FMCG Sector

y Stock Exchange
y Prof. Anita Bobade
y Present By : y Name

Roll No. y Dinesh Bhatavkar 07 y Santosh Cholake 13 y Manoj Chorge 14 y Rupesh Talawdekar 48

1

WHAT IS FMCG?
FMCG stands for Fast Moving Consumer Goods. FMCG Products and Categories. Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps). Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper products.  Household care fabric wash including laundry soaps and synthetic detergents; household cleaners, such as dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellents, metal polish and furniture polish.  Frequently replaced electronic products, such as audio equipments, digital cameras, Laptops, CTVs; other electronic items such as Refrigerator, washing machines, etc. coming under the category of White Goods in FMCG. 
  
2

FACTORS MAKE INDIA A COMPETITIVE PLAYER IN FMCG SECTOR

y FMCG is the fourth largest sector of the Indian

Economy y Main Characteristics of FMCG Sector :
y Well established distribution Network y Intense competition y Wide range of products

y Presence across value chain y Availability of raw materials y Low cost labor
3

THE TOP 10 COMPANIES IN FMCG SECTOR 
Hindustan Unilever Ltd.  ITC (Indian Tobacco Company)  Nestle India  GCMMF (AMUL)  Dabur India  Asian Paints (India)  Cadbury India  Britannia Industries  Procter & Gamble Hygiene and Health Care  Marico Industries.
4

SWOT ANALYSIS
y Strengths : y Low operational costs y Presence of established distribution networks in both urban and rural areas y Presence of well-known brands in FMCG sector y Weaknesses : y Lower scope of investing in technology and achieving economies of

scale, especially in small sectors
Low exports levels y "Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG y products in rural and semi-urban market.
y
5

SWOT ANALYSIS
y Opportunities: y Untapped rural market y Rising income levels, i.e. increase in purchasing power of consumers y Large domestic market- a population of over one billion. y Export potential y High consumer goods spending y Threats: y Removal of import restrictions resulting in replacing of domestic brands y Slowdown in rural demand y Tax and regulatory structure

6

ITC Limited
y ITC was incorporated on August 24, 1910 under the name

Imperial Tobacco Company of India Limited and then to I.T.C. Limited in 1974

y In 1970 CO. Name Changed to India Tobacco Company Limited y Company's multi-business portfolio encompassing a wide range

of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agribusiness, Foods, Lifestyle Retailing, Education & Stationery and Personal Care

y Market capitalisation of nearly US $ 18 billion and a turnover of

over US $ 5 billion.

7

Exemplary Contribution

8

ITC - Product Range

9

SALES & PBIT MIX

10

ITC on Stock Market

11

Hindustan Unilever Ltd.
y Hindustan Unilever Limited (HUL), earlier called Hindustan

Lever Limited (HLL) was established in 1933 as Lever Brothers India Limited.
y HUL is India's largest FMCG Company, with a customer base of 2

out of every 3 Indian in the category of Home & Personal Care Products and Foods & Beverages.
y The company has combined volumes of about 4 million tonnes

and sales of Rs.10, 000 crores.
y HUL is also one of the country's largest exporters; the

Government of India has recognized HUL as a Golden Super Star Trading House.
12

13

14

HUL on Stock Market

15

Quarterly Performance

16

Ratio Analysis of FMCG
COMPANIES HUL Asian paints Britannia ITC Dabur Marico EPS 11.46 37.78 75.51 8.65 4.32 2.33 Inventory turnover 9.26 9.8 14.54 5.51 10.94 8.22 Debtors turnover 20.95 16.02 64.88 21.32 22.63 37.42 D/E 0.2 0.06 0.03 0.01 0.19 0.84 Current PAT% ROCE% EBIT% ratio 0.89 11.4 122.83 13.86 1.03 7.97 49.35 12.39 0.84 5.75 25.29 6.08 1.42 29.18 34.61 28.38 1.19 17.19 47.98 17.11 1.48 7.35 38.8 13.06

17

Compare with Sensex

18

CONCLUSION
y HUL's up-and-running business model is a treat for investors

seeking exposure in the FMCG segment. The company has delivered in the past and has the potential to do better in future. In the small and medium term, ITC's growth story is still evolving.
y ITC is eyeing the pie which HUL and other FMCG players

currently enjoy. Though risky, the company's business model will pay off in the long run. ITC has proved its expertise in the cigarettes, hotels, paper and agri-businesses. Investors who want to bank on its execution ability in FMCG can consider the stock with a long-term horizon.
19

RECOMMENDATIONS
y According to us the companies should continue with

their CSR and also continue with their strategies.
y The thing need to be changed is that, ITC should go

for more diversification in Non cigarette segment (FMCG)
y HUL should come up with the new strategies that

could take the new product forward to create a new segment. y A common recommendation for both is that they should focus on rural area more.
20

BIBLIOGRAPHY
y Web Sites :
y Investopedia.com y Itcportal.com y HUL.co.in y Moneycontrol.com y Articalesbase.com

21

22