FMCG & FMCD - Beacon Sector Special

Table of contents
1. Introduction to the FMCG Sector

1.1 Introduction………………………………………………………………… 3
1.2 Overview of the FMCG Sector…………………………………………….. 7
2. Key Market Leaders

2.1 Leading FMCG’s……………………………………...………………….... 12
2.2 Competitive Players……………………………...…………………………. 17
3. Recent Acquisition…………………………………..…………………….…….. 21
4. Impact of COVID-19
4..1 Covid-19’s impact on FMCG sector………………...…………….……… 24
4.2 Booming E-commerce in FMCG……………………..…………................ 26
4.3 FMCG trends of 2021 in India………………………..…………………... 27
5. Way forward……………………………………….………………………,…….. 29
1 Introduction to the FMCG sector
1.1 Introduction
Fast-moving consumer goods (FMCG), also called consumer packaged goods (CPG),
refer to products that are highly in-demand, sold quickly, and affordable. Such items are
considered “fast-moving” as they are quick to leave the shelves of a store or supermarket
because consumers use them on a regular basis.
Fast-moving consumer goods include packaged food, toiletries, beverages, stationery,
over-the-counter medicines, cleaning and laundry products, plastic goods, personal care
products.
Growing awareness, easier access and changing lifestyles have been the key growth
drivers for the sector. The urban segment (accounts for a revenue share of around 55%) is
the largest contributor to the overall revenue generated by the FMCG sector in India.
However, in the last few years, the FMCG market has grown at a faster pace in rural India
compared to urban India. Semi-urban and rural segments are growing at a rapid pace and
FMCG products account for 50% of the total rural spending.
Overall FMCG growth FMCG growth in rural areas
Source: Nielsen
With restrictions easing across the country from June, sales of fast-moving consumer goods (FMCG) have
seen a sequential jump of 23% in the first three weeks of the month, signaling a sharp revival in consumer
demand in India.
3
Types of Consumer Products
Marketers usually classify consumer products into these 4 types of consumer products:
• Convenience products: A convenience product is a consumer product or service that

customers normally buy frequently, immediately and without great comparison or
buying effort. Examples include articles such as laundry detergents, fast food, sugar
and magazines.
• Shopping products: Shopping products are a consumer product that the customer
usually compares on attributes such as quality, price and style in the process of
selecting and purchasing. Thus, a difference between the two types of consumer
products presented so far is that the shopping product is usually less frequently
purchased and more carefully compared.
• Specialty products: Specialty products are consumer products and services with
unique characteristics or brand identification for which a significant group of
consumers is willing to make a special purchase effort. Examples include specific cars,
professional and high-prices photographic equipment, designer clothes etc. A perfect
example for these types of consumer products is a Lamborghini.
• Unsought products: Unsought products are those consumer products that a consumer
either does not know about or knows about but does not consider buying under normal
conditions. Thus, these types of consumer products consumers do not think about
normally, at least not until they need them.
Types of Consumer Products
Source:Blogspot.com
A rise is expected in rural consumption is all set to drive the FMCG market. It is estimated to grow at a
CAGR of 14.6% by the year 2025.
4
Categorization of FMCG Sector
Personal Care: The industry is categorized into seven major categories – cosmetics,
fragrance, men’s grooming, skin care, bath & shower, hair care and oral care. Specialized
categories like cosmetics, fragrance, men’s grooming, and skin care are set to outpace the
growth of generic categories and will hold ~40-45% of the overall market by 2022.
Favorable demographic factors and increasing consciousness among the population
indicates high future demand for personal care products and specifically for active
ingredients. The sector is driven by rising income, rapid urbanization, and celebrity
promotions.
Personal Care Examples

Oral, hair & Skin care Toothpaste, Shampoos, Facewash, etc.
Cosmetic & Toiletries Body Soaps & washes, Facial creams etc.
Perfumes EDP, EDT, EDC
Feminine Hygiene Sanitary napkins, Intimate Washes etc.
Men's Grooming Shaving creams, razor & trimmers etc.
Household Care: The household care segment mostly includes fabric wash and
household cleaners. The increasing rate of urbanization and change in lifestyle, owing to
rising disposable incomes boosted by improved sanitation standards are likely to
positively impact the growth of the market in the years to come. The home care market is
led by offline channels as the reach of household cleaning products through
supermarkets/hypermarkets and convenience stores are high in developing countries.
House Hold Care Examples

Fabric Wash Soaps & powder, Fabric conditioners etc
Household Cleaners Bathroom Cleaners, Surface cleaners etc.
Food & Beverage: Every country’s journey toward economic growth results in
improvement in its food supply, both quantitative and qualitative, and a gradual reduction
in nutritional deficiencies and India is not an exception. This also results in the
development of the production, processing, distribution and marketing of food. Further,
diets and taste change due to factors such as per capita income, prices, individual
preferences and beliefs, urbanization, globalization etc. This has led to the growth and
increasing acceptance of processed/packaged foods and beverages by Indian consumers.
This segment mostly includes Health Beverage, Staple Foods/cereals, Bakery Products,
Snack Foods, Dairy Products, Fruits & vegetables, Chocolates, Ice creams, Tea & Coffee,
Bottled products.
The FMCG market is slated to reach US$ 1.1 trillion by the end of 2021 with a growth in modern trade
ranging between 20-25% per annum.
5
Food & Beverage Examples
Health Beverages Juices, Packaged Soups etc
Staple Foods/cereals Rice, Wheat, Grain Flours etc.
Baking powders, Cocoa powders, Castor
Bakery products
sugar
Snack Food Chips, Cookies, Biscuits, etc.
Chocolates Assorted Chocolates
Ice cream Milk Ice creams, Frozen Desserts etc.
Tea/ Coffee Green Teas, Coffee, Green Coffee etc.
Fruits/Vegetables Pre-cut Packaged Fruits & Vegetables
Dairy Products Milk, Butter, Cheese, Yogurt etc.
Cold drink, Bottled water, Bottled
Bottles Products
Condiments
• Other FMCG Products: Other FMCG products include OTC drugs and tobacco
products, Rising awareness about preventive care is driving the growth of various
categories like nutraceuticals, vitamins, and dietary supplements. However, declining
market of chewing tobacco products has affected the overall tobacco market of India.
Stringent anti-tobacco measures taken by the government such as a ban on the sales of
loose cigarettes and consecutive hikes in excise duty on cigarettes is expected to decrease
the segments.
Global consumer spending trend
Source:eiu.com
Fast moving consumer goods (FMCG) is the 4th largest sector in the Indian economy. There are three main
segments in the sector – household and personal care which accounts for 50%, healthcare which accounts
for 31%, and food and beverages which accounts for 19% of the sector.
6
1.2 Overview of FMCG sector
FMCG Sector in India: A historical Perspective
• Initially during the early years of 1950s to 1980s there was limited investment in the
FMCG sector as people had a rather low purchasing power at the time, which implies
that people generally opted for only necessity products rather than the premium range.
• During the 1980s-decade people started inclining towards asking for more and more
variety of products which eventually encouraged the FMCG companies to increase the
availability of such products. It was during this time that the FMCG industry initially
started to gain traction and more companies tried to enter the industry. During this time
the media Industry was also gaining traction which also gave companies a way to
market their products thus incentivizing them even more to enter this field and be
profitable.
Indian FMCG industry at a glance

