What are Fast Moving Consumer Goods (FMCG)? Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate bars. A subset of FMCGs are Fast Moving Consumer Electronics which include innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products. White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music Systems, etc. In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India. According to the AC Nielsen India study, the industry grew 5.3% in value between 2004 and 2005. Indian FMCG Sector

The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organised and unorganised segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc, in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge. The Indian Economy is surging ahead by leaps and bounds, keeping pace with rapid urbanization, increased literacy levels, and rising per capita income. The big firms are growing bigger and small-time companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thums Up. Britannia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9). These are figures the soft drink and cigarette companies have always shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they account for 35 of the top 100 brands.


US$ 420 million) in 2005-2006. butter. Godrej and Reckitt are two players.. Goodknight from Godrej. Asian Paints is India's largest paint company. cheese. and so on. Caribbean. Vicks. followed by Reckitt's Mortein at Rs 149 crore. Outlook There is a huge growth potential for all the FMCG companies as the per capita consumption of almost all products in the country is amongst the lowest in the world. Dabur Chyawanprash. This category has 18 major brands. and just below the personal care category. Nestle and Amul slug it out in the powders segment. 1. 3. In the household care category (like mosquito repellents). Companies Hindustan Unilever Ltd. 4.S. Far East. ITC alone accounts for 60% volume market share and 70% by value of all filter cigarettes in India. Asian Paints is enjoying a formidable presence in the Indian sub-continent. although P&G's Head and Shoulders and Pantene are also trying hard to be positioned on top.6 billion (USD 380 Million) Marico is a leading Indian group in consumer products and services in the Global Beauty and Wellness space. Southeast Asia. Britannia also ranks in the top 100 FMCG brands. Forbes Global magazine. ITC. 3. chapattis by HLL. 21. i. is worth above Rs 217 crore. Godrej. 5 Star.6 billion (around USD 513 million). inclusive of Lux. aggregating Rs. The Rs. and Ponds. HLL's Clinic and Sunsilk make it to the top 100. The personal care category has the largest number of brands. ranked Asian Paints among the 200 Best Small Companies in the World Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and is ranked number two in the total food drinks market.e. Middle East. In the shampoo category. USA. 2. curd. Hajmola and Real. Fair and Lovely. ready to eat rice by HLL and pizzas by both GCMMF and Godrej Pillsbury. aggregating Rs. The food category has also seen innovations like softies in ice creams. The foods category in FMCG is gaining popularity with a swing of launches by HLL. This category seems to have faster development than the stagnating personal care category. There are 11 HLL brands in the 21. Amul. Cigarettes account for 17% of the top 100 FMCG sales. are the leaders in their respective sectors. 7. Its popular brands include Cadbury's Dairy Milk. dominates the biscuits category and has launched a series of products at various prices. ITC (Indian Tobacco Company) Nestlé India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries The companies mentioned in Exhibit I. India's largest foods company. with a turnover of Rs. and Gems.15. 5.799 crore or 54% of the personal care category. Africa and Europe. and others. 10. Dabur has brands like Dabur Amla. 19 billion (approx. With a turnover of Rs. 8.22. Lifebuoy. South Pacific. Dabur is among the top five FMCG companies in India and is a herbal specialist. milk. 6. 4. Clinic is nearly double the size of Sunsilk. Vatika. Again the demand or prospect could be increased further if these companies can change the consumer's mindset and offer new generation . NO. 9.637 crore. Eclairs. has a good presence in the food category with its ice-creams.

