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Submitted By: Navneet Kumar Singh Roll No-1082 IISE, Lucknow
Fast Moving Consumer Goods (FMCG) FMCG are products that have a quick shelf turnover, at relatively low cost and don't require a lot of thought, time and financial investment to purchase. The margin of profit on every individual FMCG product is less. However the huge number of goods sold is what makes the difference. Hence profit in FMCG goods always translates to number of goods sold. Fast Moving Consumer Goods is a classification that refers to a wide range of frequently purchased consumer products including: toiletries, soaps, cosmetics, teeth cleaning products, shaving products, detergents, other nondurables such as glassware, bulbs, batteries, paper products and plastic goods, such as buckets. ‘Fast Moving’ is in opposition to consumer durables such as kitchen appliances that are generally replaced less than once a year. The category may include
pharmaceuticals, consumer electronics and packaged food products and drinks, although these are often categorized separately. The term Consumer Packaged Goods (CPG) is used interchangeably with Fast Moving Consumer Goods (FMCG). Three of the largest and best known examples of Fast Moving Consumer Goods companies are Nestlé, Unilever and Procter & Gamble. Examples of FMCGs are soft drinks, tissue paper, and chocolate bars. Examples of FMCG brands are Coca-Cola, Kleenex, Pepsi and Believe. The FMCG sector represents consumer goods required for daily or frequent use. The main segments of this sector are personal care (oral care, hair care, soaps, cosmetics, toiletries), household care (fabric wash and household cleaners), branded and packaged food, beverages (health beverages, soft drinks, staples, cereals, dairy products, chocolates, bakery products) and tobacco. The Indian FMCG sector is an important contributor to the country's GDP. It is the fourth largest sector in the economy and is responsible for 5% of the total factory employment in India. The industry also creates employment for 3 m people in downstream activities, much of which is disbursed in small towns and rural India. This industry has witnessed strong growth in the past decade. This has been due to liberalization, urbanization, increase in the disposable incomes and altered lifestyle. Furthermore, the boom has also been fuelled by the reduction in excise duties, de-reservation from the small-scale sector and the concerted efforts of personal care companies to attract the burgeoning affluent segment in the middle-class through product and packaging innovations. Unlike the perception that the FMCG sector is a producer of luxury items targeted at the elite, in reality, the sector meets the every day needs of the masses. The lower-middle income group accounts for over 60% of the sector's sales.
Rural markets account for 56% of the total domestic FMCG demand. Many of the global FMCG majors have been present in the country for many decades. But in the last ten years, many of the smaller rung Indian FMCG companies have gained in scale. As a result, the unorganized and regional players have witnessed erosion in market share. History of FMCG in India In India, companies like ITC, HLL, Colgate, Cadbury and Nestle have been a dominant force in the FMCG sector well supported by relatively less competition and high entry barriers (import duty was high). These companies were, therefore, able to charge a premium for their products. In this context, the margins were also on the higher side. With the gradual opening up of the economy over the last decade, FMCG companies have been forced to fight for a market share. In the process, margins have been compromised, more so in the last six years (FMCG sector witnessed decline in demand). Current Scenario The growth potential for FMCG companies looks promising over the longterm horizon, as the per-capita consumption of almost all products in the country is amongst the lowest in the world. As per the Consumer Survey by KSATechnopak, of the total consumption expenditure, almost 40% and 8% was accounted by groceries and personal care products respectively. Rapid urbanization, increased literacy and rising per capita income are the key growth drivers for the sector. Around 45% of the population in India is below 20 years of age and the proportion of the young population is expected to increase in the next five years. Aspiration levels in this age group have been fuelled by greater media exposure, unleashing a latent demand with more money and a new mindset. In this backdrop, industry estimates suggest that the industry could
triple in value by 2015 (by some estimates, the industry could double in size by 2010). In our view, testing times for the FMCG sector are over and driving rural penetration will be the key going forward. Due to infrastructure constraints (this influences the cost-effectiveness of the supply chain), companies were unable to grow faster. Although companies like HLL and ITC have dedicated initiatives targeted at the rural market, these are still at a relatively nascent stage. The bottlenecks of the conventional distribution system are likely to be removed once organized retailing gains in scale. Currently, organized retailing accounts for just 3% of total retail sales and is likely to touch 10% over the next 3-5 years. In our view, organized retailing results in discounted prices, forced-buying by offering many choices and also opens up new avenues for growth for the FMCG sector. Given the aggressive expansion plans of players like Pantaloon, Trent, Shopper’s Stop and Shoprite, we are confident that the FMCG sector has a bright future. Budget Measures to Promote FMCG Sector 2% education cess corporation tax, excise duties and custom duties Concessional rate of 5% custom duty on tea and coffee plantation machinery Budget Impact The education cess will add marginally to the tax burden of all FMCG companies The dividend distribution tax on debt funds is likely to adversely effect the other income components of companies like Britannia, Nestle and HLL The measure to abolish excise duty on dairy machinery is a positive for companies like Nestle Concessional rate for tea and coffee plantation machinery is a positive for Tata Tea, HLL, Tata Coffee and other such companies Duty reduction in food grade hexane will have a marginally positive impact on
Only for tea. Himachal Pradesh will continue to encourage FMCG companies to relocate to these areas. J&K. coconut. tea and coffee • From 25% to 55% for crude palm oil • Development allowance of tea industry raised to 40% from 20% • All food preparations based on fruits • Increased focus on agricultural reforms with an aim to integrate the countrywide food market • Deregulation of the milk processing capacity • Excise duty structure largely untouched. the duty was reduced from Rs 2 per Kg to Re 1 • Customs duty on tea and coffee .companies like Marico and HLL Area specific excise exemptions for North East. 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.
sauces.• Excise on biscuits reduced to 8% from 16%. Excise on soft drinks and sugar boiled confectionery also reduced • All states to switch to VAT in FY04 (deadline now has been extended till end FY05) • Loans to agriculture and to small-scale sector will now be available at maximu 2% and vegetables (pickles. ports. ketchup. railways and airports .) 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. juices.
