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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
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,
teeth cleaning products, shaving products, detergents, other nondurables such
as glassware, bulbs, batteries, paper products and plastic goods, such
‘Fast Moving’ is in opposition to consumer durables such as kitchen
that are generally replaced less than once a year. The category may

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
branded and packaged food, beverages (health beverages, soft drinks,
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
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
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.

markets account for 56% of the total domestic FMCG demand.
Many of the global FMCG majors have been present in the country for
decades. But in the last ten years, many of the smaller rung Indian
companies have gained in scale. As a result, the unorganized and
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
competition and high entry barriers (import duty was high). These
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
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
horizon, as the per-capita consumption of almost all products in the
is amongst the lowest in the world. As per the Consumer Survey by
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
media exposure, unleashing a latent demand with more money and a
mindset. In this backdrop, industry estimates suggest that the industry

triple in value by 2015 (by some estimates, the industry could double
in size by
In our view, testing times for the FMCG sector are over and driving
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
targeted at the rural market, these are still at a relatively nascent
The bottlenecks of the conventional distribution system are likely to be
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
offering many choices and also opens up new avenues for growth for
the FMCG
sector. Given the aggressive expansion plans of players like Pantaloon,
Shopper’s Stop and Shoprite, we are confident that the FMCG sector
has a
bright future.
Budget Measures to Promote FMCG
2% education cess corporation tax, excise duties and custom duties
Concessional rate of 5% custom duty on tea and coffee plantation
Budget Impact
The education cess will add marginally to the tax burden of all FMCG
The dividend distribution tax on debt funds is likely to adversely effect
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. Only for tea. coconut. the duty was reduced from Rs 2 per Kg to Re 1 Customs duty on tea and coffee . J&K. Himachal Pradesh will continue to encourage FMCG companies to relocate to these areas. 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. 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.

ketchup.) 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. jams etc. ports. juices. railways and airports . 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.Excise on biscuits reduced to 8% from 16%.

000 crore only.1 billion. Burgeoning Indian population.T. hair wash etc in India is low indicating the untapped market potential. It has been ranked second in a Global Retail Development Index of 30 developing countries drawn up by A T Kearney. The number of households with "high income" is expected to increase by 60% in the next four years to 44 million households. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13. The share of modern retail is likely to grow from its current 2 per cent to 15-20 percent over the next decade. The FMCG market is set to treble from US$ 11. particularly the middle class and the rural segments. India offers a vibrant market of youth and vigor with 54% of population below the age of 25 years. India is rated as the fifth most attractive emerging retail market.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. Penetration level as well as per capita consumption in most product categories like jams. presents an opportunity to makers of branded products to convert consumers to branded products. earn more. A. Domestic demand is expected to double over the ten-year period from 1998 to 2007. toothpaste.4 billion in 2015. spend more and demand more from the market. These young people work harder.6 billion in 2003 to US$ 33. skin care. . is expected to grow at a compounded 30 per cent over the next five years. making India a dynamic and aspirational society. Kearney has estimated India's total retail market at $202. analysts feel. India is one of the world’s largest producers for a number of FMCG products but its FMCG exports are languishing at around Rs 1.6 billion.

FMCG companies should continue to do well in the long run. Over the last one year. The profile of major leading FMCG Market Players is as follows: 1. 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. Moreover.There is significant potential for increasing exports but there are certain factors inhibiting this. The high burden of local taxes is another reason attributed for the slowdown in the industry At the same time. The growth of imports constitutes another problem area and while so far imports in this sector have been confined to the premium segment.A. NESTLE INDIA Nestlé India is a subsidiary of Nestlé S. the general slowdown in the economy is also likely to have an adverse impact on disposable income and purchasing power as a whole. FMCG companies estimate they have already cornered a four to six per cent market share. of Switzerland. Give the large market and the requirement for continuous repurchase of these products. the long term outlook for revenue growth is positive. is unlikely to help matters. Small-scale sector reservations limit ability to invest in technology and quality up gradation to achieve economies of scale. 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. The FMCG sector has traditionally grown at a very fast rate and has generally out performed the rest of the industry. too. lower volume of higher value added products reduce scope for export to developing countries. Moreover. This should yield positive results for them. The outlook in the short term does not appear to be very positive for the sector. Poor monsoon in some states. With six factories and a . most of the companies are concentrating on cost reduction and supply chain management. Moreover.

as well.large number of co-packers. Nestlé responded to India’s aspirations by forming a company in India and set up its first factory in 1961 at Moga. importing and selling finished products in the Indian market. scientific crop management practices and helping with the procurement of bank loans. Brief History After India’s independence in 1947. when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited. Nestlé set up milk collection centres that would not only ensure prompt collection and pay fair prices. 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'. integrity and fairness in all aspects of its business and expects the same in its relationships. Progress in Moga required the introduction of Nestlé’s Agricultural Services to educate. but also instil amongst the community. but a thriving hub of industrial activity. 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. Punjab. Nestlé’s relationship with India dates back to 1912. the economic policies of the Indian Government emphazised the need for local production. to irrigation. a confidence in the dairy business. For more on Nestlé Agricultural . The Company insists on honesty. advise and help the farmer in a variety of aspects. 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. where the Government wanted Nestlé to develop the milk economy. From increasing the milk yield of their cows through improved dairy farming methods.