With increase in disposable incomes. greater product choice and availability. Hair Care:The hair care market in India is estimated at around Rs.000 Cr. The skin care market is at a primary stage in India. out of which. the demand for the household care products is flourishing. The total toothpaste market is estimated to be around Rs. while HUL occupies second position with market share of ~30 per cent. emergence of small pack size and sachets.17 per cent. The market is further expected to increase due to increased marketing by players and availability of shampoos in affordable sachets. Other major players are Nirma. Shampoos:The Indian shampoo market is estimated to be around Rs. es-pecially toothpastes.23 per cent. The demand for detergents has been growing but the regional and small unorganized players account for a major share of the total volume of the detergent market.500 Cr. because increase in prices has led some consumers to look for cheaper substitutes. With changing life styles. Godrej occupies second position with market share of ~10 per cent. 8. The penetration level of this segment in India is around 20 per cent. It's the quality.products. 3. people are becoming aware about personal grooming. 3. promotion and innovation of products. Indian consumers were using non-branded apparel.400 Cr. Colgate and Dabur are the major players. In toothpowders market. clothes of different brands are available and the same consumers are willing to pay more for branded quality clothes.60 per cent.700 Cr.300 Cr. toothbrushes . It is available in 5 million retail stores. The oral care market. 3. hair colorants & conditioners. Again the market is dominated by HUL with around ~47 per cent market share. Food & Beverages . Dabur occu-pies second position at ~17 per cent. Earlier. Personal Care Skin Care:The total skin care market is estimated to be around Rs. The penetration level of toothpowder/toothpaste in urban areas is three times that of rural areas. but today. Sachet makes up to 40 per cent of the total shampoo sale. 2. The personal wash can be segregated into three segments: Premium. in the recent past there has not been much change in the volume of premium soaps in proportion to economy soaps. which can drive many sectors. P&G occupies second position with market share of around ~23 per cent. shampoos. Oral Care:The oral care market can be segmented into toothpaste . The penetration level of soaps is ~92 per cent. and hair gels. 75 per cent are in the rural areas. With rapid urbanization. Antidandruff segment constitutes around 15 per cent of the total shampoo market. Marico is the leader in Hair Oil segment with market share of ~ 33 per cent. 12. Henkel and Proctor & Gamble. remains under penetrated in India with penetration level ~50 per cent. Household care segment is characterized by high degree of competition and high level of penetration. Economy and Popular. The major players in this segment are Hindustan Unilever with a market share of ~54 per cent. It has low penetration level even in metros. However. toothpowder . increase in disposable incomes. In washing powder HUL is the leader with ~38 per cent of mar-ket share. Industry Category and Products Household Care Personal Wash:The market size of personal wash is estimated to be around Rs. This segment is dominated by Colgate-Palmolive with market share of ~49 per cent. growth in rural demand is expected to increase because consumers are moving up towards premium products. It has the penetration level of only 13 per cent in India.800 Cr. HUL is the leader with market share of ~53 per cent. fol-lowed by CavinKare with a market share of ~12 per cent and Godrej with a market share of ~3 per cent. Detergents:The size of the detergent market is estimated to be Rs. The hair care market can be segmented into hair oils.