• Before 1991 when the
concepts such as
globalization and
liberalization started to get
adapted in India, Western
Clothing products and
foreign food products were
not a common entity readily
available to the Indian
consumers. But after 1991,
the liberalization of the
Indian economy inspired the
FMCG industry to grow as
the government also
incentivized foreign FMCG
companies to operate in India
Source:rsba.in
• As the trade barriers where diminished it encouraged an increase number of MNCs to
invest more and more to cater the growing 800 million plus population, it was also helped
by the fact that rising standards of people living in urban areas along with increasing
purchasing power of rural India as well saw a lot of companies to release a wide range of
products.
The urban segment accounts for 55% of the overall revenue generated by the FMCG sector. On the other
hand, the rural segment contributes 45% and is growing at a faster pace compared to the urban segment.
7
The FMCG Sector in India: The current scenario
• India is the second largest country in terms of population having more than 1.3 billion
people residing here, it is clearly evident that India is one of those countries where the
FMCG sector has a huge potential of growing extensively this statement is supported by the
fact that FMCG sector is the fourth largest in India and the household and personal care
products account for the 50% FMCG sale in India according to Indian Brand Equity
Foundation.
• As the people grow more and more aware, easier access and changing their lifestyle has
been the key growth factor for the sector. According to BFSI, the urban segment in India
which accounts for a revenue share of around 55% acts because the largest contributor to
the general revenue being generated by the FMCG sector in India. But for past few years,
that the FMCG market has also grown at a faster pace in rural India compared to urban
India, the Semi-urban and rural segments are also growing at a rapid pace and FMCG
products account for about 50% of the whole rural spending.
• The demographic profile of Indian populations as a whole also plays a major role in growth
of this sector, not only the average Indian population is young, but this segment is also
characterized by an increase in urbanization and higher expenditure by the people.
Global growth expected to accelerate between 2015 -2025
Source: BCG
The dearth of time is one of the key reasons for the growth in online shopping and growth in ‘ready to eat’ at
the rate of over 28 % p.a. over the last 5 years.
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• According to Ernst & Young’s research “on the cities of India highlights the
emergence of 30 ‘new wave’ cities like Jaipur and Surat. Consumption in these cities is
growing at a faster rate than that of the many of India’s metropolitan cities.”
• Also, there is a general trend in the younger Indian population which shows that they
depict a higher degree of technological awareness overall which in turn means that a
growing number of Internet devices have directly resulted in a boom of the E-
commerce sector, which in turn directly affects the growth of the FMCG sector as a
whole.
• One of the biggest factors that changed the FMCG industry completely to a certain
degree was the ‘Sachet’ revolution. About 6 years ago companies that sold entities
such as shampoo, hair oil biscuit, detergent and chocolates introduced their products in
smaller packaging at lower price points.
• This seemingly minute innovation proved to be a huge factor in FMCG industries in

penetrating the urban India even more (especially tier 2 and tier 3 cities).
• As for general FMCG sector products like soap, detergents and oral care products
which seemingly were luxuries as far as rural India was concerned transformed into
necessities due to this FMCG sector has come and long way and deeply penetrated the
lives of a common man and spoiled him with choices
Indian FMCG growth trend
Source:Nielsen RMS
The NIFTY FMCG Index is designed to reflect the behavior and performance of FMCGs (Fast Moving
Consumer Goods) which are non-durable, mass consumption products and available off the shelf. The NIFTY
FMCG Index comprises of 15 stocks from FMCG sector listed on the National Stock Exchange (NSE).
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The FMCG Sector in India: Market
• The Market size according to Indian FMCG Industry Report by BFSI, the retail market
in India has been estimated to reach about $1.1 Trillion US by 2020 from the previous
$840 million US, with modern trade also growing at about 20 – 25% annum, which is
likely to boost the growth of revenue of FMCG companies.
• It also states that rise of Rural consumption would be a major factor in the market, it
currently contributes to around 36% to the overall FMCG spending. It was also
observed that in the third quarter of the Financial Year 2020, in rural India FMCG had
in fact witnessed a double-digit growth and recovery of 10.6% due to various
government initiatives being taken upon, and finally due to high agricultural produce
and reverse migration and lower unemployment rates it also predicted that the Indian
processing food market is projected to expand to about US$470 by 2025 being up by
78% from what it is in 2019-20.
• Rural India has witnessed a significant increase of demand for quality goods which are
being provided by the improved distribution channels of the FMCG companies.
• Also, due to low penetrations levels in the rural market it has offered room for growth
Indian FMCG revenue growth pattern of FY21
Source: Kotak institutional equities
Millennials constitute 34% of India’s total population offering tremendous growth potential for markets. As
per BCG reports, 56% seek individualization choices and opt for personalization even at an added cost.
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Investment/Development Trends in the FMCG Sector in India
• The fact that the Indian government has allowed 100% FDI (or Foreign Direct
investment) in food processing and single-brand retail and also 51% FDI in multi-
brand retail has major implications, this would directly result in bolstering
employment, and due to the supply chain and high visibility for such FMCG brands
across the organized retails markets also has resulted in more customer spending
thereby encouraging more product launches.
• The sector has witnessed a healthy FDI inflow of cash surmounting to US$18.03 from
April 200 to December 2020 which is projected to grow even more. There have been
several eager FMCG companies that have shown interest to make significant
investments in the Indian markets, the highlights of which are:
Month Brand Detail

Introduced two new products TATA Tea
based products and is also looking for ways to
Jan'21 Tata Consumer Products expand their product lineups in the beverages
portfolio in order to target direct-to-consumer
platforms via the Urban online markets.
Ventured into the cow ghee products, the milk
Jan'21 Dabur for which would be sourced by indigenous
cows bred in Rajasthan.
Announced plant to reach about 1.2 lakh
Feb'21 Nestle villages using their line of products over the
span of next 2-3 years.
Partnered with an African based company
Futurlife to bring its nutritional food products
Feb'21 Haldiram's
to India, these two companies have decided to
launch a total of four range of products so far.
Decided to launch its plane to foray into the
Mar'21 ITC categories such as chocolates and staples by
launching milkshakes and cakes products.
Capitalized on Covid19 opportunity it by
launching immunity boosting syrup
Apr'21 Rasna
concentrates comprising of various known
elements to appeal to the general
Announced its plans to make an investment of
May'21 Nepal
Rs 200 crore to set up two new manufacturing
The FMCG sector grew by 10.6% in rural areas owing to government initiatives that boosted demand.
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2 Key market leaders in FMCG sector
2.1 Leading FMCGs
Hindustan Unilever
With a presence in different consumer good segments along with the large SKUs of each
brand in different product categories, HUL is ruling the market. In April 2020, HUL also
completed its merger with GlaxoSmithKline Consumer Healthcare (GSKCH India) for Rs
3,045 Crores. Apart from Horlicks, brands such as Boost, Maltova, and Viva are part of
GlaxoSmithKline Consumer which has now come under HUL’s umbrella.
Brand Visibility: With more than 35 brands across the different segments such as oral
care, personal care, home care, toiletries, packaged foods and many other is helping the
company in achieving high shelf space in the shops of the retailers which results into high
brand awareness and high visibility.
Strong Product line: It offers product categories namely oral care, personal care,
household surface, fabric care and pet nutrition etc. having deep assortments across the
product categories.
Distribution strategy in the Marketing strategy: HUL works on go-to-market strategies

