the next 3-5
years. In
our view, organized retailing results in discounted prices, forced-buying
by
offering many choices and also opens up new avenues for growth for
the FMCG
sector. Given the aggressive expansion plans of players like Pantaloon,
Trent,
Shopper’s Stop and Shoprite, we are confident that the FMCG sector
has a
bright future.
Budget Measures to Promote FMCG
Sector
2% education cess corporation tax, excise duties and custom duties
Concessional rate of 5% custom duty on tea and coffee plantation
machinery
Budget Impact
The education cess will add marginally to the tax burden of all FMCG
companies
The dividend distribution tax on debt funds is likely to adversely effect
the
other income components of companies like Britannia, Nestle and HLL
The measure to abolish excise duty on dairy machinery is a positive for
companies like Nestle
Concessional rate for tea and coffee plantation machinery is a positive
for Tata
Tea, HLL, Tata Coffee and other such companies
Duty reduction in food grade hexane will have a marginally positive
impact on
companies like Marico and HLL
Area specific excise exemptions for North East, J&K, Himachal Pradesh
will
continue to encourage FMCG companies to relocate to these areas.
Budget over the
years
Budget 2001-02 Budget 2002-03 Budget 2003-04
• From 35-55% to
75% for crude
edible oil
• From 45-65% to
85% for refined
edible oil
• From 35% to 70%
for copra,
coconut, tea and
coffee
• From 25% to 55%
for crude palm oil
• Development
allowance of tea
industry raised to
40% from 20%
• All food
preparations
based on fruits
• Increased focus
on agricultural
reforms with an
aim to integrate
the countrywide
food market
• Deregulation of
the milk
processing
capacity
• Excise duty
structure largely
untouched. Only
for tea, the duty
was reduced from
Rs 2 per Kg to Re
1
• Customs duty on
tea and coffee
• Excise on biscuits
reduced to 8%
from 16%. Excise
on soft drinks and
sugar boiled
confectionery also
reduced
• All states to
switch to VAT in
FY04 (deadline
now has been
extended till end
FY05)
• Loans to
agriculture and to
small-scale sector
will now be
available at
maximu 2%
and vegetables
(pickles, sauces,
ketchup, juices,
jams etc.) made
completely
exempt from
excise duty
• Excise on
cosmetics and
toiletries halved to
16%
doubled to 100%
• Duty on imported
pulses upped to
80%
• Import duty on
wine and liquor
slashed from
210% to 180%
above prime
lending rate
(PLR)
• Development
plans for roads,
ports, railways
and airports
• Customs duty on
alcoholic
beverages
reduced
India offers a large and growing market of 1 billion people of which 300
million
are middle class consumers. India offers a vibrant market of youth and
vigor with
54% of population below the age of 25 years. These young people
work harder,
earn more, spend more and demand more from the market, making
India a
dynamic and aspirational society. Domestic demand is expected to
double over
the ten-year period from 1998 to 2007. The number of households with
"high
income" is expected to increase by 60% in the next four years to 44
million
households.
India is rated as the fifth most attractive emerging retail market. It has
been ranked second in a Global Retail Development Index of 30
developing
countries drawn up by A T Kearney. A.T. Kearney has estimated India's
total retail
market at $202.6 billion, is expected to grow at a compounded 30 per
cent over
the next five years. The share of modern retail is likely to grow from its
current 2
per cent to 15-20 percent over the next decade, analysts feel.
The Indian FMCG sector is the fourth largest sector in the economy
with
a total market size in excess of US$ 13.1 billion. 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.
India is one of the world’s largest producers for a number of FMCG
products but its FMCG exports are languishing at around Rs 1,000
crore only.
There is significant potential for increasing exports but there are
certain factors
inhibiting this. Small-scale sector reservations limit ability to invest in
technology
and quality up gradation to achieve economies of scale. Moreover,
lower volume
of higher value added products reduce scope for export to developing
countries.
The FMCG sector has traditionally grown at a very fast rate and has
generally out performed the rest of the industry. Over the last one
year, however
the rate of growth has slowed down and the sector has recorded sales
growth of
just five per cent in the last four quarters.
The outlook in the short term does not appear to be very positive for
the
sector. Rural demand is on the decline and the Centre for Monitoring
Indian
Economy (CMIE) has already downscaled its projection for agriculture
growth in
the current fiscal. Poor monsoon in some states, too, is unlikely to help
matters.
Moreover, the general slowdown in the economy is also likely to have
an adverse
impact on disposable income and purchasing power as a whole. The
growth of
imports constitutes another problem area and while so far imports in
this sector
have been confined to the premium segment, FMCG companies
estimate they
have already cornered a four to six per cent market share. The high
burden of
local taxes is another reason attributed for the slowdown in the
industry
At the same time, the long term outlook for revenue growth is positive.
Give the
large market and the requirement for continuous repurchase of these
products,
FMCG companies should continue to do well in the long run. Moreover,
most of
the companies are concentrating on cost reduction and supply chain
management. This should yield positive results for them.
The profile of major leading FMCG Market Players is as follows:
1. NESTLE INDIA
Nestlé India is a subsidiary of Nestlé S.A. of Switzerland. With six
factories and a
large number of co-packers, Nestlé India is a vibrant Company that
provides
consumers in India with products of global standards and is committed
to longterm
sustainable growth and shareholder satisfaction.
The Company insists on honesty, integrity and fairness in all aspects of
its
business and expects the same in its relationships. This has earned it
the trust
and respect of every strata of society that it comes in contact with and
is
acknowledged amongst India's 'Most Respected Companies' and
amongst the
'Top Wealth Creators of India'.
Nestlé’s relationship with India dates back to 1912, when it began
trading as The
Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited,
importing and
selling finished products in the Indian market.
Brief History
After India’s independence in 1947, the economic policies of the Indian
Government emphazised the need for local production. Nestlé
responded to
India’s aspirations by forming a company in India and set up its first
factory in
1961 at Moga, Punjab, where the Government wanted Nestlé to
develop the milk
economy. Progress in Moga required the introduction of Nestlé’s
Agricultural
Services to educate, advise and help the farmer in a variety of aspects.
From
increasing the milk yield of their cows through improved dairy farming
methods,
to irrigation, scientific crop management practices and helping with the
procurement of bank loans. Nestlé set up milk collection centres that
would not
only ensure prompt collection and pay fair prices, but also instil
amongst the
community, a confidence in the dairy business. Progress involved the
creation of
prosperity on an on-going and sustainable basis that has resulted in
not just the
transformation of Moga into a prosperous and vibrant milk district
today, but a
thriving hub of industrial activity, as well. For more on Nestlé
Agricultural
Services,
Nestlé has been a partner in India's growth for over nine decades now
and has
built a very special relationship of trust and commitment with the
people of India.
The Company's activities in India have facilitated direct and indirect
employment
and provides livelihood to about one million people including farmers,
suppliers of
packaging materials, services and other goods.
The Company continuously focuses its efforts to better understand the
changing
lifestyles of India and anticipate consumer needs in order to provide
Taste,
Nutrition, Health and Wellness through its product offerings. The
culture of
innovation and renovation within the Company and access to the
Nestlé Group's
proprietary technology/Brands expertise and the extensive centralized
Research
and Development facilities gives it a distinct advantage in these
efforts. It helps
the Company to create value that can be sustained over the long term
by offering
consumers a wide variety of high quality, safe food products at
affordable prices.
Nestlé India is a responsible organization and facilitates initiatives that
help to
improve the quality of life in the communities where it operates.