It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality. The Nanjangud factory (Karnataka). Nestlé India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates. 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 Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers. Nestlé commissioned two factories in Goa at Ponda and Bicholim respectively. 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 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. services and other goods. Health and Wellness through its product offerings. In 1967. Nestlé India is now putting up the 7th factory at Pant Nagar in Uttaranchal Products Product Category Brands Milk Products NESTLÉ EVERYDAY Dairy Whitener . Beginning with its first investment in Moga in 1961. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste. in 1993 and in 1995 and 1997. became operational in 1989. the Samalkha factory (Haryana). Nestlé’s regular and substantial investments established that it was here to stay. Nutrition. safe food products at affordable prices.Services. suppliers of packaging materials.

a truly multi-local multinational. .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. Their products meet everyday needs for nutrition. HLL has deep roots in local cultures and markets around the world which gives them a strong relationship with their consumers. hygiene. which are the foundation for their future growth. Hindustan Lever Limited (HLL) The Global arm of Hindustan Levers Limited is Unilever's and its mission is to add Vitality to life. look good and get more out of life. They benefit from there wealth of knowledge and international expertise to the service the local consumers . and personal care with brands that help people feel good.

effective from April 1.Brief History In the summer of 1888. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). acquisitions and mergers. Subsequently in 1998. being the first among the foreign subsidiaries to do so. Unilever set up its first Indian subsidiary. The rest of the shareholding is distributed among about 380. In one of the most visible and talked about events of India's corporate history. In 1995. 1993. Simultaneously. deregulation permitted alliances. Pond's (India) Limited had been present in India since 1947. Lakme Lever Limited. HLL and yet another Tata company. embossed with the words "Made in England by Lever Brothers". formed a 50:50 joint venture. started in 1991. the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL. to market Lakme's marketleading cosmetics and other appropriate products of both the companies. Lakme Limited sold its brands to HLL and divested its 50% stake in the joint venture to the company. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. Lakme Limited. Unilever now holds 51. With it. began an era of marketing branded Fast Moving Consumer Goods (FMCG). The liberalization of the Indian economy. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment. . visitors to the Kolkata harbour noticed crates full of Sunlight soap bars.55% equity in the company. without any constraints on production capacity. These three companies merged to form HLL in November 1956. HLL offered 10% of its equity to the Indian public.000 individual shareholders and financial institutions. clearly marked an inflexion in HLL's and the Group's growth curve. Hindustan Vanaspati Manufacturing Company. In 1931.

1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. were merged with Brooke Bond. In 2002. acquisitions and alliances on the Foods and Beverages front. the government decided to award 74 per cent equity in Modern Foods to HLL. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). 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. the erstwhile Brooke Bond acquired Kothari General Foods. Detergents and Personal Products both for the domestic market and exports to India. In January 2000. enabling greater focus and ensuring synergy in the traditional Beverages business. As a measure of backward integration. The NLL factory manufactures HLL's products like Soaps.HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994. The 1990s also witnessed a string of crucial mergers. In 1993. By the end of the year. Tea Estates and Doom Dooma. HLL's entry into Bread is a strategic extension of the company's wheat business. HLL acquired the government's remaining stake in Modern Foods. Nepal Lever Limited (NLL). In 2003. with significant interests in Instant Coffee. HLL has also set up a subsidiary in Nepal. which markets Huggies Diapers and Kotex Sanitary Pads. Then in July 1993. two plantation companies of Unilever. in a historic step. it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. HLL acquired the Cooked Shrimp and Pasteurised Crabmeat business . and its factory represents the largest manufacturing investment in the Himalayan kingdom. In 1992.

10. Fair & Lovely. Pond's. HLL's distribution network. Surf Excel. The operations involve over 2. most recent being the village built by HLL in earthquake affected Gujarat. it has been recognised as a Golden Super Star Trading House by the Government of India. and about 250 million rural consumers. Brooke Bond. Present Stature Hindustan Lever Limited (HLL) is India's largest Fast Moving Consumer Goods company. Wheel. branded staples. Clinic. women empowerment. KnorrAnnapurna. directly covers the entire urban population.soaps. HLL believes that an organization’s worth is also in the service it renders to the community. a leader in value added Marine Products Lifebuoy. It is also involved in education and rehabilitation of special or underprivileged children. Rin. HLL has also responded in case of national calamities / adversities and contributes through various welfare measures. and relief & rehabilitation after the Tsunami caused devastation in South India. personal products. care for the destitute and HIV-positive.of the Amalgam Group of Companies. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs.000 suppliers and associates. coffee. Lux. touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages.000 crores. detergents. HLL is focusing on health & hygiene education. and rural development. . Kissan. HLL's brands . and water management. Lakme. Sunsilk. tea.000 redistribution stockists. Kwality Wall's – are household names across the country and span many categories . ice cream and culinary products. HLL is also one of the country's largest exporters. Close-up. Pepsodent. comprising about 7. They are manufactured in close to 80 factories.

. over ten $100 million brands and present in 130 markets. GLAXO SMITHKLINE GlaxoSmithKline is a leader in the worldwide consumer healthcare market. With nearly $5 billion in sales. the consumer healthcare business brings an added dynamic dimension to GSK. over-thecounter medicines and nutritional healthcare products to millions of people. Operating in the fiercely competitive environment of retail and consumer marketing GlaxoSmithKline Consumer Healthcare brings oral healthcare.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.

000 (US$562. Lucozade the nutritional and Nicorette/ Niquitin smoking cessation products are household names around the world. In fact. they are the only pharmaceutical company to tackle the World Health Organization’s three ‘priority’ diseases – HIV/AIDS. diabetes and digestive conditions. In one year GSK Consumer Healthcare produces among many others . Headquartered in the UK and with operations based in the US.Brand names such as Panadol the analgesic. As a company has a emphasized more on research & development.nine billion tablets to relieve stomach upsets. feel better and live longer. GSK at a glance Mission is to improve the quality of human life by enabling people to do more. With four dedicated consumer healthcare R&D centres and consumer healthcare regulatory affairs. mental health. The medicines produced are mainly in six major disease areas – asthma. with an estimated 7% of the world's pharmaceutical market. tuberculosis and malaria. But the driving force behind GlaxoSmithKline's consumer healthcare business is science. infections. feel better and live longer Research-based pharmaceutical company It is the only pharmaceutical company to tackle the three "priority" . virus control. it is one of the industry leaders. six billion tablets for pain relief tablets and 600 million tubes of toothpaste. the business takes scientific innovation as seriously as marketing excellence and offers leading-edge capability in both. Aquafresh toothpaste.000) to find new medicines. The Company The company has a challenging and inspiring mission: to improve the quality of human life by enabling people to do more. estimated every hour they spend more than £300. it is a leader in the important area of vaccines and are developing new treatments for cancer. This mission gives them the purpose to develop innovative medicines and products that help millions of people around the world. In addition.