‡ The company has an aggressive plan to set up 20 new factories across the World out of which 19 is expected to come in emerging markets and most of them would be seen in Brazil. More than 50 per cent of the market share is capture by unorganized players. Coffee :The Indian beverage industry faces over supply in segments like coffee and tea. It is also eco-friendly because it reduces waste in the printing process. Russia. scien-tific & public health institutions and meets the germ-kill criteria of the Environmental Pro-tection Agency. the drinking water regulatory agency in the USA.Pureit (a water purifier) has received the UNESCO Water Digest Water Award 2008-2009 in the category of best domestic non-electric water puri-fier. The food category has also seen innovations like softies in ice creams. HUL is taking different steps to reduce the cost and increase the margin. the Joint Venture which owns the µSnuggy¶ brand of baby diapers will become a 100 per cent subsidiary of GCPL. Procter & Gamble Hygiene & Health Care Limited (P&G) ‡ The Company has 21 product categories out of which only 8 product have presence in India.600 Cr. ‡ Godrej Consumer Products Limited has acquired 100 per cent stake in the Kinky Group Limited. and others. and China (BRIC) nations. Godrej Consumer Products Limited (Godrej) ‡ The Board of Directors of Godrej Consumer Products Limited (GCPL) has approved the acquisition of 50 per cent stake of its joint venture partner SCA Hygiene Products¶ stake in Godrej SCA Hygiene Limited. Godrej. ‡ Whisper which is one of the company¶s power brands has recorded 50 per cent market share in urban India. Tea :The major share of tea market is dominated by unorganized players. Leading branded tea players are HUL and Tata Tea. The system has been used to reduce printed packaging costs for Unilever s products. The company expects to see a growth in other categories. The company is planning to launch the rest 13 product in India. Pureit received the award for outstanding contribution in the field of water in India. Kinky is among one of the . South Africa.Food Segment :The foods category in FMCG is gaining popularity with a swing of launches by HUL. 4. HUL and Tata Tea. Pureit¶s performance has been tested by leading international & national medical. ITC. HUL has pared down the colour palette used for print-ing across many products. The major players in this segment are Nestlé. Nestle and Amul slug it out in the powders segment. ready to eat rice by HUL and pizzas by both GCMMF and Godrej Pillsbury. Company Prospects Hindustan Unilever Limited ‡ Unilever is lowering its expenditure on packaging across its portfolio of food brands as part of a wider cost-cutting drive. The product is available across 21 Indian states and has reached more than 1 million homes in India giving them access to microbiologically safe drinking water. more than 50 per cent of the market share is in unpacked or loose form. However. This category has 18 major brands aggregating Rs. ‡ Hindustan Unilever¶s product . After the transaction. India.

The company which has allotted an investment of Rs 3 billion in the Indian market in 2008.70 lakh.During the quarter. for Rs 203. a leading player in the women¶s skin care products market. would be doubling the investment in 2009 as part of its business strategy. 130 Crores. Hyderabad. The project has an expected investment of Rs.7 Crores in an all-cash deal. NET WORTH Year 2005-06 2006-07 2007-08 2008-09 2009-10 .15 per cent of Fem Care Pharma Ltd (FCPL). Colgate-Palmolive (India) Limited ‡ Colgate Palmolive (India) Ltd. last year. ‡ Dabur got approval from Government of Himachal Pradesh to set up another medicine manufacturing unit.54% to Rs 1. ‡ Dabur has acquired 72. The company posted earnings of Rs 12.30 million. they expect to capture a market share of 10 per cent of the Rs.56 a share during the quarter.900 Crores malted food drink market over the next two years. Nestle India Limited ‡ Nestle is planning to invest Rs 6 billion in India in 2009 for expansion of its business in the country. Consequently.61% growth over prior year period.90 million in the same quarter. Dabur India Limited (Dabur) ‡ Dabur has entered into the malted food drink market with the launch of a new health drink ³Dabur Chyawan Junior´.78% to Rs 10. which is currently holding 75 per cent of the share capital of SS Oral Hygiene Products Private Ltd.210.90 million from Rs 956. ‡ Nestle India reported a good increase in its standalone net profit for the second quarter. Net sales for the quarter rose 23.40 million. registering 26. 1.356. According to the company. Nestle International is reinvesting and expanding in India and Nestle India will have all the financial resources to expand and grow from the parent company. SS Oral Hygiene Products has become a wholly owned subsidiary of the company.largest brand into hair segment with product portfolio.45% to Rs 10. while total income for the quarter rose 23. the profit of the company rose 26. when compared with the prior year period. has acquired the remaining 25 per cent share capital from the local shareholders at an aggregate price of Rs 77. The Company is expected to create synergy by this deal.423.