Beginning with its
first investment in Moga in 1961, Nestlé’s regular and substantial
investments
established that it was here to stay. In 1967, Nestlé set up its next
factory at
Choladi (Tamil Nadu) as a pilot plant to process the tea grown in the
area into
soluble tea. The Nanjangud factory (Karnataka), became operational in
1989, the
Samalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestlé
commissioned two factories in Goa at Ponda and Bicholim respectively.
Nestlé
India is now putting up the 7th factory at Pant Nagar in Uttaranchal
Products
Product Category Brands
Milk Products
NESTLÉ EVERYDAY Dairy Whitener
NESTLÉ EVERYDAY Ghee
NESTLÉ Curds
NESTLÉ CEREMEAL
NESTLÉ Jeera Raita
NESTLÉ Fresh 'n' Natural Dahi
NESTLÉ Fruit 'N Dahi
NESTLÉ Milk
NESTLÉ Slim Milk
Beverages
NESCAFÉ CLASSIC
NESCAFÉ SUNRISE
NESTLÉ MILO
NESCAFÉ 3 in 1
NESCAFÉ Koolerz
Prepared Dishes MAGGI 2-MINUTE Noodles
Chocolates &
Confectionaries
MAGGI Healthy Soups
MAGGI Dal Atta Noodles
MAGGI MAGIC Cubes
NESTLÉ Milk Chocolate
NESTLÉ KIT KAT
NESTLÉ MUNCH
NESTLÉ MILKYBAR
NESTLÉ MILKYBAR CHOO
NESTLÉ BAR-ONE
POLO
NESTLÉ Eclairs
NESTLÉ ACTI-V
POLO Powermint
1. Hindustan Lever Limited (HLL)
The Global arm of Hindustan Levers Limited is Unilever's and its
mission is to
add Vitality to life. Their products meet everyday needs for nutrition,
hygiene, and
personal care with brands that help people feel good, look good and
get more out
of life.
HLL has deep roots in local cultures and markets around the world
which gives
them a strong relationship with their consumers, which are the
foundation for
their future growth. They benefit from there wealth of knowledge and
international
expertise to the service the local consumers - a truly multi-local
multinational.
Brief History
In the summer of 1888, visitors to the Kolkata harbour noticed crates
full of
Sunlight soap bars, embossed with the words "Made in England by
Lever
Brothers". With it, began an era of marketing branded Fast Moving
Consumer
Goods (FMCG). In 1931, Unilever set up its first Indian subsidiary,
Hindustan
Vanaspati Manufacturing Company, followed by Lever Brothers India
Limited
(1933) and United Traders Limited (1935). These three companies
merged to
form HLL in November 1956; HLL offered 10% of its equity to the
Indian public,
being the first among the foreign subsidiaries to do so. Unilever now
holds
51.55% equity in the company. The rest of the shareholding is
distributed among
about 380,000 individual shareholders and financial institutions. Pond's
(India)
Limited had been present in India since 1947. It joined the Unilever fold
through
an international acquisition of Chesebrough Pond's USA in 1986.
The liberalization of the Indian economy, started in 1991, clearly
marked an
inflexion in HLL's and the Group's growth curve. Removal of the
regulatory
framework allowed the company to explore every single product and
opportunity
segment, without any constraints on production capacity.
Simultaneously, deregulation permitted alliances, acquisitions and
mergers. In
one of the most visible and talked about events of India's corporate
history, the
erstwhile Tata Oil Mills Company (TOMCO) merged with HLL, effective
from April
1, 1993. In 1995, HLL and yet another Tata company, Lakme Limited,
formed a
50:50 joint venture, Lakme Lever Limited, to market Lakme's market-
leading
cosmetics and other appropriate products of both the companies.
Subsequently
in 1998, Lakme Limited sold its brands to HLL and divested its 50%
stake in the
joint venture to the company.
HLL formed a 50:50 joint venture with the US-based Kimberly Clark
Corporation
in 1994, which markets Huggies Diapers and Kotex Sanitary Pads. HLL
has also
set up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factory
represents the largest manufacturing investment in the Himalayan
kingdom. The
NLL factory manufactures HLL's products like Soaps, Detergents and
Personal
Products both for the domestic market and exports to India.
The 1990s also witnessed a string of crucial mergers, acquisitions and
alliances
on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond
acquired
Kothari General Foods, with significant interests in Instant Coffee. In
1993, it
acquired the Kissan business from the UB Group and the Dollops
Icecream
business from Cadbury India.
As a measure of backward integration, Tea Estates and Doom Dooma,
two
plantation companies of Unilever, were merged with Brooke Bond.
Then in July
1993, Brooke Bond India and Lipton India merged to form Brooke Bond
Lipton
India Limited (BBLIL), enabling greater focus and ensuring synergy in
the
traditional Beverages business. 1994 witnessed BBLIL launching the
Wall's
range of Frozen Desserts. By the end of the year, the company entered
into a
strategic alliance with the Kwality Icecream Group families and in 1995
the
Milkfood 100% Icecream marketing and distribution rights too were
acquired.
In January 2000, in a historic step, the government decided to award
74 per cent
equity in Modern Foods to HLL, thereby beginning the divestment of
government
equity in public sector undertakings (PSU) to private sector partners.
HLL's entry
into Bread is a strategic extension of the company's wheat business. In
2002,
HLL acquired the government's remaining stake in Modern Foods.
In 2003, HLL acquired the Cooked Shrimp and Pasteurised Crabmeat
business
of the Amalgam Group of Companies, a leader in value added Marine
Products
exports.
Present Stature
Hindustan Lever Limited (HLL) is India's largest Fast Moving Consumer
Goods
company, touching the lives of two out of three Indians with over 20
distinct
categories in Home & Personal Care Products and Foods & Beverages.
They
endow the company with a scale of combined volumes of about 4
million tonnes
and sales of Rs.10,000 crores.
HLL is also one of the country's largest exporters; it has been
recognised as a
Golden Super Star Trading House by the Government of India.
HLL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely,
Pond's,
Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan,
Knorr-
Annapurna, Kwality Wall's – are household names across the country
and span
many categories - soaps, detergents, personal products, tea, coffee,
branded
staples, ice cream and culinary products. They are manufactured in
close to 80
factories. The operations involve over 2,000 suppliers and associates.
HLL's
distribution network, comprising about 7,000 redistribution stockists,
directly
covers the entire urban population, and about 250 million rural
consumers.
HLL believes that an organization’s worth is also in the service it
renders to the
community. HLL is focusing on health & hygiene education, women
empowerment, and water management. It is also involved in education
and
rehabilitation of special or underprivileged children, care for the
destitute and
HIV-positive, and rural development. HLL has also responded in case of
national
calamities / adversities and contributes through various welfare
measures, most
recent being the village built by HLL in earthquake affected Gujarat,
and relief &
rehabilitation after the Tsunami caused devastation in South India.
Products
Product Category Product Name Brands
Personal Care
Soap
Lux
Pears
Lifebuoy
Liril
Hamam
Breeze
Dove
Rexona
Skin Care Pond’s
Fair & Lovely
Hair Care:
Sunsilk
Naturals
Clinic
Oral Care Pepsodent
CloseUp
Deodorant Axe
Rexona
Color Cosmetics Lakme
Ayurvedic Healthcare Aysh
Fabric Care Laundry Surf Excel
Rin
Wheel
Beverages Tea Brooke Bond
Lipton
Coffee Bru
Foods
Salt Knnor Annapurna
Sauces Kissan
Ice Creams Kwality Walls
3. GLAXO SMITHKLINE
GlaxoSmithKline is a leader in the worldwide consumer healthcare
market. With nearly
$5 billion in sales, over ten $100 million brands and present in 130
markets, the
consumer healthcare business brings an added dynamic dimension to
GSK.
