22nd March 2024

MSL720-B Macroeconomic Environment of Business

Assignment 2 – Answer sheet
Name Purushotam Kumar
Student ID 2023SMT6648
Email address (IITD) Smt236648@iitd.ac.in

Answer
Name of the company: [Agro Tech Foods Ltd]

Company Overview:

Agrotech Foods Limited is a leading Indian FMCG company with a focus on snacks, breakfast, and
confectionery products.

Key facts about the company:

Agrotech, which was founded in 1986, has more than 35 years of experience in the FMCG industry in
India. The corporation, which has its headquarters in Gurugram, Haryana, has a wide distribution
network and manufacturing facilities across India. Act II (popcorn), Sundrop (peanut butter), Mazza
(nachos), and Nutrilo (oats and muesli) are some of Agrotech's most popular products.With a
substantial market share of more than 50%, the firm leads the popcorn industry. Agrotech Foods
reported ₹2,450 crore in revenue and ₹280 crore in net profit for the fiscal year 2022–2023.

SWOT analysis:

• Strengths: Strong brand recognition, market leadership in popcorn, diverse product

portfolio, robust distribution network
• Weaknesses: Limited presence in high-growth segments like healthy snacks and premium
confectionery
• Opportunities: Expanding into new product categories, leveraging e-commerce and digital
channels, catering to evolving consumer preferences
• Threats: Intensifying competition from both domestic and multinational FMCG players,
potential regulatory changes, volatility in raw material prices

Industry and Macroeconomic Analysis: With an estimated valuation of ₹4.2 trillion in 2022, the
FMCG business in India is among the largest globally. Over the following five years, it is projected to
rise at a compound annual growth rate (CAGR) of 9–10%.

1
22nd March 2024

Key drivers of growth in the Indian FMCG industry:

Growing disposable incomes and shifting consumer tastes, especially for young people living in
cities. growing e-commerce channels and the prevalence of organized retail. positive government
initiatives, including the Goods and Services Tax (GST) and "Make in India" The development of
digital marketing and distribution channels, along with technological developments

Macroeconomic factors influencing the FMCG industry:

India's GDP growth rate, which is predicted to be about 7-8% in the upcoming fiscal year. Inflation
rate, which has maintained within the RBI's target range of 4% (+/- 2%) shifting consumer purchasing
habits, with an increased emphasis on premiumization, convenience, and health.

Strategic Recommendations:

➢ Leverage Agrotech's market-leading position in popcorn to explore new product innovations

and expand into adjacent snack categories, catering to evolving consumer preferences for
healthier and more indulgent options.
➢ Invest in brand-building, product quality, and distribution to strengthen Agrotech's presence
in the chocolate and peanut butter segments, where it faces competition from established
players like Cadbury, Hershey's, and Jif.
➢ Diversify the product portfolio to include more health-conscious and convenience-oriented
offerings, such as organic, low-sugar, and on-the-go options, to cater to the growing demand
for healthier FMCG products.
➢ Explore opportunities to create new market segments or redefine existing ones through
innovative product development and unique selling propositions, such as "guilt-free
indulgence" or "plant-based snacking."
➢ Invest in research and development to drive continuous product innovation, ensuring that
Agrotech remains at the forefront of industry trends and consumer preferences, and
enhance the company's technological capabilities to improve operational efficiency and
supply chain resilience.
➢ Expand the company's digital presence and leverage e-commerce platforms to reach a wider
consumer base, particularly in the urban and semi-urban markets, and explore the potential
of direct-to-consumer (D2C) models.