to combat a wide range of bacterial infections in children and adults. 1978 Through the acquisition of Meyer Laboratories Inc. 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. The treatment will revolutionise peptic ulcer therapy. Glaxo’s business in the US is started.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. The antiviral Zovirax (aciclovir) is launched by Wellcome for herpes infections 1982 SmithKline acquires Allergan. and . is launched by Beecham. Augmentin (amoxicillin / clavulanate potassium). to become Glaxo Inc from 1980. an eye and skincare business. 1981 The anti-ulcer treatment Zantac (ranitidine) is launched by Glaxo and is to become the world’s top-selling medicine by 1986. and in the US in the following year. The broad-spectrum injectable antibiotic Zinacef (cefuroxime) is introduced by Glaxo.diseases identified by the World Health Organization: HIV/AIDS.

who had worked at the Wellcome Foundation and Smith Kline and French Laboratories. 1990 The synthetic lung surfactant Exosurf and the anti-epileptic drug . The Nobel Prize for medicine is awarded to George Hitchings and Gertrude Elion. Engerix-B hepatitis B vaccine (recombinant). with two other scientists. "for their discoveries concerning prostaglandins and related biologically active substances. a company specialising in diagnostics and measurement instruments and supplies. is launched in the US and France. adding Tums antacid tablets and Oxy skin care to its portfolio." 1983 Glaxo Inc moves to new facilities in Research Triangle Park and Zebulon. of Burroughs Wellcome Inc. increasing the company's size by half and establishing SmithKline BioScience Laboratories as the industry leader. Inc. 1986 Beecham acquires the US firm Norcliff Thayer. Wellcome launches Flolan (epoprostenol) for use in renal dialysis." 1989 SmithKline Beckman and The Beecham Group plc merge to form SmithKline Beecham plc. John Vane of the Wellcome Research Laboratories is awarded the Nobel Prize. "for their discoveries of important principles for drug treatment. Glaxo introduces the oral antibiotic Zinnat (cefuroxime axetil). 1988 SmithKline BioScience Laboratories acquires one of its largest competitors. North Carolina. The broad-spectrum injectable antibiotic Fortum (ceftazidime) is launched. The company is renamed SmithKline Beckman. 1987 The AIDS treatment Retrovir (zidovudine) is launched by Wellcome. International Clinical Laboratories.merges with Beckman Instruments Inc. and to Sir James Black. a genetically engineered hepatitis B vaccine.

Sterling Health also is acquired. SmithKline Beecham’s Havrix hepatitis A vaccine. is launched in six European markets. making SmithKline Beecham the third-largest over-the-counter medicines company in the world and number one in Europe and the international markets. Imigran (sumatriptan). 1993 SmithKline Beecham and Human Genome Science negotiate a multimilliondollar research collaboration agreement for identifying and describing the functions of the genes in the human body. inactivated. the inhaled corticosteroid Flixotide (fluticasone propionate) and Zofran (ondansetron) antiemetic for cancer patients. 1994 SmithKline Beecham purchases Diversified Pharmaceutical Services. SmithKline Beecham sells its animal health business. Lacipil (lacidipine) for high blood pressure. Glaxo introduces long-acting Serevent (salmeterol) for asthma. 1995 Glaxo and Wellcome merge to form Glaxo Wellcome. With the intention of focusing on human healthcare. England. and Cutivate (fluticasone propionate) in the US for skin diseases. its first market. SmithKline Beecham’s Seroxat/Paxil (paroxetine hydrochloride) is launched in the UK. SmithKline Beecham moves its global headquarters to New Horizons Court at Brentford. 1991 Glaxo launches its novel treatment for migraine. 1992 Mepron (atovaquone) for AIDS-related pneumonia is introduced by Burroughs Wellcome in the US. Glaxo Wellcome acquires California-based Affymax. Glaxo introduces Flixotide (fluticasone propionate) for bronchial conditions. a leader in the . a pharmaceutical benefits manager.Lamictal (lamotrigine) are launched by Wellcome. the world’s first hepatitis A vaccine. Inc.

to discover and market novel molecular diagnostics based on the use of genomics. Valtrex (valaciclovir) is launched by Glaxo Wellcome as an anti-herpes successor to Zovirax (acyclovir). Glaxo Wellcome’s Medicines Research Centre opened at Stevenage in England. 1997 SmithKline Beecham’s research centre. GSK Products Product name: Aquafresh . SmithKline Beecham acquires Sterling Winthrop's site in Upper Providence. 1996 Community Partnership is established by SmithKline Beecham to focus philanthropy on community-based healthcare. 1998 SmithKline Beecham and the World Health Organization announce a collaboration to eliminate lymphatic filariasis (elephantiasis) by the year 2020. Pennsylvania. opens at Harlow in England. Sharpening its focus on pharmaceuticals and consumer healthcare. disease management and Diversified Pharmaceutical Services businesses. SmithKline Beecham and Incyte Pharmaceuticals create a joint venture diaDexus . to fulfil US R&D expansion needs.field of combinatorial chemistry. SmithKline Beecham Healthcare Services is formed by combining the clinical laboratories. 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. New Frontiers Science Park. SmithKline Beecham divests SmithKline Beecham Clinical Laboratories and Diversified Pharmaceutical Services.

they are also gentle on gums because of their flexible necks. but also underline the triple benefits of strong teeth. The brand is such an enormous success in its key market. white and blue stripes of the toothpaste make the product not only visually attractive. 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 unique red. The fast-acting effervescent fruit salts.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. children's toothbrushes. healthy gums and fresh breath – whole mouth protection. The Aquafresh range also includes whitening. used as an antacid and reliever of bloatedness. Their flexible heads and brush tips have been designed for cleaning even the hardesttoreach parts of the mouth. India. there is a special formulation for children between one and . milk and malted barley and is sold in powdered form. 'The Great Family Nourisher.' is a nutritional drink made from wheat. sensitive. was invented in the 1850s by James Crossley ENO Product name: Horlicks Major Markets India and UK Horlicks. that alongside the traditional family formula. tartar control and children's toothpaste. The Aquafresh range of manual and electric toothbrushes not only clean teeth effectively.