Operating in the fiercely competitive environment of retail and
consumer marketing
GlaxoSmithKline Consumer Healthcare brings oral healthcare, over-
the-counter
medicines and nutritional healthcare products to millions of people.
Brand names such as Panadol the analgesic, Aquafresh toothpaste,
Lucozade the
nutritional and Nicorette/ Niquitin smoking cessation products are
household names
around the world. In one year GSK Consumer Healthcare produces -
among many others
- nine billion tablets to relieve stomach upsets, six billion tablets for
pain relief tablets
and 600 million tubes of toothpaste.
But the driving force behind GlaxoSmithKline's consumer healthcare
business is science.
With four dedicated consumer healthcare R&D centres and consumer
healthcare
regulatory affairs, the business takes scientific innovation as seriously
as marketing
excellence and offers leading-edge capability in both.
The Company
The company has a challenging and inspiring mission: to improve the
quality of human
life by enabling people to do more, feel better and live longer. This
mission gives them
the purpose to develop innovative medicines and products that help
millions of people
around the world. In fact, they are the only pharmaceutical company to
tackle the World
Health Organization’s three ‘priority’ diseases – HIV/AIDS, tuberculosis
and malaria.
Headquartered in the UK and with operations based in the US, it is one
of the industry
leaders, with an estimated 7% of the world's pharmaceutical market.
As a company has a emphasized more on research & development,
estimated every hour
they spend more than £300,000 (US$562,000) to find new medicines.
The medicines
produced are mainly in six major disease areas – asthma, virus control,
infections, mental
health, diabetes and digestive conditions. In addition, it is a leader in
the important area
of vaccines and are developing new treatments for cancer.
GSK at a glance
• Mission is to improve the quality of human life by enabling people to
do more,
feel better and live longer
• Research-based pharmaceutical company
• It is the only pharmaceutical company to tackle the three "priority"
diseases identified
by the World Health Organization: HIV/AIDS, tuberculosis and malaria
• Its business employs over 100,000 people in 116 countries
• They make approximately four billion packs of medicines and
healthcare products
every year
• Over 15,000 people work in the research teams to discover new
medicines
• We supply one quarter of the world's vaccines and by the end of
2005 we had 25
vaccines in clinical development
• In 2005 we donated 136 million albendazole tablets to help elimitate
lymphatic
filariasis (elephantiasis)
• In 2005 we shipped 126 million tablets of preferentially-priced
Combivir and Epivir
(our HIV treatments) to developing countries
• Almost 100 countries benefitted from our humanitarian product
donations in 2005
• We sold 23 million bottle of Lucozade Sport Hydro Active in 2005
History
1976
The H2 blocker Tagamet (cimetidine) is introduced in the UK by the
SmithKline
Corporation, and in the US in the following year.
The treatment will revolutionise peptic ulcer therapy.
1978
Through the acquisition of Meyer Laboratories Inc, Glaxo’s business in
the US is
started, to become Glaxo Inc from 1980.
The broad-spectrum injectable antibiotic Zinacef (cefuroxime) is
introduced by
Glaxo.
1981
The anti-ulcer treatment Zantac (ranitidine) is launched by Glaxo and
is to
become the world’s top-selling medicine by 1986. Augmentin
(amoxicillin /
clavulanate potassium), to combat a wide range of bacterial infections
in children
and adults, is launched by Beecham.
The antiviral Zovirax (aciclovir) is launched by Wellcome for herpes
infections
1982
SmithKline acquires Allergan, an eye and skincare business, and
merges with
Beckman Instruments Inc, a company specialising in diagnostics and
measurement instruments and supplies.
The company is renamed SmithKline Beckman. John Vane of the
Wellcome
Research Laboratories is awarded the Nobel Prize, with two other
scientists, "for
their discoveries concerning prostaglandins and related biologically
active
substances."
1983
Glaxo Inc moves to new facilities in Research Triangle Park and
Zebulon, North
Carolina. The broad-spectrum injectable antibiotic Fortum (ceftazidime)
is
launched.
Wellcome launches Flolan (epoprostenol) for use in renal dialysis.
1986
Beecham acquires the US firm Norcliff Thayer, adding Tums antacid
tablets and
Oxy skin care to its portfolio.
1987
The AIDS treatment Retrovir (zidovudine) is launched by Wellcome.
Glaxo
introduces the oral antibiotic Zinnat (cefuroxime axetil).
1988
SmithKline BioScience Laboratories acquires one of its largest
competitors,
International Clinical Laboratories, Inc, increasing the company's size
by half and
establishing SmithKline BioScience Laboratories as the industry leader.
The Nobel Prize for medicine is awarded to George Hitchings and
Gertrude Elion,
of Burroughs Wellcome Inc, and to Sir James Black, who had worked at
the
Wellcome Foundation and Smith Kline and French Laboratories, "for
their
discoveries of important principles for drug treatment."
1989
SmithKline Beckman and The Beecham Group plc merge to form
SmithKline
Beecham plc. Engerix-B hepatitis B vaccine (recombinant), a
genetically
engineered hepatitis B vaccine, is launched in the US and France.
1990
The synthetic lung surfactant Exosurf and the anti-epileptic drug
Lamictal
(lamotrigine) are launched by Wellcome.
Glaxo introduces long-acting Serevent (salmeterol) for asthma, the
inhaled
corticosteroid Flixotide (fluticasone propionate) and Zofran
(ondansetron) antiemetic
for cancer patients.
1991
Glaxo launches its novel treatment for migraine, Imigran
(sumatriptan), Lacipil
(lacidipine) for high blood pressure, and Cutivate (fluticasone
propionate) in the
US for skin diseases.
SmithKline Beecham moves its global headquarters to New Horizons
Court at
Brentford, England. SmithKline Beecham’s Seroxat/Paxil (paroxetine
hydrochloride) is launched in the UK, its first market.
1992
Mepron (atovaquone) for AIDS-related pneumonia is introduced by
Burroughs
Wellcome in the US.
SmithKline Beecham’s Havrix hepatitis A vaccine, inactivated, the
world’s first
hepatitis A vaccine, is launched in six European markets.
1993
SmithKline Beecham and Human Genome Science negotiate a multi-
milliondollar
research collaboration agreement for identifying and describing the
functions of the genes in the human body.
Glaxo introduces Flixotide (fluticasone propionate) for bronchial
conditions.
1994
SmithKline Beecham purchases Diversified Pharmaceutical Services,
Inc, a
pharmaceutical benefits manager.
Sterling Health also is acquired, making SmithKline Beecham the
third-largest
over-the-counter medicines company in the world and number one in
Europe and
the international markets.
With the intention of focusing on human healthcare, SmithKline
Beecham sells its
animal health business.
1995
Glaxo and Wellcome merge to form Glaxo Wellcome.
Glaxo Wellcome acquires California-based Affymax, a leader in the
field of
combinatorial chemistry.
Glaxo Wellcome’s Medicines Research Centre opened at Stevenage in
England.
Valtrex (valaciclovir) is launched by Glaxo Wellcome as an anti-herpes
successor
to Zovirax (acyclovir).
SmithKline Beecham acquires Sterling Winthrop's site in Upper
Providence,
Pennsylvania, to fulfil US R&D expansion needs.
1996
Community Partnership is established by SmithKline Beecham to
focus
philanthropy on community-based healthcare.
SmithKline Beecham Healthcare Services is formed by combining the
clinical
laboratories, disease management and Diversified Pharmaceutical
Services
businesses.
1997
SmithKline Beecham’s research centre, New Frontiers Science Park,
opens at
Harlow in England.
