SECTOR: FMCG

COMPANY: ITC
INDUSTRY AND THE COM PANY,

FMCG INDUSTRY IN INDIA: The fast moving consumer goods (FMCG) segment is one of largest sector in the Indian economy
contributing to GDP. The overall FMCG market in India shrank in the calendar year 2018. Although branded products mainly
from listed companies seeing a double-digit growth, there is a fall in demand for unbranded and unorganised products. The
overall FMCG market in India have declined by 1% in 2018 compared to a rise of 7.5% a year ago.

About ITC: Imperial tobacco company of India Limited established in year 1910 was specially into tobacco and cigarette
manufacturing for many decades and after several restructuring and diversification of business processes it was renamed as ITC
Limited in year 2001. The major products of ITC Limited include food and beverages, personal care products, stationery, paper
board, hospitality, Information technology, packaging and printing. As per the FY 2018-19 rankings ITC stood fourth with market-
cap of Rs 364,921 crore surpassing the major competitor HUL which took the fifth spot in the overall ranking with market-cap of
Rs 364,466 crore.

DESCRIBING THE MARKE T SIZE

The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade
expected to grow at 20 per cent - 25 per cent per annum, which is likely to boost revenues of FMCG companies. Revenues of
FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and are estimated to reach US$ 103.7 billion in 2020. The
sector witnessed growth of 16.5 per cent in value terms between July-September 2018; supported by moderate inflation,
increase in private consumption and rural income.