000 crore only. making India a dynamic and aspirational society.6 billion in 2003 to US$ 33.T. 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. skin care. Burgeoning Indian population. The FMCG market is set to treble from US$ 11.4 billion in 2015. Domestic demand is expected to double over the ten-year period from 1998 to 2007. earn more.1 billion. Penetration level as well as per capita consumption in most product categories like jams. toothpaste. Kearney has estimated India's total retail market at $202. presents an opportunity to makers of branded products to convert consumers to branded products. India is rated as the fifth most attractive emerging retail market.6 billion. It has been ranked second in a Global Retail Development Index of 30 developing countries drawn up by A T Kearney. A. These young people work harder. spend more and demand more from the market. The number of households with "high income" is expected to increase by 60% in the next four years to 44 million households. particularly the middle class and the rural segments. The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13. hair wash etc in India is low indicating the untapped market potential. is expected to grow at a compounded 30 per cent over the next five years. The share of modern retail is likely to grow from its current 2 per cent to 15-20 percent over the next decade. India offers a vibrant market of youth and vigor with 54% of population below the age of 25 years. analysts feel. .• 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.
With six factories and a . lower volume of higher value added products reduce scope for export to developing countries. NESTLE INDIA Nestlé India is a subsidiary of Nestlé S. Give the large market and the requirement for continuous repurchase of these products. Moreover.There is significant potential for increasing exports but there are certain factors inhibiting this. Rural demand is on the decline and the Centre for Monitoring Indian Economy (CMIE) has already downscaled its projection for agriculture growth in the current fiscal. Poor monsoon in some states. most of the companies are concentrating on cost reduction and supply chain management. Small-scale sector reservations limit ability to invest in technology and quality up gradation to achieve economies of scale. FMCG companies estimate they have already cornered a four to six per cent market share. The FMCG sector has traditionally grown at a very fast rate and has generally out performed the rest of the industry. This should yield positive results for them. Moreover. The outlook in the short term does not appear to be very positive for the sector. Over the last one year. the long term outlook for revenue growth is positive. Moreover. The growth of imports constitutes another problem area and while so far imports in this sector have been confined to the premium segment.A. 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 should continue to do well in the long run. The high burden of local taxes is another reason attributed for the slowdown in the industry At the same time. 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. too. is unlikely to help matters. of Switzerland.
Nestlé’s relationship with India dates back to 1912. a confidence in the dairy business. but a thriving hub of industrial activity. when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited. 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. advise and help the farmer in a variety of aspects. Nestlé responded to India’s aspirations by forming a company in India and set up its first factory in 1961 at Moga. Progress in Moga required the introduction of Nestlé’s Agricultural Services to educate. to irrigation. importing and selling finished products in the Indian market. scientific crop management practices and helping with the procurement of bank loans. the economic policies of the Indian Government emphazised the need for local production. The Company insists on honesty.large number of co-packers. Brief History After India’s independence in 1947. but also instil amongst the community. For more on Nestlé Agricultural . Nestlé set up milk collection centres that would not only ensure prompt collection and pay fair prices. integrity and fairness in all aspects of its business and expects the same in its relationships. where the Government wanted Nestlé to develop the milk economy. as well. From increasing the milk yield of their cows through improved dairy farming methods. Punjab. 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. 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'.
became operational in 1989. Health and Wellness through its product offerings. Beginning with its first investment in Moga in 1961. in 1993 and in 1995 and 1997. Nestlé’s regular and substantial investments established that it was here to stay. In 1967. the Samalkha factory (Haryana). 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. Nestlé India is now putting up the 7th factory at Pant Nagar in Uttaranchal Products Product Category Brands Milk Products NESTLÉ EVERYDAY Dairy Whitener . services and other goods. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers. suppliers of packaging materials. Nestlé India is a responsible organization and facilitates initiatives that help to improve the quality of life in the communities where it operates.Services. The Company continuously focuses its efforts to better understand the changing lifestyles of India and anticipate consumer needs in order to provide Taste. The culture of innovation and renovation within the Company and access to the Nestlé Group's proprietary technology/Brands expertise and the extensive centralized Research and Development facilities gives it a distinct advantage in these efforts. It helps the Company to create value that can be sustained over the long term by offering consumers a wide variety of high quality. 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. Nutrition. The Nanjangud factory (Karnataka). safe food products at affordable prices.
They benefit from there wealth of knowledge and international expertise to the service the local consumers . 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. . HLL has deep roots in local cultures and markets around the world which gives them a strong relationship with their consumers.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.a truly multi-local multinational. look good and get more out of life. and personal care with brands that help people feel good. Their products meet everyday needs for nutrition. hygiene.
Unilever set up its first Indian subsidiary. In one of the most visible and talked about events of India's corporate history. effective from April 1. The liberalization of the Indian economy. started in 1991. acquisitions and mergers.Brief History In the summer of 1888. Lakme Lever Limited. Hindustan Vanaspati Manufacturing Company. Lakme Limited. began an era of marketing branded Fast Moving Consumer Goods (FMCG).000 individual shareholders and financial institutions. deregulation permitted alliances. visitors to the Kolkata harbour noticed crates full of Sunlight soap bars. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. Unilever now holds 51. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment. 1993.55% equity in the company. In 1995. With it. HLL offered 10% of its equity to the Indian public. HLL and yet another Tata company. . Subsequently in 1998. Lakme Limited sold its brands to HLL and divested its 50% stake in the joint venture to the company. Simultaneously. to market Lakme's marketleading cosmetics and other appropriate products of both the companies. clearly marked an inflexion in HLL's and the Group's growth curve. embossed with the words "Made in England by Lever Brothers". The rest of the shareholding is distributed among about 380. the erstwhile Tata Oil Mills Company (TOMCO) merged with HLL. followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). without any constraints on production capacity. formed a 50:50 joint venture. Pond's (India) Limited had been present in India since 1947. These three companies merged to form HLL in November 1956. In 1931. being the first among the foreign subsidiaries to do so.
the erstwhile Brooke Bond acquired Kothari General Foods. Then in July 1993. 1994 witnessed BBLIL launching the Wall's range of Frozen Desserts. the government decided to award 74 per cent equity in Modern Foods to HLL. By the end of the year. HLL acquired the Cooked Shrimp and Pasteurised Crabmeat business .HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994. In 1992. The 1990s also witnessed a string of crucial mergers. In 1993. HLL's entry into Bread is a strategic extension of the company's wheat business. were merged with Brooke Bond. In 2003. In 2002. HLL acquired the government's remaining stake in Modern Foods. In January 2000. Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL). The NLL factory manufactures HLL's products like Soaps. which markets Huggies Diapers and Kotex Sanitary Pads. two plantation companies of Unilever. Detergents and Personal Products both for the domestic market and exports to India. thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. and its factory represents the largest manufacturing investment in the Himalayan kingdom. 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. As a measure of backward integration. enabling greater focus and ensuring synergy in the traditional Beverages business. it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. Tea Estates and Doom Dooma. HLL has also set up a subsidiary in Nepal. Nepal Lever Limited (NLL). acquisitions and alliances on the Foods and Beverages front. in a historic step. with significant interests in Instant Coffee.
