New Financial Performance of FMCG Industry

A PROJECT REPORT
ON
FINANCIAL PERFORMANCE OF FAST MOVING CONSUMER GOODS
(FMCG) INDUSTRY
Submitted in partial fulfillment of the requirement for the degree for qualifying
MASTER OF BUSINESS ADMINISTRATION

TO
PUNJABI UNIVERSITY, PATIALA
Under the supervision: Submitted by:
SESSION 2020-2022
Faculty Guide’s Certificate
This is to certify that Miss Swati) has preceded under my supervision her projectreport on
“FINANCIAL PERFORMANCE OF FAST MOVING CONSUMER GOODS (FMCG)
INDUSTRY’’. The work embodied in this report is original and is of the standard expected of
an MBA student and has not been submitted in part or full to this or any other university for the
award of any degree or diploma. She has completed all requirements of guidelines for research
project and the work is fit for evaluation.
Signature of Supervisor/ Guide
i
CANDIDATE’S DECLARATION
I Swati, the student of Department of Management Studies, studying in MBA 4 rd Sem, has
undergone research project on title “FINANCIAL PERFORMANCE OF FAST MOVING
CONSUMER GOODS (FMCG) INDUSTRY’’ for the completion of degree of Master of
Business Administration. I solemnly declare that the work done by me is original and no copy
of it has been submitted to any other university for award of any other degree/ fellowship or a
similar title and topic.
Swati
ii
ACKNOWLEDGEMENT
I have taken efforts in this project and there is no substitute to hard work. However, it would not
have been possible without the kind support and help of many individuals. I would like to extend
my sincere thanks to all of them.
Knowledge is endless ocean and requires satisfying, supporting, guiding, inspiring in order to
drive out a handful pearls. With deep sense of gratitude, I would like to extend a special and indebtness
thanks to my project advisor to who gave his best support and guidance to complete this project report.
His involvement and support always give me the confidence to do work and helped along the way in
completing the project.
I thank my parents who have always been my driving force to work hard and keep the learning
process continuous and never ending and their kind co-operation and encouragement which help me
in completion of this project. It has been a pleasure working on this project.
Swati
iii
PREFACE
Education become more meaningful when its theoretical aspects are combined with the practice
experience. This provides an opportunity to the student to improve their understanding of the
studies.
Master of Business Administration of finance course combine with theory and its application as
it“FINANCIAL PERFORMANCE OF FAST MOVING CONSUMER GOODS (FMCG)
INDUSTRY’’ the report contains at first the brief introduction about the basic term.
The project is going to play a very important role in developing self confidence for our future.
The knowledge gained from the efforts is a life time experience that we all treasure forever.
Swati
iv
TABLE OF CONTENTS
CHAPTER NO. TOPIC PAGE NUMBER
CHAPTER 1 a) Introduction to 1-24

Industry
b) Introduction to
companies
c) Introduction to topic
CHAPTER 2 Review of Literature 25-27
CHAPTER 3 Problem of study and 28-29

Objectives
CHAPTER 4 Research Methodology 30-31
CHAPTER 5 Data Analysis and 32-46

Interpretation
CHAPTER 6 Limitation of Study 47-48
CHAPTER 7 Finding of Research 49-50
CHAPTER 8 Conclusion and 51-52

Recommendation
CHAPTER 9 Bibliography 53-54
CHAPTER 10 Appendix 55-63
v
CHAPTER-1
(INTRODUCTION TO INDUSTRY)
1
INTRODUCTION TO INDUSTRY
Overview of Fast Moving Consumer Goods (FMCG)

Fast moving consumer goods sector is the 4th largest sector in Indian economy with three sectors:
Household and Personal care, Healthcare and Food and Beverages. In September 2021, rural
segment is overall contributor to overall revenue generated by FMCG sector in india is
increased 58.2%, this is 2x more than urban consumption. Urban segment contribution to FMCG
sector in India is 27.7%. FMCG is made up of huge range of famous brands that we use every
single day. FMCG are those essentials that we purchase when we go for shopping. Each
household person spends majorly on FMCG products monthly. The volume of money that flows
against FMCG products in economy is on large amount and it tends to be low volume and low
cost items. There are huge number of consumers of FMCG products and also there are large
number of competitors in market so for FMCG it makes possible to earn abnormal profits.
FMCG are those goods that are fully used or replacing it over short period of time, may be in a
day or a week, a month. Various products like soft drinks and grocery items that are quickly sold
products and also at low cost.
Various FMCG products like dairy products, fruits, vegetables, meat are perishable products. On
the other hand alcohol, soft drinks, packaged foods that are highly usuable. With one million
population, India is one of the largest economy that are good in purchasing as well as spending.
India’s FMCG significant characteristics can be listed as strong MNC presence, well established
distribution network, intense between organised and unorganised players and low operational
cost. Easy availability of important raw materials, cheaper labour cost, presence across the entire
value chain gives india a competitive advantage. It is also an important contributor to Indian’s
GDP growth. Growth in country’s FMCG sector is being fueled by improving scenario in both
demand as well as supply side. Major demand side driers include growing affluence, appetite,
growing youth, brand consciousness. On the other hand, easier import of materials, technology,
reduced barriers, new product development, real estate infrastructure development.
 . Top Seven Players in FMCG Sector (based on their revenue)
Hindustan Unilever
Limited (HUL)
2. Colgate-Palmolive
2
3. ITC Limited
4. Nestlé
5. Parle Agro
6. Britannia Industries
Limited
7. Marico Limited
8. Procter and Gamble
9. The Godrej Group
10.Amu
 Hindustan Unilever Limited (HUL)
 Colgate- Palmolive
 ITC Limited
 Nestlé India
 Parle Agro
 Britannia Industries
 Marico Limited
 DIVISION OF SEGMENTS
3
FMCG sectors are: Household and Personal care, Healthcare and Food and Beverages.
Diagramatically shown as below:
Segments
Healthcare
Food and Beverages 31%
19%
Household and personal Care
50%
 Healthcare: These services have taken up probably greatest division- both as far as pay
is concerned or employability and addresses -31% .
 Household and Personal care : It is the undeniable part and records of general piece of
pie- 50%. From 50% hair care takes 23% overall. Some other includes beauty products,
healthy skin..
 Food and Beverages: It has largest share in India’s FMCG market. India is also world’s
second largest producer of food. The food processing industry is one of the largest
industries in India and is ranked fifth in terms of production, consumption, export,
growth. Food and beverages accounted for largest sector in Indias FMCG’s Marke
MARKET SHARE OF SEGMENTS AND LEADING COMPANIES

WITH KEY PRODUCT
a) Indian Food and Beverages Market Size (USD Billion), 2015-2020F :
 INDIA FOOD AND BEVERAGES MARKET SIZE:
50 45.97
40 37.18
30.76
30 25.99
22.38
20 19.82
10
0
2015F 2016F 2017F 2018F 2019F 2020F
Market size (USD Billion)
b) Indian Personal Care and household care Market Size (USD Billion),
2015-2020F :
4
 INDIA PERSONAL CARE MARKET SIZE:
30 24.71
25 19.7
20 16.07
15 13.38
9.91 11.35
10
5
0
2015F 2016F 2017F 2018F 2019F 2020F
b) Indian Household Market Size (USD Billion), 2015-2020F
 INDIA HOUSEHOLD MARKET SIZE:

20 14.77
15 11.26
8.78
10 7
4.74 5.68
5
0
2015F 2016F 2017F 2018F 2019F 2020F
Market Share (USD Billion)
c) Indian Healthcare Market Size (USD Billion), 2015-2020F
 INDIA HEALTHCARE MARKET SIZE:
20 18.11
14.94
15 12.61
10.86
10 8.62 9.54
5
0
2015F 2016F 2017F 2018F 2019F 2020F
 ONLINE VS OFFLINE
5
Nowadays, online shopping has caught attention of major Indian retail and FMCG
players. Current online shoppers, typically middle and upper class, tend to favour
branded products. Consumers are embracing the idea of buying branded packaged goods
online. Although, the share of FMCG products sold online in India is still low compared
to other major economies
 Indian FMCG Market Share by online Vs Offline (%) 2020F
INDIAN FMCG MARKET SHARE ONLINE VS OFFLINE
Online; 4.90%
Offline; 95.10%
 Indian E-Tail Market Size (USD Billion), 2015-2020F Comparison
INDIAN E-TAIL MARKET SIZE
45
40 38.79
35
30
25
20
15
10
5.3
5
0
2015F 2020F
Market share (USD Billion)
INDUSTRY SIZE
6
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 25% per annum, which is likely to boost
revenue of FMCG companies. The FMCG market in India is expected to increase at a CAGR of
14.9% to reach (US$ 220 billion) by 2025, from (US$ 110 billion) in 2020. According to
Nielsen, the Indian FMCG industry grew 9.4% in the January-March quarter of 2021, supported
by consumption-led growth and value expansion from higher product prices, particularly for
staples. The rural market registered an increase of 14.6% in the same quarter and metro markets
recorded positive growth after two quarters. Final consumption expenditure increased at a CAGR
of 5.2% during 2015-20.
The FMCG sector's revenue growth will double from 5-6% in FY21 to 10-12% in FY22,
according to CRISIL Ratings. Price increases across product categories will offset the impact of
rising raw material prices, along with volume growth and resurgence in demand for discretionary
items, are driving growth. The FMCG sector grew by 36.9% in the April-June quarter of 2021
despite lockdowns in various parts of the country. Number of households shopping on modern-
trade channel grew 29.15% in the September quarter and shopping volume on the channel went
up by 19.2% . In September 2021, rural consumption of FMCG increased 58.2% ; this is 2x more
than the urban consumption (27.7%). The domestic FMCG market increased 36.9% in April-
June 2021.
In the third quarter of FY20 in rural India, FMCG witnessed a double-digit growth recovery of
10.6% due to various government initiatives (such as packaged staples and hygiene categories);
high agricultural produce, reverse migration, and a lower unemployment rate. Rise in rural
consumption will drive the FMCG market. The Indian processed food market is projected to
expand to (US$ 470 billion) by 2025, up from (US$ 263 billion) in 2019. Companies with
dedicated websites recorded an 88% rise in consumer demand in 2020.
 FMCG INDUSTRY REVENUE OVER YEARS (USD Billion)
FMCG REVENUE (USD Billion)

103.7
83.3
68.4
49 52.8
38.8 43.1
31.6 33.3 35.7
2011F 2012F 2013F 2014F 2015F 2016F 2017F 2018F 2019F 2020F
INDUSTRY CONTRIBUTION IN GDP OF INDIA

7
The FMCG sector is the fourth largest industry in India contributing nearly 20% to the Gross
Domestic Product. FMCG, or fast-moving customer goods, sector refers to three main categories
of products: Personal care, health, and food. Sector is set to grow at a compound annual growth
rate of 20.36% up to the year 2020 and set to grow by as much as $100 billion. Major points to
be considered:
 Factors promoting the sector’s growth
India is a very diverse market, therefore when it comes to the growth and development of
any industry, there are always a multitude of factors which play a role in this
development. FMCG is no exception. There are a variety of factors which can potentially
promote its growth. Until recently, there was a massive gap between the rural and urban
households, with the urban area having a greater competitive edge.. According to recent
reports, 50% of the demand for FMCG retail comes from the rural areas.
 Contribution of e-commerce
The technological aspect has not only aided the rural sector, but the urban sector as well.
There has been a noticeable shift in the demand for e-commerce due to its wider reach
and greater consumer convenience. Hence, through apps and websites, consumers can
easily purchase products online and have them delivered to their doorstep, often even
with a cash-on-delivery option available. E-commerce vendors like Amazon have every
possible product available on their websites.
 Brand consciousness and the youth