Financial review Operating profit and earnings per share Operating profit of £1. SG&A grew 8%.EPS of 23. SG&A grew by 2%.three years of age and another for breast-feeding mothers. compared with a £56 million charge 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). Colgate-Palmolive (India) today has one of the widest distribution networks in India – a logistical marvel that spans around 3. resulting in a 2 percentage point reduction in operating profit growth for the quarter. when hand-carts were used to distribute Colgate Dental Cream. reflecting an improved cost of sales margin and higher other operating income partly offset by increased R&D expenditure. partially offset by a higher expected tax rate for the year. costs for legal matters were £123 million (£33 million in 2005). of which the Company services 9. which was above the turnover growth of 9%. 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.5 million retail outlets across the country.911 million grew by 13%.3 pence increased 15% in CER terms (14% in sterling terms) compared with Q2 2005. Profit after taxation grew by 14% which was marginally higher than the growth in operating profit and reflected lower net interest costs. COLGATE PAMOLIVE INDIA LIMITED From a modest start in 1937.000 outlets . Excluding costs for legal matters. 4. gains from asset disposals were £91 million (£10 million in 2005). The total operating profit impact of these items was a £97 million charge in 2006. well below turnover growth. In the quarter.40.

Colgate consistently increases gross margin while at the same time reducing overhead expenses. Colgate is a household name in India with one out of two consumers using a modern dentifrice. If you lined them up end to end. 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. Today. Consistently superior quality. with variants to suit every type of hair need.6 billion Colgate toothbrushes are sold annually worldwide. History 1975 Caprice hair care launches in Mexico. hair care products are sold in over 70 countries. 9600 million plus with an outstanding record of enhancing value for its strong shareholder base. This is a true measure of the trust and confidence that generations of consumers have placed in Colgate for their oral care needs. . Today. but sound worldwide financial strategy. Colgate's tight focus in Oral Care in India while building its Personal Care business coupled with a simple. while at the same time increasing operating profit. 1983 Colgate Plus toothbrush is introduced. 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.directly. 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. 1976 Colgate-Palmolive acquires Hill's Pet Nutrition. innovation and value for money products emerging out of advanced technology employed. Today Hill's is the global leader in pet nutrition and veterinary recommendations. The Company has grown to a Rs. Today over 1. they would circle the globe 16 times. has helped deliver consistent shareholder value.

1995 Colgate enters Central Europe and Russia. 1989 Annual Company sales surpass the $5 billion mark. 1996 Bright Smiles. Today. which adds strength in key Asian markets. the leading wood cleaner in the U. Colgate acquires Kolynos Oral Care business in Latin America and launches market-leading Sorriso toothpaste. 1987 Colgate acquires Softsoap liquid soap business from the Minnetonka Corporation. fights a complete range of oral health problems. Colgate is the global leader in liquid hand soap. Colgate-Palmolive enters into a joint venture with Hong Kong-based Hawley & Hazel. and today offers all-family antibacterial protection in over 56 countries. with its 12-hour protection. 1986 The Chairman's You Can Make A Difference Program is launched. sprays and wipes. Mennen products are sold in over 52 countries. 2004 Colgate acquires the GABA oral care business in Europe. Bright Futures oral health education program expands to reach 50 countries with in-school programs and mobile dental clinics. recognizing innovation and executional excellence by Colgate people. expanding into fast-growing markets. 1997 Colgate Total toothpaste is introduced and quickly becomes the market leader in the U.S. a leading oral care company. its product portfolio has expanded to include all-purpose cleaners. with its strength in the . Today. 1992 Colgate acquires the Mennen Company.1985 Protex bar soap is introduced. 1991 Colgate acquires Murphy Oil Soap.S. Only Colgate Total. Today.

Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In 1975. Colgate focuses on four core businesses: Oral Care. during the tragic World War II. Whitening Products Pamolive . Shower Cream. more importantly. 2006 Today. Products Oral Care: Colgate – Toothpaste. But. the Government reposed its trust in Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces. In the subsequent public issue of 1978. As time moved on. The company we all know as Britannia today. Once upon a time. with the advent of electricity.important European pharmacy channel and its ties with the dental community. Britannia mechanized its operations. Skin Care Household Care: Axion Surface Clean 5. it became the first company east of the Suez Canal to use imported gas ovens. As a result. The following year. The beginnings might have been humble-the dreams were anything but. BRITANIA The story of one of India's favorite brands reads almost like a fairy tale. Personal Care. firmly establishing the Indianness of the firm. Shave Preps. the biscuit market continued to grow and Britannia grew along with it. with sales surpassing $10 billion. Liquid Hand Wash.Shower Gel. Colgate now sells its products in 222 countries and territories worldwide. 295. Britannia's business was flourishing. Tooth Powder. By 1910. a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. Indian shareholding crossed 60%. Bar Soap. Four . Britannia was acquiring a reputation for quality and value. in 1892 to be precise. Home Care and Pet Nutrition. and in 1921.

