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FMCG INDUSTRY
From:-
PRATEEK VERMA
13107
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FMCG INTRODUCTION
Products which have a quick turnover, and relatively
low cost are known as Fast Moving Consumer Goods
(FMCG).
Examples:
toiletries, soap, cosmetics, tooth cleaning products,
shaving products and detergents, as well as other
non-durables such as glassware, bulbs, batteries,
packaged food paper products, and plastic goods.
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FMCG EVOLUTION
1950s-80s Low Investment in the sector
Low purchasing power
Govt. emphasis on small scale sector
HLL and other companys urbane focus
Post liberalization
Entry of MNCs
Focus shifted to getting to rural consumer first
Others, like Nestle, remained with the urbanpopulation
Latest fad to hit the market is the sachet bug.
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FMCG INDIA
Indias FMCG sector is the fourth largest sector in
the economy
It creates employment for more than three millionpeople
Its principal constituents are Household Care,
Personal Care and Food & Beverages
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INDUSTRY SEGMENTS
Personal Care.
Household Care.
Branded and Packaged Food and Beverages.
Spirits and Tobacco.
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MARKET PLAYERS IN INDIAN FMCG SECTOR
Domestic Players:-
ITC Lim ited
Marico
Nirma Limited
Jyoth y Laborator ies Ltd.
Foreign Players:-
Cadbury India Lim ited
Cargi l l
Coca Cola
Colgate Palmolive Ind iaHindus tan Uni lever Lim ited
Nestle Ind ia Lim ited
P & G
PepsiCo
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TRENDS IN FMCG SECTOR
The FMCG sector has been registering double-digit
growth in sales since the last couple of years.
The FMCG sector is witnessing rapid growth in ruralareas as compared to the growth in urban areas.
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INDIAN FMCG MARKET SIZE(IN US $ BILLION)
(Source: IBEF FMCG Analysis)
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COMPETITION.
Significant Presence of Unorganized Sector
Basic technology for most products is fairly simple and
easily available.
The small-scale sector in India enjoys exemption/ lowerrates of excise duty, sales tax etc. This makes them more
price competitive.
A highly scattered market and poor transport infrastructure
limits the ability of MNCs and national players to reach ruralareas and small towns.
Low brand awareness enables local players to market their
fake look-alike brands.
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SWOT ANALYSIS: WHOLE INDUSTRY!
Strengths
Well established distribution networks extending to
the rural areas
Backed by strong brands Low cost operations
Weakness
Low export levels
Small scale sector reservations limit ability to investin technology and achieve economies of scale
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Opportunities
Large domestic market
Export potential
Increasing income levels will result in faster
revenue growth
Threats Imports
Tax & Regulatory Structures
Slowdown in Rural Demands
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TOP 3 FMCG COMPANIES IN
INDIA
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Earlier known as Hindustan Lever Limited.
Was formed in 1933 as Lever Brothers India Limited.
Headquartered in Mumbai.
HUL is the market leader in Indian products such as tea,
soaps, detergents etc.
The companys statement of corporate purpose is to meet
the everyday needs of people, everywhere.
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The company was renamed in late June 2007 to
Hindustan Unilever Limited, to provide the optimumbalance between maintaining heritage of the companyand future benefits.
HUL holds 100 factories across India for manufacturing
its diverse product range.
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PROMINENT BRANDS.Some of its brands include:
Kwality Wall's ice cream.
Lifeboy.
Lux.
Breeze.
Liril.
Hamam.
Pureit Water Purifier.
Lipton tea.
Brooke Bond tea.
Bru Coffee.
Pepsodent and toothpaste and brushes and many more..
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P&G 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 ofmore than Rs. 700 crores
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Procter & Gamble products
Three categories:
Beauty
Household Care
Health & Well-Being
More than 250 brands, including 23 brands which have
more than a billion dollars in net annual sales
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ITC
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 bln.
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.
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PRODUCT MIXOF ITC LTD
FMCG
Cigarettes
Foods
Lifestyle
Retailing
Education &
Stationary
Safety Matches
Agarbaties
Hotels Paper boards &
Packaging
Paper Boards
Packing
IT Agri-
Business
Leaf
Tobacco
AgriCommodit
ies
e-
Choupal
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FMCG PRODUCTS1. CIGARETTES
2. FOODS
3. LIFESTYLE RETAILING
4. PERSONAL CASE
5. EDUCATION AND
STATIONARY
6. SAFETY MATCHES
7. AGARBATTIS
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FMCG - CIGARETTES
ITC Ci tt B i
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1.Market leader in India.
