FMCG

-Uddalak Banerjee ( XLRI HRM 2012-14 batch)

Indian FMCG companies• The fast-moving consumer goods (FMCG) sector in India is the fourth largest

sector in the economy.• It also called the consumer packaged goods sector. • The FMCG sector in India has market size in excess of US$ 13.1 billion as of

the year 2012.• The FMCG sector in India had a growth rate of 15% in the year 2011.

List of FMCG companies operating in india

• Hindustan Unilever Ltd • Colgate-Palmolive(India) Ltd.• ITC Limited• SABMiller, India• Britannia Industries Ltd.• Marico Industries Ltd.• Nestlé India• Godrej Group• Tata Global Beverages• Parle Agro• Nirma• Bovonto• Cavin Kare• Grove limited

And….• GCMMF (AMUL)• Reckitt Benckiser• CadburysIndia• Procter & GambleHygiene and Health Care• GilletteIndia Ltd.• GodfreyPhillips• Henkel Spic• Johnson & Johnson• Himalaya Herbal Healthcare• Modi Revlon• Amul India• Godrej Consumer Products Ltd.• Kimberly Clark Lever

Top 10 FMCG Cos( based on market capitalization)• 1.ITC ( Market Cap: 151,078 Cr INR)• 2. Hindustan Unilever (Market Cap (Rs.Cr): 67,858)• 3. Nestle India (Market Cap (Rs.Cr): 39,819)• 4. Dabur India (Market Cap (Rs.Cr): 18,632)• 5. Godrej Consumer Products (Market Cap (Rs.Cr): 13,335)• 6. Proctor and Gamble India(Includes P&G Health and Hygiene and Gillette

India) ( Market Cap (Rs.Cr): 12,838)• 7. Colgate-Palmolive Combined (Market Cap (Rs.Cr): 12,764)• 8.Glaxosmithkline Consumer Healthcare (Market Cap (Rs.Cr): 9,842)• 9. Marico (Market Cap (Rs.Cr): 9,078)• 10 Emami (Market Cap (Rs.Cr): 6,836)

ITC HUL Nestle

Products Tobacco, Hotels, Paperboards and specialty papers, packaging, agri-business, packaged foods and confectionery, IT , personal care, stationery, safety matches

Foods, beverages, Cleaning agents and personal care products

Baby food, coffee, dairy products, breakfast cereals, confectionery, bottled water, icecream , pet foods

No of employees

29,000 people at more than 60 locations across India

16500 people 328000

Year in which founded

1910 1956 1905

Promotion mechanisms

ITC e-chaupal, Classmate Ideas for India Challenge

Tie up with CNBC TV18, Khushiyon Ki Doli , Go recycle, Shaktimaan initiative

Sustainable agriculture initiative,Bejing film festival,sponsored tour d france,good neutrition programs

1910,cigarette

business

1975 , expands into hotel business

1979,paper board

business

2000,stationary products•Life style retailing business

•Spun off IT business

August 2001,

Kitchens of India

2002,confectionery and

staples segments

2005,Essenza Di Wills,

an exclusive range of fine fragrances and bath & body care

products for men and women

ITC business expansion

Nestle business expansion

1866,milk based

baby food

1920s chocolat

e manufact

ure became second most

important

1937,nestle coffee develope

d

1947,Nestle

merged with

maggi

1974,shareholding

in L'Oréal

1984,acquired food giant

2006, purchase

d Medical Nutrition division

2010, Nestle

entered into

Frozen pizza

business

SWOT ANALYSIS • Aim :• Comparative study among the top 10 • Seek to explore across businesses

OBJECTIVES NESTLE HUL ITC

STRENGTH 1.DIVERSIFIED business , 2.STRONG Pricing model( low cost operator)

1.Strong brand portfolio and large market share

1.Brand Management2.Excellent Export Earning

WEAKNESS 1.PROFIT MARGIN low 2.Involved in large number of controversies

High advertising cost and low exports level

1.Unrelated Diversification2.Presence of cheaper forms of tobacco

OPPORTUNITY 1.Access to cheaper raw materials2.Health based products gaining popularity

1.Large domestic market and 2. rising consumer income

1.Rural market2.Proper publicity could increase its market share.

THREAT1.Presence of large number of competitors

1.Tax and regulatory structure 2.Mimicryofbrands

1.Increasing tax in cigarettes 2. health hazards3.Agri business monsoon dependent