The Wadia Group acquired a stake in the company and became an equal partner with Groupe Danone in Britannia. was born. On the operations front. Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country.years later in 1983. the world's second largest Dairy Company. And millions of consumers will savour the . and Britannia New Zealand Foods Pvt. 100 crores revenue mark. Today. In 1992. and that miniscule initial investment has grown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders. the company was making equally dynamic strides. more than a century after those tentative first steps. it crossed the Rs. and The Economic Times pegged Britannia India's 2nd Most Trusted Brand. it celebrated its Platinum Jubilee. Ltd. Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World'. Britannia's New Business Division formed a joint venture with Fonterra. Britannia's fairy tale is not only going strong but blazing new standards. The subsequent year saw sales cross landmark 100. 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. In 2002. In recognition of its vision and accelerating graph. 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. 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 5050 Maska-Chaska became India's most successful product launch.000 tones of biscuits or 1 billion packs of 100g.

Britannia . The launch of yet another exciting snacking option .'Swasth Khao.100 crore 1989The Executive Office relocated to Bangalore 1992BIL celebrates its Platinum Jubilee 1993Wadia Group acquires stake in ABIL.Choconut corporate identity 'Eat Healthy. happily ever after.Britannia among Top 300 small companies 2001BIL ranked one of India's biggest brands  its range 2005Re-birth of Tiger .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. 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" . (BIL) 1983 Sales cross Rs.results. commissioned ahead of schedule. Asiastar and Indiastar award for packaging 2003'Treat Duet'.a major success! Profit up by 37% 2000Forbes Global Ranking . 1975Britannia Biscuit Company takes over biscuit distribution from Parry's 1979 Re-christened Britannia Industries Ltd. 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.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. UK and becomes an equal partner with Groupe Danone in BIL  1997Re-birth .000 tons of biscuits Good Day adds a new variant . Tiger Ban Jao' becomes the popular chant! Britannia launched 'Greetings' range of premium assorted gift packs The new plant in Uttaranchal.

Launched in 1999. Tiger has grown from strength to strength and the re-invigoration. the Jam Filled Centres under the Jim Jam range. Little Hearts was launched in 1993 and targeted the growing youth segment. and Strawberry. It is the #1 brand in its category by a long shot In 1996. Nutri-Choice Thin Arrowroot was morphed from Jacob's Thin Arrowroot (a popular brand in East India). Pineapple. Britannia introduced Nutri-Choice biscuits. 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. launched in 1997. Britannia Nice Time was the pioneer of sugar sprinkled biscuits in India. To offer something to consumers who cherish healthy living. Britannia Good Day was launched in 1986 in two delectable avatars Good Day Cashew and Butter. new variants were introduced .. In 1998. and the Duet Range Tiger. Milk Bikis launched a variant called Milk Cream. Before Timepass. Over the years. it was the first time biscuits were retailed in pouch packs like potato wafers. Britannia's oldest brand enjoys a heritage that spans the last 50 years and going strong. The versatile and youthful brand constantly aims to provide a novel and exciting taste experience to the consumer. Snax was promoted as a tastier base for toppings through edgy advertising. Mango. such as the classic favourites Bourbon & Elaichi. Britannia's offering in the salted cracker category was Snax. Britannia Marie Gold has maintained its stronghold. the Fruit Flavoured Creams such as Orange.Good Day Pista Badam in 1989. This unique product managed to create such a strong consumer pull that .50-50 Pepper Chakkar PRODUCTS Britannia Trea t proffers a wide variety of flavours. became the largest brand in Britannia's portfolio in the very first year of its launch and continues to be so till today. A completely unique product. These round biscuits come with smiley faces and are full of milk cream that makes them very popular with children.

The Mumbai unit came up in 1963. and there again Britannia was the first branded bread in the city.soon there was a rush of pretender products in the market. across all social boundaries. Then. adopts US GAAP Dabur Health Care Product Range Dabur ChyawanprashDabur ChyawanshaktiGlucose DDabur Lal tailDabur Baby olive oil- . Through our comprehensive range of products we touch the lives of all consumers. Britannia was not only the pioneer. DABUR INDIA Dabur India Limited is a leading Indian consumer goods company with interests in health care.1. Thus.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. there were no breads in the organised sector and bread consumption was a habit typified by the British. Till 1958. but also inculcated in the people of Delhi the habit of eating white sliced bread. a mechanised bread unit was set up in Delhi with the name "Delbis" which produced sliced bread and packed it under the Britannia name. And this legacy has helped us develop a bond of trust with us. Over more than 100 years we have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle. clearly indicative of the success of the concept. Personal care and foods. in all age groups. 6. 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.

Vatika Henna Conditioning Shampoo Vatika Hair Oil Anmol Sarson Amla .Dabur Janma GhuntiHajmola 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 .Vatika Anti-Dandruff Shampoo .Dabur Red Gel .Dabur Red Toothpaste .Babool Toothpaste .Promise Toothpaste .Anmol Natural Shine Shampoo Gulabari Vatika Fairness Face Pack .Anmol Silky Black Shampoo .Meswakl Toothpaste .Dabur Lal Dant Manjan .

