FMGC SECTOR

SUBMITTED To PRESENTED BY
Prof. Ms. SEEMA LADHA
 FMGC Sector
 The fast-moving consumer goods (FMCG) sector in India is the fourth largest sector
in the economy.

 The FMCG sector in India has market size in excess of US$ 13.1 billion as of the year
2012

 The FMCG sector in India had a growth rate of 15% in the year 2011.
Introduction
 Hindustan Unilever Limited (HUL) is India's largest consumer goods company based
in Mumbai, Maharashtra.
 It is owned by the British-Dutch company Unilever which controls 52% majority stake
in HUL.
 Its products include foods, beverages, cleaning agents and personal care
products.
 It is headquartered in Mumbai, India and has an employee strength of over 16,500
employees and contributes to indirect employment of over 65,000 people.
 Hindustan Unilever's distribution covers over 2 million retail outlets across India
directly and its products are available in over 6.4 million outlets in the country.
 As per Nielsen market research data, two out of three Indians use HUL products
History
 Date of Establishment 1933
 Industry Consumer goods
 Headquarters Mumbai, Maharashtra, India
 Key people Harish Manwani (Chairman), Nitin Paranjpe (CEO and
MD)
 Business Operation Foods, beverages, cleaning agents and personal care
products
 Net income 22,691 crore (US$489.76 million) (2011-2012
VISION

 Work to create a better future every day.

 To earn the love and respect of india ,by making a real difference to every india

 Help people feel good, look good and get more out of life with brands and
services that are good for them and good for others.

 Develop new ways of doing business with the aim of doubling the size of our
company while reducing our environmental impact.
Mission or Goal

 Unilever's mission is to add Vitality to life and meet everyday needs for nutrition,
hygiene, and personal care with brands that help people feel good, look good
and get more out of life.
 The main aim of the company is to make a billion of Indians feel safe and
secure
SWOT Analysis
Strength
 HUL is a part of the Unilever group, hence strong brand equity
 It has over 16500 employees
 Reach 6.4 million retail outlets which includes direct reach to over
 5 million retail outlets
 Two R&D centers in India in Mumbai and Bangalore
 Products with presence in over 20 consumer categories with over
700 million Indian consumers using its products
SWOT Analysis Cntd..

Weakness
 Market share is limited due to presence of other strong FMCG brands
 HUL products has stiff competition from big domestic players and
international brands

Opportunity
 Tap rural markets and increase penetration in urban areas
 Mergers and acquisitions to strengthen the brand
 Increasing purchasing power of people thereby increasing demand
SWOT Analysis cntd..

Threats
 Intense and increasing competition amongst other FMCG companies
 FDI in retail thereby allowing international brands
 Competition from unbranded and local products
Value Chain
PORTER’S 5 FORCES MODEL
 PEST ANALYSIS

Political
Since the budget range is decontrolled, no political effects are
envisaged.

Economic
 Increasing per capita income resulting in higher Disposable
income
 Growing middle class/urban population ± increase in Demand
 Low cost of production ± better penetration
 PEST ANALYSIS Cntd..

Social
 Per capita consumption expected to increase fashion
 Increasing gifts culture so, increase in demand

Technology
 Will have to reinforce technology to international levels Once India is
a fully free economy
COMPETITIVE STRATEGIES ARE

 Best cost providers strategy

 Focused low cost strategy

 Focused differentiation strategy

Competition

 Competitors
 Marico
 L'Oréal
 Nirma Ltd
 ITC
 Colgate-Palmolive
 Procter and Gamble
 Dabur
Market share - (Year 2012)
Contribution to Different Sectors
2.2%

7.3%

16.2%

HOME & PERSONAL CARE

FOODS
EXPORTS
OTHERS(CHEMICALS, WATER)
THANK YOU