INSTITUTE OF

MANAGEMENT STUDIES

Subject: Business
Economics
Made By:
Dipti Priya (67)
Gaurav Saxena (77)
Jyoti Varma (87)
Meenakshi Kumar (107)
Neha Gulati (117)
1 Rashmi Amita (247)
TOPIC OF PRESENTATION

FMCG Sector – A Boom in

India

2
 INDEX

TOPICS SLIDE NO.

Introduction 4
Characteristics 5
Industries Segmentation 6

3
 INTRODUCTION
FMCG : FAST MOVING CONSUMER GOODS
The FMCG Sector is the fourth largest sector of
Indian economy with total market size of more than
60,000 Crores.
Items in this category include all consumables
(other than groceries/pulses) people buy at
regular intervals.
A well established distribution network ,
intense competition between organised and
unorganised segments, low operational cost,
strong branding characterizes the sector .
4
JUSTIFICATION

5
 CHARACTERISTICS OF
THE FMCG SECTOR

 Branding
 Distribution Network
 Contract Manufacturing
 Large Unorganized Sector

6
 INDUSTRIES
SEGMENTS

7
 MARKET PLAYERS
IN INDIAN FMCG
SECTOR…..

8
 DOMESTIC PLAYERS

9
ABOUT DOMESTIC PLAYERS

ITC LIMITED
Founded on 24th August 1910
Chairman Yogesh Chander Deveshwar
Industry
Tobacco,Foods , hotels, stationery, greeting cards.
Products – Cigarettes , packed foods, hotels, apparel
Revenue- US $ 4.75 billion

MARICO
Products edible oil ,hair oils , shampoos, etc..
Brands_ parachute , saffola, hair n care , nihar, shanti,mediker , revive
Revenue US $ 230 million

NIRMA LTD.
Founded in 1969
Products Nirma detergent and nirma soaps
Revenue- Rs. 2500 crores 10
 FOREIGN PLAYERS

11
ABOUT FOREIGN PLAYERS

CADBURY INDIA LTD.

Founded in 1824 in Birmingham
Headquarters in UK
Industry confectionary and soft drinks
RevenueEURO 5384
Products Milk chocolate, dairy milk, flake, picnic, milk tray, crème egg,
fudge
COLGATE PALMOLIVE INDIA
Founded in 1806
Corporate offices in New york city
Industry personal products
Revenue $15.329 billion
Products Colgate – toothpaste, tender care soap, Fabuloso, Irish spring,
murphy oil soap

12
COCA COLA
Country of origin United states
Founded in 1886
pRoducts New coke, diet coke, coca cola zero, diet coke with lime, coca cola raspberry

NESTLE
Founded in 1866 in Switzerland
Industry- food processing
Products- baby foods, coffee, dairy products, breakfast cereals, confectionaries, ice
cream , pet foods
Revenue 109.9 billion

PEPSICO
Founded in chicago, us in 1965
Headquarters in Newyork
Industry- food ,non alcoholic beverages
Products Pepsi, diet pepsi, mountain dew, aqua fina, lipton ice tea, 7up, cheetos etc
Revenue
US $43.251 billion

13
 INDIAN FMCG MARKET SIZE
( IN US $ BILLION )
SOURCE : IBEF FMCG ANALYSIS

40
35
30
25
20 40
30
15
10
5
0
2003 2006 2007 2015
14
 SWOT ANALYSIS

STRENGHTS
oWell estabhlished distribution
network extending to the rural
areas.
o Backed by strong brands.
o Low cost operations.
15
 SWOT ANAYSIS

WEAKNESS
o Low expert level.
o Small scale sector reservations

limit ability to invest in

technology and achieve
economies of scale.
o Several “ Me Too “ products.
16
 SWOT ANALYSIS

OPPORTUNITIES
o Domestic market.
o Export potential.

o Increasing income level will

result in faster revenues growth.