2.Highly popular portfolio of brands includes Insignia,
India Kings, Classic, Gold Flake, Silk Cut, NavyCut, Scissors, Capstan, Berkeley, Bristol and
Flake.
3.Extensive FMCG distribution network
1.Direct servicing of 85000 markets &
2.Nearly two million retail outlets
ITCs Cigarettes Business
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Upper Class Brands: Insignia, India Kings and
Classic, Berkeley
Middle Class Brands: Gold Flake, Silk cut and
Navy cut, & Scissors
Lower Class Brands: Bristol, flake, & Capstan.
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FOODS
The Foods business is today represented in 4 categoriesin the market. These are:
1. Ready To Eat Foods
2. Staples3. Confectionery
4. Snack Foods
http://images.google.co.in/imgres?imgurl=http://archives.chennaionline.com/food/potsnpans/images/Paneer-darbari.jpg&imgrefurl=http://archives.chennaionline.com/food/potsnpans/gki.asp&usg=__JInRXU8b6vovsrHFx-Dw-2s3kbc=&h=162&w=225&sz=16&hl=en&start=9&tbnid=5v1Xl7WQ49vmIM:&tbnh=78&tbnw=108&prev=/images?q=itc+Kitchens+of+India&gbv=2&hl=en&sa=Ghttp://images.google.co.in/imgres?imgurl=http://ecx.images-amazon.com/images/I/51ZoKoZlVDL._SL500_AA280_PIbundle-6,TopRight,0,0_AA280_SH20_.jpg&imgrefurl=http://www.amazon.com/Kitchens-India-Spinach-Cottage-10-Ounce/dp/B000LKXCD6&usg=__JI96LZXVf3HZ0RjIJzoFq29jvZE=&h=280&w=280&sz=25&hl=en&start=23&tbnid=wJ7WGxlcTy5B9M:&tbnh=114&tbnw=114&prev=/images?q=itc+Ready+To+Eat+Foods&gbv=2&ndsp=20&hl=en&sa=N&start=208/22/2019 FMCG INDUSTRY.pptx
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1. Kitchens of Indiapickles, masalas, curry
pastes, ready made foods
2. Aashirvaad atta, salt,
paste, chilli powders
http://images.google.co.in/imgres?imgurl=http://www.aashirwad.co.nz/images/atta.jpg&imgrefurl=http://adilsspices.blogspot.com/&usg=___EkS_PiNrkAwSUduPi-ZyMLrNKA=&h=153&w=121&sz=19&hl=en&start=4&tbnid=vbh7pDVJ2FsqDM:&tbnh=96&tbnw=76&prev=/images?q=ashirwad+atta&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.thehindubusinessline.com/catalyst/2007/05/10/images/2007051000180405.jpg&imgrefurl=http://www.thehindubusinessline.com/catalyst/2007/05/10/stories/2007051000180405.htm&usg=__SDxoWhjCGaPvuB8MLgRnpq9dwfo=&h=275&w=351&sz=21&hl=en&start=8&tbnid=1eRdOK9JleKzdM:&tbnh=94&tbnw=120&prev=/images?q=itc+Kitchens+of+India&gbv=2&hl=en&sa=G8/22/2019 FMCG INDUSTRY.pptx
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3.Sunfeast biscuits, cakes,
pasta
4.mint-o toffees-
5.Candyman eclairs, fruity,
different flavours
6.Bingo! chips and snacks