to reach out each and every part of the country with its varied types of a distribution
channel. By closely working with 2700+ redistribution stockists and shoppers every day
to maximize their sales HUL makes sure that whether it is a small Kirana store or drug
store or pops and mums store at a distant location their product should reach to all these
locations on time every time.
Market cap: Rs 5,45,762.50 Cr / PE : 68.61
HUL performance
Source:Indmoney.com
HUL manufactures 20 different products under 30 name brands. The company’s products are used by two out
of three people in India and the products hits the aisles of over 6.4 million outlets. The company is clearly the
market leader having over 700 million consumers across India.
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ITC:
Founded in 1910 as Imperial Tobacco Company of India the company initially dealt in
tobacco products for decades before diversifying into non-tobacco products in the 1970s.
ITC since then has emerged as a multi-business conglomerate having business in various
industries such as Hotels, Lifestyle Retail stores, ready to eat sector, confectionary sector,
Paperboards segment, body care products etc.
Brand Visibility: ITC has launched several ad campaigns, which are seen on popular
TV channels, broadcasted on the radio, and shown by hoardings. It has also roped in
prominent personalities for better visibility.
Strong Product line: Over the years ITC has become a large conglomerate offering the
diverse range of products and services ranging from Agri-Products to food products in
FMCG Segment to IT Solutions. Experience in such a diverse array of products and
services has helped the company to emerge as a prominent player in the market especially
in FMCG- Cigarettes, Hotels and Paperboards & Packaging sectors.
Distribution strategy in the Marketing strategy: The company operates with its own
sales channel, products are made available to the wholesale dealers through Carried &
Forward Agents (CFA’s) which is then forwarded to the Retailers in towns directly or
through Small Wholesale Dealers to reach the consumers in the remotest of locations of
the country.
Market Cap: Rs 2,61,993.75 Cr/ PE : 20.10
ITC performance
Source:Indmoney.com
According to a study by Brand Finance in Economic Times, ITC is listed as one of the ”10 Most Valuable
Brands”.
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Nestle
Nestle is one of the largest company in food processing industry in terms of revenue
& profitability. It is fortune 500 company which is serving different customer
segment all over the world.
Brand Visibility: Nestle’s packaging changes have been made in the past to reflect
important societal messages such as on educating the girl child. In 2016, Nestlé India
had changed the packaging of Maggi, Nescafe, and Kikat to support the education of
girl child
Strong Product line: Nestle sells a plethora of products including beverages, bottled
water, milkshakes, breakfast cereals, instant foods, performance, and health care
nutrition, etc. A few of the 2000 brands they currently own are Nescafe, Maggi,
Milky Bar, Kit Kat, Bar One, Milkmaid, Nestea, etc. Further, Nestle Cerelac has an
undisputed market share of 96.5% in infants 6 months and older as a supplement for
breast milk, despite functioning in an open to all industry.
Distribution strategy in the Marketing strategy: With it’s diversified and broad
product portfolio, Nestle has been able to make its product available to the end
consumer through its extensive network of distribution. Developing nations have
been the biggest opportunity for a company like Nestle as there is challenges &
opportunity in penetrating the market. Nestle uses multi-channel strategy to distribute
its products.
Market Cap: Rs 1,68,800.78 Cr / PE : 78.18
Nestle performance
Source:finmedium.com
In a McKinsey survey, over 59% of surveyed organizations have accelerated their digitization process, not as
a choice but as a means to survive the pandemic.
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Britannia Industry
Britannia Industries is one of the oldest food-producing companies in the country. It was
established in 1892 in Kolkata with an initial investment of merely Rs. 295. Their
products are available in more than 5 million retail outlets. More than 50% of Indian
households are proud users of their range of food items. The FMCG is known as the first
Zero Trans Fat Business in the country. They have an extensive distribution network in
India and 60 other countries.
Brand Visibility: The brand has a new logo, attractive packaging and smiley design for
its product that increases its product visibility. It has adopted Umbrella Branding for Good
Day.
Strong Product line: Britannia’s product portfolio includes Biscuits, Bread, Cakes, Rusk,
and Dairy products including Cheese, Beverages, Milk and Yoghurt. Britannia is a brand
which many generations of Indians have grown up with and our brands are cherished and
loved in India and the world over. Britannia products are available across the country in
close to 5 million retail outlets and reach over 50% of Indian homes.
Distribution strategy in the Marketing strategy: - Britannia distributes its products

primarily via retail chain. The online segment, which contributes to less purchases, has
been possible by having tie ups with large ecommerce organizations. Britannia products
can be purchased from online portals. With extensive and strong distribution network
Britannia products, can be found in all large and small urban areas across India. But the
rural distribution network is not as good as that of the urban market.
Market cap: Rs 82,414.29 Cr / PE : 46.83
Volume & Revenue growth of Britannia
Source:trendlyn.com
Britannia Treat has collaborated with online supermarket Grofers, in the grocery space for a strategic
partnership and will launch a new pack with the aim to bring affordable indulgence to the consumer’s doorstep.
15
Marico
Marico was established in 1990 in Mumbai. It began as a brand for coconut and refined
edible oil and later expanded into various kinds of consumer goods. The majority of its
success lies in its two brands ‘Saffola’ and ‘Parachute’. The company has come a long
way in the segment despite being around for only 3 decades. Saffola which competes in
the premium refined edible oil segment has maintained its market leadership with a share
of 73%. ‘Parachute’ on the other hand holds a market share of 59%. These also form up to
90% of their income.
Brand Visibility: Marico has taken up programs such as ONE which is Outlet Network
Expansion, in order to increase direct coverage in top six metro cities. This program is
aimed at improving the availability of Marico products in stores, retailer convenience and
access to promotions
•Product line: Marico is one of India’s top FMCG companies focused on health and
beauty products. Marico's brand portfolio can be divided into two segments, viz. Indian
brands and international brands. The Indian brands of Marico include Parachute, Nihar,
Set Wet (deodorants and hair gel), Zatak, Livon, Medicare, Saffola (oil, oats, Active, Fit,
etc.), Revive instant bleach and Manjal. Internationally, Marico has the brands like
Parachute Advanced Body Lotion in Bangladesh, Boss in Vietnam and Hercules in South
Africa. Brands like Parachute & Saffola are very well known brands in India & also
worldwide.
Distribution strategy in the Marketing strategy of Marico:The Company’s Go-To-

Market strategy has focused on improving the width and depth of its distribution – both
direct and wholesale. Strategic initiatives in sales and supply chain have ushered in
efficiencies in selling and go-to-market.
Market cap: Rs 60,816.91 Cr / PE : 54.99
Marico Financials
Source:Finshots
Marico has acquired a 60% stake in Apcos Naturals, which owns the ‘Just Herbs’ brand of Ayurvedic hair
& skin products, for an undisclosed consideration.
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2.2 Competitive players
Brand
• Operates through • Established in 1974, a

• Trades in personal and Consumer Care portfolio of over 300
oral care products in Business, Food products based on
India. Business, and Others ayurvedic formulation.
Detail • The company was segments. • Manufactures and
founded in 1937 and • Wide distribution markets personal and
headquartered in network, with reach in healthcare products in
Mumbai, India. both urban and rural India and
markets. internationally.
• Toothpaste • Hair Care • Fairness Cream