Product diversification has an important role to play in this increased growth. Gone are
the days when every consumer in the market bought the same product without any sense
of exploration. In recent times, consumers have begun exploring all the options available
to them and then choose the one that is best suited to their needs. Since there are a huge
number of products available in the market, every producer manages to find a select
group of customers who favour its products.
 Goods and services tax
The FMCG sector has recently been subjected to the Good and Services Tax, or GST.
The declaration of the GST has been a great boost for the FMCG sector.. As the FMCG
sector involves a wide-scale movement of goods and services, it had to undergo high
operational and logistics costs. Inter-state taxation and excise duty seemed to be another
burden Therefore, the movement of goods has become much easier reducing the need for
maintaining large inventories. The logistics costs which were previously 2%-7% have
now come down to a mere 1.5%.
INDUSTRY EMPLOYMENT LEVEL
8
The Indian FMCG industry generates massive employment opportunities and currently employs
more than 3 million people. The company aims to remove barriers and biases in recruitment, and
establish leadership accountability. Unilever has already achieved gender balance across its
management. In India, the gender balance in managerial roles has risen from 18% in 2010 to
42% in 2020. We are also focused on dialing up the presence of women employees on the shop
floor. Indian FMCG companies is now putting in place new equity, diversity and inclusion
strategy. The company aims to remove barriers and biases in recruitment, and establish
leadership accountability. In India, the gender balance in managerial roles has risen from 18% in
2010 to 42% in 2020.
Under the new policy, the company plans to tackle the prevalence of stereotypes that are often
perpetuated through advertising and promote a more inclusive representation of people. It will
increase the number of advertisements that include people from diverse groups, both on screen
and behind the camera. As part of raising living standards, the consumer goods company plans to
improve living standards for low-paid workers worldwide, translating to the goal of providing at
least a living wage or income by 2030 to everyone who directly provides goods and services to
it. We already pay our employees at least a living wage and we want to secure the same for more
people beyond our workforce, specifically focusing on the most vulnerable workers in
manufacturing and agriculture. The Indian fast-moving consumer goods market expanded 16% in
value during 2021, the fastest in nine years, largely driven by price hikes and a low base in the
pandemic year of 2020. In fact, he said, the job creation by retail and FMCG will witness a
15.11% and 10.31% growth respectively. Pricing and savings actions will continue to be
important as commodity prices remain elevated In the coming months, companies will be
playing the trade-off between leading on pricing, protecting the P&L (profitability) of the
business, and maintaining competitiveness. We will lead pricing and where competitors don't
follow (in hiking prices) and we start to see an erosion of our competitiveness, we will roll that
back. Remaining competitive is our top priority.
India will be playing an important role in helping Unilever achieve its commitments because the
initiative is very relevant to India. Hindustan Unilever the country’s largest FMCG company,
will reskill or upskill all its employees for future-fit skillsets by 2025, increase inclusivity and
raise living standards across value chain as part of a global initiative of its parent Unilever. HUL
has 21,000 plus employees, including 12,000 blue-collar workers, across its 31 company-owned
factories and 15 offices.
9
CHAPTER-1
(INTRODUCTION TO COMPANY)
INTRODUCTION TO COMPANY
10
FMCG COMPANIES
This research aims to analyze FMCG sectors in India and to compare the top companies listed in
FMCG INDEX in terms of their profitability, Return on equity and comparison in terms of
Market Capitalization in BOMBAY STOCK EXCHANGE.
I have taken four companies of FMCG sector. This companies because these four companies are
top in the Indian Market and net worth, market shares, market capitalization of companies are
high and highly grow in Indian market. Those Four companies are:
1) HINDUSTAN UNILEVER LTD
2) ITC LTD
3) Nestlé India
4) MARICO LTD
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs
and balance by Indian companies. Fifteen companies own these 62 brands and 27 of these are
owned by Hindustan Unilever. Some common FMCG product include food and dairy products,
glassware, paper products, pharmaceuticals, consumer electronics, packaged food products,
plastic, goods, printing and stationary, household products, photography, drinks and some of
other examples are coffee, tea, dry cells, grereting cards, gifts, detergents, watches, soaps,
cigarettes, tobacco etc. It is an important contributor to India’s GDP. Its principle constituents
are household care, personal care, food and beverages. The market is expected to maintain a high
growth rate as population corners to branded products. Some of merits of FMCG industry, which
made this industry as a potential one are low operational cost, strong distribution networks,
presence of renoned FMCG companies. The Government of India has also been supporting the
rural population with higher minimum support price, through the National Rural urban
Employment Guarantee Act programme. These measures have helped in reducing poverty in
rural areas and give a boost to rural purchasing power.
With rise in disposable incomes, mid and high income consumers in urban areas have shifted
their purchasing trend from essential to premium products. In response, firms have started
enhancing their premium products portfolio India and international FMCG players are leveraging
India as a strategic sourcing hub for cost- competitive product development and manufacturing
to cater to international markets. Hence rural demand is set to rise with rising incomes and great
awareness of brand.
 FOUR COMPANIES MARKET CAPITALIZATION
11
SERIAL NO COMPANY NAME MARKET
CAPITALIZATION
(Rs. Cr.)
1. HUL 532,499
2. ITC 285,641
3. Nestlé India 170,305
4. MARICO 64,702
The market capitalization is as per latest record from website www. Moneycontrol.com. An
inter- company comparison is made to analyze the profitability, efficiency return on share price
of all aforesaid companies.
The Reason for selecting this sector is to:
 The rate of growth is fixed

 There is no problems of cyclical fluctuations
 It is very familiar sector and and all its products are used daily by persons
 It is one of most recession- proof sectors in India.
India has varied agro climate conditions which enables to offer extended raw material base
suitable for many FMCG sub section like food processing, industries. India is one of the major
producer of livestock, milk, sugarcane, coconut, spices, cashew, and second larger producer of
rice, wheat, rice, fruits and vegetables Similarly, India has abundant supply of caustic soda and
soda ash, chief raw material that required in the production of soups and detergents, which
enables household section of industry to grow. The accessibility of raw material gives India the
locational advantage.
ABOUT COMPANIES
12
1) HUL (HINDUSTAN UNILEVER LIMITED):
Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
company with a heritage of over 30 years in India. On any given day, nine out of ten
Indian households use our products to feel good, look good and get more out of lifegiving
us a unique opportunity to build a brighter future. HUL works to create a better future
every day and helps people feel good, look good and get more out of life with brands and
services that are good for them and good for others
With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos,
skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and
water purifiers, the Company is a part of the everyday life of millions of consumers
across India. Its portfolio includes leading household brands such as Lux Lifebuoy, Surf
Excel. Rin, Wheel, Fair & Lovely. Pond's, Vaseline, Lakmé, Dove. Clinic Plus, Sunsilk,
Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall's and Pureit.
The Company has about 18,000 employees and has sales of INR 37660 crores (financial
year 2018-19). HUL is a subsidiary of Unilever, one of the world's leading suppliers of
Food, Home Care, Personal Care and Refreshment products with sales in over 190
countries and an annual sales turnover of 51 billion in 2018. Unilever has over 67%.
The company with its exhaustive product range and wide distribution network aims to
provide products fulfilling the needs and demands of all the segments of the society
across the country. The company has always focused on innovative product offerings and
adapting itself to the market changes, which has helped it maintain its market leadership.
HUL believes that organization’s worth is also in service it renders to community. It is
focusing on health & hygiene education, women empowerment, waste management It is
also involved in education and underprivileged children, care for disputes.
Over last 3 years the company has embarked on ambitious programme, Shakti. HUL is
creating micro-enterprising opportunities for rural women, thereby imprvoing livelihood
and standard of living. Shakti includes health and hygiene education through Shakti Vani
Programme Now programme covers about 50,000 villages in 12 states
.
 HUL LIMITED IN DETAIL
13
Type Public
Traded as BSE: 500696
NSE: HINDUNILVR
BSE SENSEX Constituent
Industry Consumers goods
Founded Headquarter 1933

Parent Unilever
Website www.hul.co.in
a) Principle Business of HUL Company:
PRICIPLE BUSINESS OF PRODUCTS

HUL
Principle Business Foods, Beverages, Cleaning agents, Personal care
products and water purifiers
b) CEO/MD of HUL Company
CEO OF HUL Sanjiv Mehta
MD OF HUL Sanjiv Mehta
c) Market Share of HUL Company
MARKET SHARE OF HUL IN(%)
Market share 12%
14
2) ITC (India Tobacco Company of India Ltd)
ITC is one of India's foremost multi-business enterprises with a market capitalisation of

US S 50 billion and Gross Sales Value of US S 10 billion ITC is rated among the World's
Best Big Companies, Asia's "Fab 50 and the World's Most Reputable Companies by
Forbes magazine and as "India's Most Admired Company in a survey conducted by
Fortune India magazine and Hay Group. ITC also features as one of world's largest
sustainable value creator in the consumer goods industry in a study by the Boston
Consulting Group. ITC has been listed among India's Most Valuable Companies by
Business Today magazine. The Company is among India's '10 Most Valuable (Company)
Brands, according to a study conducted by Brand Finance and published by the Economic
Times. ITC also ranks among Asia's 50 best performing companies compiled by Business
Week
ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata,

West Bengal. Established in 1910 as the "Imperial Tobacco Company of India Limited,
the company was renamed as the "India Tobacco Company Limited in 1970 and later to
LTC Limited' in 1974. The dots in the name were removed in September 2001 for the
company to be renamed as ITC Limited' where ITC would no longer be an acronym. The
company completed 100 years in 2010 and as of now an annual turnover of US$8.31
billion and a market capitalization of USS50 billion. It employs over 30,000 people at
more than 60 locations across India and is part of Forbes 2000 list. Keeping pace with the
rapid growth of the FMCG industry in India, ITC has significantly scaled up its presence
in the FMCG sector, particularly its newer businesses. Its impressive bouquet of offerings
includes Branded Packaged Foods, Personal Care Products, Cigarettes, Lifestyle
Retailing, Education and Stationery products, and Safety Matches and Incense Sticks
(Agarbatti). Within a relatively short span of time, ITC has established several strong
consumer brands in the Indian FMCG market.
ITC leverages its institutional strengths including focus on quality and innovation and
differentiation, backed by deep consumer insights, world class R&D and an efficient and
responsive supply chain, to consolidate its position as a leader in the FMCG industry in
India. ITC’s Branded Packaged Foods Business is one of the fastest growing foods
businesses in India. Backed by significant investments in product development,
innovation and manufacturing technology
15
 ITC LIMITED IN DETAIL
Type Public
NSE: ITC
BSE SENSEX Constituent
CNX Nifty Constituents
Industry Conglomerate
Founded August 24, 1910 (as Imperial Tobacco
Company of India
Headquarters Kolkata, West Bengal
Divisions ITC Infotech, Surya Nepal Pt Ltd.
Website www.itcportal.com
a) Principle Business of ITC Company:
PRINCIPLE BUSINESS OF ITC PRODUCTS

COMPANY
Principle Business Tobacco, Hotels, Paper boards Packaged
Foods, Personal care, Stationery. Safety
matches, IT & other FMCG products
b) CEO/MD of ITC Company
CEO OF ITC Sanjiv Puri