HLL believes that an organization’s worth is also in the service it renders to the community. touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. The operations involve over 2.of the Amalgam Group of Companies. branded staples. most recent being the village built by HLL in earthquake affected Gujarat. Brooke Bond. ice cream and culinary products. Fair & Lovely. it has been recognised as a Golden Super Star Trading House by the Government of India. Lux. detergents. HLL is focusing on health & hygiene education. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of Rs. Pond's. It is also involved in education and rehabilitation of special or underprivileged children. care for the destitute and HIV-positive. and rural development. Lakme. directly covers the entire urban population. coffee. Surf Excel. . KnorrAnnapurna. women empowerment.like Lifebuoy. HLL is also one of the country's largest exporters. Wheel. Present Stature Hindustan Lever Limited (HLL) is India's largest Fast Moving Consumer Goods company.10. Kwality Wall's – are household names across the country and span many categories . and water management. HLL's brands .000 redistribution stockists. HLL's distribution network. Clinic. Close-up.000 suppliers and associates. tea. a leader in value added Marine Products exports. Sunsilk.soaps.000 crores. and about 250 million rural consumers. personal products. Rin. They are manufactured in close to 80 factories. Pepsodent. comprising about 7. HLL has also responded in case of national calamities / adversities and contributes through various welfare measures. Kissan. and relief & rehabilitation after the Tsunami caused devastation in South India.
Operating in the fiercely competitive environment of retail and consumer marketing GlaxoSmithKline Consumer Healthcare brings oral healthcare. overthe-counter medicines and nutritional healthcare products to millions of people. over ten $100 million brands and present in 130 markets.Products Product Category Product Name Brands Personal Care Soap Lux Pears Lifebuoy Liril Hamam Breeze Dove Rexona Skin Care Pond’s Fair & Lovely Hair Care: Sunsilk Naturals Clinic Oral Care Pepsodent CloseUp Deodorant Axe Rexona Color Cosmetics Lakme Ayurvedic Healthcare Aysh Fabric Care Laundry Surf Excel Rin Wheel Beverages Tea Brooke Bond Lipton Coffee Bru Foods Salt Knnor Annapurna Sauces Kissan Ice Creams Kwality Walls 3. GLAXO SMITHKLINE GlaxoSmithKline is a leader in the worldwide consumer healthcare market. . the consumer healthcare business brings an added dynamic dimension to GSK. With nearly $5 billion in sales.
With four dedicated consumer healthcare R&D centres and consumer healthcare regulatory affairs. with an estimated 7% of the world's pharmaceutical market.000) to find new medicines. 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. In addition. infections. The medicines produced are mainly in six major disease areas – asthma. virus control. This mission gives them the purpose to develop innovative medicines and products that help millions of people around the world. As a company has a emphasized more on research & development. diabetes and digestive conditions. feel better and live longer • Research-based pharmaceutical company • It is the only pharmaceutical company to tackle the three "priority" . feel better and live longer. they are the only pharmaceutical company to tackle the World Health Organization’s three ‘priority’ diseases – HIV/AIDS. The Company The company has a challenging and inspiring mission: to improve the quality of human life by enabling people to do more.nine billion tablets to relieve stomach upsets. GSK at a glance • Mission is to improve the quality of human life by enabling people to do more. tuberculosis and malaria. the business takes scientific innovation as seriously as marketing excellence and offers leading-edge capability in both. six billion tablets for pain relief tablets and 600 million tubes of toothpaste. But the driving force behind GlaxoSmithKline's consumer healthcare business is science. In one year GSK Consumer Healthcare produces among many others . Aquafresh toothpaste. In fact. Lucozade the nutritional and Nicorette/ Niquitin smoking cessation products are household names around the world. Headquartered in the UK and with operations based in the US. mental health.Brand names such as Panadol the analgesic.000 (US$562. it is one of the industry leaders.
and in the US in the following year.diseases identified by the World Health Organization: HIV/AIDS. The broad-spectrum injectable antibiotic Zinacef (cefuroxime) is introduced by Glaxo. 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. is launched by Beecham. tuberculosis and malaria • Its business employs over 100. 1981 The anti-ulcer treatment Zantac (ranitidine) is launched by Glaxo and is to become the world’s top-selling medicine by 1986. The antiviral Zovirax (aciclovir) is launched by Wellcome for herpes infections 1982 SmithKline acquires Allergan. an eye and skincare business. Augmentin (amoxicillin / clavulanate potassium). to combat a wide range of bacterial infections in children and adults. The treatment will revolutionise peptic ulcer therapy.000 people in 116 countries • They make approximately four billion packs of medicines and healthcare products every year • Over 15. 1978 Through the acquisition of Meyer Laboratories Inc. to become Glaxo Inc from 1980. and .
increasing the company's size by half and establishing SmithKline BioScience Laboratories as the industry leader. a genetically engineered hepatitis B vaccine.merges with Beckman Instruments Inc. is launched in the US and France. Wellcome launches Flolan (epoprostenol) for use in renal dialysis. of Burroughs Wellcome Inc. "for their discoveries of important principles for drug treatment. 1986 Beecham acquires the US firm Norcliff Thayer. with two other scientists." 1989 SmithKline Beckman and The Beecham Group plc merge to form SmithKline Beecham plc. adding Tums antacid tablets and Oxy skin care to its portfolio. a company specialising in diagnostics and measurement instruments and supplies. John Vane of the Wellcome Research Laboratories is awarded the Nobel Prize. 1990 The synthetic lung surfactant Exosurf and the anti-epileptic drug . 1987 The AIDS treatment Retrovir (zidovudine) is launched by Wellcome. The Nobel Prize for medicine is awarded to George Hitchings and Gertrude Elion. North Carolina. The broad-spectrum injectable antibiotic Fortum (ceftazidime) is launched. Engerix-B hepatitis B vaccine (recombinant). 1988 SmithKline BioScience Laboratories acquires one of its largest competitors. International Clinical Laboratories. Glaxo introduces the oral antibiotic Zinnat (cefuroxime axetil). Inc. and to Sir James Black. "for their discoveries concerning prostaglandins and related biologically active substances." 1983 Glaxo Inc moves to new facilities in Research Triangle Park and Zebulon. who had worked at the Wellcome Foundation and Smith Kline and French Laboratories. The company is renamed SmithKline Beckman.