SmithKline Beecham and Incyte Pharmaceuticals create a joint
venture -
diaDexus - to discover and market novel molecular diagnostics based
on the use
of genomics.
1998
SmithKline Beecham and the World Health Organization announce a
collaboration to eliminate lymphatic filariasis (elephantiasis) by the
year 2020.
The largest pharmaceutical company in Poland is created with the
acquisition of
Polfa Poznan by Glaxo Wellcome.
1999
The 30th anniversary of the launch of Ventolin (albuterol) is marked
as respiratory
becomes Glaxo Wellcome’s largest therapeutic area.
Sharpening its focus on pharmaceuticals and consumer healthcare,
SmithKline
Beecham divests SmithKline Beecham Clinical Laboratories and
Diversified
Pharmaceutical Services.
GSK Products
Product name: Aquafresh
Major Markets
• North and South America
• Europe
• East and South Africa
• Middle East
• Asia
• Australia and New Zealand
Aquafresh is one of the world's largest and fastest growing toothpaste
and
toothbrush brands. The unique red, white and blue stripes of the
toothpaste
make the product not only visually attractive, but also underline the
triple benefits
of strong teeth, healthy gums and fresh breath – whole mouth
protection. The
Aquafresh range of manual and electric toothbrushes not only clean
teeth
effectively, they are also gentle on gums because of their flexible
necks. Their
flexible heads and brush tips have been designed for cleaning even the
hardestto-
reach parts of the mouth. The Aquafresh range also includes
whitening,
sensitive, tartar control and children's toothpaste, children's
toothbrushes, dental
lozenges and dental gum.
Product name: ENO
Major Markets
• India
• Brazil
• South Africa and Thailand
ENO is the most global of GSK's gastrointestinal brands with sales of
£29 million.
The fast-acting effervescent fruit salts, used as an antacid and reliever
of
bloatedness, was invented in the 1850s by James Crossley ENO
Product name: Horlicks
Major Markets
India and UK
Horlicks, 'The Great Family Nourisher,' is a nutritional drink made from
wheat,
milk and malted barley and is sold in powdered form. The brand is such
an
enormous success in its key market, India, that alongside the
traditional family
formula, there is a special formulation for children between one and
three years
of age and another for breast-feeding mothers.
Financial review
Operating profit and earnings per share
Operating profit of £1,911 million grew by 13%, which was above the
turnover
growth of 9%, reflecting an improved cost of sales margin and higher
other
operating income partly offset by increased R&D expenditure. SG&A
grew 8%.
Excluding costs for legal matters, SG&A grew by 2%, well below
turnover growth.
In the quarter, gains from asset disposals were £91 million (£10 million
in 2005),
costs for legal matters were £123 million (£33 million in 2005), the fair
value
movements on the Quest collar and Theravance options were
unfavorable £69
million (£9 million unfavorable in 2005) and net income related to
restructuring
programmes was £4 million (£24 million charge in 2005). The total
operating
profit impact of these items was a £97 million charge in 2006,
compared with a
£56 million charge in 2005, resulting in a 2 percentage point reduction
in
operating profit growth for the quarter.
Profit after taxation grew by 14% which was marginally higher than the
growth in
operating profit and reflected lower net interest costs, partially offset
by a higher
expected tax rate for the year.EPS of 23.3 pence increased 15% in CER
terms
(14% in sterling terms) compared with Q2 2005. The adverse currency
impact of
1% on EPS reflected exchange losses on settlement of foreign currency
balances in the quarter partly offset by a stronger dollar.

4. COLGATE PAMOLIVE INDIA LIMITED


From a modest start in 1937, when hand-carts were used to distribute
Colgate Dental Cream, Colgate-Palmolive (India) today has one of the
widest
distribution networks in India – a logistical marvel that spans around
3.5 million
retail outlets across the country, of which the Company services
9.40,000 outlets
directly. The Company has grown to a Rs. 9600 million plus with an
outstanding
record of enhancing value for its strong shareholder base.
Colgate's tight focus in Oral Care in India while building its Personal
Care
business coupled with a simple, but sound worldwide financial
strategy, has
helped deliver consistent shareholder value. Colgate consistently
increases
gross margin while at the same time reducing overhead expenses. The
increase
in gross margin and the reduction in overhead expenses provide the
money to
invest in advertising to support the launch of new products, while at
the same
time increasing operating profit.
Today, Colgate is a household name in India with one out of two
consumers
using a modern dentifrice. Consistently superior quality, innovation and
value for
money products emerging out of advanced technology employed, has
enabled
Colgate to be voted ‘The Most Trusted Brand’ in India across all brands
and
categories for the third consecutive year in the Brand Equity AC
Nielson ORGMARG
2005 survey. Colgate has been the only brand to be ranked in the top
three for all the five surveys and to hold the premier position for three
consecutive years. This is a true measure of the trust and confidence
that
generations of consumers have placed in Colgate for their oral care
needs.
History
1975
Caprice hair care launches in Mexico. Today, hair care products are
sold in over
70 countries, with variants to suit every type of hair need.
1976
Colgate-Palmolive acquires Hill's Pet Nutrition. Today Hill's is the global
leader in
pet nutrition and veterinary recommendations.
1983
Colgate Plus toothbrush is introduced. Today over 1.6 billion Colgate
toothbrushes are sold annually worldwide. If you lined them up end to
end, they
would circle the globe 16 times.
1985
Protex bar soap is introduced, and today offers all-family antibacterial
protection
in over 56 countries. Colgate-Palmolive enters into a joint venture with
Hong
Kong-based Hawley & Hazel, a leading oral care company, which adds
strength
in key Asian markets.
1986
The Chairman's You Can Make A Difference Program is launched,
recognizing
innovation and executional excellence by Colgate people.
1987
Colgate acquires Softsoap liquid soap business from the Minnetonka
Corporation. Today, Colgate is the global leader in liquid hand soap.
1989
Annual Company sales surpass the $5 billion mark.
1991
Colgate acquires Murphy Oil Soap, the leading wood cleaner in the U.S.
Today,
its product portfolio has expanded to include all-purpose cleaners,
sprays and
wipes.
1992
Colgate acquires the Mennen Company. Today, Mennen products are
sold in
over 52 countries.
1995
Colgate enters Central Europe and Russia, expanding into fast-growing
markets.
Colgate acquires Kolynos Oral Care business in Latin America and
launches
market-leading Sorriso toothpaste.
1996
Bright Smiles, Bright Futures oral health education program expands to
reach 50
countries with in-school programs and mobile dental clinics.
1997
Colgate Total toothpaste is introduced and quickly becomes the market
leader in
the U.S. Only Colgate Total, with its 12-hour protection, fights a
complete range
of oral health problems.
2004
Colgate acquires the GABA oral care business in Europe, with its
strength in the
important European pharmacy channel and its ties with the dental
community.
2006
Today, with sales surpassing $10 billion, Colgate focuses on four core
businesses: Oral Care, Personal Care, Home Care and Pet Nutrition.
Colgate
now sells its products in 222 countries and territories worldwide.
Products
Oral Care:
• Colgate – Toothpaste, Tooth Powder, Whitening Products
• Pamolive - Shower Gel, Shower Cream, Bar Soap, Liquid Hand Wash,
Shave Preps, Skin Care
Household Care:
• Axion Surface Clean
5. BRITANIA
The story of one of India's favorite brands reads almost like a fairy tale.
Once
upon a time, in 1892 to be precise, a biscuit company was started in a
nondescript house in Calcutta (now Kolkata) with an initial investment
of Rs. 295.
The company we all know as Britannia today.
