Market Share of Major FMCG Companies

Revenues in Crores INR

50000
45000
40000
35000
30000
25000
20000
15000
10000
5000
0
ITC HUL Dabur India Marico Godrej Colgate P and G
Consumer

ITC and HUL are the two players with dominant positions in FMCG industry, with ITC
generating the highest revenue in FY17. Three companies HUL, ITC and Godrej Consumers
have shown robust growth this financial year and have shown future growth prospects even
after the ongoing economic slowdown. Biscuits and confectionary maker- Parle Products, is
targeting an increase in its market share of Premium Biscuits. Companies have been
targeting rural area because of the arising opportunities in the area. Reckitt Benckiser
posted a 14 percent growth in sales in FY16 through a force sales strategy in rural areas.
HUL holds the largest market share in the categories of shampoo and skincare with its
shares being 47 percent and 54 percent respectively.
Uniqueness of Competitors

P&G: One of the fastest growing consumer goods companies in India, P&G has a customer
base of more than 650 million in India. Many of the subsidiaries, like Head & Shoulders,
Gillette, Tide, Pampers, Whisper, Vicks, Olay, are a household names in India in various
sectors like Beauty and Grooming, Household care, Health and Well Being.

Dabur: Dabur is one of India’s largest Ayurvedic and natural products manufacturer. It has
more than 260 products in its Ayurvedic healthcare segment for a range of illness, from
general illness to chronic diseases. It is also one of the most trusted brands in natural and
Ayurvedic products of daily consumption like Chyawanprash, Dabur Lal Dant Manjan, Dabur
Meswak Tooth Paste, Dabur Babool Toothpaste, Dabur Amla Hair Oil, Real Juices, Dabur
Honey.

Marico: After a long period of traditional approach and staying steady with its products like
Parachute and Safolla, Marico has suddenly taken a vibrant path by tapping into new
categories. It has launched a variety of new products like Quaker Oats, Set Wet, Zatak
Deodrant, Livon Hair Serum. These steps helped Marico increase its market capitalisation 10
times within the duration of 2000 to 2010.

Godrej: Godrej is an 1897 conglomerate with its subsidiaries Godrej Consumer Products,
Godrej Agrovet and Godrej Properties. With an increase of profits by 51.53 to Rs.935.25
crore in the fourth quarter of 2018-19, the company is all set for its go-to-market model
backed by innovations for a robust future growth.

Sources:

https://www.reviewsxp.com/blog/fmcg-companies-in-india/

https://www.tofler.in/dabur-ayurvedic-specialities-limited/company/U74899DL1993PLC054964

https://economictimes.indiatimes.com/industry/cons-products/fmcg/pg-india-finds-a-winning-
formula/articleshow/68589317.cms?from=mdr

http://www.careratings.com/upload/NewsFiles/Studies/FMCG%20Industry%20Update%20June%20
2018.pdf

http://www.forbesindia.com/article/boardroom/maricos-unique-paras-strategy/35763/1
Major Decisions Taken in the Past

1. Merger with Tata Oil Mills Company: The merger of HUL with its key competitor
Tata Oil Mills Company in 1994, just after globalisation, showed a glimpse of what
was going to come to the Indian Market. It was also followed by joint ventures with
Kimberly-Clark for hygiene products and with Lakme for cosmetics. The step
significant in tackling the competition coming in from global markets post
globalisation.

2. HUL’s Power Brand Strategy: One of the major decisions by HUL was to focus on its
core business. For this, HUL came up with Power Brand Strategy, which meant that
the company would now focus on its 35 of the core products across personal
products, packaged foods, soaps and detergents. The strategy pulled big gains for
the brands with pan-India and International appeal like Lifebuoy, Surf, Wheel, Rin,
Fair & Lovely, Dove, Lakme, Ponds, Knorr, Kissan.

3. Connected 4 Growth: This program has recently been launched by the company to
use technology and intelligent analytics to connect its universe of 7 million stores.
Over the year, there has been a 20% improvement in on-shelf while the service
delivery standards improved swiftly by 95%. Inventory time has also come down by 2
days and overall the company has seen a 10% increase in cost savings.

4. Many Major Mergers and Acquisitions(M&As): For a very long time HUL has worked
with an entrepreneurial passion. It has also acquired a number of stakes in various
other companies. Some of major acquisitions were when HUL’s subsidiary Brooke
Bond acquired Kisan from UB Group, Dollops ice-cream form Cadbury’s and Kwality
Ice-Cream in 1993. Brooke Bond was then merged with HUL in 1996. It was followed
by HUL purchasing 50% stake in Tata’s Lakme-Lever joint venture in 1998 and 74%
stake in Modern Foods in 2000. All this helped gaining a large chunk of market share
and gave bargaining power to the company over the supplier costs and retain
margins.

Sources:
https://www.business-standard.com/article/companies/hind-lever-pegs-tomco-merger-duty-at-rs-6-
crore-103112201041_1.html

https://www.livemint.com/Industry/S3DIrq1eccBUAy0fM19tNO/HUL-leverages-technology-and-
dataled-decision-making-for-gr.html

https://www.hul.co.in/about/who-we-are/our-history/chronology-of-events.html

http://www.businessworld.in/article/The-Incredible-HUL/07-09-2017-125593/
Key Financials of the Company:

REVENUE Rs. 38224 Cr.

NET INCOME Rs. 6036 Cr.

EARNINGS PER SHARE Rs. 27.88 Cr.