• Toothpowder • Oral Care • Balm
• Mouthwashes • Health Care • Chyawanprash
• Soap • Skin Care • Deodrants
Key Products • Cosmetics • Home Care • Pain Relief Ointment
• Foods • Hair Oil
• Cool Talc
• Facewash
• Colgate • Dabur • Boroplus

• Palmolive • Vatika • Fair and Handsome
• Odomos • Zandu Balm
• Hajmola • Navratna
Key Brands
• Real • Kesari Jivan
• Fem • Fast Relief
Market Cap 371,225 826,894 97,705

LTM Revenue 44,827 84,103 24,876
LTM EBITDA 11,971 17,595 6,878
EBITDA % 26.70% 20.90% 27.70%
As per the analysis by ASSOCHAM, Companies like Hindustan Unilever Ltd and Dabur India originates half of
their sales from rural India. While Colgate Palmolive India and Marico constitutes nearly 37% respectively,
however Nestle India Ltd and GSK Consumer drive 25% of sales from rural India.
17
Brand
• Established in 1897, the • It’s a consumer

• Together with its
Godrej Group has its goods company,
subsidiaries,
roots in India's manufactures and
manufactures and
Independence sells home and
Detail markets consumer
movement. personal care, food,
products operating in
• Manufactures and sells and refreshment
the beauty and
personal and household products in India and
wellness space.
care products. internationally.
• Household • Food & Refreshment • Hair Oil

• Insecticides • Home Care • Edible Oil
• Hair color • Beauty & Personal • Hair Cream
• Liquid Detergents Care • Hair Gel
Key Products • Soaps • Life Essentials • Hair Serums
• Air fresheners
• Hair care
• Cinthol • Dove • Parachute

• Good Knight • Horlicks • Hair & Care
• Hit • Lifebuoy • Livon
• Nupur • Lipton • Saffola
Key Brands • Expert • Pepsodent • Nihar
• Inecto • Rin • Revive
• Ezee • Red Label • Mediker
• Clinic Plus • True Roots
Market Cap 609,572 4,850,193 397,699

LTM Revenue 98,914 401,300 70,740
LTM EBITDA 21,096 99,003 14,678
EBITDA % 21.30% 24.70% 20.70%
In Jan’21, Godrej Appliances launched a digital campaign sharing the story of ‘India Ka Magic Box’,
highlighting how Godrej Vaccine Refrigerators are contributing to the biggest vaccination drive in the world.
18
Brand
• Manufactures and sells

• Manufactures and
• Manufactures and sells food products in India.
sells various food
malt-based foods, protein Offers milk products and
products primarily in
rich foods, and cereal nutrition, including dairy
India.
based beverages in India. whitener, condensed and
Detail • Available across the
• Provides Crocin Cold & UHT milk, yoghurt,
country in close to
Flu, which provides relief maternal and infant
5mn retail outlets and
from headache, body formula, baby food, and
reach over 50% of
aches and sore throat. health care nutrition
Indian homes.
products.
• Biscuits • Pain reliefs • Dairy Products

• Bread • Nutrient syrups • Confectionery Products
• Dairy Products • Sensitivity Toothpastes • Ready to Drink
• Cakes Beverages
Key Products • Rusk • Instant Coffee and Tea
• Crème Wafers
• Croissant
• Britannia • Crocin • Nescafe

• Good Day • ENO • Maggi
• Marie Gold • Iodex • Milkybar
• Bourbon • Ostocalcium • Kit Kat
Key Brands • Otrivin • Barone
• Sensodyne • Milkmaid
• Nestea
Market Cap 741,187 244,184 1,549,195

LTM Revenue 121,511 30,850 126,773
LTM EBITDA 21,607 5,937 28,425
EBITDA % 17.80% 19.20% 22.40%
The fast-moving consumer goods industry’s value—a combination of volume and revenue—rose 36.9%
year-on-year in the three months ended June.
19
Brand
• Engages in the
FMCG, hotels,
• United Spirits Limited
paperboards, paper
manufactures, purchases,
and packaging,
and sells alcoholic
agriculture, and • Manufactures, purchases,
beverages in India and
information and sells beer in India
Detail internationally.
technology and internationally under
• Its alcoholic beverages
businesses various brands.
include Scotch whisky,
• Offers formals and
brandy, rum, vodka, gin,
casual wear
and wine
products, and other
lifestyle products
• Ciggarettes & Cigars • Beer • Liquor

• Food • Non-Alcoholic Drinks • Whisky
• Personal Care • Brandy
Key Products • Hotels • Rum
• Safety Matches • Vodka
• Aashirwaad • Kingfisher • McDowell

• Sunfeast • Heineken • Royal Challenge
• Bingo • Edelweiss • SignatureAntiquity
• Savlon • Sol • Black Dog
• Vivel • Bullet • Director’s Special
Key Brands • Engage • Zingaro
• Mangaldeep
• Classic
• Gold
Market Cap 2,292,250 287,559 412,774

LTM Revenue 465,474 65,092 79,242
LTM EBITDA 173,005 8,851 9,972
EBITDA % 37.20% 13.60% 12.60%
The chemist channel's contribution to the overall FMCG sales went to an all-time high stood at 10.4% in
the quarter ended June and rose 19.9% in the trailing 12 months.
20
3 Major mergers & acquisitions
Merger in 2020 & 2021

No. Company 1 Company 2 Year of Acquisition
1 KKR Vini Cosmetics 2021
2 Mondelez International HUL 2021
3 Wipro consumer care Onelife Nutriscience 2021
No. Acquiring Company Acquired Company Year of Acquisition
1 TATA Digital Big Basket 2021
2 VICI Properties MGM Growth Properties 2021
3 Zoom Five9 2021
Acquisitions in 2020 & 2021

4 AT&T (Warner Media) Discovery 2021
5 Apollo Funds Verizon Media 2021

6 Amazon MGM 2021
7 Nestle The Bountiful Company 2021
8 GE Capital Aviation Service AerCap Holdings 2021
9 Hitachi GlobalLogic 2021
10 Infosys Kaleidoscope Innovation 2020
Future Group’s Retail

