You are on page 1of 21

By

Satish rao &


Savnesh upadhyay
One of the fastest growing sector in early 1980’s till 1990’s.
The dream of every creative man, any investor, advertising
agency, or B-school graduate to work in or for FMCG
company.
After 1990’s,
o FMCG started losing their sheen due to introduction of other
product types
o Total lack of imagination on the part of FMCG companies.
During 2010, Consumers willingness to upgrade to
better, value added products helped FMCG.
INTRODUCTION
FMCG SECTOR generally deals with fmcg products or first
moving consumer goods.
Fmcg products have a quick turnover and relatively low cost .
India’s fmcg sector is 4th largest Sector in the economy and
contribute to around 3mln employment opportunities.
Its principle constituents are household care, personal care
, food & beverages.
FMCG Industry is characterized by a well established
distribution network, low penetration levels, low operating
cost, lower per capital consumption and intense competition
between the organized and unorganized segments.
MARKET SCENERIO
GROWTH PROSPECTS
Large Market:-
India has a population of more than 1.150 Billions
which is just behind China.
According to the estimates, by 2030 India population
will be around 1.450
Billion and will surpass China to become the World
largest in terms of
population. FMCG Industry which is directly related
to the population is
expected to maintain a robust growth rate.
MARKET OPPORTUNITIES
Vast Rural Market:-
Rural India accounts for more than 700 Million
consumers, or ~70 per cent of the Indian
population and accounts for ~50 per cent of the
total FMCG market.
The working rural population is approximately
400 Millions. There is an untapped market and
most of the FMCG Companies are taking different
steps to capture rural market share.
The market for FMCG products in rural India is
esti-mated ~ 52 per cent and is projected to touch
~ 60 per cent within a year.
Hindustan Unilever Ltd is the largest player in the
industry and has the widest market coverage.
Cheap labor and quality product & services have
helped India to represent as a cost ad-vantage over
other Countries.
Multi National Companies out-source its product
requirements from its Indian company to have a cost
advantage.
SECTORAL OPPORTUNITIES
There are 4 Major Key Sectoral opportunities for Indian
FMCG Sector are:
Dairy Based Products
Packaged Food
Oral Care
Beverages
TOP 3 FMCG COMPANIES IN INDIA
HUL
HUL was formed in 1933 as Lever Brothers India Limited
and came into being in 1956 as Hindustan Lever Limited
through a merger of Lever brothers, Hindustan Vanaspati
Mfg. Co. Ltd. and United Traders Ltd.

One of the country’s largest exporters and recognised as a


golden super star trading house by govt. of India.

The mission-”add vitality to life”

The company was renamed in June 2007 as “Hindustan


Unilever Limited”.
P&G
The Company has 21 product categories out of which only
8 product have presence in India.

In India Proctor & Gamble has two subsidiaries: P&G


Hygiene and Health Care Ltd. and P&G Home Products
Ltd.

P&G Hygiene and Health Care Limited has a turnover of


more than Rs. 500 crores
ITC
ITC is one of India's foremost private sector companies with a
market capitalization of over US $ 30 bln and a turnover of US
$ 6 bln.

ITC is rated among the World's Best Big Companies.

ITC ranks among India's 10 Most Valuable (company)Brands.

While ITC is an outstanding market leader in


cigarettes, Hotels, Paperboards, Packaging and Agri-Export.
Future prospect
The only threats to this strong growth trajectory remain the
high portion of unorganized trade, the limited distribution
network of new entrants and the pressure on profit
margins due to increasing competition.
But these are likely to be of diminished importance as
proportion of organized trade increases and players invest
in improving distribution.
Going forward, the industry prospects remain
attractive, and new graduates can hope to leverage the
training and on-the-job learning at the leading players in
various functional roles, across the Metros as well as the
interior heartlands on India.
SWOT analysis
OBJECTIVES HUL P&G ITC

STRENGTH Strong brand large scale market Brand


portfolio & large segment& gross profit
market share Management

WEAKNESS Low exports level & losing their market


high advertising cost share &Quality
control Unrelated
diversification

OPPERTUNITIES Large domestic Beauty product for Rural market


market & rising men & online social
consumer level network

THREATS Tax and regulatory Unilever Increasing tax in


structure & mimic of cigarttes & health
brands hazards
STRATEGY
HUL P& G ITC

Focus on diversified Focuses on children Focuses on farmers


group of customers
conclusion
More and more people these days have started
involving themselves in this field as; it creates
tremendous job opportunities for them. It is a
steady, diverse and a highly profitable industry
where a person can do a lot of work.
The jobs in this field range from sales and supply
chain, investment, promotion, H.R
development, and general management. It also
allows you to trade directly with the various
traders online.
FMCG company
THANK YOU ALL

You might also like