A STUDY ON CAREER PROSPECTS

IN AN FMCG COMPANY

Submitted to

Prof .Anand Aivalli.

by

m.charan teja

1020219

Introduction:
Driven by the fast moving consumer goods (FMCG) and apparel segments, the Indian retail market which
is currently estimated to be around US$ 350 billion is expected to witness growth by nine per cent
annually touching US$ 521 billion by 2012. Bharti Retail President and Chief Operating Officer (COO),
Vinod Sawhny, speaking during an industry event, said, "FMCG and apparel sectors contribute the
maximum to the growth of the retail market in India." He added, "FMCG in particular has a huge
potential to grow... and this will ensure a growth rate of nine per cent year-on-year for the retail sector,
which is likely to touch US$ 521 billion by 2012."

Meanwhile, retail companies in India are seeing their margins from FMCG companies go up from 14-15
per cent to 17-19 per cent as they compete for shelf space with retailers private labels. Some FMCG
companies say that as retailers acquire scale, they also deliver supply chain efficiency and organized
scale. The Indian food market, which at US$ 182 billion accounts for about two thirds of the total Indian
retail market, has seen the entry of Yum! Restaurants which announced it will invest up to US$ 150
million (about Rs 700 crore) in India where it will compete with companies in India such as Nirulas and
Haldiram in the country's organized food and beverage retail sector.

In a recent development that is seen as the global emergence of the Indian FMCG sector, the consumer
care and lighting division of Wipro announced its acquisition of the Yardley business in Asia, Middle
East, Australasia and certain African markets for US$ 45.5 million from the United Kingdom-based
Lornamead Group. Meanwhile the IT division of Wipro, Wipro Technologies, joined some large IT
companies in India, including Tata Consulting Services (TCS) and Infosys, in beating estimates for the
second quarter of the year 2009. IT companies in India are also seeing the return of big deals with HCL
Technologies, Wipro, and Infosys bagging significant deals so far in 2009. 

The companys information technology arm, Wipro Technologies, meanwhile saw its second quarter
profits rise 19 per cent to Rs1,162 crore, beating analysts estimates. This increase in profits for the
company come on the back of significant overseas deal wins and improved demand for services in the
United States. Indian information technology companies, Infosys and TCS also posted strong second
quarter results and forecast higher growth. In the sphere of (informational technology enabled services)
ITeS, Infosys BPO has acquired the US company McCamish for an upfront consideration of US$38
million.
India’s top-ranking status in the field of basic research came in for mention at the India Eco Summit held
recently, where the panelists discussed whether, and how, India could become an innovation hub in the
near future, given India’s strengths in science and technology and research and development. The
governments of Australia and India have launched a US$ 100 million collaboration project on science and
technology including green technology to combat the challenges in water, energy, health and environment
as a result of climate change.

Scope of FMCG sector in India: 

FMCG (Fast Moving Consumer Goods) sector is one of the strongholds and the fourth largest sector in
Indian economy. It is long established and over the years, sustaining ups and downs of the Indian
economy. It has total market size of around 14 billion US$. This is one outstanding achievement in
itself.

Careers Working With Fast Moving Consumer Goods:

The Fast Moving Consumer Goods (FMCG) sector has maintained its status as the industry of choice for
the latest batch of management graduates, with 54 percent of students graduating in 2011 voting it their
most preferred industry in the latest Nielsen Campus Track–B School Survey. FMCG also tops the list of
industries seen to have bright prospects. Other industries that enjoy student preference and complete the
list of top 5 sectors of choice are Management Consulting (40%), Investment Banks (27%), Oil & Energy
(23%) and Foreign Banks (23%).

Compared to the previous year, FMCG has seen the highest rise in preference and Management
Consulting and Investment Banking have followed suit. Oil & Energy, Diversified Conglomerates and the
Automobile Sector have entered the top 10, edging out Financial Institutions, Entertainment/ Media and
Indian Banks which were previously on the top 10 list.

“A diversification of sectoral preference, coupled with a resurgence of sectors like management

consulting and investment banking companies is symptomatic of greater optimism within the prospective
talent pool. However, there is still a ‘flight to stability’ with sectors and employers that are seen to offer
greater resilience during downturns gaining greater preference” said Surekha Poddar, Executive Director,
The Nielsen Company.
In its eleventh year, the Nielsen Campus Track B-School Survey gauges students’ perceptions of
companies and their considerations as they evaluate prospective employers. 860 soon-to-be graduates
from 30 of India’s leading management institutes were interviewed.

According to the Nielsen study, Google has moved up from the 2nd position last year to emerge as the
employer with the strongest image; TAS, HUL and P&G follow with minimal difference between them.
Last year’s topper McKinsey has moved to 5th place in the current year.

Drivers of choice
Among various factors that were cited by students for driving their decision to choose a company, growth
prospects and the degree of independence take marginal precedence over the salary offered. The job
content, market standing of the company and the perceived opportunity to learn from top talent are also
critical dimensions for students evaluating future employers.

“A company’s size and strength in its domain along with a perceived boost to social status/ market value
are seen to be aspects that, while not directly stated among the top factors work at a subliminal level to
improve a company’s overall image and the preference for it,’ said Poddar.

The average salary expected by students from their “dream company” has increased by INR 1 lakh, to
INR 16 lakh this year. The average salary expectation for overseas placements is INR 29 lakh.

“This year, the proportion of students expecting an offer of less than INR 10 Lakh has seen a significant
decline indicating stronger confidence in the economy and a more buoyant job market,’ said Poddar.

According to the Nielsen survey, students rely most on their own experiences (summer training) or
experiences from their seniors to be the most credible sources of information about a company followed
by the pre-placement talk. Among the on-campus activities undertaken by companies, the ones most
appreciated by students are case study presentations (69%), interactive sessions with key industry
personalities (57%) followed by guest lectures (51%). Awards, contests and sponsorships have lesser
appeal.

More than 2/3rd students plan to move out of their first job within four years. Better career options, better
position/designation and higher pay are the main reasons for moving out of the first job.