11 Reliance Retail
Business
2020
12 Ola Etergo 2020

13 ITC Sunrise Foods 2020
14 Zomato Uber Eats 2020
15 HUL GSK Consumer 2020
16 Hindalco Aleris 2020
17 AstraZeneca Alexion Pharmaceuticals 2020
18 Nvidia Arm Holding 2020
The SEBI (Delisting of Equity Shares) Regulations, 2021 (“2021 Regulations”), were notified on June 10, 2021.
21
Acquisition of Heinz India business by Zydus Wellness:
1. The Kraft Heinz Company is the fifth largest food and

beverage company in the world. In 2019, consumer
healthcare firm Zydus Wellness completed the acquisition
of Heinz India’s consumer wellness business, which
includes popular brands Complan and Glucon D.
2. With this acquisition, Zydus got an opportunity to go into
high growth situation with multiple well-known brands.
Through this acquisition, Zydus Wellness will be well
positioned to strengthen its core business of Health Food
and nutrition.
Emami sells off its cement business to Nuvoco Vistas:
1. Listed Company, Emami cement stated in press release

that selling off its cement business inches the company
closer to becoming debt free.
2. In cement industry, consolidation of business is always a
positive sign as compared to greenfield expansions.
Additionally, through this acquisition, Nuvoco Vistas will
also be able to tap demand in East India.
.
Acquisition of Horlicks brand of GSK by HUL:
1. HUL, which is India’s biggest consumer goods firm exercised

its option from the original agreement made between its parent
Unilever and GSK. As per the original agreement of December
2018, Horlicks was acquired by the parent company of HUL
and HUL would have to pay royalty for its use to India.
2. The Company took a call to own the flagship health food
drinks brand “Horlicks” instead of paying royalty to the parent
Company. Additionally, the company has completed merger of
GlaxoSmithKline Consumer Healthcare Limited with itself for
Rs. 3,17,000 millions. Brands like Horlicks, Boost, Maltova
will be a part of HUL’s food and refreshments business .
While non-essential fashion categories like personal accessories, eyewear, apparel, and footwear were expected
to witness a strong recovery in 2021, the resurgence of the second wave coupled with lockdown restrictions is
expected to delay this.
22
Acquisition Strategies
Short-Term
• Shortage of staff at factories, distribution centers and availability of trucks continue to

be the biggest challenges impacting supply chain.
• Supply constraints for import of materials for which there is no alternative in India.
Severe mismatch between demand and supply.
• The drop-down has led to drop in consumption and shift in preferences.
• People are moving away from discretionary spend and focusing on financial security.
Long term
• Discretionary spend may take a long time to recover due to shrinkages of incomes, job
losses and overall negative sentiment even post lockdowns and many weaker
companies will vanish or may need to sell or merge.
• Stronger players likely to emerge even stronger from this situation in the long-run.
Performance of key companies by way of share price performance
Source:rbsa.in
In 2020 e-commerce sales of food and drink saw exponential growth of 80%. With India’s second wave,
growth momentum is only expected to continue with the category expected to grow by a further 60% in 2021.
23
4 Impact of COVID-19 & a way forward
4.1 Covid-19’s impact on FMCG sector
• The Impact of Second Wave of Covid on the FMCG sector Various industry stalwarts
have expressed their concerns regarding the severity of the Impact of Second wave of
Covid over the FMCG industry which may have directly resulted in a blunted demand
in the rural areas.
• In a recent interview by Wipro Consumer Care & Lighting CEO and Wipro
Enterprises executive director Vineet Aggarwal he stated after the first wave of Covid
the recovery in the rural markets was almost instant and it was reported that there was
double growth in the rural markets as compared to their urban counterparts.
• But as the second wave struck the Indian subcontinent according to him “This time the
rural (market) got impacted significantly higher than last time” he also noted that “I
think this year both rural and urban growth would be equal. It could be marginally
higher in the rural but not double” which was the case around the previous financial
year. Similar statements along the same lines where also recently released by the ITC
group, where they stated that the severity of the second wave of Covid 2019 have
posed a key challenge for the FMCG sector as the spread of virus to the rural areas has
been on a relatively higher scale which has directly impacted the growth.
FMCG Market Revival
Source:Business standard
Reverse migration in 2021 shifted the demand for essential food, drinks, home, and personal care products to
rural areas, making rural areas a key priority market for brand owners.
24
Inventory issues in FMCG
• The lockdown situation has led to consumers stocking essential

products at home leading to greater demand initially.
• However, the sector has witnessed the disruptions caused by
supply chain effect in the form of raw material supplies. A quick
recovery is expected, given the segment to be essential
• Due to the ongoing pandemic, demand for hand hygiene

products, household cleaning products and many more are
increasing at an exponential rate.
• Moreover, consumer’s close attention to hygiene and their
awareness to improve immunity is expected to surge, prompting
a quick recovery.
• Yet, sales of non-essential items like cosmetics, perfumes, etc.
are expected to see a further decline due to less demand from
consumers.
Inventory revolution in Q2-2020
• The government of India has allowed

only essential businesses to open,
which has hampered the alcoholic
beverages and tobacco market.
• The plea to deliver online liquor was
rejected in several states of India.
Thus, the sector has suffered huge
downfall in revenue.
• Due to pandemic impact on
consumer behavior and habits, sale
of tobacco and alcoholic beverages is
expected to have a sluggish recovery.
Source:cimil.com
The logistics and supply chain market in India is expected to touch $307 billion by the end of 2021.
25
4.2 Booming E-commerce in FMCG
• Share of online channels in consumer goods companies’ overall sales has surged by
more than 50% since April as a severe second wave of Covid-19 and lockdowns in
many states made scores of consumers stay put at home and click to buy.
• The country’s largest biscuit maker Parle products has reported sales contribution from
ecommerce growing to 17-18% in top 15 cities in 2021 as compared to 13-14% in
March’20
ITC Ltd witnessed robust growth in volumes across ecommerce channels. The online
contribution to ITC sales in Dec’20 was almost 4% points higher than in March.
• At Dabur India, ecommerce contribution grew to 7% from 5-6% in pre-pandemic

situation with categories such as healthcare, oral care and shampoos driving sales.
Ecommerce as a channel surged for most FMCG companies since last year’s lockdown.
Till then ecommerce contributed a paltry 2-3% to top FMCG companies’ sales. Since
then, platforms including Reliance’s JioMart, Grofers, BigBasket, Amazon, Flipkart
and several hyperlocal online vendors have scaled up their delivery fleet and
warehouses to meet the increased demand.
• HULis also witnessing a continued surge in ecommerce, which has emerged as the
most-preferred contactless method of making purchases among consumers. HUL gets
about 6% sales from ecommerce.
E-commerce trend in pandemic (base value=100)
Source:Nielsen
Fashion and apparel, and groceries are the top-performing sectors in the e-commerce sector in India These
sectors are closely followed by consumer electronics, which is projected to experience a growth of up to 8%
by the year 2025.
26
4.3 FMCG trends of 2021 in India
• Increased Digitization
Post the COVID-19 crisis,