Cavanders. with two manufacturing facilities located in Ghaziabad (near Delhi) and in Andheri (Mumbai).. the operations span the entire northern and western part of the country.000 retail outlets. Incorporated in India in 1936.Dabur Binaca Toothbrush Dabur Foods Product Range Tastes like eating a fruit 100% Natural Fruit Juice Pure natural Honey Hommade . Jaisalmer. Lemoneez is a Natural Lemon Juice Capsico . Chandigarh and Hyderabad. Today. Its products are distributed through an extensive India wide network comprising 484 exclusive distributors and over 800. Tipper and Prince.a fiery red-pepper sauce. a state of the art R&D centre in Mumbai and a tobaccobuying unit in Guntur (Andhra Pradesh). GODFREY PHILLIPS Godfrey Phillips is a company driven by passion . Headquartered in Delhi.a range of culinary ingredients giving you 'The taste of Indian Kitchen'. innovate and win. to emerge as the most respected company in the tobacco industry. Godfrey Phillips has emerged as a professionally managed.the passion to excel. . Mumbai. Delhi. Over the years. the Company established its own manufacturing facilities in 1944. not just in India but all over the world. the Company has its sales offices across the country at Ahmedabad. Godfrey Phillips is today the second largest player in the Indian cigarette industry with an annual turnover of over US$ 265 million. 7. The Company today is the proud owner of some of the most popular cigarette brands in the country like Red and White. Four Square. a passion to be the leader.

has come a long way.H.C. B. Philip Morris. came "Marigold" and Guinea Gold. the Company has one of the highest productivity rates of workers in the entire country and an enviable organisational structure. From its modest beginning in London way back in 1844.highly efficient corporate entity. Water incorporated GODFREY PHILLIPS INDIA as a Private Ltd. as a Cigar manufacturer in 1844. After B. At that time packet tobaccos were in their infancy. Phillips embarkation in tobacco cutting in the year 1887. a major player in the Indian tobacco industry. one of India's leading industrial houses . on 3rd December 1936. Godfrey Phillips has the strong backing of over 15. growing from strength to strength. founder of Godfrey Phillips & Sons commenced business in the Barbican (London). Over the years the Company has also become an active player in overseas markets. From the Barbican he moved to Primrose Street and after that to Commercial Street London.the K.D. through the sheer determination & passion of every employee of the organization. Godfrey Phillips.V.K. a splendid judge of tobacco himself. is practically contemporary with Mr. 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. with significant export volumes. Mr. Messrs Godfrey Phillips. Mr. Wilmer and H. Godfrey Phillips has two major stakeholders.V.000 shareholders in the Country and is today. looked for appreciation of quality in his customers and stuck to his belief that quality will ultimately determine success. Modi Group and one of the World's largest tobacco companies. Phillips. The . D. the packet tobacco with which the name of Godfrey Phillips was intricately connected. something that is still the strongest belief in the Company. Today.D. Co. Godfrey Phillips.

7. In 1967.K. It also acquired a large share holding interest in George Dobie & Sons. GODFREY PHILLIPS bought Master Tobacco Co. Marcovich. U. A major thrust was given to marketing & sales and it was decided to merge D. however it got shelved due to World War II. In 1967-68. with its manufacturing facility in Ghaziabad (near Delhi) to manufacture cigarettes for GODFREY PHILLIPS. plans for setting up a manufacturing facility in Calcutta were made. Philip Morris acquired substantial holding in Godfrey Phillips Ltd. GODFREY PHILLIPS became a Public Ltd. after the war. Philip Morris is a large professionally managed multinational with diversified business interests. Andheri (Mumbai) thereby establishing its first factory in the Country. In 1951/52 Godfrey Phillips UK bought out George Dobie & Son's.. Godfrey Phillips Ltd. It has a wide range of tobacco and other products... In the year 1942.K. Macropolo & Co.". Chakala. opened a subsidiary company called "International Tobacco Co. Abdulla No. It took major initiatives in 1968 for GODFREY PHILLIPS to re-organise its operations. and GODFREY PHILLIPS became affiliates of Philip Morris. D. Thus in 1968. famous Four Square brand. George Dobie & Sons. with Godfrey . U. In October 1946. which was the sole selling agent for GODFREY PHILLIPS.. DERESKE. with "Marlboro" being its leading brand in the world. and Godfrey Phillips Investment Corporation which was holding substantial shares of Godfrey Phillips India Ltd. Red & White. with its manufacturing operations in Mumbai. U. In 1944.Company imported cigarettes from Godfrey Phillips Ltd.. Marcopolo & Co. GODFREY PHILLIPS was then primarily a manufacturing company and made cigarette brands like Cavanders. Co.K.

Modernization of the factories was initiated.K. Modi Group and in the following year the Modi Enterprises took over the management of GODFREY PHILLIPS with a substantial financial stake. . a process. Aggressive marketing and sales strategies were drawn up and implemented and each employee was empowered to bring about the desired change. each brand was modernized with the prime objective of growing their brand equity. The business was given a fresh look in all its areas of operation. The existing brand franchises were rejuvenated. Red & White and Cavanders. bringing the four sales branches and "International Tobacco Co. They are: Four Square Special. 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. vigour and confidence. 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. In 1973 GODFREY PHILLIPS. They took on this new challenge with a lot of passion. joined hands with the K. In 1979. Modi enterprise was new to the cigarette business. Philip Morris. product development and research activities were stepped up. Everything was restarted with renewed passion and determination. 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. India 's first King Size filter cigarette. which began in 1969. successfully launched Four Square Kings. The merger was finally completed on 31st December 1975. At least 3 of our cigarette brands today feature in the top 50 FMCG list. but an area in which they saw a huge potential for growth." under its fold.Phillips.

innovative products were also introduced. Tipper & Piper (new innovative products introduced in 2002) and Prince (another re-launch for the year 2002). the Company also has other cigarette brands that cater to a large and varied range of consumer segments. each cigarette going out into the market bears the Godfrey Phillips stamp of quality and assurance. by giving them an entirely new look & positioning. to deliver the customer with the most satisfying smoke. Cigarette Four Square Jaisalmer Red & White Cavanders Tipper North Pole Prince Cigars .Apart from these champions. The division has two state-of-the-art manufacturing facilities: at Wadala in Mumbai. The year 2002 also saw the Company re-launch some of its brands. Prepared with utmost dedication and passion. and at Mandideep near Bhopal in the northern Indian state of Madhya Pradesh. GODREJ The foods division of Godrej Industries produces and markets edible oils. fruit drinks. They are: Jaisalmer (re-launched in 2003). These brands are already making their presence felt in the industry. fruit nectar and bakery fats. vanaspati. while some new.Brands Don Diego Hav-a-tampa Phillies Santa Damiana H-2000 Rothschild 8.The plants are equipped with the best of modern equipment for the processing and packaging of a wide variety of food products. It has a national distribution network consisting of 800 distributors and 24 consignment agents. These include: . the capital of the western Indian state of Maharashtra.