its first market. 1995 Glaxo and Wellcome merge to form Glaxo Wellcome. SmithKline Beecham’s Havrix hepatitis A vaccine. SmithKline Beecham moves its global headquarters to New Horizons Court at Brentford. a pharmaceutical benefits manager. Lacipil (lacidipine) for high blood pressure. Sterling Health also is acquired. With the intention of focusing on human healthcare. a leader in the . and Cutivate (fluticasone propionate) in the US for skin diseases. 1991 Glaxo launches its novel treatment for migraine. the world’s first hepatitis A vaccine. SmithKline Beecham’s Seroxat/Paxil (paroxetine hydrochloride) is launched in the UK. Glaxo introduces long-acting Serevent (salmeterol) for asthma. the inhaled corticosteroid Flixotide (fluticasone propionate) and Zofran (ondansetron) antiemetic for cancer patients. England. 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. is launched in six European markets. Glaxo Wellcome acquires California-based Affymax. Imigran (sumatriptan). making SmithKline Beecham the third-largest over-the-counter medicines company in the world and number one in Europe and the international markets. SmithKline Beecham sells its animal health business. Glaxo introduces Flixotide (fluticasone propionate) for bronchial conditions.Lamictal (lamotrigine) are launched by Wellcome. 1994 SmithKline Beecham purchases Diversified Pharmaceutical Services. Inc. inactivated. 1992 Mepron (atovaquone) for AIDS-related pneumonia is introduced by Burroughs Wellcome in the US.
1999 The 30th anniversary of the launch of Ventolin (albuterol) is marked as respiratory becomes Glaxo Wellcome’s largest therapeutic area. opens at Harlow in England. Glaxo Wellcome’s Medicines Research Centre opened at Stevenage in England. Sharpening its focus on pharmaceuticals and consumer healthcare. GSK Products Product name: Aquafresh . 1998 SmithKline Beecham and the World Health Organization announce a collaboration to eliminate lymphatic filariasis (elephantiasis) by the year 2020. SmithKline Beecham Healthcare Services is formed by combining the clinical laboratories. 1996 Community Partnership is established by SmithKline Beecham to focus philanthropy on community-based healthcare. SmithKline Beecham acquires Sterling Winthrop's site in Upper Providence. disease management and Diversified Pharmaceutical Services businesses.field of combinatorial chemistry. Pennsylvania. 1997 SmithKline Beecham’s research centre. SmithKline Beecham divests SmithKline Beecham Clinical Laboratories and Diversified Pharmaceutical Services. SmithKline Beecham and Incyte Pharmaceuticals create a joint venture diaDexus .to discover and market novel molecular diagnostics based on the use of genomics. The largest pharmaceutical company in Poland is created with the acquisition of Polfa Poznan by Glaxo Wellcome. New Frontiers Science Park. to fulfil US R&D expansion needs. Valtrex (valaciclovir) is launched by Glaxo Wellcome as an anti-herpes successor to Zovirax (acyclovir).
healthy gums and fresh breath – whole mouth protection. India.' is a nutritional drink made from wheat. The Aquafresh range also includes whitening. The unique red. used as an antacid and reliever of bloatedness. was invented in the 1850s by James Crossley ENO Product name: Horlicks Major Markets India and UK Horlicks. children's toothbrushes. milk and malted barley and is sold in powdered form. white and blue stripes of the toothpaste make the product not only visually attractive. but also underline the triple benefits of strong teeth. The Aquafresh range of manual and electric toothbrushes not only clean teeth effectively. The brand is such an enormous success in its key market. dental lozenges and dental gum. tartar control and children's toothpaste. sensitive. 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. 'The Great Family Nourisher. they are also gentle on gums because of their flexible necks. Their flexible heads and brush tips have been designed for cleaning even the hardesttoreach parts of the mouth. that alongside the traditional family . 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.
which was above the turnover growth of 9%.911 million grew by 13%. Financial review Operating profit and earnings per share Operating profit of £1. Excluding costs for legal matters. costs for legal matters were £123 million (£33 million in 2005).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. resulting in a 2 percentage point reduction in operating profit growth for the quarter. compared with a £56 million charge in 2005. partially offset by a higher expected tax rate for the year. 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). of which the Company services . well below turnover growth. 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. there is a special formulation for children between one and three years of age and another for breast-feeding mothers. SG&A grew 8%. SG&A grew by 2%. Colgate-Palmolive (India) today has one of the widest distribution networks in India – a logistical marvel that spans around 3.EPS of 23. In the quarter. The total operating profit impact of these items was a £97 million charge in 2006. when hand-carts were used to distribute Colgate Dental Cream. COLGATE PAMOLIVE INDIA LIMITED From a modest start in 1937. reflecting an improved cost of sales margin and higher other operating income partly offset by increased R&D expenditure.formula. gains from asset disposals were £91 million (£10 million in 2005).5 million retail outlets across the country. 4.
they . innovation and value for money products emerging out of advanced technology employed. while at the same time increasing operating profit. Colgate's tight focus in Oral Care in India while building its Personal Care business coupled with a simple.6 billion Colgate toothbrushes are sold annually worldwide. 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. hair care products are sold in over 70 countries.000 outlets directly. but sound worldwide financial strategy. Today. History 1975 Caprice hair care launches in Mexico. If you lined them up end to end. The Company has grown to a Rs. Today over 1. 1983 Colgate Plus toothbrush is introduced. This is a true measure of the trust and confidence that generations of consumers have placed in Colgate for their oral care needs. 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. Today. Colgate consistently increases gross margin while at the same time reducing overhead expenses. Today Hill's is the global leader in pet nutrition and veterinary recommendations.9. Consistently superior quality.40. 1976 Colgate-Palmolive acquires Hill's Pet Nutrition. with variants to suit every type of hair need. Colgate is a household name in India with one out of two consumers using a modern dentifrice. 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. 9600 million plus with an outstanding record of enhancing value for its strong shareholder base. has helped deliver consistent shareholder value.
a leading oral care company. which adds strength in key Asian markets. 1986 The Chairman's You Can Make A Difference Program is launched. Today. 1985 Protex bar soap is introduced. 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.S.S. its product portfolio has expanded to include all-purpose cleaners. fights a complete range of oral health problems. sprays and wipes. Bright Futures oral health education program expands to reach 50 countries with in-school programs and mobile dental clinics. 1995 Colgate enters Central Europe and Russia. 1997 Colgate Total toothpaste is introduced and quickly becomes the market leader in the U. 1991 Colgate acquires Murphy Oil Soap. expanding into fast-growing markets. with its 12-hour protection. 1989 Annual Company sales surpass the $5 billion mark. 1996 Bright Smiles. Mennen products are sold in over 52 countries. 2004 Colgate acquires the GABA oral care business in Europe. Only Colgate Total. with its . Colgate is the global leader in liquid hand soap. Today. 1992 Colgate acquires the Mennen Company. and today offers all-family antibacterial protection in over 56 countries. Colgate-Palmolive enters into a joint venture with Hong Kong-based Hawley & Hazel. the leading wood cleaner in the U. recognizing innovation and executional excellence by Colgate people.would circle the globe 16 times. Today.