60 3.BSE FMCG Scripwise Price Movement Scripwise Weightages Current Value (BSEFMCG) Last Updated On 10/29/2010 3:59:53 PM *As on Friday.28 30.91 3.45 3. 2010 No.02 12.Rs.77 P/E P/B Yield Market Capitalization (Rs.611.546.24 0. in Crores 2005-06 7540 2006-07 8625 2007-08 10903 2008-09 11915 2009-10 13514 BRANDED SALES Year Rs. Crs) 56. Crs) 50. October 29. in Crores 2005-06 1189 2006-07 1308 2007-08 1502 2008-09 1744 2009-10 2511 Index Reach .719.542.05 Intraday Graph of BSEFMCG Turnover (Rs.29 Turnover (Rs.10 Shares Traded (In Crs) 0.09 1.25 6. Crs) Full Free Float 174. of Scrips Shares Traded (In Crs) Advances Declines 7 3 0.Updated at end of day Advances/Decline No. in Crores 754 843 1061 1140 1925 TURNOVER Year Rs.35 * .70 304.605. of Trades 23214 Open High Low Current/ Close 3. in Crores 2005-06 1804 2006-07 2226 2007-08 3218 2008-09 3714 2009-10 3315 GROSS BLOCK Year Rs.582.52 .

Cap Value (Rs. Godrej Feminine hygiene US$ mn 44 Procter & Gamble. Parle.542.08 Market Cap for BSEFMCG Year Ago 30 Oct 2009 Value Points % 2.70 (%) 100 4.30 -25.35 304.00 Total 10 0.20 -0. Tata Tea 31 Coffee 000 tonnes 20 Nestle. Pepsi . ITC Tea 000 tonnes 870 HLL.605. Nirma. SPIC 38 Laundry soaps/bars US$ mn 1102 Detergent cakes Mn tonnes 15 Washing powder Mn tonnes 26 Dish wash US$ mn 93 HLL 59 Personal care 58 Soap & Toiletries Mn tonnes 60 HLL.54 -114.00 0.22 -- High/Low High Value Date 3793. P&G 58 Hair care US$ mn 831 Marico. Johnson and Johnson Food and Beverages Bakery products Mn tonnes 30 Britannia.00 0. 54 Procter & Gamble. P&G.44 -3. Nirma.808. Dabur. Dabur.69 3.77 Previous Close 29 Oct 2010 Value Points % 3.66 24 Apr 2003 High 3793.10 0.93 04 Oct 2010 Low 2646. HLL.00 0. Godrej Personal wash market US$ mn 989 HLL.719. Market Cap Identifying the segments in FMCG A brief description of the Indian FMCG industry is given in the table below. Tata Tea 49* Mineral water Mn crates 65 Parle Bisleri. HLL 40 Skin care & cosmetics US$ mn 274 HLL. CavinKare.907.00 0. Nirma.630. HLL.45 174.29 56.Unchanged Not Traded 0 0 0. Segment Unit Size Key Players Share of market leader (%) Household care 62 Fabric wash market Mn tonnes 50 HLL. Godrej Oral care US$ mn 537 Colgate Palmolive.13 28.93 04 Oct 2010 52 Week High/Low Low 705.224. Coca Cola. in Crores) 7.34 As on 29 Oct 2010 BSE Mkt. Cap Index Full Mkt.719.32 26 Feb 2010 Cap Adj. Parle Agro.97 796.00 Prior Period Comparison Week Ago Month Ago 22 Oct 2010 30 Sep 2010 Value Points % Value Points % 3.

ITC Agrotech 28 Note: *R&G Source: ORG Marg. 6. AC Nielson. Nature Fresh. 8. India Stat and HLL. 7. 2. 3. Britannia.Soft Drink Mn crates 284 Coca Cola. Companies Hindustan Unilever Ltd. Cadbury. Pepsi Branded atta 000 tonnes 750 Pillsbury. 5. Amul Milk and Dairy products US$ mn 653 Amul. Nestle. FICCI. Marico. Nestle Culinary products US$ mn 326 HLL. NO. 1. Nestle Chocolates US$ mn 174 Cadbury's. 10. HLL. Agro Tech. Product wise production (2004) PAGE THE TOP 10 COMPANIES IN FMCG SECTOR S. 9. Nestle 78 Edible oil Mn tonnes 13 Ruchi Soya. ITC 15 Health beverages 000 tonnes 120 SmithKline Beecham. ITC (Indian Tobacco Company) Nestlé India GCMMF (AMUL) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter & Gamble Hygiene and Health Care Marico Industries . 4.

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