litchi. Soymilk is available as a plain. sunflower and soyabean. malt and plain. The 'Xs' range of fruit nectar (mango. believes that quality is the product of a combination of man and machine. Refined edible oils of low color in different varieties of groundnut. which come in flavors such as mango. Godrej Industries. unflavored beverage or in a variety of flavors including apple. Plain. vitamin D and vitamin B-12. apple. Soymilk can be used in almost any way that cow's milk is used. With its unique nutty flavor and rich nutrition.The 'Jumpin' range of fruit drinks. Also. Tomato Puree (under the Godrej brand). Soymilk is the rich creamy milk of whole soybeans. Some brands of soymilk are fortified with vitamins and minerals and are good sources of calcium. Children can enjoy homemade or commercially prepared soymilk after the age of 1 year. Fruit pulps and juices in bulk aseptic packaging. Health and dietetic foods. Processed hydrogenated fats for edible purposes such as vanaspati and bakery shortenings. and sweet orange and pineapple flavors). soymilk can be used in a variety of ways. pineapple and orange. Infants under 1 year of age should be fed breast milk. Soymilk is free of the milk sugar lactose and is a good choice for people who are lactose intolerant. in keeping with the philosophy of the Godrej Group. unfortified soymilk is an excellent source of high-quality protein. it is a good alternative for those who are allergic to cow's milk. Godrej Industries Limited is India's leading manufacturer of oleochemicals and makes more than a hundred chemicals for use in over two dozen industries. The foods division has people of outstanding caliber to go with the modern technologies it uses. commercially prepared infant formula or commercial soymilk infant formula. mango. The result: the ability to deliver outstanding products. It . B-vitamins and iron.

Thereafter. which was established in 1897 and has since grown into a Rs 6. Australia and Africa. NIRMA Nirma is one of the few names . fatty alcohols and AOS 9. one at Valia in the Indian state of Gujarat and a second at Vikhroli in suburban Mumbai. Karsanbhai Patel. Godrej Industries also runs four divisions — Corporate Finance. the consumer products division got de-merged into Godrej Consumer Products Limited. 25.e. today. 00 crores. Corporate Audit and Assurance and Research and Development — which operate on behalf of the entire Godrej Group. is a classic example of the success of Indian entrepreneurship in the face of stiff competition. and it leads the Indian market in the production of fatty acids. the proverbial ‘Rags to Riches’ saga of Dr. GIL has built a strong manufacturing base capable of delivering international quality products at competitive prices. India is a one of the largest consumer economy. Asia. it has about 14. This led to the formation of two separate corporate entities: Godrej Consumer Products and Godrej Industries.000 crore conglomerate. vanaspati and bakery fats. 2001. Besides its three businesses. 000 employeebase and annual turnover is above Rs. Europe. GIL is a member of the Godrej Group. and the residual Godrej Soaps became Godrej Industries Limited. which took on mighty multinationals and rewrote the marketing rules to win the heart of princess.also manufactures edible oils. Besides. with burgeoning middle class . i. The company was called Godrej Soaps Limited until March 31. it operates businesses in medical diagnostics and real estate. Corporate HR. the consumer. Nirma.which is instantly recognized as a true Indian brand. The company's products are exported to 40 countries in North and South America. It operates two plants. Starting as a one-man operation in 1969.

It was way back in ‘60s and ‘70s. which is. i. It was really an innovative. packaging and low-profiled marketing. It was a severing battering for MNC as it recorded a sharp drop in its market share. 13 per kg. a perfect match of product.e. The performance of Nirma during the decade of 1980s has been labeled as ‘Marketing Miracle’ of an era. quality product – with indigenous process. eventually the largest consumer pocket and quickly emerged as dominating market player – a position it has never since relinquished. Rewriting the marketing rules. . when the available cheapest brand in the market was Rs. the brand surged well ahead its nearest rival – Surf. place and promotion. Now. Nirma aptly concentrated all its efforts towards creating and building a strong consumer preference towards its ‘value-for-money’ products. In a short span. Nirma created an entirely new market segment in domestic marketplace. diverse marketplace. Nirma became a one of the widely discussed success stories between the four-walls of the B-school classrooms across the world.pie. with very few players and was dominated by MNCs. 3 per kg. In such a widespread.000 tones. the year 2004 sees Nirma’s annual sales touch 800. when Karsanbhai Patel started door-to-door selling of his detergent powder. where the domestic detergent market had only premium segment. which was well-established detergent product by Hindustan Lever. Nirma literally captured the market share by offering value-based marketing mix of four P’s. During this period. which changed the habit of Indian housewives’ for washing their clothes. priced at an astonishing Rs. It was 1969. price.

located at different places.making it one of the largest volume sales with a single brand name in the world. Distinct market vision and robust infrastructure allowed Nirma to have cost leadership. leads Nirma. Nirma has always been practiced ‘value-for-money’ plank. These strategic moves allowed Nirma to manage effective and efficient supply-chain. Nirma has gone for massive backward integration along with expansion and modernization of the manufacturing facilities. To ensure regular supply of major raw materials. Nirma had opted for backward integration strategies. Karsanbhai K. Nirma’s six production facilities. Patel. Looking at the FMCG synergies. The focal objective behind modernization plan is of up gradation with resourcesavvy technology to optimize capabilities. Hence. Nirma plans to extend the same philosophy in categories as commodity food products. whereas his next .000 per annum. In present scenario. It has been persistent effort of Nirma to make consumer products available to masses at an affordable price. are well equipped with state-of-art technologies. lean distribution network. Nirma stepped into toilet soaps relatively late in 1990 but this did not deter it to achieve a volume of 100. personal care products and packaged food. Dr. at affordable prices. umbrella branding and low profile media promotions allowed it to offer quality products. it takes utmost care to provide finest products at the most affordable prices. an inspiring 59-year-old persona. Apart from this. To leverage this effort. playing role of key strategic decision-maker. This makes Nirma the largest detergent and the second largest toilet soap brand in India with market share of 38% and 20% respectively.