The beginnings might have been humble-the dreams were anything
but. By
1910, with the advent of electricity, Britannia mechanized its
operations, and in
1921, it became the first company east of the Suez Canal to use
imported gas
ovens. Britannia's business was flourishing. But, more importantly,
Britannia was
acquiring a reputation for quality and value. As a result, during the
tragic World
War II, the Government reposed its trust in Britannia by contracting it
to supply
large quantities of "service biscuits" to the armed forces.
As time moved on, the biscuit market continued to grow and Britannia
grew along
with it. In 1975, the Britannia Biscuit Company took over the
distribution of
biscuits from Parry's who till now distributed Britannia biscuits in India.
In the
subsequent public issue of 1978, Indian shareholding crossed 60%,
firmly
establishing the Indianness of the firm. The following year, Britannia
Biscuit
Company was re-christened Britannia Industries Limited (BIL). Four
years later in
1983, it crossed the Rs. 100 crores revenue mark.
On the operations front, the company was making equally dynamic
strides. In
1992, it celebrated its Platinum Jubilee. The Wadia Group acquired a
stake in the
company and became an equal partner with Groupe Danone in
Britannia. The
subsequent year saw sales cross landmark 100,000 tones of biscuits or
1 billion
packs of 100g.
Britannia strode into the 21st Century as one of India's biggest brands
and the
pre-eminent food brand of the country. It was equally recognized for its
innovative
approach to products and marketing: the Lagaan Match was voted
India's most
successful promotional activity of the year 2001 while the delicious
Britannia 50-
50 Maska-Chaska became India's most successful product launch. In
2002,
Britannia's New Business Division formed a joint venture with Fonterra,
the
world's second largest Dairy Company, and Britannia New Zealand
Foods Pvt.
Ltd. was born. In recognition of its vision and accelerating graph,
Forbes Global
rated Britannia 'One amongst the Top 200 Small Companies of the
World', and
The Economic Times pegged Britannia India's 2nd Most Trusted Brand.
Today, more than a century after those tentative first steps, Britannia's
fairy tale is
not only going strong but blazing new standards, and that miniscule
initial
investment has grown by leaps and bounds to crores of rupees in
wealth for
Britannia's shareholders. The company's offerings are spread across
the
spectrum with products ranging from the healthy and economical Tiger
biscuits to
the more lifestyle-oriented Milkman Cheese. Having succeeded in
garnering the
trust of almost one-third of India's one billion population and a strong
management at the helm means Britannia will continue to dream big
on its path
of innovation and quality. And millions of consumers will savour the
results,
happily ever after.
1975• Britannia Biscuit Company takes over biscuit distribution
from Parry's
1979 Re-christened Britannia Industries Ltd. (BIL)
1983
Sales cross Rs.100 crore
1989• The Executive Office relocated to Bangalore
1992• BIL celebrates its Platinum Jubilee
1993• Wadia Group acquires stake in ABIL, UK and becomes an
equal partner with Groupe Danone in BIL

1997• Re-birth - new corporate identity 'Eat Healthy, Think Better'
leads to new mission: 'Make every third Indian a Britannia
consumer'
• BIL enters the dairy products market
1999• "Britannia Khao World Cup Jao" - a major success! Profit up
by 37%
2000• Forbes Global Ranking - Britannia among Top 300 small
companies
2001• BIL ranked one of India's biggest brands
• No.1 food brand of the country
• Britannia Lagaan Match: India's most successful promotional
activity of the year
• Maska Chaska: India's most successful FMCG launch
2002• BIL launches joint venture with Fonterra, the world's second
largest dairy company
• Britannia New Zealand Foods Pvt. Ltd. is born
• Rated as 'One amongst the Top 200 Small Companies of the
World' by Forbes Global
• Economic Times ranks BIL India's 2nd Most Trusted Brand
• Pure Magic -Winner of the Worldstar, Asiastar and Indiastar
award for packaging
2003• 'Treat Duet'- most successful launch of the year
• Britannia Khao World Cup Jao rocks the consumer lives yet
again
2004• Britannia accorded the status of being a 'Superbrand'
• Volumes cross 3,00,000 tons of biscuits
• Good Day adds a new variant - Choconut - in its range
2005• Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the
popular chant!
• Britannia launched 'Greetings' range of premium assorted
gift packs
• The new plant in Uttaranchal, commissioned ahead of
schedule.
• The launch of yet another exciting snacking option - Britannia
50-50 Pepper Chakkar
PRODUCTS
• Britannia Trea t proffers a wide variety of flavours, such as the classic
favourites Bourbon & Elaichi, the Fruit Flavoured Creams such as
Orange,
Pineapple, Mango, and Strawberry, the Jam Filled Centres under the Jim
Jam range, and the Duet Range
• Tiger, launched in 1997, became the largest brand in Britannia's
portfolio
in the very first year of its launch and continues to be so till today.
Tiger
has grown from strength to strength and the re-invigoration.
• Britannia Good Day was launched in 1986 in two delectable avatars -
Good Day Cashew and Butter. Over the years, new variants were
introduced - Good Day Pista Badam in 1989, Good Day Chocochips in
2000 and Good Day Choconut in 2004.
• Britannia 50-50 is the leader in its category with more than one-third
of
market share. The versatile and youthful brand constantly aims to
provide
a novel and exciting taste experience to the consumer.
• Britannia's oldest brand enjoys a heritage that spans the last 50
years -
and going strong., Britannia Marie Gold has maintained its stronghold.
It is
the #1 brand in its category by a long shot
• In 1996, Milk Bikis launched a variant called Milk Cream. These round
biscuits come with smiley faces and are full of milk cream that makes
them very popular with children.
• To offer something to consumers who cherish healthy living,
Britannia
introduced Nutri-Choice biscuits. In 1998, Nutri-Choice Thin Arrowroot
was
morphed from Jacob's Thin Arrowroot (a popular brand in East India).
• Before Timepass, Britannia's offering in the salted cracker category
was
Snax. Launched in 1999, Snax was promoted as a tastier base for
toppings through edgy advertising.
• Little Hearts was launched in 1993 and targeted the growing youth
segment. A completely unique product, it was the first time biscuits
were
retailed in pouch packs like potato wafers.
• Britannia Nice Time was the pioneer of sugar sprinkled biscuits in
India.
This unique product managed to create such a strong consumer pull
that
soon there was a rush of pretender products in the market, clearly
indicative of the success of the concept.
• Till 1958, there were no breads in the organised sector and bread
consumption was a habit typified by the British. Then, a mechanised
bread
unit was set up in Delhi with the name "Delbis" which produced sliced
bread and packed it under the Britannia name. Thus, Britannia was not
only the pioneer, but also inculcated in the people of Delhi the habit of
eating white sliced bread. The Mumbai unit came up in 1963, and there
again Britannia was the first branded bread in the city.
6. DABUR INDIA
Dabur India Limited is a leading Indian consumer goods company with
interests
in health care, Personal care and foods. Over more than 100 years we
have
been dedicated to providing nature-based solutions for a healthy and
holistic
lifestyle.
Through our comprehensive range of products we touch the lives of all
consumers, in all age groups, across all social boundaries. And this
legacy has
helped us develop a bond of trust with us.