As a result. Shower Cream. Personal Care. In the subsequent public issue of 1978. and in 1921. The company we all know as Britannia today. Indian shareholding crossed 60%. Bar Soap. the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. during the tragic World War II. Colgate now sells its products in 222 countries and territories worldwide. with sales surpassing $10 billion. Home Care and Pet Nutrition. Britannia's business was flourishing. 2006 Today. firmly establishing the Indianness of the firm. BRITANIA The story of one of India's favorite brands reads almost like a fairy tale. Britannia mechanized its operations. Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL).strength in the important European pharmacy channel and its ties with the dental community. Shave Preps. the biscuit market continued to grow and Britannia grew along with it. Once upon a time. it became the first company east of the Suez Canal to use imported gas ovens. 295. Products Oral Care: • Colgate – Toothpaste. By 1910.Shower Gel. Four . in 1892 to be precise. Britannia was acquiring a reputation for quality and value. Tooth Powder. a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. more importantly. The following year. Colgate focuses on four core businesses: Oral Care. As time moved on. with the advent of electricity. Skin Care Household Care: • Axion Surface Clean 5. But. Whitening Products • Pamolive . In 1975. the Government reposed its trust in Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces. Liquid Hand Wash. The beginnings might have been humble-the dreams were anything but.
The Wadia Group acquired a stake in the company and became an equal partner with Groupe Danone in Britannia. The subsequent year saw sales cross landmark 100. the world's second largest Dairy Company. And millions of consumers will savour the . Today. 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. the company was making equally dynamic strides. was born. On the operations front. In recognition of its vision and accelerating graph. more than a century after those tentative first steps.000 tones of biscuits or 1 billion packs of 100g.years later in 1983. Ltd. and Britannia New Zealand Foods Pvt. Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country. 100 crores revenue mark. In 2002. it celebrated its Platinum Jubilee. 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 crossed the Rs. Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World'. and The Economic Times pegged Britannia India's 2nd Most Trusted Brand. and that miniscule initial investment has grown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders. In 1992. Britannia's New Business Division formed a joint venture with Fonterra. Britannia's fairy tale is not only going strong but blazing new standards. 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.
100 crore 1989• The Executive Office relocated to Bangalore 1992• BIL celebrates its Platinum Jubilee 1993• Wadia Group acquires stake in ABIL. Ltd. Asiastar and Indiastar award for packaging 2003• 'Treat Duet'. happily ever after. Tiger Ban Jao' becomes the popular chant! • Britannia launched 'Greetings' range of premium assorted gift packs • The new plant in Uttaranchal.Choconut .000 tons of biscuits • Good Day adds a new variant .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.results. (BIL) 1983 Sales cross Rs.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.new corporate identity 'Eat Healthy. the world's second largest dairy company • Britannia New Zealand Foods Pvt. 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. UK and becomes an equal partner with Groupe Danone in BIL • 1997• Re-birth .Britannia among Top 300 small companies 2001• BIL ranked one of India's biggest brands • No. 1975• Britannia Biscuit Company takes over biscuit distribution from Parry's 1979 Re-christened Britannia Industries Ltd.a major success! Profit up by 37% 2000• Forbes Global Ranking . 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" .'Swasth Khao.00.Britannia .in its range 2005• Re-birth of Tiger . commissioned ahead of schedule. • The launch of yet another exciting snacking option .
Good Day Chocochips in 2000 and Good Day Choconut in 2004. The versatile and youthful brand constantly aims to provide a novel and exciting taste experience to the consumer. • Britannia's oldest brand enjoys a heritage that spans the last 50 years and going strong. Over the years. the Fruit Flavoured Creams such as Orange. • Before Timepass. the Jam Filled Centres under the Jim Jam range. Nutri-Choice Thin Arrowroot was morphed from Jacob's Thin Arrowroot (a popular brand in East India). such as the classic favourites Bourbon & Elaichi. • Little Hearts was launched in 1993 and targeted the growing youth segment. launched in 1997. it was the first time biscuits were retailed in pouch packs like potato wafers. Tiger has grown from strength to strength and the re-invigoration.50-50 Pepper Chakkar PRODUCTS • Britannia Trea t proffers a wide variety of flavours. • To offer something to consumers who cherish healthy living. new variants were introduced . These round biscuits come with smiley faces and are full of milk cream that makes them very popular with children. • Britannia Nice Time was the pioneer of sugar sprinkled biscuits in India. Britannia's offering in the salted cracker category was Snax. In 1998. Pineapple. Britannia introduced Nutri-Choice biscuits. and the Duet Range • Tiger. Snax was promoted as a tastier base for toppings through edgy advertising.Good Day Pista Badam in 1989. and Strawberry. became the largest brand in Britannia's portfolio in the very first year of its launch and continues to be so till today.. Mango. It is the #1 brand in its category by a long shot • In 1996. • Britannia 50-50 is the leader in its category with more than one-third of market share. A completely unique product. This unique product managed to create such a strong consumer pull . Milk Bikis launched a variant called Milk Cream. • Britannia Good Day was launched in 1986 in two delectable avatars Good Day Cashew and Butter. Britannia Marie Gold has maintained its stronghold. Launched in 1999.
Through our comprehensive range of products we touch the lives of all consumers. 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 there again Britannia was the first branded bread in the city. DABUR INDIA Dabur India Limited is a leading Indian consumer goods company with interests in health care. Personal care and foods. clearly indicative of the success of the concept. but also inculcated in the people of Delhi the habit of eating white sliced bread. Over more than 100 years we have been dedicated to providing nature-based solutions for a healthy and holistic lifestyle. And this legacy has helped us develop a bond of trust with us.that soon there was a rush of pretender products in the market. Britannia was not only the pioneer. 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. The Mumbai unit came up in 1963. • Till 1958. Then. 6. Thus. in all age groups. there were no breads in the organised sector and bread consumption was a habit typified by the British.1. across all social boundaries. adopts US GAAP Dabur Health Care Product Range Dabur ChyawanprashDabur ChyawanshaktiGlucose DDabur Lal tailDabur Baby olive .000 crores 2003 Dabur demerges Pharma Business 2005 Dabur aquires Balsara 2006 Dabur announces Bonus after 12 years 2006 Dabur crosses $2 Bin market Cap.