http://images.google.co.in/imgres?imgurl=http://www.indiaretailbiz.com/images/logographics/bingo.jpg&imgrefurl=http://www.indiaretailbiz.com/blog/2007/06/08/bingo-enters-big-bazaars-and-food-bazaars-as-frito-lay-suffers/&usg=__ABHFS7m1p2ejFiTP5aWpYYn6kuc=&h=263&w=370&sz=29&hl=en&start=7&tbnid=lo8T5dr1BqNYPM:&tbnh=87&tbnw=122&prev=/images?q=itc+Snack+Foods&gbv=2&hl=en&sa=Ghttp://images.google.co.in/imgres?imgurl=http://www.delicious-chocolate.cn/chocolate/pics/2009/10/cadbury-chocolate-eclairs.JPG&imgrefurl=http://www.delicious-chocolate.cn/2009/10/cadbury-choclate-eclairs-95g/&usg=__xDlTomig8dnqUf9V88zkeCYafUo=&h=450&w=382&sz=15&hl=en&start=2&tbnid=bjhRTjsHI9AmoM:&tbnh=127&tbnw=108&prev=/images?q=eclairs&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.bluebird-electric.net/bluebird_images/blue_bird_toffee.jpg&imgrefurl=http://www.bluebird-electric.net/blue_bird_toffees.htm&usg=__fO1RGBaAQ1Je0LgK9yQXCgrgyIY=&h=278&w=386&sz=21&hl=en&start=13&tbnid=3ql80X7ilyBKuM:&tbnh=89&tbnw=123&prev=/images?q=mint+%E2%80%93+toffees&gbv=2&hl=en&sa=Xhttp://images.google.co.in/imgres?imgurl=http://www.itcportal.com/foods/images/sunfeast01.jpg&imgrefurl=http://appaji.livejournal.com/tag/party&usg=__wjuIYRlY7cZgE5YRCqDx6LJ-RsY=&h=155&w=276&sz=31&hl=en&start=3&tbnid=tUtS3Ugsya9nFM:&tbnh=64&tbnw=114&prev=/images?q=Sunfeast&gbv=2&hl=en&sa=G8/22/2019 FMCG INDUSTRY.pptx
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PERSONAL CARE
Products- Fragrances, shampoos, shower gels,conditioners, beauty bath soaps.
ITC's Personal Care portfolio under the 'Essenza DiWills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro','Vivel' and 'Superia' brands has received encouraging
consumer response and is being progressively extendednationally.
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EDUCATION AND STATIONARY
1.ITCs stationery Brands are
marketed as Classmate and
Paper Kraft.
2.Expressions Greeting Cards.
3.CLASSMATE-Indias
truly largest National brand
http://images.google.co.in/imgres?imgurl=http://www.itcportal.com/itc-annual-reports-2009/images/page-33-image-01.jpg&imgrefurl=http://www.itcportal.com/itc-annual-reports-2009/page-33.htm&usg=___B9dJRjU24wUlbjpYnwGxsQC0zA=&h=175&w=218&sz=17&hl=en&start=26&tbnid=diPoUhKloEctkM:&tbnh=86&tbnw=107&prev=/images?q=ITC%E2%80%99s+Paper+kraft&gbv=2&ndsp=20&hl=en&sa=N&start=208/22/2019 FMCG INDUSTRY.pptx
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SAFETY MATCHES AND AGARBATTIS
1. Include popular brands like Mangaldeep,
2. Aim, Aim Mega and Aim Metro.
http://images.google.co.in/imgres?imgurl=http://2.bp.blogspot.com/_HaPYpxH4XaI/Squg28ytSGI/AAAAAAAAAYY/dbtCzOkjmmE/s200/AIM.JPG&imgrefurl=http://next-marketing-guru.blogspot.com/2009/09/itc-brands-in-paper-and-other-category.html&usg=__TEoGTh9Ql_V2u2Ve7zC8qNq9UFk=&h=141&w=200&sz=8&hl=en&start=4&tbnid=zw52Qebx6dm3ZM:&tbnh=73&tbnw=104&prev=/images?q=ITC+safety+matches&gbv=2&hl=enhttp://images.google.co.in/imgres?imgurl=http://www.itcportal.com/itc_annualreports03/images/nb05.jpg&imgrefurl=http://www.itcportal.com/itc_annualreports03/no_stops.htm&usg=__dJNekKO7brUVpZBPTegZeUfXx08=&h=205&w=220&sz=11&hl=en&start=1&tbnid=6L7Hk30EHLBPmM:&tbnh=100&tbnw=107&prev=/images?q=ITC+safety+matches&gbv=2&hl=en8/22/2019 FMCG INDUSTRY.pptx
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THANKYOU