digitization has been an emerging Digital trends in 2021
FMCG trend in 2021 India which has
shaped the future of retailing
consumer goods. Almost all FMCG
brands partnered with major e-
commerce websites, like Flipkart,
Groffers, Bigbasket, etc., to deliver
products to consumers. Here too,
India’s rural market outperformed the
urban consumer demand and
witnessed a 10.6% growth in Q3
2020. In fact, according to a senior
executive at Jyothy Labs, the sales
share of e-commerce in the FMCG
sector is expected to increase from 2- Source:wire19
3% before COVID to 4.5% post-
COVID.
• Growth in Food & Beverage and Health & Wellness Categories
The food and beverage segment is one of the largest contributors to the FMCG sector in
India and accounts for almost 30% of the total household spending in the country. A rise
in average income level, increase in the disposable income of middle-income groups,
increasing urbanization, and change in consumer preferences for hygienic products have
driven the growth of this sector. While the per-capita food consumption has been
emerging in the rural sector, the urban market has witnessed increased demands for
instant meals category; Ready to Cook (RTC), Ready to Eat (RTE) are shaping current
consumer preferences as well.
Further, the changed consumer behavior towards hygiene and health post the COVID
crisis has also increased the demands for sanitizers, hand wash, disinfectants, wipes, and
home cleaning products, thereby setting a new trend in the FMCG sector.
As of the third quarter in 2012, $4,423 in transactions occurred through Paypal per second. Paypal has
expanded in recent years becoming the most well-known way to pay online without having to give up your
credit card information.
27
Growth in health and wellness products
Source:Food navigator
• Urban and Rural Trends
Currently, India’s FMCG sector is categorized into the demographics of urban and rural
segments. The urban areas have always led the growth of FMCG revenues in India.
However, semi-urban and rural consumption has recently witnessed a significant rise such
that the rural FMCG market is estimated to grow up to 220 billion USD by 2025.
Source:economic times
According to Nomura, retail inflation is unlikely to come down enough for RBI to cut rates in the whole of 2021.
28
5 Way forward
• FMCS Sector in India: The Road Ahead Rural consumption has been the major driving
factor in the recent growth that FMCG sector as a whole had witnessed which even
though has been stunted still has seen significant.
Covid-19: Impact on consumer behavior
Source:Accenture
• The rural is still projected to grow to to US$220 billion by 2025 according to the BFSI
reports. On the other side of the spectrum, as the share of unorganized market in the
FMCG sector falling has been falling, it has paved the way for the organized sector to
rise with an increased level of brand consciousness which is augmented by growth of the
modern retail.
• As a whole, companies such as Godrej Consumer Products Ltd (GCPL), Marico and
Tata Consumer Products Ltd (TCPL) MD have witnessed a steady double-digit sales
growth in the first quarter of Financial Year 2021.
• It can also be observed that online portals and E-commerce are expected to play a key
role for the companies that are trying to enter the untouched markets, As Internet
becomes more and mores prevalent due to a rise in youth population, the online modes
would facilitate a cheaper but more convenient mode to penetrate Indian markets
Opportunities being presented by the ‘New Normal’
Source:assets.ey
Through the pandemic last year when life literally came to a standstill in urban India, it was the tier 2-3-4
markets which displayed exceptional resilience. Be it companies such as Hindustan Unilever, ITC or Britannia,
all of them experienced growth on the back of rural consumption.
29
Table of contents
1. Introduction to the FMCD Sector

1.1 Introduction………………………………………………………...…………. 31
1.2 Historical evaluation of the FMCD Sector…..……………………...……….. 33
2. Key Market Leaders

2.1 Leading FMCDs…………………………………………...………………...... 34
2.2 Emerging trends in India…………………………...………………………… 37
3. SWOT analysis of Indian FMCD…………………...……………………………… 38
4. Current trends in FMCD

4.1 Enhanced focus on health and eco-friendly products.…………………….... 39
4.2 Digital integration will be key……….………………………………….......... 39
4.3 Tech products help shape the future……………………………...……....….. 40
4.4 Agility will be fundamental to success…………….………………………..… 40
30
1 Introduction to the FMCD sector
1.1 Introduction
Consumer durables are a category of consumer products that do not have to be purchased
frequently because they last for an extended period of time (typically more than three
years). A washing machine is an example of a consumer durable good. It takes many
years and multiple uses to wear it out. The laundry detergent used in the washing
machine, however, is a non-durable good. It's a product that is used regularly and needs to
be purchased several times every year.
Consumer durables make up a portion of sales in durable goods. The increase and
decrease in the sales of durable goods is an important economic indicator. That’s because
durables (including consumer durables) usually represent big-ticket items. Consumers
typically make these purchases when they are confident, they can afford them.
Overview of the FMCD market
Source:Moneycontrol
Consumer durables & non-durables account for about 50% of household consumption.
31
Categorization of the FMCD Sector:
Brown Goods: Brown Goods are relatively light electronic appliances such as sewing
machines, electric fans, microwave ovens, mixer & grinders, rice cookers, cleaning
equipment etc. Digital media players and game consoles are also in the brown goods
category. We sometimes refer to these products as light consumer electronic durables.
White Goods: White goods are large household appliances such as freezers, refrigerators,
washing machines, stoves (UK: cookers), and dishwashers. Tumble driers are also white
goods. We find most of them in the kitchen. Many years ago, these products were available
nearly exclusively in white; hence, the term.
Unlike brown goods, white goods are large and not portable, i.e., you cannot carry them. We
can carry most brown goods, apart from some TVs and sound systems.
Both brown and white goods use electricity. They also make our lives easier, more
comfortable, and help us do things more efficiently.
Electronic appliances:
The Internet of Things: Both white and brown goods are gradually becoming more inter-
networked. Networked goods gather and exchange data through the Internet.
The IoT is a global infrastructure for the information society. It enables the virtual and
physical interconnection of ‘things.’
When, for example, a brown good is part of the Internet of Things, i.e., when it has Internet
connection, we refer to it as a ‘Smart’ device.
Smart TVs, for example, are televisions with an Internet connection. You can watch
YouTube videos and Netflix or Amazon Prime movies and series on a smart TV. A smart
fridge also has an online connection.
Categorization of FMCD
Source:Moneyworks4me.com
Consumer durables expected to reach US$ 21.18 Bn by 2025.
32
1.2 Historical evolution of FMCD sector:
• Till the 1970s, most household assets were regarded as "luxury" items. While the major
reason for this was the low affordability level of household, the conservative outlook of
the people was also a contributing factor.
• It was only in the 1980s that this trend showed signs of reversing. With economic growth,
there was an improvement however; there was a rising desire for ownership and
possession of assets, which became an indicator of social status.
• The late 1980s also saw the emergence of some Indian companies like BPL, video con,
and Micro Electronics on the Indian corporate scene, which redefined the norms of doing
business.
• On the one hand these companies invested heavily in brand building through innovative
The late 1980s also saw the emergence of some Indian companies like BPL, video con,
and Micro Electronics on the Indian corporate scene, which redefined the norms of doing
business. On the one hand these companies invested heavily in brand building through
innovative.
• The durables industry as a whole took off in India during 1990s after the commencement
of economic liberalization. While on the demand side, economic growth led to higher
disposable incomes and aspiration levels, on the supply side, the Government gradually
opened up the sector to foreign participation and lowered tariff and non-tariff barriers.
Evolution of Indian consumer durable industry
Source:IBEF
The net sales of players in the consumer electronics and appliances industry grew by 23.5% y-o-y in Q3,FY21.
33
2 Key Market Leaders
2.1 Leading FMCDs
1. Whirlpool of India Ltd
Revenue 5,993 Cr
Market Cap 27,827 Cr.
Dividend Yield 0.23 %
ROE 20.27 %
Sales Growth (3Yrs) 14.99 %
Face Value 10
Promoter holding 75.00 %
• Whirlpool entered India in the late 1980s as part of its global expansion strategy. It
forayed into the market under a joint venture with TVS group and established the first
Whirlpool manufacturing facility in Pondicherry for washing machine category.
• In 1995 Whirlpool acquired Kelvinator India Limited and marked an entry into the
refrigerator market as well. The same year the company also saw acquisition of major
shares in TVS joint venture and later in 1996, Kelvinator and TVS acquisitions were
merged to create, Whirlpool of India Limited.
2. Voltas
Revenue 7,658 Cr
Market Cap 21,259 Cr.
ROE 13.11 %
Face Value 1
• Voltas Limited is a six decade old company in India with expertise in Air Conditioning &
Cooling technology. The company is broadly structured into projects and products
business. The projects business is classified into Domestic Projects Group (DPG) and
International Operations Business Group (IOBG).
Whirlpool is focusing on 'work from anywhere' culture as a 'new norm' in the post-pandemic world, the
company said there will be a greater emphasis on making the home comfortable and productive.
34
3. Honeywell Automation India Ltd
Revenue 3,290 Cr
Market Cap 29,088 Cr
ROE 25.05 %
Face Value 10
• Honeywell Automation India Limited (HAIL) is a ~$350 million+ company listed on the
Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). HAIL is a
leader in providing integrated automation and software solutions, including process
solutions and building solutions.
• It has a wide product portfolio in environmental and combustion controls, and sensing
and control, and also provides engineering services in the field of automation and control
to global clients.
• Fortune India 500 company, HAIL has more than 3,000 employees based in nine offices
across India – Pune, Baroda, Bangalore, Hyderabad, Mumbai, Chennai, Gurgaon,
Kolkata, and Jamshedpur.
4. Crompton Greaves Consumer Electrical Ltd
Revenue 4,520 Cr
Market Cap 16,485 Cr
ROE 38.69 %
Face Value 2
• Crompton Greaves Consumer Electricals Limited is one of the leading consumer