Anmol Natural Shine Shampoo Gulabari Vatika Fairness Face Pack .Dabur Red Gel .Babool Toothpaste .Promise Toothpaste .Meswakl Toothpaste .Anmol Silky Black Shampoo .Vatika Anti-Dandruff Shampoo .Vatika Henna Conditioning Shampoo Vatika Hair Oil Anmol Sarson Amla .Dabur Red Toothpaste .oilDabur Janma GhuntiHajmola Yumstick Hajmola Mast Masala Anardana Hajmola Hajmola candy Hajmola Candy Fun2 Pudin hara (Liquid and pearls) Pudin hara G Dabur Hingoli Shilajit Gold Nature Care Sat Isabgol Shilajit Ring Ring Itch Care Back-aid Shankha Pushpi Dabur Balm Sarbyna Strong Dabur Personal Care Product Range Amla Hair Oil Amla Lite Hair Oil .
7.Dabur Lal Dant Manjan .a fiery red-pepper sauce.Dabur Binaca Toothbrush Dabur Foods Product Range Tastes like eating a fruit 100% Natural Fruit Juice Pure natural Honey Hommade . The Company today is the proud owner of some of the most popular cigarette brands in the country like Red and White. Mumbai.the passion to excel. a passion to be the leader. with two manufacturing facilities located in Ghaziabad (near Delhi) and in Andheri (Mumbai). Cavanders. Chandigarh and Hyderabad. Four Square. a state of the art R&D centre in Mumbai and a tobaccobuying unit in Guntur (Andhra Pradesh).000 retail outlets. the operations span the entire northern and western part of the country. innovate and win. Headquartered in Delhi.a range of culinary ingredients giving you 'The taste of Indian Kitchen'. Jaisalmer. not just in India but all over the world. Godfrey Phillips is today the second largest player in the Indian cigarette industry with an annual turnover of over US$ 265 million. Today.. to emerge as the most respected company in the tobacco industry. Tipper and Prince. Incorporated in India in 1936. Delhi. Over the years. Lemoneez is a Natural Lemon Juice Capsico . GODFREY PHILLIPS Godfrey Phillips is a company driven by passion . the Company has its sales offices across the country at Ahmedabad. Its products are distributed through an extensive India wide network comprising 484 exclusive distributors and over 800. the Company established its own manufacturing facilities in 1944. Godfrey Phillips has emerged as a professionally .
From its modest beginning in London way back in 1844. B. Wilmer and H. Godfrey Phillips. Philip Morris. as a Cigar manufacturer in 1844.V.V. Today. the Company has one of the highest productivity rates of workers in the entire country and an enviable organisational structure. highly efficient corporate entity. on 3rd December 1936. Water incorporated GODFREY PHILLIPS INDIA as a Private Ltd.managed. looked for appreciation of quality in his customers and stuck to his belief that quality will ultimately determine success.K. has come a long way. growing from strength to strength. D.H. Over the years the Company has also become an active player in overseas markets. Messrs Godfrey Phillips. through the sheer determination & passion of every employee of the organization.D. with significant export volumes.D.the K. . is practically contemporary with Mr. Phillips. the packet tobacco with which the name of Godfrey Phillips was intricately connected. Godfrey Phillips has two major stakeholders. Mr. After B. came "Marigold" and Guinea Gold. founder of Godfrey Phillips & Sons commenced business in the Barbican (London). a splendid judge of tobacco himself. Mr. something that is still the strongest belief in the Company. Co. Godfrey Phillips. At that time packet tobaccos were in their infancy. one of India's leading industrial houses . Phillips embarkation in tobacco cutting in the year 1887.C.000 shareholders in the Country and is today. a major player in the Indian tobacco industry. Modi Group and one of the World's largest tobacco companies. 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. Godfrey Phillips has the strong backing of over 15. From the Barbican he moved to Primrose Street and after that to Commercial Street London.
K. U. GODFREY PHILLIPS was then primarily a manufacturing company and made cigarette brands like Cavanders. with its manufacturing facility in Ghaziabad (near Delhi) to manufacture cigarettes for GODFREY PHILLIPS. Red & White. Marcopolo & Co. It has a wide range of tobacco and other products. In October 1946. Chakala. DERESKE. Philip Morris is a large professionally managed multinational with diversified business interests. GODFREY PHILLIPS bought Master Tobacco Co. It took major initiatives in 1968 for GODFREY PHILLIPS to re-organise its operations. Andheri (Mumbai) thereby establishing its first factory in the Country..K. 7.. In 1951/52 Godfrey Phillips UK bought out George Dobie & Son's. U. In 1967-68.The Company imported cigarettes from Godfrey Phillips Ltd.. however it got shelved due to World War II. Philip Morris acquired substantial holding in Godfrey Phillips Ltd. with its manufacturing operations in Mumbai. George Dobie & Sons. with "Marlboro" being its leading brand in the world. In 1967.. famous Four Square brand. Macropolo & Co. In the year 1942.. opened a subsidiary company called "International Tobacco Co. Marcovich. Co. U. which was the sole selling agent for GODFREY PHILLIPS. plans for setting up a manufacturing facility in Calcutta were made.". . and GODFREY PHILLIPS became affiliates of Philip Morris. and Godfrey Phillips Investment Corporation which was holding substantial shares of Godfrey Phillips India Ltd. A major thrust was given to marketing & sales and it was decided to merge D. D.K. It also acquired a large share holding interest in George Dobie & Sons. Abdulla No. GODFREY PHILLIPS became a Public Ltd. after the war. In 1944. Thus in 1968. Godfrey Phillips Ltd.
They took on this new challenge with a lot of passion. In 1973 GODFREY PHILLIPS. 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. Modi Group and in the following year the Modi Enterprises took over the management of GODFREY PHILLIPS with a substantial financial stake. product development and research activities were stepped up. joined hands with the K. but an area in which they saw a huge potential for growth. Modernization of the factories was initiated. The existing brand franchises were rejuvenated. Philip Morris. India 's first King Size filter cigarette. Everything was restarted with renewed passion and determination.K.with Godfrey Phillips. The business was given a fresh look in all its areas of operation. vigour and confidence. In 1979. a process. At least 3 of our cigarette brands today feature in the top 50 FMCG list. 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. each brand was modernized with the prime objective of growing their brand equity." under its fold. bringing the four sales branches and "International Tobacco Co. The merger was finally completed on 31st December 1975. Aggressive marketing and sales strategies were drawn up and implemented and each employee was empowered to bring about the desired change. Modi enterprise was new to the cigarette business. They are: . 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. which began in 1969. successfully launched Four Square Kings.