Packaging. Branded Apparel. While ITC is an outstanding market leader in its traditional businesses of Cigarettes. leads the professional organizational structure. heads the marketing and finance functions of the organization. is spearheading the procurement.generation has already skilled management capabilities. 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. ITC ranks third in pretax profit among India's private sector corporations. Shri Rakesh K Patel – a qualified management graduate. Packaged Foods & Confectionery. Packaging and AgriExports. Paperboards & Specialty Papers. Hotels. 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. Information Technology. Agri-Business. ITC has a diversified presence in Cigarettes. Hotels. Greeting Cards. Rated among the World's Best Big Companies by Forbes magazine and among India's Most Respected Companies by Business World. Safety Matches and other FMCG products.5 billion. Shri Kalpesh Patel. production and logistic functions. it is rapidly gaining market share even in its nascent businesses of . Paperboards. whereas Shri Hiren K Patel – a qualified Chemical engineer and management graduate. Executive Director.

Gold Flake. As one of India's most valuable and respected corporations. effective supply chain management and acknowledged service skills in hoteliering. A more broadbased entry has been made since June 2002 with brand launches in the Confectionery." 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. ITC is widely perceived to be dedicatedly nation-oriented. Berkeley. Branded Apparel and Greeting Cards. With its wide range of invaluable brands. 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. it has a leadership position in every segment of the market. India Kings. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. Over time. Capstan. Foods ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. Its highly popular portfolio of brands includes Wills. Products Cigarettes ITC is the market leader in cigarettes in India. superior brand-building capabilities. 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.Packaged Foods & Confectionery. Bristol and Flake. Staples and Snack Foods segments. Scissors. The packaged foods business is an ideal avenue to leverage ITC's proven . Navy Cut. Insignia.

These are: Ready To Eat Foods Staples Confectionery Snack Foods Lifestyle Retailing Over the last six years. . pop up & mini books. it has expanded its basket of offerings to the premium consumer with Wills Classic work wear. Expressions greetings & gifting products are available in multi brand retail outlets across India. party invitations. a collection of premium greeting cards & social cause cards & desk calendars in association with SOS Children's Villages of India.strengths in the areas of hospitality and branded cuisine. Beginning with its initial offering of Wills Sport relaxed wear from the first store at South Extension. Wills Clublife evening wear and a tempting range of designer accessories that complete the Look. slam books. ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. ITC's world famous restaurants like the Bukhara and the Dum Pukht. contemporary packaging and sourcing of agricultural commodities. Gifting & Stationery ITC's stationery brands Paper Kraft & Classmate are the most widely distributed brands across India. 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 business also markets Expressions Regalia. The Foods business is today represented in 4 categories in the market. ITC's Greeting & Gifting products include Expressions greeting cards and gifting products like autograph books. Greeting. New Delhi in July 2000. nurtured by the Company's Hotels business.

FUTURE PROSPECTS: The Indian FMCG sector with a market size of US$13. Hair care.100 crores in 2010. male grooming. A well-established distribution network. It has been estimated that FMCG sector will rise from around Rs 56. intense competition between the organized and unorganized segments characterizes the sector. That will translate into an annual growth of 10% over a 5-year period.1 billion is the fourth largest sector in the economy. female . FMCG Sector is expected to grow by over 60% by 2010. household care.500 crores in 2005 to Rs 92.

In urban areas. urban India accounts for 66% of total FMCG consumption. household care and feminine hygiene. will keep growing at relatively attractive rates. Within the foods segment. Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. and dairy are long-term growth categories in both rural and urban areas. 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. Growth Prospects With the presence of 12. At present.the companies like TATA and HUL are using CSR ie. boosting purchasing power in the countryside. along with increase in income levels and the availability of new categories.2% of the world population in the villages of India.e. and hot beverages. the Indian rural FMCG market is something no one can overlook. they would be able to generate higher growth in the near future. rural India accounts for more than 40% consumption in major FMCG categories such as personal care. if they are able to take the consumers to branded products and offer new generation products. and the chocolates and confectionery categories are estimated to be the fastest growing segments. However. with rural India accounting for the remaining 34%. increase in the urban population. Better infrastructure facilities will improve their supply chain. would help the urban areas maintain their position in terms of consumption.hygiene. the demand in urban areas would be the key growth driver over the long term. For example. hence providing better growth prospects to the FMCG companies. bakery. home and personal care category. i. so by focusing on these aspects of Indian economy the fmcg sector in India has a huge potential to grow further. It is expected that the rural income will rise in 2007. Though the sector witnessed a slower growth in 2002-2004. it is estimated that processed foods. Because of the low per capita consumption for almost all the products in the country. FMCG companies have immense possibilities for growth. including skin care. it has been able to make a fine recovery since then. CONCLUSION: The FMCG industry in India is having huge potential to grow. Also. Increased focus on farm sector will boost rural incomes. And if the companies are able to change the mindset of the consumers. Corporate social responsibility to further strengthen their brand or . An estimated double-digit growth over the next few years shows that the good times are likely to continue. says an HSBC report. However. Further. FMCG sector is also likely to benefit from growing demand in the market. fabric care.

The advertising campaigns have also changed to the changing scenario in Indian economy. . 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.create a positive image in the minds of people thus it will help in increasing their revenues.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.