MD OF ITC Sanjiv Puri
c) Market Share of ITC Company
Market Share of ITC In (%)
16
Market Share 14%
3) Nestlé India
Nestlé relationship with India dates back to 1912, when it began trading as The Nestlé
Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished
products in the Indian market. After India's independence in 1947, the economic policies
of the Indian Government emphasized the need for local production. Nestlé responded to
India's aspirations by forming a company in India and set up its first factory in 1961 at
Moga, Punjab, where the Government wanted Nestlé to develop the milk economy.
Progress in Moga required the introduction of Nestlé Agricultural Services to educate,
advise and help the farmer in a variety of aspects. From increasing the milk yield of their
cows through improved dairy farming methods, to irrigation, scientific crop management
practices and helping with the procurement of bank loans. Nestlé set up milk collection
centres that would not only ensure prompt collection and pay fair prices, but also instil
amongst the community, a confidence in the dairy business. Progress involved the
creation of prosperity on an on-going and sustainable basis that has resulted in not just
the transformation of Moga into a prosperous and vibrant milk district today, but a
thriving hub of industrial activity, as well.
Nestlé has been a partner in India's growth for over a century now and has built a very
special relationship of trust and commitment with the people of India. The Company's
activities in India have facilitated direct and indirect employment and provides livelihood
to about one million people including farmers, suppliers of packaging materials, services
and other goods. The Company continuously focuses its efforts to better understand the
changing lifestyles of India and anticipate consumer needs in order to provide Taste,
Nutrition, Health and Wellness through its product offerings. The culture of innovation
and renovation within the Company and access to the Nestlé Group's proprietary
technology/Brands expertise and the extensive centralized Research and Development
facilities gives it a distinct advantage in these efforts. It helps the Company to create
value that can be sustained over the long term by offering consumers a wide variety of
high quality, safe food products at affordable prices. Nestlé India manufactures products
of truly international quality under internationally famous brand names such as
NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA
and in recent years the Company has also introduced products of daily consumption.
India is a responsible organisation and facilitates initiatives that help to improve the
quality of life in the communities where it operates. Nestlé India continuously focuses on
understanding changing lifestyles This helps it to foresee needs in its product offerings.
The company innovates new product & renovates existing one providing high quality,
17
safe food products at affordable prices. India continuously focuses on understanding
changing lifestyles. This helps it to foresee needs in its product offerings.
 NESTLÉ INDIA IN DETAIL
Formerly Anglo-Swiss Condensed Milk (1886-1867)

Farine Lactée Henri Nestlé (1867–1905)
Nestlé and Anglo-Swiss Condensed Milk
Company (1905–1947)
Nestlé Alimentana SA (1947)
Type Public
Traded as SIX: NESN
OTC Pink: NSRGY
Founded 1866, 156 years ago
Headquarters Vevey, Vaud Switzerland
Area served Worldwide
Website www.nestle.com
a) Principle Business of Nestlé Company
PRINCIPLE BUSINESS OF NESTLÉ PRODUCTS

Principle Business Bar One, KitKat, Milkmaid, Munch, Maggi,
Maggi Masala Magic, Nesplus, Nescafé, etc
b) CEO/MD of Nestlé Company
CEO OF NESTLÉ Suresh Narayanan

MD OF NESTLÉ Suresh Narayanan
18
c) Market Share of Nestlé Company
MARKET SHARE OF NESTLÉ In (%)

Market Share 3%
4) Marico Limited
Marico Limited is an Indian consumer goods company providing consumer products and
services in the areas of Health and Beauty based in Mumbai. Marico has 8 factories in
India located at Pondicherry. Perundurai, Kanjikode. Jalgaon, Paldhi, Dehradun, Baddi
and Paonta Sahib. In Bangladesh, Marico operates through Marico Bangladesh Limited, a
wholly owned subsidiary. Its manufacturing facility is located at Shirichala, in Dhaka
Division. Marico Limited is one of India's leading consumer products companies
operating in the beauty and wellness space. Empowered with freedom and opportunity,
we work to make a difference to the lives of all our stakeholders. members, associates,
consumers. investors and the society at large. Currently present in 25 countries across
emerging markets of Asia and Africa, Marico has nurtured multiple brands in the
categories of hair care, skin care, edible oils, health foods, male grooming and fabric
care. Furthermore, 95% of its packaging material is recyclable by weight and over 25
lakh kilograms of postconsumer plastic waste (MLP) is safely collected and disposed of.
Marico also participates in CDP disclosures and is rated A- for climate change and B+ for
water, all the while consistently achieving top quartile position across national and
international ESG public rating platforms. Marico has long focused on adopting
environmentally and ethically sustainable operations that create value for all
stakeholders. In line with its ESG goals, the company has ensured the judicious
procurement, use and management of natural resources while minimizing the
environmental impact of its operations.
In FY20, Marico revenue from operations of INR 7,315 Crores, which was marginally
lower than the previous year. The underlying volume growth for the year was 2%. The
business delivered an operating margin of 20.1% and INR 1,043 Crores, a growth of 13%
over the last year on a comparable basis. Marico India, the domestic FMCG business,
achieved a turnover of INR 5,655 Crores in FY20, down 2% over the last year. The
underlying volume growth was a muted 1%, vastly affected by the consumption
slowdown witnessed in the economy through the year, which was further exacerbated by
lockdowns enforced in the month of March 2020 to contain the outbreak of COVID-19 in
India. During the year, Marico International, the International FMCG business, posted a
turnover of INR 1,660 Crores, a growth of 5% over the last year. The business constant
currency growth of 5%. The operating margin (before corporate allocations) for the
19
International business expanded by 139 bps to 21.5%, led by gross margin expansion in
the Bangladesh business. During 2021, Marico recorded a turnover of INR 80.5 billion
(USD 1.1 billion) through sales in India and other chosen emerging markets of Asia and
Africa. Marico has nurtured over 25 trusted brands in the categories of hair care, skin
care, edible oils, healthy foods, male grooming and fabric care.
 MARICO LIMITED IN DETAIL
Type Public
Industry Consumer Goods
Founded 1990
Headquarters Santacruz, Mumbai, India
Divisions ITC Infotech, Surya Nepal Pvt. Ltd.
Website www.marico.com
a) Principle Business of Marico Company
PRINCIPLE BUSINESS OF MARICO PRODUCTS

Principle Business Edible Oil, Hair Oils, Skin Care, Fabric Care
etc
b) CEO/MD of Marico Company
CEO OF MARICO LIMITED Saugata Gupta

MD OF MARICO LIMITED Saugata Gupta
c) Market Share of Marico Company
MARKET SHARE OF MARICO IN(%)
20
LIMITED
Market Share 5%
CHAPTER-1
(INTRODUCTION TO TOPIC)
21
INTRODUCTION TO TOPIC
 BASIC INTRODUCTION OF TOPIC
The Fast Moving Consumer Goods (FMCG) sector is the key contributor of the Indian
economy. This fourth largest sector of Indian economy provides employment to around 3
million people which accounts for approximately 5% of the total factory employment in
the country. These products are daily consumed by each and every strata of the society
irrespective of social class, income group, age group etc. FMCG sector is more lucrative
because of low penetration levels, well established distribution network, low operating
cost, lower per capita consumption, large consumer base and simple manufacturing
processes for most of products resulting in fairly low capital investments
The industry is highly competitive due to presence of multi-national companies, domestic

companies and unorganized sector. A major portion of the market is captured by
unorganized players selling unbranded and unpackaged products. More than 50 per cent
of the total revenues of FMCG companies come from products worth Rs 10 or less
This has made the proliferation of localized brands which are offered in loose form in
small towns and rural part where brand awareness is low. In last 10 years domestic
players are giving tough competition to multinationals, in fact they have outstripped
many MNCs in growth and market cap.
Urban India accounts for 66% of total FMCG consumption, while rural India accounts for
the remaining 34%. However, rural India accounts for more than 40% of the consumption
in major FMCG categories such as personal care, fabric care and hot beverages. As per
the analysis by ASSOCHAM, companies like Hindustan Unilever Lid and Dabur India
generate half of their sales from rural India while Colgate Palmolive India and Marico
constitute nearly 37% respectively DNA model for inclusive financial services Driving
profitability indicates that in order to built a model for profitable business, banks have to
become more inclusive in approach towards consumer using DNA model. This
22
perspective is valuable and applicable to India’s FMCG industry as consumer goods
companies set up their efforts to save group of large and under served consumers
 Overview of Indian FMCG Sector History
The Indian Fast Moving Consumer Goods (FMCG) industry began to shape during the
last fifty odd years. The growth of FMCG industry was not significant between 1950's to
the 80's. The FMCG industry previously was not attractive from investor's point of view
due to low purchasing power and the government's favouring of the small-scale sector.
MCG's growth story further continued following the deregulation of Indian economy in
carly 1990s. With relatively lesser capital and technological requirements, a number of
new brands emerged domestically as well, while the relaxed FDI conditions led to entry
of many global players in this segment. FMCG Products that have quick self turnover, all
relatively low cost and don’t require a lot of thoughts, time, financial investment to
purchase. Everything from foods and health drinks to body care products come from
FMCG or alternatively called Consumer Packaged Goods.
These factors made FMCG market in India highly competitive and one of the important
contributor in the Indian economy. In the mid-nineties, the growth of the sector was very
fast where as it declined rapidly at the end of the decade. The initial growth was due to
increase in product penetration and consumption levels. Riding on a rapidly growing
economy, increasing per-capita incomes, and rising trend of urbanization, the FMCG
market in India is expected to further expand to $100 billion by 2025.
 Growth of FMCG sector
The Indian FMCG sector growth between 2006 to 2013 has been phenomenal
(approximately 16%). The industry has tri-pled in size over the last 10 years, growing
much faster than in past decades. This has been due to liberalization, urbanization and
increase in disposable incomes and altered lifestyle of people.
Even during the slowdown of the Indian economy, the FMCG sector has registered a
growth rate of 14.5 percent. According to Nomura, the volatility in agriculture sector has
not had much impact on FMCG sector. The comparison of past ten years performance of
23
top 50 Global FMCG companies versus the Indian top 50 FMCG companies shows that
India has outperformed global growth across all major FMCG categories. As per Price
waterhouse Coopers Private Limited. India is second biggest market for Soups &
cleansers in Asia after China. The growth for Indian FMCG sector for Food, beverages
and tobacco segment is promising in near future.
 PEST analysis of FMCG sector
a. Political
 Tax Structure: Complicated tax structure, high in direct tax and changing tax
policies are challenges for this sector
 Infrastructure Issues: Performance of FMCG sector is very much dependent on
government spending on Agricultural. Power, and Transportation Infrastructure
 Regulatory Constraints: Multiplicity permits and licenses for various states.
prevailing outdated labour laws, cumbersome and lengthy export procedures are
major constraints.
 Policy framework: FDI into Retail sector (single-brand & multi-brand retail)
License rules in setting up of Industry. Changes in Statutory Minimum Price of
commodities are-barriers for growth of this sector
b. Economical
 GDP Growth: Growth of FMCG industry is consistent with the Indian economy.
It has grown by 15% over past 5 years. It shows good scope for this sector in near
future
 Inflation: Inflationary pressures alter the purchasing power of consumer which
Indian economy is facing in recent years. But it has not affected much to Indian
FMCG sector.
 Consumer Income: Over the past few years, India has seen increased economic
growth. It resulted in increase of consumer expenditure
 Private Consumption: The Indian economy, unlike other economies, has a very
high rate of private consumption (61%).
c. Social
24
 Change in consumer Profile: Rapid urbanization, increased literacy, increase in
nuclear families and rising per capita income, have all caused rapid growth and
change in demand patterns, leading to an explosion of new opportunities Around
45 per cent of the population in India is below 20 years of age and the young
population is set to rise further
 Change in Lifestyle: In past decade changes are taking place in of Indian
consumer with more spending on discretionary (52%), necessities (eg food
clothing). In last decade the apparel, footwear and healthcare segments.
 Rural Force: As market is getting saturated companies are focusing on rural area
for penetration by providing consumers with small sized or single-use packs such
as sachets.
d. Technology
 Effective use of technology is seen only in leading companies like HUL, ITC
 Commerce will boost FMCG sales in future. More than 150 million consumers
would be influenced by digital by 2022 and they will spend more than $45 billion
on FMCG products.
 Advantage to this Sector:
 Government Policy: India government has enacted policies aimed at attaining