companies in India with a 75+ years old brand legacy.
• As of February 2016, The Company is an independent company under professional
management and have 2 business segments – Lighting and Electrical Consumer Durables.
The Company market products under the “Crompton” brand name in India and select
export markets.
Media buyers estimate that the consumer durable category is expected to spend as much as ₹500 crore on
promotions of in Q2 of FY 21-22.
35
5. Blue Star Ltd
• Blue Star is India’s leading air conditioning and commercial refrigeration company, with
an annual revenue of over ₹5405 crores (812 million USD), a network of 32 offices, 5
modern manufacturing facilities, 2800 employees, and 3880 channel partners.
• The Company has 6000 stores for room ACs, packaged air conditioners, chillers, cold
rooms as well as refrigeration products and systems, along with 1060 service associates
reaching out to customers in over 900 towns.
Revenue 5,360 Cr
Market Cap 6,100 Cr
ROE 17.51 %
Sales Growth 6.92 %
Face Value 2
• Blue Star’s integrated business model of a manufacturer, contractor and after-sales

service provider enables it to offer an end-to-end solution to its customers, which has
proved to be a significant differentiator in the marketplace. In fact, every third
commercial building in India has a Blue Star product installed.
• The Company fulfills the cooling requirements of a large number of corporate,
commercial as well as residential customers. Blue Star has also forayed into the
residential water purifiers business with a stylish and differentiated range including
India’s first RO+UV Hot & Cold water purifier; as well as the air purifiers and air coolers
businesses.
• The Company also offers expertise in allied contracting activities such as electrical,
plumbing, fire-fighting and industrial projects, in order to offer turnkey solutions, apart
from execution of specialized industrial projects.
• The Company has manufacturing facilities at Dadra, Himachal Pradesh, Wada and
Ahmedabad, which use modern, state-of-the-art manufacturing equipment to ensure that
the products have consistent quality and reliability.
• The Company has a manufacturing footprint of about 1 lakh sq m, with the mainstay of
product development and R&D being energy-efficiency, coupled with eco-friendly and
sustainable products.
Cooling products maker Blue Star Ltd has incorporated a new wholly-owned subsidiary "Blue Star
Climatech" to carry out manufacturing and deal in line with the mainline of business of the company.
36
2.2 Emerging trends in India
Expansion in new segments

• With major firms like Micromax, Hindustan Unilever and even Voltas announcingtheir
expansion plans to enter the consumer durables industry, buyers can be assured to see
many new products in the market..
• Targeting the millennials, it will bring a whole new range of skincare products to India
this year.
Increased affordability of products

• Aggressive price point, year-round discounts on e-commerce, advanced
technology becoming cheap and reduced tax rates after GST- price reductions across
various consumer durable product segments have been on an all-time high.
• With Make in India initiative also gaining momentum, domestic and Chinese
manufacturers are heavily investing in India. Manufacturing of products is expected to
become cheap, which is further expected to reduce the prices of the products.
Growth in luxury market

• Increase in double-income families and increase in spending capacity has ensured that
more luxury brands enter the Indian market. Not only are these brands increasing
their presence in malls and high street, they are also bringing their products to e-
commerce marketplace.
• The exclusive brand websites are another attraction to lure more customers.
Occasion-based marketing strategies

• From partnering with e-retailers to offering massive discounts during festivals and
occasions like anniversaries and New Year, brands have tapped all sources to reach the
consumers.
• Strategic partnerships with foreign brands and increasing global presence is also said to
add to volume of sales this year.
Focus on environment-friendly products

• From launching energy-efficient products to reducing e-waste and promoting
recycling, companies are leaving no stone unturned to ensure that their
products promote eco-friendly initiatives.
According to a report, the home appliances and consumer electronics industry, is expected to increase by 50
lakh i.e Rs 1.5 lakh crore by 2025, from the present Rs 1 lakh crore.
37
3 SWOT analysis of Indian FMCD
India, a quickly creating country, has opened its market to globalization which has brought
about generally development for the normal resident. He has more chances of pay as well as
approaches a market that offers him a heap of decisions, magnificent after deal
administrations, low upkeep and considerably more. Apple, Hitachi, Porsche, TAG Heuer
have turned out to be normal names for us.
Strengths Weaknesses
• As is apparent, the shopper strong industry • On the face, one may feel that there are
in India is on a steeply rising bend. Till definitely no provisos in this industry.
around more than two decades prior, • Without a doubt, there are some hazy
individuals were happy with whatever was areas however fortunately maybe it is
accessible. conceivable to beat them to a
• Remote Direct Venture (FDI) has made it reasonable degree..
conceivable to produce the products in
India with the innovation from abroad;
consequently maintaining a strategic
distance from substantial custom
obligations and conventions,.
Indian
FMCD
Opportunities Industry Threats
•Rising requests, adaptable •Stiff competition from different
venture alternatives, impetuses brands for a solitary item has kept
from the Administration each player on his toes.
•. A solid open door for outside •Even today, we purchase items
players is to utilize Indians as that guarantee us great
their nearby staff, who can beat administration and not ones that
language and social obstructions make you sit tight for a
and interface with the majority considerable length of time in light
better. of the fact that an extra part is in
travel from a faraway land
Within the Indian economy, about 67% of the consumer durables which are sold every year occur in the
country’s urban markets.
38
4 Current trends in FMCD
Consumer Durables Industry: Adapting a New Normal
• The consumer durables industry has come a long way since the beginning of the
pandemic. Companies have tapped into changing consumer sentiments by being more
responsive and providing innovative solutions to address expectations
• Over the last decade, the consumer durables sector has grown at a steady rate, marking
the scope of future prospects. This provides the industry with a great opportunity to build
sustainable markets and tap into both urban and rural markets in the country.
• Last year saw a significant increase in ecommerce demand from tier two and tier three
towns, in light of the pandemic. Brands are also moving toward a more customer-centric
approach like never before. The ability to identify a customer’s emotional need,
understand the reasons behind that need, and respond to it effectively goes a long way in
building successful brands. Keeping these factors in mind, we can anticipate certain
trends in the consumer durables industry in the ‘new normal’
4.1 Enhanced focus on health and eco-friendly products