1979 Sahibabad factory / Dabur Research Foundation
1986 Public Limited Company
1992 Joint venture with Agrolimen of Spain
1993 Cancer treatment
1994 Public issues
1995 Joint Ventures
1996 3 separate divisions
1997 Foods Division / Project STARS
1998 Professionals to manage the Company
2000 Turnover of Rs.1,000 crores
2003 Dabur demerges Pharma Business
2005 Dabur aquires Balsara
2006 Dabur announces Bonus after 12 years
2006 Dabur crosses $2 Bin market Cap, adopts US GAAP

Dabur Health Care Product Range


Dabur
Chyawanprash-
Dabur
Chyawanshakti-
Glucose DDabur
Lal tail-
Dabur Baby olive
oil-
Dabur Janma
Ghunti-
Hajmola Yumstick -
Hajmola Mast
Masala -
Anardana -
Hajmola -
Hajmola candy -
Hajmola Candy
Fun2 -
Pudin hara -
(Liquid and
pearls)
Pudin hara G -
Dabur Hingoli -
Shilajit Gold -
Nature Care -
Sat Isabgol -
Shilajit -
Ring Ring -
Itch Care -
Back-aid -
Shankha Pushpi -
Dabur Balm -
Sarbyna Strong -
Dabur Personal Care Product Range
Amla Hair Oil -
Amla Lite Hair Oil
-
- Anmol Silky Black Shampoo
- Vatika Henna
Conditioning Shampoo
Vatika Hair Oil -
Anmol Sarson
Amla -
- Vatika Anti-Dandruff Shampoo
- Anmol Natural Shine Shampoo
Gulabari -
Vatika Fairness
Face Pack -
- Dabur Red Gel
- Dabur Red Toothpaste
- Babool Toothpaste
- Meswakl Toothpaste
- Promise Toothpaste
- Dabur Lal Dant Manjan
- Dabur Binaca Toothbrush
Dabur Foods Product Range
Tastes like eating a
fruit
100% Natural Fruit Juice
Pure natural Honey
Hommade - a range
of
culinary ingredients
giving you 'The taste
of Indian Kitchen'.
Lemoneez is a Natural Lemon
Juice
Capsico - a fiery red-pepper
sauce.
7. GODFREY PHILLIPS
Godfrey Phillips is a company driven by passion - the passion to excel,
innovate
and win, a passion to be the leader, to emerge as the most respected
company
in the tobacco industry, not just in India but all over the world.
Godfrey Phillips is today the second largest player in the Indian
cigarette industry
with an annual turnover of over US$ 265 million.
Incorporated in India in 1936, the Company established its own
manufacturing
facilities in 1944. Today, the operations span the entire northern and
western part
of the country, with two manufacturing facilities located in Ghaziabad
(near Delhi)
and in Andheri (Mumbai), a state of the art R&D centre in Mumbai and
a tobacco-
buying unit in Guntur (Andhra Pradesh). Headquartered in Delhi, the
Company
has its sales offices across the country at Ahmedabad, Mumbai, Delhi,
Chandigarh and Hyderabad.
The Company today is the proud owner of some of the most popular
cigarette
brands in the country like Red and White, Four Square, Jaisalmer,
Cavanders,
Tipper and Prince. Its products are distributed through an extensive
India wide
network comprising 484 exclusive distributors and over 800,000 retail
outlets.
Over the years, Godfrey Phillips has emerged as a professionally
managed,
highly efficient corporate entity. Today, the Company has one of the
highest
productivity rates of workers in the entire country and an enviable
organisational
structure. Over the years the Company has also become an active
player in
overseas markets, with significant export volumes.
Godfrey Phillips has two major stakeholders, one of India's leading
industrial
houses - the K.K. Modi Group and one of the World's largest tobacco
companies,
Philip Morris. Godfrey Phillips has the strong backing of over 15,000
shareholders in the Country and is today, through the sheer
determination &
passion of every employee of the organization, growing from strength
to strength.
From its modest beginning in London way back in 1844, Godfrey
Phillips, a major
player in the Indian tobacco industry, has come a long way.
The history of the Company reflects the strong determination and
passion
amongst the founders & the employees of the Company to establish
itself as a
leader of the tobacco industry in the Country.
Mr. Godfrey Phillips, founder of Godfrey Phillips & Sons commenced
business in
the Barbican (London), as a Cigar manufacturer in 1844. From the
Barbican he
moved to Primrose Street and after that to Commercial Street London.
B.D.V, the
packet tobacco with which the name of Godfrey Phillips was intricately
connected, is practically contemporary with Mr. Phillips embarkation in
tobacco
cutting in the year 1887.
At that time packet tobaccos were in their infancy. After B.D.V. came
"Marigold"
and Guinea Gold. Mr. Phillips, a splendid judge of tobacco himself,
looked for
appreciation of quality in his customers and stuck to his belief that
quality will
ultimately determine success, something that is still the strongest
belief in the
Company. Messrs Godfrey Phillips, D.H. Wilmer and H.C. Water
incorporated
GODFREY PHILLIPS INDIA as a Private Ltd. Co. on 3rd December 1936.
The
Company imported cigarettes from Godfrey Phillips Ltd. U.K.
In the year 1942, plans for setting up a manufacturing facility in
Calcutta were
made, however it got shelved due to World War II. In 1944, after the
war,
GODFREY PHILLIPS bought Master Tobacco Co., Chakala, Andheri
(Mumbai)
thereby establishing its first factory in the Country. In October 1946,
GODFREY
PHILLIPS became a Public Ltd. Co. with its manufacturing operations in
Mumbai.
GODFREY PHILLIPS was then primarily a manufacturing company and
made
cigarette brands like Cavanders, Abdulla No. 7, DERESKE, Marcovich,
Red &
White. In 1951/52 Godfrey Phillips UK bought out George Dobie &
Son's, famous
Four Square brand.
In 1967, D. Macropolo & Co., which was the sole selling agent for
GODFREY
PHILLIPS, opened a subsidiary company called "International Tobacco
Co.", with
its manufacturing facility in Ghaziabad (near Delhi) to manufacture
cigarettes for
GODFREY PHILLIPS.
In 1967-68, Philip Morris acquired substantial holding in Godfrey
Phillips Ltd.,
U.K. and Godfrey Phillips Investment Corporation which was holding
substantial
shares of Godfrey Phillips India Ltd. It also acquired a large share
holding
interest in George Dobie & Sons. Thus in 1968, Godfrey Phillips Ltd.,
U.K.,
George Dobie & Sons, and GODFREY PHILLIPS became affiliates of
Philip
Morris.
Philip Morris is a large professionally managed multinational with
diversified
business interests. It has a wide range of tobacco and other products,
with
"Marlboro" being its leading brand in the world. It took major initiatives
in 1968 for
GODFREY PHILLIPS to re-organise its operations. A major thrust was
given to
marketing & sales and it was decided to merge D. Marcopolo & Co.
with Godfrey
Phillips, a process, which began in 1969. The merger was finally
completed on
31st December 1975, bringing the four sales branches and
"International
Tobacco Co." under its fold.
In 1973 GODFREY PHILLIPS, successfully launched Four Square Kings,
India 's
first King Size filter cigarette. It was the sheer passion to be close to
the
consumer that helped the Company recognize the demands of the
emerging
consumer long before anyone in the cigarette industry.
In 1979, Philip Morris. joined hands with the K.K. Modi Group and in
the
following year the Modi Enterprises took over the management of
GODFREY
PHILLIPS with a substantial financial stake. Modi enterprise was new to
the
cigarette business, but an area in which they saw a huge potential for
growth.
They took on this new challenge with a lot of passion, vigour and
confidence.
The business was given a fresh look in all its areas of operation.
Professional
managers were inducted to head the various functions to bring about
change and
vigor in the organization to meet the challenges of the eighties. The
existing
brand franchises were rejuvenated, each brand was modernized with
the prime
objective of growing their brand equity. Modernization of the factories
was
initiated; product development and research activities were stepped
up.
Aggressive marketing and sales strategies were drawn up and
implemented and
each employee was empowered to bring about the desired change.
Everything
was restarted with renewed passion and determination.