international competitiveness through lifting of quantitative restrictions, reducing
excise duties, automatic foreign investment and food laws resulting in
environment that fosters growth. 100% export oriented units can be set up
government approval and use of foreign brand names that is now freely permitted.
 Foreign Direct Investment: Automatic Investment Approval upto 100% foreign
equity or 100% overseas corporate bodies investment, it is allowed for most of
processing food processing sector expect melted food, alcoholic beverages and
those reserved for small scale industries. There is continuous growth in net FDI
inflows. There is an increase of about 150% in Net Inflow for Vegetables oils and
Vanaspati
 Central and State Initiatives: Government has announced a cut of 4% in excise
duty to fight with the slow down of economy. This announcement has a positive
impact on industry, but benefit from 4% reduction in excise duty is likely to be
uniform across FMCG players. The changes in excise duty do not impact
cigarettes (ITC, Godfrey Phillips), biscuits (Britannia industries, ITC), or ready to
25
eat foods, as these products are either subject to specific duty or exempt from
excise. Even players with manufacturing facilities located mainly in tax free zones
will also not see material excise duty savings. Only large FMCG makers may be
key ones to bet and gain on excise duty.
CHAPTER-2
(REVIEW OF LITERATURE)
26
REVIEW LITERATURE
Introduction
The review of literature guides then researcher for getting better understanding of methodology
used, limitations of various available estimation procedures and database, and lucid
interpretation and reconciliation of the conflicting results. Besides this, the review of empirical
studies explores the avente for future and present research efforts related to the subject matters.
In case of conflicting and unexpected results, the research can take the advantages of knowledge
of their researchers simply through the medium of their published works.
A number of research studies have been carried out on different aspects of financial appraisal by
the researchers, economists and academicians in India and abroad, Different author have
analysed equity analysis and financial performance in different perspectives. A review of these
analyses is important in order to develop an approach that can be employed in the context of the
study of FMCG industry. There is wide range of literature available on financial performance
analysis of different companies in conforming to its dynamic value and Significant of intuitive
nature. It was essential to present a review of literature in order to formulate the research
problem succinctly and to highlight the importance of undertaking this study Conceptual
framework and some empirical studies on the topic have a direct or indirect bearing on the
present study. Relevant existing literature and studies have been clipped below. A researcher has
studied this literature for gaining insight into the problem.
Literature review
 An article authored by Sahu (2002): It shows that for the successful functioning of a
firm, the role of management is required to focus on maintaining short term liquidity in a
scientific manner. The study revealed that the short financial position of the companies in
FMCG sector was not satisfactory. An empirical study was conducted by Vishnani and
Shah (2007) covering the Indian Consumer Electronics Industry from 1994-95 to 2004-
27
05. From the results of regression analysis it was concluded that working capital
management plays an important role in the profitability of an any company. Higher
investments in current assets could not yield proper return for the firm which lumpered
the liquidity and profitability, because huge amount of fund became idle, which thus
could not generate any return. Bhuni 2010). In his study on paper producing companies
suggested that improper liquidity is major threat for the survival of the firm. Payment of
short term obligations reflects the liquidity position of any company.
 According to Marimuthu (2012): The ratio analysis technique gives a clear picture
about the financial position of any firm. He has suggested in his study that the sample
companies reflect up to the mark the current and quick ratios except the interest coverage
ratio. His study concluded that the firms should focus on their working capital
management properly and maintain receivables, liquidity and payables accordingly.
Panigrahi(2013) has suggested that small firms maintain their liquidity more properly
than big firms. He has covered a period of ten years in his study. He has focused mainly
on the short term financial position of the firms.
 R. Amsaveni and S. Gomathi (2013): It found that through economic analysis the GNP.
Interest Rate, Exchange rate, FER, Agriculture Production, Govt Receipts and Expenses
has a growth rate during the study period. The co, analysis done with the help of ratio
analysis indicates that Colgate and HUL Companies are financially in satisfactory
position during the study period
 Ranjit Kumar Paswan, (2013): found that ITC, Emami. Dabur, and Colgate has been
able to repay its debt during the study period. DTR of Nestle and Colgate show the
efficiency of debt management Debt to Total Asset Ratio of Emami and Dabur shows
that more asset of the co. is financed through debt.
 A study was carried by Hetalgaglani and Smita Rao (2015): on financial health of Sun
Pharmaceutical Industry Ltd by observing the liquidity and profitability through the
application of Altman's Z-score test which depicted a moderate correlation between
liquidity and profitability and the sample firms were in green zone
 Amanjot Kaur Sedhi and Simran Waraich. (2016): found that SBI scores the highest
Ave in terms of EPS also for SBI, the CAGR is negative in all the Parameters except for
NPM, BOB has positive CAGR in PE ratio and D/P ratio, PNB has performed the best in
OPM along with positive CAGR only in DP ratio. HDFC Bank scores higher Avg then
others do in NPM, ROE and PE ratio and highest CAGR in NPM, ICICI has highest
CAGR in OPM and ROE stand the best performer in D/P ratio
28
 Ms. J. Hema and V. Ariram. (2016) found that Indian Pharmaceutical industry has a
high growth rate and its sales and net profit also shows increasing trend and the company
analysis revealed that its financial performance through the financial ratio, which
indicates that Lupin and Torrent Pharma are financially in satisfactory position during the
study period.
CHAPTER-3
(PROBLEM OF STUDY AND OBJECTIVES)
29
PROBLEM OF STUDY AND OBJECTIVES
 PROBLEM OF STUDY
The FMCG industry in India has gained in popularity over last 3-4 years, mainly because
of changing lifecycles and eating habits of people. The present study focus on Equity
analysis of selected FMCG companies. The profitability and liquidity trend associated
with those companies share price were measured with relevant tools. We have many no.
of studies in this perspective but they are in different periods and different sectors. The
present study is only considering top five FMCG companies based on their market
capitalization.
 OBJECTIVES
FMCG companies hold great importance for economy as well as social development of
the country. The present study is conducted to evaluate the financial performance of five
leading FMCG companies, over a period of 5 years (2019-2021). The specific objective
of the study are:
 To study the profitability and liquidity trend of selected FMCG companies

 To make comparative analysis of the selected units based on various ratios.
 To find out which stock is worth enough to invest in and what will be the strategy
of investment.
To start any business capital plays important role. Capital can be two ways by issuing
shares or by taking debts from financial institutions. Stock is ownership in company, wit
30
each share of stock representing tiny piece of ownership. The more shares you own, the
more dividends you earn when company earn profit. Advantages of selling stock:
 A company can raise more capital than it could borrow

 A company does not have to make periodic interest payments to creditors
 A company does not have to make principal payments
CHAPTER-4
(RESEARCH METHODOLOGY )
31
RESEARCH METHODOLOGY
Every project report is based on certain methodology, which is a way to systematically solve the
problems or achieve objectives. It is very important guidelines to completion of any project
through observations, data analysis and data collection.
 Research Design: Before investigating the types of research designs it is important to

understand the role and purpose of study. It is also required to know what type of
research design is formulated. That’s necessary things for Research design. The main
objective of research design is to answer who, what, where, how of subject under
investigation. A research design is arrangement of condition for collection and analysis of
data in manner that aim to combine relevance to research paper with procedure. The
research design adopted for this study is descriptive type.
 Data Collection: The study is based on the primary and secondary data. That are
explained as below:
a) Collection of primary data: Personal Interview of respondents and an unbiased,

undisguised structured questionnaire was prepared for getting information.
b) Secondary data: The secondary data are collected from journals, magazines, books,
reports, articles, research papers, websites, company publications, booklets. These all
are the secondary sources of information. Secondary data are those which have
already collected by others and which have already been passed through statistical
process. In this i have done analysis on basis of secondary data, which included
 Revenue of FMCG industry
 Market share and Market Capitalization of HUL, ITC, MARICO, Nestlé India
 Further included Balance Sheet and profit and loss account
 Sampling Design: It is of two types: Sample Unit and Sample Size:
32
a) Sample Unit: Data is collected through Money control, profit & loss account,
Balance Sheet.
b) Sample Size: Financial statement of HUL, ITC, MARICO, Nestlé India for period of
March 2020, 2021
 Universe of Research: The area is covered all over the India.
 Research tools: Data has been analyzed and tested with the help of tables, graphs, charts
and percentage analysis. Mainly statistical tool is analyzed and expressed in terms of
percentage and conclusion and interpretation of study would be done by using tables,
graphs, charts etc.
CHAPTER-5
(DATA ANALYSIS AND INTERPRETATION)
33
DATA ANALYSIS AND INTERPRETATION
The study will provide a precise presentation of data and guidelines that will help an investor to
finalize his investment decision I have chosen top 4 companies as my sample. These 4
companies are the biggest in the FMCG sector based on their market capitalization. These 4
companies are Hindustan Unilever, ITC, Nestle, Marico. I am going to analyze their financial
statements using ratios and will comment on them whether the company is fundamentally strong
or not.
34
What is Ratio Analysis?
Ratio analysis is referred to as the study or analysis of the line items present in the financial
statements of the company. It can be used to check various factors of the company. It can be
used to check various factors of a business such as profitability, liquidity, solvency and
efficiency of the company or the business. Ratio analysis is mainly performed by external
analysts as financial statements are the primary source of information for external analysts,
RATIOS: Ratios that are used for data analysis and interpretation. That are as follows:
35
i. Current Ratio
ii. Quick Ratio
iii. Return on Equity (%)
iv. Return on Asssets (%)
i. Current Ratio:
The current ratio is a popular metric used across industry to assess a company’s short-
term liquidity. With respect to its available assests and pending liabilities. In other
words, it reflects a company’s ability to generate enough cash to pay off all its debt once
they become due. It’s used globally as a way to measure the overall financial health of a
company. Basically, we can say how much short term or current assets are being utilised
by the businesses to meet the short term obligations is determined by this ratio.
Current Ratio also known as working capital ratio, measures the capability of a business
to meet its short term obligations that are due within a year. The ratio considers the
weight of total current assets versus total current liabilities. It indicates the financial
health of a company and how it can maximize the liquidity of its current assets to settle
debt and payables. The current ratio can be used to easily measures a company’s
liquidity.
Formula to calculate Current Ratio:

Current Ratio= Current Assets/ Current Liabilities
COMPANIES:
1. HINDUSTAN UNILEVER CURRENT RATIO
36
Years Current Assets Current HUL
Liabilities CURRENT RATIO
(Current assests /
Current liabilities)
2021 13,640.00 10,841.00 1.26
2020 11,908.00 9,104.00 1.31
2019 11,374.00 8,35300 1.36
2018 11,139.00 8,636.00 1.29
2017 9,365.00 7,202.00 1.30
2. ITC LIMITED CURRENT RATIO
Years Current Assets Current ITC

(Current assests /
2021 31,815.42 10,174.17 3.13
2020 36,506.91 9,089.41 4.02
2019 29,568.96 9,621.56 3.07
2018 24,503.00 8,856.60 2.77
2017 24,537.39 6,830.07 3.59
3. NESTLÉ COMPANY CURRENT RATIO
Years Current Assets Current NESTLÉ

Liabilities
37
CURRENT RATIO
(Current assests /
2021 2,738.76 2,603.24 1.05
2020 4,185.08 2,492.55 1.68
2019 3,817.17 2,190.55 1.74
2018 4,736.95 1,854.95 2.55
2017 3,937.39 1,492.71 2.64
4. MARICO LIMITED CURRENT RATIO
Years Current Assets Current MARICO

(Current assests /
2021 2,809.00 1,332.00 2.11
2020 2,648.00 1,13100 2.34
2019 2,714.00 1,15300 2.35
2018 2,338.48 951.15 2.45
2017 1,990.77 815.94 2.44
 CURRENT RATIO: COMPANIES (COMBINED TABLE & FIGURE)
38
Years HUL ITC NESTLÉ MARICO
CURREN CURRENT CURREN CURREN
T RATIO RATIO T RATIO T RATIO
2021 1.26 3.13 1.05 2.11

2020 1.31 4.02 1.68 2.34
2019 1.36 3.07 1.74 2.35
2018 1.29 2.77 2.55 2.45
2017 1.30 3.59 2.64 2.44
5
4
HUL RATIO
3
ITC RATIO
2
NESTLÉ RATIO
1 MARICO RATIO
0
2021 2020 2019 2018 2017
INTERPRETATION:
HUL: Current Ratio is considered because it is a more comprehensive measure of valuing a
company. Current Ratio of HUL is lesser than ITC when compared to competitors but it is near
other companies and is fluctuating over the years.
ITC: Current Ratio of ITC is best among all the companies. It stands at 3.13 which is more than
its competitors so investors might want to invest in this company.
NESTLE: Current ratio of Nestle is worst among all the companies. It stands at 1.05 which is
lot lesser than its competitors so investors might want to invest in other companies and going on
decreasing trend over the years. Ratio of Nestle has fallen drastically from 2.64% in 2017 to 1.05
% in 2021 which is not a good sign for investors.
MARICO: The Current ratio for Marico is rather fluctuating over the years. Like in the 2020 it
declined by 10 points compared to 2017 and it again declined in 2021 but father better than HUL
and Nestle and right behind ITC. In the case of this ratio is far ahead of its competitors and is
going to stay ahead because of the positive growth it is having.
COMBINED:. ITC is the clear winner when it comes to analyzing over current assets as other
players in the industry have a big gap. Marico is right behind ITC
ii. QUICK RATIO
39
Quick ratio is a financial indicator of short-term liquidity or the ability to raise cash to
pay bills due in the next 90 days. Quick ratio measures the ability of a business to pay its
short-term liabilities. Quick ratio is defined as quick assets divided by current liabilities,
and it is also known as the acid-test ratio and the quick liquidity ratio
Formula to calculate Quick Ratio

Quick Ratio= Current Assets-Inventories / Current Liabilities
1. HUL QUICK RATIO
Years Current Inventories Current HUL

Assets Liabilities QUICK RATIO
(Current assets-
Invetories)/
Current
Liabilities)
2021 13,640.00 3,383.00 10,841.00 0.95
2020 11,908.00 2,636.00 9,104.00 1.02
2019 11,374.00 2,422.00 8,35300 1.07
2018 11,139.00 2,359.00 8,636.00 1.02
2017 9,365.00 2,362.00 7,202.00 0.97
2. ITC QUICK RATIO
Years Current Inventories Current ITC

(Current assets-
Invetories)/
Current
Liabilities)
2021 31,815.42 9,470.87 10,174.17 2.20
2020 36,506.91 8,038.07 9,089.41 3.13
2019 29,568.96 7,587.24 9,621.56 2.28
2018 24,503.00 7,237.15 8,856.60 1.95
40
2017 24,537.39 7,863.99 6,830.07 2.44
3. NESTLÉ QUICK RATIO
Years Current Inventories Current NESTLÉ

(Current assets-
Invetories)/
Current
Liabilities)
2021 2,738.76 1,580.22 2,603.24 0.45
2020 4,185.08 1,416.48 2,492.55 1.11
2019 3,817.17 1,238.07 2,190.55 1.16
2018 4,736.95 965.55 1,854.95 2.03
2017 3,937.39 902.47 1,492.71 2.03
4. MARICO QUICK RATIO
Years Current Inventories Current MARICO

(Current assets-
Invetories)/
Current
Liabilities)
2021 2,809.00 873.00 1,332.00 1.45
2020 2,648.00 1,165.00 1,13100 1.31
2019 2,714.00 1,234.00 1,15300 1.28
2018 2,338.48 1,313.18 951.15 1.07
2017 1,990.77 1,082.96 815.94 1.11
41
 QUICK RATIO: 4 COMPANIES (COMBINED TABLE & FIGURE)
Years HUL ITC NESTL MARICO QUICK RATIO

QUIC QUIC É
K K QUICK
RATI RATI RATIO
O O
2021 0.95 2.20 0.45 1.45
2020 1.02 3.13 1.11 1.31
2019 1.07 2.28 1.16 1.28
2018 1.02 1.95 2.03 1.07
2017 0.97 2.44 2.03 1.11
3.5
3
2.5 HUL QUICK RATIO
2
ITC QUICK RATIO
1.5
1 NESTLÉ QUICK RATIO
0.5 MARICO QUICK RATIO
0
2021 2020 2019 2018 2017
INTERPRETATION:
HUL: The Quick Ratio of HUL is fluctuating over the years like it is rising and falling in every
alternate years. It started from 0.97 in year 2017 and now stands at 0.95% in year 2017
ITC: The quick ratio of ITC is greatest when compared to its competitors but it is fluctuating
over the years like it is rising and falling in every alternate years and investors generally refrain
themselves from investing in these type of companies
NESTLE: : NESTLE has declined continuously over the years where. This type of stock seems
unattractive to the investors and usually they refrain themselves from investing in this type of
stock.
42
MARICO: Marico has the 2ND lowest quick ratio among its competitors but it has shown
positive growth over the years. It has shown a good growth which is appreciated by most of the
investors.
COMBINED: So as can be interpreted form the above data, the Net profit ratio of the FMCG
sector is quite good and all the companies in this sector has shown positive growth over the years
except HUL AND NESTLE.
iii. RETURN ON EQUITY

Return on equity ratio is a profitability ratio that tells us about firm’s ability to generate
profits from its shareholders’ investment. It is also considered as a measure of how
effectively management is using company’s assets or investments to generate profits. A
company which have a high ROE ratio is more successful to generate cash internally
Formula to calculate ROE (Return on equity) :
ROE (%) = Net Income / Shareholders’ Equity
COMPANIES:
1. HINDUSTAN UNILEVER RETURN ON EQUITY RATIO :
Years Net income Shareholders’ HUL ROE RATIO

Equity (NET INCOME /
SHAREHOLDERS
EQUITY)*100
2021 7,954.00 47,434.00 16.76
2020 6,738.00 8,031.00 83.89
2019 6,036.00 7,659.00 78.80
2018 5,237.00 7,075.00 74.02
2017 4,490.00 6,490.00 69.18
2. ITC LIMITED RETURN ON EQUITY RATIO
Years Net income Shareholders’ ITC ROE RATIO

SHAREHOLDERS
EQUITY)*100
43
2021 13,031.64 59,004.58 22.08
2020 15,136.05 64,092.16 23.63
2019 12,464.32 57,949.79 21.50
2018 11,223.25 51,400.07 21.83
2017 12,200.90 45,340.96 22.49
3. NESTLÉ COMPANY RETURN ON EQUITY RATIO
Years Net income Shareholders’ NESTLÉ ROE RATIO

SHAREHOLDERS
EQUITY)*100
2021 21,446.86 2,084.48 102.89

2020 2,082.43 2,019.34 103.12
2019 1,968.44 1,918.87 102.58
2018 1,606.93 3,673.74 43.74
2017 1,255.19 3,420.59 35.81
4. MARICO LIMITED RETURN ON EQUITY RATIO
Years Net income Shareholders’ MARICO ROE RATIO

SHAREHOLDERS
EQUITY)*100
2021 1,371.00 3,035.00 36.44
2020 1,280.00 2,888.00 34.86
2019 1,183.00 3,489.00 32.35
2018 1,057.73 3,041.19 23.61
2017 842.70 2,924.24 28.81
44
 ROE RATIO: 4 COMPANIES (COMBINED TABLE & FIGURE)
Years HUL ITC NESTLÉ MARICO ROE

ROE ROE ROE RATIO
RATIO RATIO RATIO
2021 16.76 22.08 102.89 36.44
2020 83.89 23.63 103.12 34.86
2019 78.80 21.50 102.58 32.35
2018 74.02 21.83 43.74 23.61
2017 69.18 22.49 35.81 28.81
120
100
80 HUL ROE RATIO
60 ITC ROE RATIO
40 NESTLÉ ROE RATIO
20 MARICO ROE RATIO
0
2021 2020 2019 2018 2017
INTERPRETATION:
HUL:. ROE of HUL has risen up by a good percentage in 2020, it went up to 83.89% from
69.18% in 20120. But after 2021, ROE ratio of HUL has fallen drastically from 83.89% in 2020
to 16.76% in 2017 which is not a good sign for investors
ITC: The ROE ratio of the ITC is not much constant rather it is fluctuating . It was 21.83% in
2018 and it went down to 23.63% in 2020. This means that company is not effectively using
employing it’s investment to generate more profits which is a red sign for the shareholders
45
NESTLÉ: The ROE ratio of Nestle is greater than its competitors. But if we look at the past
trend of the company, therefore in 2018 and 2017 it is not positive over the time. As it was
102.89% in 2021, it declined to 103.12% in 2020 and then from there it is rising slowly coming
back on right track. This period witnessed a tremendous growth in the ROA Ratio of Nestle Ltd.
MARICO:. As we can see from the chart the of ROE of MARICO keeps on increasing over the
years and it is the only company among my sample taken that has a positive growth of ratio.
This is favourble situation for investors.
COMBINED:. A company with higher ROE ratio is more favorable to investors than a company
with low ROE ratio. Nestle has highest ROE ratio in FMCG sector which investors find very
lucrative and hence will want to invest in this company. No company is near Nestle in terms of
ROE ratio.
iv. RETURN ON ASSETS

The term return on assets (ROA) refers to a financial ratio that indicates how profitable a
company is in relation to its total assets. Corporate management, analysts, and investors
can use ROA to determine how efficiently a company uses its assets to generate a profit.
Formula to calculate ROA (Return on assets)
ROA (%) = Net Income / Total Assets
COMPANIES:
1. HINDUSTAN UNILEVER RETURN ON ASSET RATIO :
Years Net income Total assets HUL ROA RATIO