They are: Jaisalmer (re-launched in 2003). Apart from these champions. Tipper & Piper (new innovative products introduced in 2002) and Prince (another re-launch for the year 2002).The plants are equipped with the best of modern equipment for the . fruit nectar and bakery fats. Cigarette • Four Square • Jaisalmer • Red & White • Cavanders • Tipper • North Pole • Prince Cigars . Red & White and Cavanders. the capital of the western Indian state of Maharashtra. fruit drinks.Brands • Don Diego • Hav-a-tampa • Phillies • Santa Damiana H-2000 Rothschild 8. Prepared with utmost dedication and passion. innovative products were also introduced. while some new.Four Square Special. to deliver the customer with the most satisfying smoke. The division has two state-of-the-art manufacturing facilities: at Wadala in Mumbai. by giving them an entirely new look & positioning. each cigarette going out into the market bears the Godfrey Phillips stamp of quality and assurance. the Company also has other cigarette brands that cater to a large and varied range of consumer segments. GODREJ The foods division of Godrej Industries produces and markets edible oils. It has a national distribution network consisting of 800 distributors and 24 consignment agents. vanaspati. These brands are already making their presence felt in the industry. The year 2002 also saw the Company re-launch some of its brands. and at Mandideep near Bhopal in the northern Indian state of Madhya Pradesh.
Fruit pulps and juices in bulk aseptic packaging. unfortified soymilk is an excellent source of high-quality protein. commercially prepared infant formula or commercial soymilk infant formula. mango. Processed hydrogenated fats for edible purposes such as vanaspati and bakery shortenings. Infants under 1 year of age should be fed breast milk. Godrej Industries Limited is India's leading manufacturer of oleochemicals and . The foods division has people of outstanding caliber to go with the modern technologies it uses. which come in flavors such as mango. malt and plain. Some brands of soymilk are fortified with vitamins and minerals and are good sources of calcium. unflavored beverage or in a variety of flavors including apple. Soymilk is the rich creamy milk of whole soybeans.processing and packaging of a wide variety of food products. Soymilk can be used in almost any way that cow's milk is used. believes that quality is the product of a combination of man and machine. With its unique nutty flavor and rich nutrition. Godrej Industries. Children can enjoy homemade or commercially prepared soymilk after the age of 1 year. Health and dietetic foods. These include: The 'Jumpin' range of fruit drinks. Plain. The result: the ability to deliver outstanding products. sunflower and soyabean. Soymilk is free of the milk sugar lactose and is a good choice for people who are lactose intolerant. Tomato Puree (under the Godrej brand). and sweet orange and pineapple flavors). pineapple and orange. The 'Xs' range of fruit nectar (mango. in keeping with the philosophy of the Godrej Group. Refined edible oils of low color in different varieties of groundnut. litchi. soymilk can be used in a variety of ways. apple. vitamin D and vitamin B-12. it is a good alternative for those who are allergic to cow's milk. B-vitamins and iron. Soymilk is available as a plain. Also.
the proverbial ‘Rags to Riches’ saga of Dr. and it leads the Indian market in the production of fatty acids. GIL has built a strong manufacturing base capable of delivering international quality products at competitive prices. it operates businesses in medical diagnostics and real estate. today. . Besides its three businesses. Besides. Thereafter. 2001. which took on mighty multinationals and rewrote the marketing rules to win the heart of princess.e. i. It operates two plants. NIRMA Nirma is one of the few names . It also manufactures edible oils. Asia. the consumer products division got de-merged into Godrej Consumer Products Limited. vanaspati and bakery fats. Starting as a one-man operation in 1969. Nirma. The company was called Godrej Soaps Limited until March 31. This led to the formation of two separate corporate entities: Godrej Consumer Products and Godrej Industries. Europe.000 crore conglomerate. is a classic example of the success of Indian entrepreneurship in the face of stiff competition. GIL is a member of the Godrej Group. Godrej Industries also runs four divisions — Corporate Finance.which is instantly recognized as a true Indian brand. The company's products are exported to 40 countries in North and South America. and the residual Godrej Soaps became Godrej Industries Limited. Australia and Africa. Corporate Audit and Assurance and Research and Development — which operate on behalf of the entire Godrej Group. one at Valia in the Indian state of Gujarat and a second at Vikhroli in suburban Mumbai. it has about 14. Corporate HR. 00 crores. the consumer. 000 employeebase and annual turnover is above Rs. 25. Karsanbhai Patel. fatty alcohols and AOS 9. which was established in 1897 and has since grown into a Rs 6.makes more than a hundred chemicals for use in over two dozen industries.
The performance of Nirma during the decade of 1980s has been labeled as ‘Marketing Miracle’ of an era. a perfect match of product. In such a widespread. diverse marketplace. which changed the habit of Indian housewives’ for washing their clothes. when Karsanbhai Patel started door-to-door selling of his detergent powder. packaging and low-profiled marketing. the brand surged well ahead its nearest rival – Surf. price. which is. It was way back in ‘60s and ‘70s. It was 1969. i. Nirma aptly concentrated all its efforts towards creating and building a strong consumer preference towards its ‘value-for-money’ products. place and . with burgeoning middle class pie. Nirma became a one of the widely discussed success stories between the four-walls of the B-school classrooms across the world. During this period. 13 per kg. It was really an innovative. It was a severing battering for MNC as it recorded a sharp drop in its market share. quality product – with indigenous process. priced at an astonishing Rs. where the domestic detergent market had only premium segment. when the available cheapest brand in the market was Rs. Nirma created an entirely new market segment in domestic marketplace. eventually the largest consumer pocket and quickly emerged as dominating market player – a position it has never since relinquished.India is a one of the largest consumer economy. which was well-established detergent product by Hindustan Lever. 3 per kg. Rewriting the marketing rules. In a short span.e. with very few players and was dominated by MNCs. Nirma literally captured the market share by offering value-based marketing mix of four P’s.