Godfrey Phillips is best known by the brands it manufactures and today
the
Company is the proud owner of some of the best FMCG brands of the
country. At
least 3 of our cigarette brands today feature in the top 50 FMCG list.
They are:
Four Square Special, Red & White and Cavanders.
Apart from these champions, the Company also has other cigarette
brands that
cater to a large and varied range of consumer segments.
The year 2002 also saw the Company re-launch some of its brands, by
giving
them an entirely new look & positioning, while some new, innovative
products
were also introduced. These brands are already making their presence
felt in the
industry. They are: Jaisalmer (re-launched in 2003), Tipper & Piper
(new
innovative products introduced in 2002) and Prince (another re-launch
for the
year 2002).
Prepared with utmost dedication and passion, to deliver the customer
with the
most satisfying smoke, each cigarette going out into the market bears
the
Godfrey Phillips stamp of quality and assurance.
Cigarette
• Four Square
• Jaisalmer
• Red & White
• Cavanders
• Tipper
• North Pole
• Prince
Cigars - Brands
• Don Diego
• Hav-a-tampa
• Phillies
• Santa Damiana H-2000 Rothschild
8. GODREJ
The foods division of Godrej Industries produces and markets edible
oils,
vanaspati, fruit drinks, fruit nectar and bakery fats.
The division has two state-of-the-art manufacturing facilities: at
Wadala in
Mumbai, the capital of the western Indian state of Maharashtra; and at
Mandideep near Bhopal in the northern Indian state of Madhya
Pradesh. It has a
national distribution network consisting of 800 distributors and 24
consignment
agents.The plants are equipped with the best of modern equipment for
the
processing and packaging of a wide variety of food products. These
include:
The 'Jumpin' range of fruit drinks, which come in flavors such as
mango, apple,
pineapple and orange. The 'Xs' range of fruit nectar (mango, litchi, and
sweet
orange and pineapple flavors). Tomato Puree (under the Godrej brand).
Fruit
pulps and juices in bulk aseptic packaging. Health and dietetic foods.
Refined
edible oils of low color in different varieties of groundnut, sunflower
and
soyabean. Processed hydrogenated fats for edible purposes such as
vanaspati
and bakery shortenings.
Godrej Industries, in keeping with the philosophy of the Godrej Group,
believes
that quality is the product of a combination of man and machine. The
foods
division has people of outstanding caliber to go with the modern
technologies it
uses. The result: the ability to deliver outstanding products.
Soymilk is the rich creamy milk of whole soybeans. With its unique
nutty flavor
and rich nutrition, soymilk can be used in a variety of ways.
Plain, unfortified soymilk is an excellent source of high-quality protein,
B-vitamins
and iron. Some brands of soymilk are fortified with vitamins and
minerals and are
good sources of calcium, vitamin D and vitamin B-12.
Soymilk is free of the milk sugar lactose and is a good choice for
people who are
lactose intolerant. Also, it is a good alternative for those who are
allergic to cow's
milk. Children can enjoy homemade or commercially prepared soymilk
after the
age of 1 year. Infants under 1 year of age should be fed breast milk,
commercially prepared infant formula or commercial soymilk infant
formula.
Soymilk is available as a plain, unflavored beverage or in a variety of
flavors
including apple, mango, malt and plain. Soymilk can be used in almost
any way
that cow's milk is used.
Godrej Industries Limited is India's leading manufacturer of
oleochemicals and
makes more than a hundred chemicals for use in over two dozen
industries. It
also manufactures edible oils, vanaspati and bakery fats. Besides, it
operates
businesses in medical diagnostics and real estate.
GIL is a member of the Godrej Group, which was established in 1897
and has
since grown into a Rs 6,000 crore conglomerate. The company was
called
Godrej Soaps Limited until March 31, 2001. Thereafter, the consumer
products
division got de-merged into Godrej Consumer Products Limited, and
the residual
Godrej Soaps became Godrej Industries Limited. This led to the
formation of two
separate corporate entities: Godrej Consumer Products and Godrej
Industries.
Besides its three businesses, Godrej Industries also runs four divisions

Corporate Finance, Corporate HR, Corporate Audit and Assurance and
Research
and Development — which operate on behalf of the entire Godrej
Group.
GIL has built a strong manufacturing base capable of delivering
international
quality products at competitive prices. It operates two plants, one at
Valia in the
Indian state of Gujarat and a second at Vikhroli in suburban Mumbai.
The
company's products are exported to 40 countries in North and South
America,
Asia, Europe, Australia and Africa, and it leads the Indian market in the
production of fatty acids, fatty alcohols and AOS
9. NIRMA
Nirma is one of the few names - which is instantly recognized as a true
Indian
brand, which took on mighty multinationals and rewrote the marketing
rules to
win the heart of princess, i.e. the consumer.
Nirma, the proverbial ‘Rags to Riches’ saga of Dr. Karsanbhai Patel, is a
classic
example of the success of Indian entrepreneurship in the face of stiff
competition.
Starting as a one-man operation in 1969, today, it has about 14, 000
employeebase
and annual turnover is above Rs. 25, 00 crores.
India is a one of the largest consumer economy, with burgeoning
middle class
pie. In such a widespread, diverse marketplace, Nirma aptly
concentrated all its
efforts towards creating and building a strong consumer preference
towards its
‘value-for-money’ products.
It was way back in ‘60s and ‘70s, where the domestic detergent
market had only
premium segment, with very few players and was dominated by MNCs.
It was
1969, when Karsanbhai Patel started door-to-door selling of his
detergent
powder, priced
at an astonishing Rs. 3 per kg, when the available cheapest brand in
the market
was
Rs. 13 per kg. It was really an innovative, quality product – with
indigenous
process, packaging and low-profiled marketing, which changed the
habit of
Indian housewives’ for washing their clothes. In a short span, Nirma
created an
entirely new market segment in domestic marketplace, which is,
eventually the
largest consumer pocket
and quickly emerged as dominating market player – a position it has
never since
relinquished. Rewriting the marketing rules, Nirma became a one of
the widely
discussed success stories between the four-walls of the B-school
classrooms
across
the world.
The performance of Nirma during the decade of 1980s has been
labeled as
‘Marketing Miracle’ of an era. During this period, the brand surged well
ahead its
nearest rival – Surf, which was well-established detergent product by
Hindustan
Lever. It was a severing battering for MNC as it recorded a sharp drop
in its
market share. Nirma literally captured the market share by offering
value-based
marketing mix of four P’s, i.e. a perfect match of product, price, place
and
promotion.
Now, the year 2004 sees Nirma’s annual sales touch 800,000 tones,
making it
one of
the largest volume sales with a single brand name in the world.
Looking at the
FMCG synergies, Nirma stepped into toilet soaps relatively late in 1990
but this
did not deter it to achieve a volume of 100,000 per annum. This makes
Nirma the
largest detergent and the second largest toilet soap brand in India with
market
share of 38% and 20% respectively.
It has been persistent effort of Nirma to make consumer products
available to
masses at an affordable price. Hence, it takes utmost care to provide
finest
products at the most affordable prices. To leverage this effort, Nirma
has gone for
massive backward
integration along with expansion and modernization of the
manufacturing
facilities.
The focal objective behind modernization plan is of up gradation with
resourcesavvy
technology to optimize capabilities. Nirma’s six production facilities,
located at different places, are well equipped with state-of-art
technologies. To
ensure regular supply of major raw materials, Nirma had opted for
backward
integration strategies. These strategic moves allowed Nirma to
manage effective
and efficient supply-chain.