(NET INCOME /
TOTAL ASSETS)*100
2021 7,954.00 68,116.00 11.67

2020 6,738.00 19,602.00 34.37
2019 6,036.00 17,865.00 33.78
2018 5,237.00 17,149.00 30.53
2017 4,490.00 14,751.00 30.43
2. ITC LIMITED RETURN ON ASSET RATIO
46
Years Net income Total Assets ITC ROA RATIO
(NET INCOME /
TOTAL ASSETS)*100
2021 13,031.64 71,580.54 18.20
2020 15,136.05 75,235.36 20.11
2019 12,464.32 69,797.92 17.85
2018 11,223.25 62,381.31 17.99
2017 12,200.90 54,215.95 18.81
3. NESTLÉ COMPANY RETURN ON ASSET RATIO
Years Net income Total Assets NESTLÉ ROA RATIO

(NET INCOME /
TOTAL ASSETS)*100
2021 21,446.86 8,209.93 26.12

2020 2,082.43 7,899.73 26.36
2019 1,968.44 7,172.94 27.44
2018 1,606.93 8,088.08 19.86
2017 1,255.19 7,362.59 16.64
4. MARICO LIMITED RETURN ON ASSET RATIO
Years Net income Total assets MARICO ROA

RATIO
(NET INCOME /
TOTAL ASSETS)*100
2021 1,371.00 4,482.00 24.67
2020 1,280.00 4,136.00 24.34
47
2019 1,183.00 4,758.00 23.72
2018 1,057.73 4,019.89 17.86
2017 842.70 3,763.01 22.39
 ROA RATIO: 4 COMPANIES (COMBINED TABLE & FIGURE)
Years HUL ITC NESTLÉ MARICO

ROA ROA ROA ROA RATIO
RATIO RATIO RATIO
2021 11.67 18.20 26.12 24.67
2020 34.37 20.11 26.36 24.34
2019 33.78 17.85 27.44 23.72
2018 30.53 17.99 19.86 17.86
2017 30.43 18.81 16.64 22.39
40
30 HUL ROA RATIO
20 ITC ROA RATIO
NESTLÉ ROA RATIO
10
MARICO ROA RATIO
0
2021 2020 2019 2018 2017
INTERPRETATION:
HUL: In the shareholders point of view ROA ratio of the company is shows an decreasing
trend. ROA ratio of the Hindustan Unilever is decreased from 30.43 to 11.67.
48
ITC: ROA ratio of the ITC Ltd. Is fluctuating year to year.. The decreasing trend of the ROA
of ITC Ltd. is not good for a company who is trying to retain its shareholders.
NESTLÉ: The ROA ratio of Nestle is greater than its competitors. Actually it is nearly 6-7 times
more than its competitors. But if we look at the past trend of the company, therefore in 2018 and
2017 As it was 19.86% in 2018, and 16.64% in 2019 and then from there it is rising slowly
coming back on the right track
MARICO:. When compared to the ROA ratio of the other companies it had a more ROA ratio
in the period. However, Marico also shows the increasing trend in ROA ratio. It will be a hope to
their shareholders
COMBINED:.. In general a higher ratio means that investors anticipate higher performance and
growth in the future. So ROA ratio of Nestle is highest followed by HUL and MARICO.
CHAPTER-6
(LIMITATONS OF STUDY )
49
LIMITATONS OF STUDY
 The study is confined only to the listed FMCG companies.In this External factors may
adversely affect the industry as well as its share price. Government policies, competition,
tax imposition etc. Hence, the movement of stock price is not 100 per cent predictable.
 The present study uses ratios as an important tool of analysis which itself has a number
of limitations on its applicability. Another major challenge that retailers, not limited to
FMCG, are facing is understanding consumer demand. The consumer trends have
changed majorly in the last two years.
 Despite the apparent growth, the inherent challenges that the sector has been facing are bringing a
huge toll on the sector's trajectory. In our country rural area is backward ,connectivity in
these areasare very poor. So distribution in rural area is expensive and difficult. Supply
chain challenges, inflation, among others are some of the major ones.
 Organizations that can demonstrate sustainability across their total ecosystem will benefit
from stronger consumer bonding scores. However the ability to charge a premium to
cover increased costs will remain limited as consumers will increasingly see
sustainability as a given rather than a perk to be afforded by few.
 FMCG companies in India have increased their expenditure cost for sales promotions and
advertisements by 10-20%.Every year, these companies invest more and more in
advertisement to establish a strong customer base and also as a strategy to reduce market
competition.
 Some products are highly perishable like bread ,cake, cold drink etc these products shelf
life is less than three months . Some product last for three to six months, like snacks and
biscuits . Again some products like toiletries and sanitary products lasts for two to three
years. In this situation sales force need keep close observation in trade channel which is
50
very difficult. Otherwise expiry stock need to be taken back from trade channel which is
a net loss to the manufacturer.
 Stock is situation when company provide adequate stock as per market demand.
Consumer don’t wait for a particular brand or product, they will purchase competitive
brand No consumer like out of stock situation and they shift to other brand. It affects
revenue loss to brand owner so manufacturer has to ensure continuous supply to trade
channel which is not easy task
CHAPTER-7
51
(FINDING OF RESEARCH)
FINDING OF RESEARCH
 The Government spends more money to the infrastructural activities. Their infrastructure
has played a major role in the present budget with a viewpoint that, once the
infrastructure is developed, other sectors will automatically develop which leads to
economic development of our country.
 The India’s FMCG sector reported a high growth during the study period.
 The SWOT analysis discloses that the strength of FMCG sector in India is the low
operating cost when compared to other countries.
 Lower scope of investing in technology especially of small scale sectors is the major
weakness of this sector.
 The FMCG sectors have a great domestic market opportunity because of the huge
population.
 The major threats are tax and regulatory structure of our country
 Profitability of the company is in a decreasing trebd during the study period
 Return on Equity indicates the efficient utilization of funds by the owners of the firm.
 ROA is decreasing which is not good for investors.
 The Current ratio of the company is favorable to the investors.
 The quick ratio of the HUL is Ffluctuating among the sample companies.
 Profitability of the company is on fluctuatons.
 The increasing trend of the ROA of ITC Ltd. It is red sign for the shareholders.
 Stability of the dividend per share is beneficial to the investors.
 The quick ratio of the company is favorable to the investors.
 Current assets of ITC is highest among the sample companies.
52
 Profitability ratios of Nestle is good during the study period. It shows the management’s
efficiency of profit earning.
 The quick ratio is fluctuating over the year. It started from 0.97 in 2017 and now stands at
0.95
 The Current Ratio is also fluctuating but its good for company
 This period witnessed a tremendous growth in the ROA Ratio of Nestle Ltd. This growth
is a good for the investors.
 ROA ratio of Nestle is greater than its competitorstherefore in 2018 and 2017 As it was
19.86% in 2018, and 16.64% in 2019 and then from there it is rising slowly coming back
on the right track
 Profitability ratios of Marico is good during the study period. It shows the management’s
efficiency of profit earning.
 The current ratio is fluctuations over the year
 The increasing Quick Ratio Ratio is not good for safety of shares.
 This period witnessed a tremendous growth in the ROA Ratio of Marico Ltd. This growth
is a good for the investors.
CHAPTER-8
(CONCLUSIONS AND RECOMMENDATIONS)
53
CONCLUSIONS AND RECOMMENDATIONS
Financial analysis is the process of evaluating businesses, projects, budgets, and other finance-
related transactions to determine their performance and suitability. Typically, financial analysis
is used to analyze whether an entity is stable, solvent, liquid, or profitable enough to warrant a
monetary Investment. An investor can make safest as well as lucrative investment by analyzing
the related variables and ensure for optimum return. From the industry analysis found that the
India’s FMCG sector reported a high growth
rate and its profit and sales also shows increasing trend during the study period. The SWOT
analysis discloses that the strength of FMCG sector in India is the low operating cost, huge
population is the opportunity, Lower scope of investing in technology especially of small scale
sectors is the major weakness and major threats are tax and regulatory structure of our country.
The company analysis done with the help of ratio analysis indicates that Hindustan Unilever Ltd.
and ITC Ltd. are financially in satisfactory position during the study period. When analyzing
profitability ratios of both companies Nestle is earning more profits than others. I have done the
analysis of 4 top companies of FMCG sector and came up with the result that ITC and Nestle
are going best according to some ratios that are: Current ratio, quick Ratio, Return on Equity
ratio and Return on assets but when I calculated ROE ratio of the companies given, Nestle was
the clear winner and according to Current and Quick Ratio , an ITC was clear winner. Well
clearly 4 major ratios are telling us that ITC and Nestle is best in ratios. So according to me
HUL is a good stock to pick as it pays good returns on equity and highest dividend payout ratio
in the industry and also this company comes under the good brand name i.e. Unilever. If one is
looking for couple of stocks then HUL, Nestle and Marico will be the best because ITC has
lowest and very bad return on equity.
54
RECOMMENDATIONS:
 The Government could regulate inflation rate which creates the path to the economic
development. Once the inflation rate is controlled the people have sufficient money and
they have a chance to invest their money in the securities market. The Government
should simplify the tax and regulations related with the FMCG. The government could
provide tax concession for rural marketers.
 An investor should be aware about economic condition, market condition, Government
policy and industrial policy, etc., they should analyze both internal as well as external
factors before going to invest in particular securities.
 The EV/ EBITDA of Nestle Ltd. is slightly higher. So this project recommends a buy
good stock. It is a good stock to pick as it pays good returns on equity and highest
dividend payout ratio in the industry and also this company comes under the good brand
name. The intrinsic value of ITC Ltd. Has lowest and very bad equity on shares. The
intrinsic value of Marico Ltd. is also good so its good to pick as it also good return on
equity than ITC.. The Intrinsic value of Hul is also good. So the share is recommended
for investment
CHAPTER-9
(BIBLIOGRAPHY)
55
BIBLIOGRAPHY
 https://njmnmims.medium.com/fmcg-the-indian-journey-37aefb1d889e
 https://www.reviewsxp.com/blog/fmcg-companies-in-india/
 https://www.mckinsey.com/industries/consumer-packaged-goods/our-insights/the-new-model-
for-consumer-goods
 https://www.businesstoday.in
 https://www.moneycontrol.com/
56
CHAPTER-10
(APPENDIX)
57
BALANCE SHEET OF HINDUSTAN UNILEVER (HUL)
BALANCE SHEET OF MAR 21 MAR 20 MAR 19 MAR 18 MAR 17
HINDUSTAN
UNILEVER (in Rs. Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND
LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 235.00 216.00 216.00 216.00 216.00
TOTAL SHARE CAPITAL 235.00 216.00 216.00 216.00 216.00
Reserves and Surplus 47,199.00 7,815.00 7,443.00 6,859.00 6,274.00
TOTAL RESERVES & 47,199.00 7,815.00 7,443.00 6,859.00 6,274.00
SURPLUS
TOTAL SHAREHOLDERS 47,434.00 8,031.00 7,659.00 7,075.00 6,490.00
FUNDS
NON-CURRENT
LIABILITIES
Long Term Borrowings 0.00 0.00 0.00 0.00 0.00
Deferred Tax Liabilities [Net] 5,986.00 0.00 0.00 0.00 0.00
Other Long Term Liabilities 2,304.00 1,269.00 804.00 666.00 574.00
Long Term Provisions 1,551.00 1,198.00 1,049.00 772.00 485.00
TOTAL NON-CURRENT 9,841.00 2,467.00 1,853.00 1,438.00 1059.00
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 0.00 0.00 0.00 0.00 000
Trade Payables 8,627.00 7,399.00 7,070.00 7,013.00 6,006.00
Other Current Liabilities 1,723.00 1,287.00 782.00 972.00 809.00
Short Term Provisions 491.00 418.00 501.00 651.00 387.00
TOTAL CURRENT 10,841.00 9,104.00 8,353.00 8,636.00 7,202.00
58
LIABILITIES
TOTAL CAPITAL& 68,116.00 19,602.00 17,865.00 17,149.00 14,751.00
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Tangible Assets 5,786.00 4,625.00 3,907.00 3,776.00 3,654.00
Intangible Assets 45,241.00 431.00 436.00 366.00 370.00
Capital Work-In-Progress 623.00 513.00 373.00 430.00 203.00
Other Assets 0.00 0.00 0.00 0.00 0.00
FIXED ASSETS 51,650.00 5,569.00 4,716.00 4,572.00 4,227.00
Non-Current Investments 312.00 252.00 256.00 256.00 260.00
Deferred Tax Assets [Net] 0.00 261.00 339.00 255.00 160.00
Long Term Loans And 520.00 453.00 396.00 404.00 352.00
Advances
Other Non-Current Assets 1,994.00 1,159.00 784.00 523.00 387.00
TOTAL NON-CURRENT 54,476.00 7,694.00 6,491.00 6,010.00 5,386.00
ASSETS
CURRENT ASSETS
Current Investments 2,683.00 1,248.00 2,693.00 2,855.00 3,519.00
Inventories 3,383.00 2,636.00 2,422.00 2,359.00 2,362.00
Trade Receivables 1,648.00 1,046.00 1,673.00 1,147.00 928.00
Cash And Cash Equivalents 4,321.00 5,017.00 3,688.00 3,373.00 1,671.00
Short Term Loans And 0.00 0.00 0.00 0.00 0.00
Advances
OtherCurrentAssets 1,605.00 1,961.00 898.00 1,405.00 885.00
TOTAL CURRENT 13,640.00 11,908.00 11,374.00 11,139.00 9,365.00
ASSETS
TOTAL ASSETS 68,116.00 19,602.00 17,865.00 17,149.00 14,751.00
PROFIT & LOSS ACCOUNT OF HINDUSTAN UNILEVER (HUL)
PROFIT & LOSS MAR 21 MAR 20 MAR 19 MAR 18 MAR 17
ACCOUNT OF
HINDUSTAN
UNILEVER (in Rs. Cr.)
INCOME
REVENUE FROM 45,311.00 38,273.00 37,660.00 34,619.00 33,895.00
OPERATIONS [GROSS]
Less: Excise/Sevice 0.00 0.00 0.00 693.00 2,597.00
Tax/Other Levies
REVENUE FROM 45,311.00 38,273.00 37,660.00 33,926.00 31,298.00
OPERATIONS [NET]
TOTAL OPERATING 45,996.00 38,785.00 38,224.00 34,525.00 31,890.00
REVENUES
Other Income 513.00 733.00 664.00 569.00 526.00
TOTAL REVENUE 46,509.00 39,518.00 38,888.00 35,094.00 32,416.00
EXPENSES
Cost Of Materials Consumed 14,951.00 11,572.00 13,240.00 12,491.00 11,363.00
Purchase Of Stock-In Trade 7,117.00 6,342.00 4,708.00 3,812.00 4,166.00
59
Operating And Direct 0.00 0.00 0.00 0.00 0.00
Expenses
Changes In Inventories Of -391.00 -121.00 12.00 -71.00 156.00
FG,WIP And Stock-In Trade
Employee Benefit Expenses 2,229.00 1,691.00 1,747.00 1,745.00 1,620.00
Finance Costs 108.00 106.00 28.00 20.00 22.00
Depreciation And 1,012.00 938.00 524.00 478.00 396.00
Amortisation Expenses
Other Expenses 10,766.00 9,701.00 9,880.00 9,272.00 8,538.00
TOTAL EXPENSES 35,792.00 30,229.00 30,139.00 27,747.00 26,261.00
PROFIT/LOSS BEFORE 10,717.00 9,289.00 8,749.00 7,347.00 6,155.00
EXCEPTIONAL,
EXTRAORDINARY
ITEMS AND TAX
Exceptional Items -227.00 -197.00 -227.00 -62.00 241.00
TAX
TAX EXPENSES-
CONTINUED
OPERATIONS
Current Tax 2,458.00 2,202.00 2,565.00 2,148.00 1,865.00
Less: MAT Credit 0.00 0.00 0.00 0.00 0.00
Entitlement
Deferred Tax 78.00 152.00 -79.00 -100.00 41.00
Tax For Earlier Years 0.00 0.00 0.00 0.00 0.00
TOTAL TAX EXPENSES 2,536.00 2,354.00 2,486.00 2,048.00 1,906.00
PROFIT/LOSS AFTER 7,954.00 6,738.00 6,036.00 5,237.00 4,490.00
TAX AND BEFORE
EXTRAORDINARY
ITEMS
PROFIT/LOSS FROM 7,954.00 6,738.00 6,036.00 5,237.00 4,490.00
CONTINUING
OPERATIONS
PROFIT/LOSS FOR THE 7,954.00 6,738.00 6,036.00 5,237.00 4,490.00
PERIOD
BALANCE SHEET OF ITC

