FMCG An Overview

They are the products which are:

Sold

quickly at relatively low cost Sold in large quantities Have Low absolute profit but high cumulative profit Examples: Glassware, batteries, plastic products, cosmetics, etc.

FMCGUnscathed and Growing Despite Recession

resilient to the economic slowdown and dip in consumer sentiment*

FMCG

One of the very few sectors undergoing M&A (Merger and Acquisition) in recent times** Indias rural-market untapped, underpenetrated** Expansion of Marico and Godrej consumer products in West Asia, South Africa and Egypt**
*- Business Standard **- Economic Times

Top 10 Players in FMCG Sector (India)

1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

Hindustan Unilever Limited ITC (Indian Tobacco Company) Nestle India GCMMF (Amul) Dabur India Asian Paints (India) Cadbury India Britannia Industries Procter and Gamble Marico Industries

Hindustan Unilever Limited

Founded in 1933, its now Indias largest consumer products company Turnover in 2007: 13,000 Crores; Total Employment: 15,000 Brands: Axe, Breeze, Close-Up, Knorr, Rexona, Kissan, Kwality Walls, Brooke Bond, Lakme, Annapurna, Surf Excel, Fair & Lovely, Lifebuoy, Lux etc.

Continued
In

December 2008, HUL registered Sales growth and its FMCG growth by 17% and 21% respectively Food Business -- Beverages, processed food, and ice cream growth: 23% Amongst 4 Indian companies to be in the list of Leading Global Enterprises* * - Hewitt Survey

Shakti
HUL

launched an ambitious project Shakti in 2001. It spans 15 states, 1,35,000 villages, and reaches 150 million rural consumers Also has 45,000 women entrepreneurs in its fold Estimates: 100,000 Shakti entrepreneurs; garbing 500,000 villages; reaching out to 600 million people in the country by 2010

Lifebouy Swasthya Chetana

Also

launched by HUL, in 2002. Successfully propagated the initiative of rural health and hygiene Stressed on the importance of washing hands with soap, which helped in reducing diarrhoea Has touched 50,676 villages; 12 Crore people in UP, MP, Maharashtra, West Bengal, Bihar and Karnataka.

I.T.C.

1.) THE COMPANY WAS FOUND IN THE YEAR 24TH AUGUST, 1910. 2.) IT WAS ESTABLISHED AT RADHA BAZAAR LANE KOLKATA. 3.) IN THE YEAR 1974 THE COMPANY TRANSFORMED ITS NAME. 4.) THE COMPANY BASICALLY STARTED WITH THE MANUFACTURING OF ITEMS WHOLLY BASED OF TOBACCO.

EVOLUTION OF ITC

THE FIRST SIX DECADES DEVOTED ONLY TO CIGARETTES AND LEAF BASED PRODUCT. THE MAJOR CORPORATE TRANSFORMATION CAME IN THE LATE 70S. THE COMPANY DIVERSIFIED INTO ENDLESS BUSINESSES. THE COMPANY CURRENTELY HEADED BY Y.C. DEVESHWAR. THE COMPANY IS OVERFLOWING REVENUES OF $4 BILLION. THE ORGANISATION HAD ALSO MADE IT TO THE FORTUNE GLOBAL 2000 LIST.

RECESSION IS A BANE BUT FMCG IS A BOON.

CAGR
0.3 0.25 0.2 0.15 0.1 0.05 0 0 1 2 3 4 5 0 0 0 24% 18% 19% 15%

RURAL INITIATIVE

THE FIRM IS RUNNING AN AGRI-BUSINES COVERING COUNTLESS VILLAGES. THE FIRM WITH ITS OBJECTIVE OF MAXIMIZING THE PROFIT, CONTRIBUTING TO THE GROWTH OF VILLAGES. THE COMPANY IS ALSO THE BIGGEST EARNER OF FOREIGN EXCHANGE($2 BILLION) FOR THE GOVERNMENT. THE COMPANY THROUGH THIS HELPING TO DEVELOP A DESIRED RURAL INFRASTRUCTURE FOR THE COUNTRY. IN REGARD TO THIS THE COMPANY LAUNCHED A PROGRAMME NAMED ECHAUPAL FOR THE BETTERMENT OF THE VILLAGES.

RIVALS OF ITC
miscll, 27% unilever, 25% unilever nestle britannia itc itc, 13% miscll nestle, 20% britannia, 15%

CORPORATE PHILANTHROPY

E-CHAUPAL IS A RURAL INITAITIVE TO BRING CLOSER THE ALREADY DISSECTED FARMERS. WALKING ON ITS MOTO IT IS CONSISTENTLY DEVELOPING A META MARKET THAT WILL EMPOWER THE FARMERS TO TRANSACT AT BETTER PRICES. THE E-CHAUPAL INITIATIVE SPANS AROUND 6400 CHAUPALS, 8 STATES AND MORE THAN 4 MILLION FARMERS IN ABOUT 40,OOO VILLAGES. THE OBJECTIVE IS TO ACHIEVE 20,OOO CHAUPALS AND 700 SAGARS TO REACH 10 MILLION FARMERS IN 1 LAKH VILLAGES BY 2010.

CONT..

THE E-CHAUPAL WORKS ON 4 SIMPLE CONCEPT-

1.) ELIMINATION OF THE NON VALUE ADDED ITEMS. 2.) VALUE ADDED PRODUCT TRACEABLE THROUGH FARM PRACTICES. 3.) E-MARKET PLACE FOR SPOT TRANSACTIONS AND SUPPORT SERVICES FOR FUTURE EXCHANGE. 4.) DIFFERENTIATED PRODUCT THROUGH IDENTITY PRESERVE SUPPLY CHAIN.

Nestl
Originally

founded in Switzerland, it truly arrived in India in 1961 Has a total of 7 factories in States such as Haryana, Tamil Nadu, Goa and Uttarakhand Well known products include the quintessential Maggi Noodles, Nescaf, Kit Kat, Bar-One and Milkmaid

Maggi Maggi
Although

the noodle brand is generic, its other products include instant soup, sauce and ketchup Well known in South Africa, Brazil, Australia, New Zealand, Malaysia, Singapore and Philippines Two-minute noodles has become synonymous with the brand in India and Malaysia

Nescaf
Portmanteau

of Nestl and caf; was introduced in 1938. Now the most popular coffee brand in India and the World Popular variants include Necaf Classic, Nescaf Sunrise, Nescaf Cappuccino and Nestea and many more.ssssssssssssssssssssssssssssssssssssssssssss ssssssssssssssssssssssssssssssssssssssssssssssssss

Moga Revolution

Nestl arrived and established itself in the Moga village of Punjab in 1961 Currently, farmers in excess of 85,000 are employed, Milk Collection Centre, among other things, has been established Also introduced is the tuberculosis clinic for the villagers; milk machines, fodder seeds, veterinary medicines, and procurement of bank loans for the farmers has become easier