Nirma has always been practiced ‘value-for-money’ plank. Nirma plans
to extend
the same philosophy in categories as commodity food products,
personal care
products and packaged food. Distinct market vision and robust
infrastructure
allowed Nirma to have cost leadership. Apart from this, lean
distribution network,
umbrella branding and low profile media promotions allowed it to offer
quality
products, at affordable prices.
In present scenario, an inspiring 59-year-old persona, Dr. Karsanbhai K.
Patel,
leads Nirma, playing role of key strategic decision-maker, whereas his
next
generation has already skilled management capabilities. Shri Rakesh K
Patel – a
qualified management graduate, is spearheading the procurement,
production
and logistic functions, whereas Shri Hiren K Patel – a qualified Chemical
engineer and management graduate, heads the marketing and finance
functions
of the organization. Shri Kalpesh Patel, Executive Director, leads the
professional
organizational structure.
Products
• Nirma Bath Soap
• Nirma Beauty Soap
• Nirma Lime Fresh Soap
• Nima Rose
• Nima Sandal
• Nirma Washing Powder
• Nirma Detergent Cake
• Super Nirma Washing Powder
• Super Nirma Detergent Cake
• Nirma Popular Detergent Powder
• Nirma Popular Detergent Cake
• Nirma Shudh Iodized Salt
• Nirma Clean Dish Wash Bar
• Nima Bartan Bar
10. ITC
ITC is one of India's foremost private sector companies with a market
capitalization of over US $ 13 billion and a turnover of US $ 3.5 billion.
Rated
among the World's Best Big Companies by Forbes magazine and
among India's
Most Respected Companies by Business World, ITC ranks third in pre-
tax profit
among India's private sector corporations.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards &
Specialty
Papers, Packaging, Agri-Business, Packaged Foods & Confectionery,
Information Technology, Branded Apparel, Greeting Cards, Safety
Matches and
other FMCG products. While ITC is an outstanding market leader in its
traditional
businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-
Exports, it is
rapidly gaining market share even in its nascent businesses of
Packaged Foods
& Confectionery, Branded Apparel and Greeting Cards.
As one of India's most valuable and respected corporations, ITC is
widely
perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar
calls this
source of inspiration "a commitment beyond the market". In his own
words: "ITC
believes that its aspiration to create enduring value for the nation
provides the
motive force to sustain growing shareholder value. ITC practices this
philosophy
by not only driving each of its businesses towards international
competitiveness
but by also consciously contributing to enhancing the competitiveness
of the
larger value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at
creating
multiple drivers of growth anchored on its time-tested core
competencies:
unmatched distribution reach, superior brand-building capabilities,
effective
supply chain management and acknowledged service skills in
hoteliering. Over
time, the strategic forays into new businesses are expected to garner a
significant share of these emerging high-growth markets in India.
Products
• Cigarettes
ITC is the market leader in cigarettes in India. With its wide range of
invaluable brands, it has a leadership position in every segment of the
market. Its
highly popular portfolio of brands includes Wills, Insignia, India
Kings,
Gold Flake, Navy Cut, Scissors, Capstan, Berkeley, Bristol and
Flake.
• Foods
ITC made its entry into the branded & packaged Foods business in
August
2001 with the launch of the Kitchens of India brand. A more broad-
based entry
has been made since June 2002 with brand launches in the
Confectionery,
Staples and Snack Foods segments.
The packaged foods business is an ideal avenue to leverage ITC's
proven
strengths in the areas of hospitality and branded cuisine,
contemporary
packaging and sourcing of agricultural commodities. ITC's world
famous
restaurants like the Bukhara and the Dum Pukht, nurtured by the
Company's
Hotels business, demonstrate that ITC has a deep understanding of the
Indian
palate and the expertise required to translate this knowledge into
delightful dining
experiences for the consumer.
The Foods business is today represented in 4 categories in the market.
These are:
• Ready To Eat Foods
• Staples
• Confectionery
• Snack Foods
• Lifestyle Retailing
Over the last six years, ITC's Lifestyle Retailing Business Division has
established a nationwide retailing presence through its Wills Lifestyle
chain of
exclusive specialty stores. Beginning with its initial offering of Wills
Sport
relaxed wear from the first store at South Extension, New Delhi in July
2000,
it has expanded its basket of offerings to the premium consumer with
Wills
Classic work wear, Wills Clublife evening wear and a tempting range of
designer accessories that complete the Look.
• Greeting, Gifting & Stationery
ITC's stationery brands Paper Kraft & Classmate are the most widely
distributed brands across India. ITC's Greeting & Gifting products
include
Expressions greeting cards and gifting products like autograph books,
slam
books, party invitations, pop up & mini books. The business also
markets
Expressions Regalia, a collection of premium greeting cards & social
cause
cards & desk calendars in association with SOS Children's Villages
of India.
Expressions greetings & gifting products are available in multi brand
retail outlets
across India.
FUTURE PROSPECTS:

The Indian FMCG sector with a market size of US$13.1 billion is the fourth
largest sector in the economy. A well-established distribution network, intense
competition between the organized and unorganized segments characterizes the
sector. FMCG Sector is expected to grow by over 60% by 2010. That will
translate into an annual growth of 10% over a 5-year period. It has been
estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs
92,100 crores in 2010. Hair care, household care, male grooming, female
hygiene, and the chocolates and confectionery categories are estimated to be
the fastest growing segments, says an HSBC report. Though the sector
witnessed a slower growth in 2002-2004, it has been able to make a fine
recovery since then.

For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the
last quarter. An estimated double-digit growth over the next few years shows that
the good times are likely to continue.

Growth Prospects
With the presence of 12.2% of the world population in the villages of India, the
Indian rural FMCG market is something no one can overlook. Increased focus on
farm sector will boost rural incomes, hence providing better growth prospects to
the FMCG companies. Better infrastructure facilities will improve their supply
chain. FMCG sector is also likely to benefit from growing demand in the market.
Because of the low per capita consumption for almost all the products in the
country, FMCG companies have immense possibilities for growth. And if the
companies are able to change the mindset of the consumers, i.e. if they are able
to take the consumers to branded products and offer new generation products,
they would be able to generate higher growth in the near future. It is expected
that the rural income will rise in 2007, boosting purchasing power in the
countryside. However, the demand in urban areas would be the key growth driver
over the long term. Also, increase in the urban population, along with increase in
income levels and the availability of new categories, would help the urban areas
maintain their position in terms of consumption. At present, urban India accounts
for 66% of total FMCG consumption, with rural India accounting for the remaining
34%. However, rural India accounts for more than 40% consumption in major
FMCG categories such as personal care, fabric care, and hot beverages. In
urban areas, home and personal care category, including skin care, household
care and feminine hygiene, will keep growing at relatively attractive rates. Within
the foods segment, it is estimated that processed foods, bakery, and dairy are
long-term growth categories in both rural and urban areas.

CONCLUSION:

The FMCG industry in India is having huge potential to grow. The


Industry is now focusing towards the semi-urban and rural market for
growth as there are many remote areas in our country which are
untouched and they don’t have the exposure to number of alternatives
or brands, so by focusing on these aspects of Indian economy the fmcg
sector in India has a huge potential to grow further.
Further,the companies like TATA and HUL are using CSR ie.
Corporate social responsibility to further strengthen their brand or
create a positive image in the minds of people thus it will help in
increasing their revenues. The advertising campaigns have also
changed to the changing scenario in Indian economy,and the
companies in the fmcg sector are becoming more cautious on making
false claims as the consumer in India has evolved and is more
informed than its ancestors.
According to my views the product or the brand or the company
which has a positive image in the minds of the people and which is
innovative in its ideas to fast changing consumer preference and which
gives the best value for price is going to survive in the long run or else
they have to either change their strategy or quit the Indian FMCG
market.