ITC (in Rs. Cr.)
EQUITIES AND
LIABILITIES
SHAREHOLDER'S
FUNDS
Equity Share Capital 1,230.88 1,229.22 1,225.86 1,220.43 1,214.74
60
TOTAL SHARE 1,230.88 1,229.22 1,225.86 1,220.43 1,214.74
CAPITAL
TOTAL RESERVES & 56,067.18 60,777.76 54,725.99 50,179.64 44,126.22
SURPLUS
TOTAL 59,004.58 64,029.16 57,949.79 51,400.07 45,340.96
SHAREHOLDERS
FUNDS
NON-CURRENT
LIABILITIES
Deferred Tax Liabilities 1,727.73 1,617.65 2,044.14 1,917.94 1,871.70
[Net]
Other Long Term Liabilities 511.71 349.72 41.90 73.66 23.86
Long Term Provisions 157.07 143.79 132.64 121.91 131.37
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 0.00 0.00 0.00 0.00 0.01
Trade Payables 4,119.53 3,446.74 3,368.28 3,382.28 2,551.22
Other Current Liabilities 5,885.59 5,524.73 6,228.04 5,435.08 4,237.01
TOTAL CURRENT 10,174.17 9,089.41 9,621.56 8,856.60 6,830.07
LIABILITIES
TOTAL CAPITAL& 71,580.54 75,235.36 69,797.92 62,381.31 54,215.95
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Tangible Assets 19,216.75 19,612.74 17,945.65 15,120.00 14,469.32
Intangible Assets 2,581.52 519.45 540.75 445.99 410.92
Capital Work-In-Progress 3,329.97 2,776.31 3,391.47 5,016.85 3,491.33
Other Assets 376.56 385.36 0.00 0.00 0.00
FIXED ASSETS 25,508.30 23,297.75 21,887.76 20,591.57 18,417.26
Non-Current Investments 12,950.38 13,455.59 14,071.45 13,493.77 8,485.51
Long Term Loans And 2.37 3.31 6.21 7.40 5.84
Advances
Other Non-Current Assets 1,304.07 1,971.80 4,263.54 3,785.57 2,769.95
ASSETS
CURRENT ASSETS
Current Investments 14,046.71 17,175.02 12,506.55 9,903.45 10,099.78
Inventories 9,470.87 8,038.07 7,587.24 7,237.15 7,863.99
Trade Receivables 2,090.35 2,092.00 3,646.22 2,357.01 2,207.50
Cash And Cash Equivalents 4,001.50 6,843.27 3,768.73 2,594.88 2,747.27
Short Term Loans And 2.77 4.87 5.02 4.15 3.37
Advances
OtherCurrentAssets 2,203.22 2,353.68 2,055.20 2,406.36 1,615.48
TOTAL CURRENT 31,815.42 36,506.91 29,568.96 24,503.00 24,537.39
61
ASSETS
TOTAL ASSETS 71,580.54 75,235.36 69,797.92 62,381.31 54,215.95
PROFIT & LOSS ACCOUNT OF ITC
PROFIT & LOSS MAR 21 MAR 20 MAR 19 MAR 18 MAR 17

ACCOUNT OF ITC (in
Rs. Cr.)
INCOME
REVENUE FROM 48,151.24 46,323.72 45,221.41 43,956.90 55,001.69
OPERATIONS [GROSS]
Less: Excise/Sevice 3,039.43 1,187.64 788.74 3,702.23 15,359.78
Tax/Other Levies
REVENUE FROM 45,111.81 45,136.08 44,432.67 40,254.67 39,641.91
OPERATIONS [NET]
TOTAL OPERATING 45,485.11 45,619.70 44,995.65 40,627.54 40,088.68
REVENUES
Other Income 3,250.99 3,013.66 2,484.54 2,129.84 1,985.91
TOTAL REVENUE 48,736.10 48,633.36 47,480.19 42,757.38 42,074.59
EXPENSES
Purchase Of Stock-In Trade 6,896.40 4,289.71 4,300.32 2,991.98 3,566.57
Expenses
Changes In Inventories Of -526.86 -176.34 -180.14 1,041.85 644.17
Finance Costs 47.47 55.72 34.19 86.65 22.95
Depreciation And 1,561.83 1,563.27 1,311.70 1,145.37 1,038.04
Other Expenses 7,167.09 7,822.11 7,656.55 6,809.06 7,090.03
TOTAL EXPENSES 31,571.95 29,334.44 29,036.03 26,318.58 26,571.63
EXCEPTIONAL,
EXTRAORDINARY
ITEMS AND TAX
Exceptional Items 0.00 -132.11 0.00 412.90 0.00
TAX
TAX EXPENSES-
CONTINUED
OPERATIONS
Current Tax 4,035.36 4,441.97 5,849.24 5,599.83 5,285.65
Less: MAT Credit 0.00 0.00 0.00 0.00 0.00
Entitlement
Deferred Tax 97.15 -411.21 130.60 28.62 16.41
62
TOTAL TAX EXPENSES 4,132.51 4,030.76 5,979.84 5,628.45 5,302.06
TAX AND BEFORE
EXTRAORDINARY
ITEMS
PROFIT/LOSS FROM 13,031.64 15,136.05 12,464.32 11,223.25 10,200.90
CONTINUING
OPERATIONS
PERIOD
BALANCE SHEET OF NESTLE