It has been persistent effort of Nirma to make consumer products available to masses at an affordable price. Patel. Nirma had opted for backward integration strategies.000 per annum. making it one of the largest volume sales with a single brand name in the world. umbrella branding and low profile media promotions allowed it to offer quality products. Dr. To ensure regular supply of major raw materials. Looking at the FMCG synergies. Apart from this. Nirma plans to extend the same philosophy in categories as commodity food products. Distinct market vision and robust infrastructure allowed Nirma to have cost leadership. 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. located at different places. Nirma stepped into toilet soaps relatively late in 1990 but this did not deter it to achieve a volume of 100. To leverage this effort. are well equipped with state-of-art technologies. In present scenario. it takes utmost care to provide finest products at the most affordable prices. an inspiring 59-year-old persona. the year 2004 sees Nirma’s annual sales touch 800. Now. Nirma’s six production facilities.000 tones. Karsanbhai K. The focal objective behind modernization plan is of up gradation with resourcesavvy technology to optimize capabilities. at affordable prices.promotion. Nirma has always been practiced ‘value-for-money’ plank. This makes Nirma the largest detergent and the second largest toilet soap brand in India with market share of 38% and 20% respectively. Hence. personal care products and packaged food. . lean distribution network.
Safety Matches and other FMCG products. ITC ranks third in pretax profit among India's private sector corporations. Shri Kalpesh Patel. Agri-Business. Packaging. whereas his next generation has already skilled management capabilities. whereas Shri Hiren K Patel – a qualified Chemical engineer and management graduate. ITC has a diversified presence in Cigarettes. leads the professional organizational structure. Shri Rakesh K Patel – a qualified management graduate. Information Technology. production and logistic functions. Rated among the World's Best Big Companies by Forbes magazine and among India's Most Respected Companies by Business World. Packaging and AgriExports. 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. Hotels. While ITC is an outstanding market leader in its traditional businesses of Cigarettes. playing role of key strategic decision-maker. heads the marketing and finance functions of the organization.5 billion. Packaged Foods & Confectionery. Hotels. it is . Greeting Cards. Executive Director. is spearheading the procurement. Paperboards & Specialty Papers. Branded Apparel. 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. Paperboards.leads Nirma.
ITC is widely perceived to be dedicatedly nation-oriented. Bristol and Flake. Navy Cut. 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. Branded Apparel and Greeting Cards. As one of India's most valuable and respected corporations. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". Scissors.rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery. • Foods ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. Over time. Products • Cigarettes ITC is the market leader in cigarettes in India. Berkeley. Staples and Snack Foods segments. the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. Gold Flake. Insignia." 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. effective supply chain management and acknowledged service skills in hoteliering. Capstan. A more broadbased entry has been made since June 2002 with brand launches in the Confectionery. Its highly popular portfolio of brands includes Wills. India Kings. The packaged foods business is an ideal avenue to leverage ITC's . it has a leadership position in every segment of the market. In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. superior brand-building capabilities.
New Delhi in July 2000. nurtured by the Company's Hotels business. it has expanded its basket of offerings to the premium consumer with Wills Classic work wear. 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. party invitations. a collection of premium greeting cards & social cause cards & desk calendars in association with SOS Children's Villages of India. ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. ITC's Greeting & Gifting products include Expressions greeting cards and gifting products like autograph books. Gifting & Stationery ITC's stationery brands Paper Kraft & Classmate are the most widely distributed brands across India. slam books. Expressions greetings & gifting products are available in multi brand retail outlets across India. The business also markets Expressions Regalia. 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. . These are: • Ready To Eat Foods • Staples • Confectionery • Snack Foods • Lifestyle Retailing Over the last six years.proven strengths in the areas of hospitality and branded cuisine. pop up & mini books. • Greeting. The Foods business is today represented in 4 categories in the market. ITC's world famous restaurants like the Bukhara and the Dum Pukht. contemporary packaging and sourcing of agricultural commodities.
intense competition between the organized and unorganized segments characterizes the sector. It has been estimated that FMCG sector will rise from around Rs 56. That will translate into an annual growth of 10% over a 5-year period.500 crores in 2005 to Rs . FMCG Sector is expected to grow by over 60% by 2010.1 billion is the fourth largest sector in the economy.FUTURE PROSPECTS: The Indian FMCG sector with a market size of US$13. A well-established distribution network.
Growth Prospects With the presence of 12. rural India accounts for more than 40% consumption in major FMCG categories such as personal care. Because of the low per capita consumption for almost all the products in the country. household care and feminine hygiene.92. and hot beverages. i. Also. At present. home and personal care category. Hair care. with rural India accounting for the remaining 34%. will keep growing at relatively attractive rates. For example. In urban areas. boosting purchasing power in the countryside. An estimated double-digit growth over the next few years shows that the good times are likely to continue. FMCG sector is also likely to benefit from growing demand in the market. male grooming. fabric care.100 crores in 2010. and dairy are long-term growth categories in both rural and urban areas. Increased focus on farm sector will boost rural incomes. would help the urban areas maintain their position in terms of consumption. FMCG companies have immense possibilities for growth. says an HSBC report. so by focusing on these aspects of Indian economy the fmcg sector in India has a huge potential to grow further. it has been able to make a fine recovery since then. It is expected that the rural income will rise in 2007.e. 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. And if the companies are able to change the mindset of the consumers. along with increase in income levels and the availability of new categories. they would be able to generate higher growth in the near future. including skin care. . bakery. Better infrastructure facilities will improve their supply chain. However. However.the companies like TATA and HUL are using CSR ie. hence providing better growth prospects to the FMCG companies. Within the foods segment. if they are able to take the consumers to branded products and offer new generation products. the Indian rural FMCG market is something no one can overlook. increase in the urban population. female hygiene. and the chocolates and confectionery categories are estimated to be the fastest growing segments. the demand in urban areas would be the key growth driver over the long term. Further. it is estimated that processed foods.2% of the world population in the villages of India. Though the sector witnessed a slower growth in 2002-2004. Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. urban India accounts for 66% of total FMCG consumption. household care. CONCLUSION: The FMCG industry in India is having huge potential to grow.
and the companies in the fmcg sector are becoming more cautious on making false claims as the consumer in India has evolved and is more informed than its ancestors. According to my views the product or the brand or the company which has a positive image in the minds of the people and which is innovative in its ideas to fast changing consumer preference and which gives the best value for price is going to survive in the long run or else they have to either change their strategy or quit the Indian FMCG market. The advertising campaigns have also changed to the changing scenario in Indian economy. .Corporate social responsibility to further strengthen their brand or create a positive image in the minds of people thus it will help in increasing their revenues.
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