Consumers are likely to priorities health going forward and products that offer superior
features protecting or enhancing health will become the popular choice. The outbreak of the
virus has led to widespread health awareness with a direct correlation to safety, health and
hygiene, making products like water purifiers and water heaters even more important. Also,
with increased awareness around the environment, there is a greater focus on more energy-
efficient and eco-friendly products to help reduce the carbon footprint.
4.2 Digital integration will be key

The need to ensure social distancing has given significant rise to online transactions.
Consumers will continue to use digital means to learn more about products. The emergence
of more ecommerce channels has also provided convenience with quick delivery, more
offerings and the ability for price comparison. Mapping the customer digital journey to
create personalized experiences will be key.
Voltas, a leading India based air conditioner manufacturer, announced to establish a joint venture with Turkey
based Ardutch. The JV, with an equity capital of USD 100 million, would mark the entry of Voltas into the
country’s consumer durables market.
39
4.3 Tech products help shape the future
Consumers are looking for products that are more technologically advanced, simple to use
and easily accessible. We're privileged to be living in a time where science and technology
can assist us, make our lives easier and help reshape the ways we go about our lives. The
emergence of AI and IoT driven products has upped the scale and quality of communication
between devices and humans with intelligent technology. This year, we will see
technologies, such as robotics, AI, IoT and AR-VR moving to the forefront. The technology
we're already accustomed to has paved the way for us to further innovate; and future
technologies will have the potential to change our lives even more.
4.4 Agility will be fundamental to success

Life as we know it is constantly changing, driving the need for businesses to become more
agile and adapt to change across functions – production, supply chain, marketing, sales, etc.
There is growing recognition of its transformational benefits and its ability to bring
flexibility to business quickly. The ongoing pandemic has highlighted the need for
companies to be more agile. For example, a supply chain strategy that made sense before
COVID-19 may no longer be applicable. Disruption to the supply chain brought several
businesses in the country to a grinding halt. The need to be flexible, create the right business
culture, and put customers first, while remaining profitable, will be the key to success. The
important lesson is to deploy a combination of strategy and agility to weather strong
currents.
Trends that could influence performance over next decade
Source:Mckinsey
In Q1 2021, consumers spent is 17.3% more on durable goods than in Q1 2020. Spending on clothing,
footwear and passenger cars was up in particular.
40
References
• https://timesofindia.indiatimes.com/
• https://www.financialexpress.com/
• https://www.ey.com/
• www.livemint.com
• pwc.in
• economictimes.indiatimes.com
• www.ibef.org
• www.mckinsey.com
• tradingeconomics.com
• www.moneycontrol.com
• www.marketing91.com
• https://www.academia.edu/
• www2.deloitte.com
• pib.gov.in
• www.accenture.com
41
Research and Scholastic Development Team (R.S.D.T)
S - Team
Aishwarya Dhamangaonkar (Operations)
Akansh Arora (Finance)
G.S.V Ramana (Finance)
Samiksha Gamare (Marketing)
Sunaina B N (HR)
Tushar Upadhyay (Marketing)
Vamshi Krishna Salem (Marketing)
Yamini Mathur (Operations)
I - Team
Bhavini Priyamvada (Marketing)
Keerthi Krishna A. S. (Operations)
Komal Agrawal (Marketing)
Kshitiz Jaiswal (Marketing)
Phanindra Sai Siddamsetty (HR)
Sheetal Sable (Operations)
Shubhada Vyawhare (Marketing)
Vallabh Agarwal (Operations)
Yash Vardhan Chaudhary (Marketing)
42
SYMBIOSIS INSTITUTE OF BUSINESS MANAGEMENT
Constituent of Symbiosis International University
Accredited by NAAC by ‘A’Grade
Gram: Lavale, Tal: Mulshi, Dist: Pune – 412115

Email: rsdt@sibmpune.edu.in, Tel: 020 39116068
Website: www.sibm.edu
Source: smallcase.com
editors now use Lorem Ipsum as their default model text, and a search for 'lorem ipsum' will uncover
many web sites still in their infancy. Various versions have evolved over the years, sometimes by
accident, sometimes on purpose (injected humour and the like).
43

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Table of contents

1. Introduction to the FMCG Sector

2. Key Market Leaders

Overall FMCG growth FMCG growth in rural areas

• Convenience products: A convenience product is a consumer product or service that

Types of Consumer Products

Personal Care Examples

House Hold Care Examples

Global consumer spending trend

FMCG Sector in India: A historical Perspective

Indian FMCG industry at a glance

Global growth expected to accelerate between 2015 -2025

• This seemingly minute innovation proved to be a huge factor in FMCG industries in

Indian FMCG growth trend

Indian FMCG revenue growth pattern of FY21

Source: Kotak institutional equities

Month Brand Detail

2.1 Leading FMCGs

Distribution strategy in the Marketing strategy: HUL works on go-to-market strategies

Market cap: Rs 5,45,762.50 Cr / PE : 68.61

Market Cap: Rs 2,61,993.75 Cr/ PE : 20.10

Market Cap: Rs 1,68,800.78 Cr / PE : 78.18

Distribution strategy in the Marketing strategy: - Britannia distributes its products

Market cap: Rs 82,414.29 Cr / PE : 46.83

Volume & Revenue growth of Britannia

Distribution strategy in the Marketing strategy of Marico:The Company’s Go-To-

Market cap: Rs 60,816.91 Cr / PE : 54.99

• Operates through • Established in 1974, a

• Toothpaste • Hair Care • Fairness Cream

• Colgate • Dabur • Boroplus

Market Cap 371,225 826,894 97,705

• Established in 1897, the • It’s a consumer

• Household • Food & Refreshment • Hair Oil

• Cinthol • Dove • Parachute

Market Cap 609,572 4,850,193 397,699

• Manufactures and sells

• Biscuits • Pain reliefs • Dairy Products

• Britannia • Crocin • Nescafe

Market Cap 741,187 244,184 1,549,195

• Ciggarettes & Cigars • Beer • Liquor

• Aashirwaad • Kingfisher • McDowell

Market Cap 2,292,250 287,559 412,774

Merger in 2020 & 2021

1 KKR Vini Cosmetics 2021

2 Mondelez International HUL 2021

3 Wipro consumer care Onelife Nutriscience 2021

No. Acquiring Company Acquired Company Year of Acquisition

1 TATA Digital Big Basket 2021

2 VICI Properties MGM Growth Properties 2021

3 Zoom Five9 2021

Acquisitions in 2020 & 2021

5 Apollo Funds Verizon Media 2021

7 Nestle The Bountiful Company 2021

8 GE Capital Aviation Service AerCap Holdings 2021

9 Hitachi GlobalLogic 2021

10 Infosys Kaleidoscope Innovation 2020

Future Group’s Retail

12 Ola Etergo 2020

1. The Kraft Heinz Company is the fifth largest food and

Emami sells off its cement business to Nuvoco Vistas:

1. Listed Company, Emami cement stated in press release

Acquisition of Horlicks brand of GSK by HUL:

1. HUL, which is India’s biggest consumer goods firm exercised