BALANCE SHEET OF DEC 21 DEC 20 DEC 19 DEC 18 DEC 17
NESTLE INDIA (in Rs. Cr.)
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
TOTAL RESERVES AND 1,988.06 1,922.92 1,822.45 3,577.32 3,324.17
SURPLUS
FUNDS
NON-CURRENT LIABILITIES
Deferred Tax Liabilities [Net] 0.00 0.00 13.44 58.82 121.96
Long Term Provisions 3,284.54 3,268.27 2,906.91 2,464.92 2,291.59
LIABILITIES
CURRENT LIABILITIES
Trade Payables 1,889.66 1,809.01 1,626.58 1,240.37 984.64
Other Current Liabilities 568.45 574.46 478.51 457.32 420.61
TOTAL CURRENT 2,603.24 2,492.55 2,190.55 1,854.95 1,492.71
LIABILITIES
TOTAL CAPITAL AND 8,209.93 7,899.73 7,172.94 8,088.08 7,362.59
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2,993.97 2,179.41 2,341.45 2,400.62 2,616.18
Intangible Assets 0.00 0.00 0.00 0.00 0.00
Other Assets 0.00 0.00 0.00 0.00 0.00
63
FIXED ASSETS 3,240.20 2,817.99 2,484.75 2,505.82 2,710.34
Non-Current Investments 710.70 740.83 743.60 733.36 585.28
Long Term Loans And Advances 49.09 46.55 46.98 40.14 46.35
Other Non-Current Assets 1,445.34 89.36 80.44 71.81 83.23
ASSETS
CURRENT ASSETS
Current Investments 63.28 722.94 1,007.45 1,925.13 1,393.59
Inventories 1,580.22 1,416.48 1,283.07 965.55 902.47
Trade Receivables 165.27 164.93 124.33 124.59 88.97
Cash And Cash Equivalents 735.41 1,769.87 1,308.05 1,610.06 1,457.42
Short Term Loans And Advances 11.85 13.22 12.46 17.89 28.80
OtherCurrentAssets 182.73 97.64 81.81 93.73 66.14
TOTAL CURRENT ASSETS 2,738.76 4,185.08 3,817.17 4,736.95 3,937.39
TOTAL ASSETS 8,209.93 7,899.73 7,172.94 8,088.08 7,362.59
PROFIT & LOSS ACCOUNT OFNESTLE

PROFIT & LOSS DEC 21 DEC 20 DEC 19 DEC 18 DEC 17
ACCOUNT OF NESTLE
INDIA (in Rs. Cr.)
INCOME
REVENUE FROM 14,633.72 13,290.16 12,295.27 11,216.23 10,135.11
OPERATIONS [GROSS]
Less: Excise/Sevice Tax/Other 0.00 0.00 0.00 0.00 182.58
Levies
REVENUE FROM 14,633.72 13,290.16 12,295.27 11,216.23 9,952.53
OPERATIONS [NET]
TOTAL OPERATING 14,709.41 13,350.03 12,368.90 11,292.27 10,009.60
REVENUES
Other Income 120.11 145.85 246.88 258.92 176.92
TOTAL REVENUE 14,829.52 13,495.88 12,615.78 11,551.19 10,186.52
EXPENSES
Purchase Of Stock-In Trade 227.52 189.00 217.81 230.56 174.76
Expenses
Changes In Inventories Of -62.70 -69.33 -144.19 -6.01 -79.56
Finance Costs 201.19 164.18 129.12 111.95 91.90
Depreciation And 390.19 370.38 370.15 335.67 342.25
Other Expenses 3,301.60 2,959.70 2,936.05 2,856.56 2,481.11
TOTAL EXPENSES 11,709.25 10,683.09 9,942.29 9,122.24 8,347.22
64
EXCEPTIONAL,
EXTRAORDINARY
ITEMS AND TAX
Exceptional Items -236.50 0.00 0.00 0.00 0.00
TAX
TAX EXPENSES-
CONTINUED
OPERATIONS
Current Tax 744.39 763.42 747.00 884.87 649.17
Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00
Deferred Tax -5.48 -33.06 -41.95 -62.85 -35.06
TOTAL TAX EXPENSES 738.91 730.36 705.05 822.02 614.11
TAX AND BEFORE
EXTRAORDINARY
ITEMS
PROFIT/LOSS FROM 2,144.86 2,082.43 1,968.44 1,606.93 1,225.19
CONTINUING
OPERATIONS
PERIOD
BALANCE SHEET OF MARICO

MARICO (in Rs. Cr.)
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
TOTAL RESERVES & 2,877.00 2,734.00 3,360.00 2,912.10 2,795.19
SURPLUS
FUNDS
NON-CURRENT LIABILITIES
Deferred Tax Liabilities [Net] 0.00 0.00 0.00 18.05 9.75
Long Term Provisions 0.00 0.00 0.00 0.00 0.00
TOTAL NON-CURRENT 115.00 117.00 116.00 27.55 22.83
LIABILITIES
65
CURRENT LIABILITIES
Trade Payables 841.00 702.00 715.00 586.65 476.24
Other Current Liabilities 333.00 261.00 250.00 184.94 174.94
TOTAL CURRENT 1,332.00 1,131.00 1,153.00 951.15 815.94
LIABILITIES
TOTAL CAPITAL AND 4,482.00 4,136.00 4,758.00 4,019.89 3,763.01
LIABILITIES
ASSETS
NON-CURRENT ASSETS
Tangible Assets 632.00 669.00 610.00 465.55 473.91
Intangible Assets 26.00 21.00 22.00 20.11 21.58
Other Assets 11.00 11.00 11.00 23.43 23.86
FIXED ASSETS 683.00 756.00 685.00 533.70 527.29
Non-Current Investments 715.00 465.00 1,060.00 1,057.32 1,162.76
Long Term Loans And Advances 16.00 16.00 15.00 3.73 3.73
Other Non-Current Assets 83.00 103.00 96.00 90.66 66.01
ASSETS
CURRENT ASSETS
Current Investments 628.00 628.00 380.00 449.56 501.49
Inventories 873.00 1,165.00 1,234.00 1,313.18 1,082.96
Trade Receivables 310.00 465.00 430.00 288.15 227.61
Cash And Cash Equivalents 711.00 80.00 339.00 60.81 77.21
Short Term Loans And Advances 62.00 3.00 3.00 2.69 4.36
OtherCurrentAssets 225.00 307.00 328.00 220.09 109.59
TOTAL CURRENT ASSETS 2,809.00 2,648.00 2,714.00 2,334.48 1,990.77
TOTAL ASSETS 4,482.00 4,136.00 4,758.00 4,019.89 3,763.01
PROFIT & LOSS ACCOUNT OF MARICO
PROFIT & LOSS ACCOUNT OF MAR 21 MAR 20 MAR 19 MAR 18 MAR 17
MARICO (in Rs. Cr.)
INCOME
REVENUE FROM OPERATIONS 6,282.00 5,793.00 5,912.00 5,150.30 4,851.89
[GROSS]
Less: Excise/Sevice Tax/Other 0.00 0.00 0.00 10.91 18.13
Levies
REVENUE FROM OPERATIONS 6,282.00 5,793.00 5,912.00 5,139.39 4,833.76
[NET]
TOTAL OPERATING 6,337.00 5,853.00 5,971.00 5,170.41 4,850.75
REVENUES
Other Income 346.00 306.00 301.00 217.22 261.86
TOTAL REVENUE 6,683.00 6,159.00 6,272.00 5,387.63 5,112.61
EXPENSES
66
Purchase Of Stock-In Trade 267.00 138.00 109.00 73.46 169.44
Operating And Direct Expenses 0.00 0.00 0.00 0.00 0.00
Changes In Inventories Of FG,WIP 56.00 138.00 -101.00 -221.62 -47.44
And Stock-In Trade
Employee Benefit Expenses 374.00 308.00 307.00 274.27 250.92
Finance Costs 22.00 33.00 24.00 7.55 12.59
Depreciation And Amortisation 107.00 113.00 104.00 66.90 64.10
Expenses
Other Expenses 1,133.00 1,219.00 1,183.00 1,114.37 1,174.14
TOTAL EXPENSES 5,312.00 4,879.00 5,089.00 4,329.90 3,970.89
EXCEPTIONAL,
EXTRAORDINARY ITEMS AND
TAX
Exceptional Items -60.00 -19.00 0.00 -104.00 0.00
PROFIT/LOSS BEFORE TAX 1,311.00 1,261.00 1,183.00 953.73 1,141.72
TAX EXPENSES-CONTINUED
OPERATIONS
Current Tax 233.00 261.00 260.00 229.57 243.83
Less: MAT Credit Entitlement 0.00 0.00 0.00 0.00 0.00
Deferred Tax -28.00 -7.00 -18.00 5.93 55.50
Tax For Earlier Years 0.00 0.00 -188.00 0.00 -0.31
TOTAL TAX EXPENSES 205.00 254.00 54.00 235.50 299.02
PROFIT/LOSS AFTER TAX AND 1,106.00 1,007.00 1,129.00 718.23 842.70
BEFORE EXTRAORDINARY
ITEMS
PROFIT/LOSS FROM 1,106.00 1,007.00 1,129.00 718.23 842.70
CONTINUING OPERATIONS
PROFIT/LOSS FOR THE 1,106.00 1,007.00 1,129.00 718.23 842.70
PERIOD
67

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A PROJECT REPORT

MASTER OF BUSINESS ADMINISTRATION

Under the supervision: Submitted by:

Signature of Supervisor/ Guide

CHAPTER NO. TOPIC PAGE NUMBER

CHAPTER 1 a) Introduction to 1-24

CHAPTER 2 Review of Literature 25-27

CHAPTER 3 Problem of study and 28-29

CHAPTER 4 Research Methodology 30-31

CHAPTER 5 Data Analysis and 32-46

CHAPTER 6 Limitation of Study 47-48

CHAPTER 7 Finding of Research 49-50

CHAPTER 8 Conclusion and 51-52

CHAPTER 9 Bibliography 53-54

CHAPTER 10 Appendix 55-63

Overview of Fast Moving Consumer Goods (FMCG)

 . Top Seven Players in FMCG Sector (based on their revenue)

MARKET SHARE OF SEGMENTS AND LEADING COMPANIES

a) Indian Food and Beverages Market Size (USD Billion), 2015-2020F :

 INDIA FOOD AND BEVERAGES MARKET SIZE:

Market size (USD Billion)

b) Indian Household Market Size (USD Billion), 2015-2020F

 INDIA HOUSEHOLD MARKET SIZE:

c) Indian Healthcare Market Size (USD Billion), 2015-2020F

 INDIA HEALTHCARE MARKET SIZE:

 Indian FMCG Market Share by online Vs Offline (%) 2020F

INDIAN FMCG MARKET SHARE ONLINE VS OFFLINE

 Indian E-Tail Market Size (USD Billion), 2015-2020F Comparison

INDIAN E-TAIL MARKET SIZE

Market share (USD Billion)

 FMCG INDUSTRY REVENUE OVER YEARS (USD Billion)

FMCG REVENUE (USD Billion)

INDUSTRY CONTRIBUTION IN GDP OF INDIA

 Brand consciousness and the youth

 Goods and services tax

INDUSTRY EMPLOYMENT LEVEL

 FOUR COMPANIES MARKET CAPITALIZATION

The Reason for selecting this sector is to:

 The rate of growth is fixed

Founded Headquarter 1933

a) Principle Business of HUL Company:

PRICIPLE BUSINESS OF PRODUCTS

b) CEO/MD of HUL Company

CEO OF HUL Sanjiv Mehta

MD OF HUL Sanjiv Mehta

c) Market Share of HUL Company

MARKET SHARE OF HUL IN(%)

Market share 12%

ITC is one of India's foremost multi-business enterprises with a market capitalisation of

ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata,

a) Principle Business of ITC Company:

PRINCIPLE BUSINESS OF ITC PRODUCTS

b) CEO/MD of ITC Company

CEO OF ITC Sanjiv Puri

c) Market Share of ITC Company

Market Share of ITC In (%)

 NESTLÉ INDIA IN DETAIL

Formerly Anglo-Swiss Condensed Milk (1886-1867)

a) Principle Business of Nestlé Company

PRINCIPLE BUSINESS OF NESTLÉ PRODUCTS

b) CEO/MD of Nestlé Company

CEO OF NESTLÉ Suresh Narayanan

MARKET SHARE OF NESTLÉ In (%)