17
 SWOT ANAYSIS

THREATS
o Imports.
o Tax and Regulation structures.

o Slow down in rural demands.

18
 CASE STUDY ON….

Hindustan Unilever
Limited
19
 HUL

20
 HISTORY OF HUL…

• In 1931, Unilever set up its first Indian

subsidiary of Hindustan Vanaspati
manufacturing Co.
• It was followed by the set up of Lever
Brothers India Ltd in 1933 and United
Traders Limited in 1935.
• These 3 companies merged to form HUL
in November 1956.
• Finally, in 19th July 2007, HLL was

21 changed to HUL.
 ABOUT HUL………

 Largest FMCG Co. in India.

 20 Distinct categories.

• home & personl care products

•food and beverages
 Manufactured by 40 factories across
India.
 Sales of 10,000 Crore.
 51.55% of equity held by parent Co.
Unilever.
22
 POPULAR BRANDS…….

 Bathing Soaps : Lux, Lifebuoy, Liril, Dove,

Pears etc.
 Laundry Items : Surf Excel, Rin, Wheel etc.

 Skin Care : Ponds, Fair n Lovely, Vaseline

etc.
 Hair Care : Sunsilk, Clinic etc.

 Oral Care : Pepsodent, Close Up etc.

Tea : Brooke Bond & Lipton.

 Food : Kisaan, Annapurna, & Knorr.

Ice-Cream : Kwality Walls.

23
 MARKET SHARING OF HUL

Product Range Market Share

( in % )
Personal Wash 60
Fabric Wash 42
Household 62
Skin Care 53
Hair Care 63
Talcum Powder 65
Branded tea 35
Ice - Cream 25
Jam & Squashes 78
24
Coffee 56
 Product Range Market Share
( in %)
Branded Staples 15
Branded Salt 18
Cooking Fats & Oils 29
Oral 36
Hair Oil 14
Instant Coffee 36
Ketchup 39

25
 SOME IMPORTANT FACTS
ABOUT HUL

 Type : Public
 Founded : 1933

 Head Quarters : Mumbai, India

Key people : Harish Manwani ,
Chairman
Douglas Baillie , CEO
 Industry : FMCG

 Employees : Around 15,000

 Parent Co. : Anglo-Dutch Co. Unilever
26
 TRENDS IN FMCG
SECTOR
 The FMCG sector has been register the
double digit growth in sales , since the last
couple of years.
 Currently, with annual revenue of US $
14.74 billion , it is he one of the most
promising sectors.
 The FMCG Sector is witnessing rapid
growth in rural areas and is estimated to grow
by 40% compared to the growth of 25% in
urban areas.
27
 FUTURE SCOPE OF FMCG
SECTOR IN INDIA….

 The FMCG Sector in India is expected to

grow at a compounded annual growth rate
( CAGR ) of 9% to a size of Rs. 143000 crore
by 2010 from Rs. 93000 Crore at present.
 Pepsico has announced a US $ 500 million
invested in India over the next three years.
 Introduction of the most prominent retail
outlet that is WAL-MART in India.
28
 FINDINGS……..

•Heavy launch cost on new products.

• Very low investment in fixed assests.

• Existence of contract manufacturing.

• Mushrooming of unorganised sector .
29
 •

Distribution networks and logistics are

key to achieve high level of penetration
in markets.
• “Good Price Points” is key to success.

• Striking between rural and urban

average consumption.
•Existence of unsaturated markets

• Demand boomed up by 60% in 2007 to

100% in 2015.
30
 CONCLUSIONS

 Middle class customer population.

 Domestic consumption.
 High Population.

 The leader today is a follower

tomorrow.
31
 You may not purchase software, You
may not purchase cement, You may
not purchase cloths from a retail outlet,
you may not aside automobiles,,,,,
But soaps, toothpaste, tea, coffee, and
so on are our basic demands………….

Thus, FMCG is on &

32
on !!!!!!!!!!
 THANK YOU
33