PRESENTATION ON FMCG INDUSTRY

OF INDIA
PRESENTED BY:
Chitkara Business School
RS4
EVALUATION ON FMCG INDUSTRY
MARKET SIZE OF INDUSTRY
Household Care
Personal Wash
Detergents
Personal Care
Skin Care
Hair Care
Shampoos
Oral Care
MARKET SIZE OF INDUSTRY..
Food & Beverages
Food Segment
Tea
Coffee

Growth Prospect
Large Market
MAJOR PLAYERS
Company Sales as on 31 March
2010
(US$ mn)
Product segment
Britannia Industries Ltd
785.5
Tiger, Good Day, Marie Gold
Colgate Palmolive India Ltd
408.8
Colgate, Palmolive, Axion, Dish
Wash
Dabur India Ltd 706.5
Dabur Amla, Vatika, Fem, Dabur
Gulabri, Dabur Chyawanprash,
Hajmola
GlaxoSmithKline Consumer
Healthcare India Ltd
421.9
Horlicks, Boost, Maltova, Eno, Iodex
Godrej Consumer Products Ltd
(GCPL)
425.2
Ezee, Godrej Dish Wash Cinthol,
Color Soft FairGlow, No 1,
KeshKala.
Gujarat Cooperative Milk Marketing
Federation (AMUL)
1,700
Amul
Hindustan Unilever Ltd.
3,700.8
Lakme, Lifebuoy, Lux, Pepsodent,
Sunsilk, Ponds, Rexona, Vaseline,
Fair and Lovely, Dove, Pears, Active
Wheel, Rin, Surf Excel.
Indian Tobacco Co. Ltd.
758.7
Aashirvaad, Sunfeast, Fiama Di
Wills, Vivel.
Nestl India Ltd.
1,068.6
Everyday, Nescaf, Classic, Maggi,
KitKat, Munch.
MARKET SHARE OF MAJOR PLAYERS
WWW.GHALLABHANSALI.COM

MARKET SHARE
HUL 36.4%
ITC 30%
Nestle 8.2%
Britania
6.0%
Dabur 4.3%
Others
15.1%
COMPANY Market share
Hindustan unliver
ltd.
36.4%
Indian tobacco
company
30%
Nestle 8.2%
Britania 6%
Dabur 4.3%
Others 15.1%
MAJOR CHALLENGES TO THE INDUSTRY
Inadequate distribution network.
High competition between large and small
players.
Taylor made products with attractive packaging.
Collaboration and partnership do work !!!
Reach and role of distribution.
Low price high quality, high price high quality or
low quality equivalent to price
Competent front end sales force.
Technology

GLOBAL PLAYER IN INDIA
Hindustan Unilever Limited
Procter & Gamble Limited (P&G)
Godrej Consumer Products Limited
(Godrej)
Dabur India Limited (Dabur)
Colgate-Palmolive (India) Limited
Nestle India Limited

MARKET SEGMENT
FOOD PRODUCTS IS THE LARGEST CONSUMPTION CATEGORY IN INDIA,
ACCOUNTING FOR NEARLY 21 PER CENT OF THE COUNTRYS GDP.
WWW.IBEF.ORG
Indian FMCG market segment
Baby Care 2%
Fabric Care 12%
Food Products 43%
Hair Care 8%
Household 4%
OTC Products 4%
Others 5%
Personal Care 22%
ADVANTAGE TO INDIA
WWW.GOOGLE.COM
Advantage
India
LARGE AND
GROWING YOUTH
POPULATION
EMERGENCE OF
ORGANISEDRETAIL
BUSINESS
GROWING
URBANISATION
INCREASING
DISPOSABLE
INCOME
SIGNIFICANT
INCREASE IN
CONSUMPTION
LEVELS
INFRASTRUCTURE
DEVELOPMENT
SWOT ANALYSIS OF FMCG INDUSTRY
STRENGTHS
Low operational costs
Presence of established distribution networks
in both urban and rural areas
Presence of well-known brands in FMCG
sector
WEAKNESSES

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

OPPORTUNITIES

Untapped rural market
Rising income levels, i.e. increase in
purchasing power of consumers
Large domestic market- a population of over
one billion.
Export potential
High consumer goods spending

THREATS

Removal of import restrictions resulting in
replacing of domestic brands.
Slowdown in rural demand
Tax and regulatory structure

TRENDS & PLAYERS
The Structure
Critical operating rules in Indian FMCG sector
Majority of the product classes require very low
investment in fixed assets
Existence of contract manufacturing
Marketing assumes a significant place in the
brand building process
Providing good price points is the key to
success

TOP EXECUTIVES OF FMCG COMPANIES
YOGESH CHANDER DEVESHWAR
Born on 4 Feb,1947
Chairman of ITC Limited
Education
Bachelor of Technology Degree in Mechanical Engineering
from the Indian Institute of Technology,Delhi in 1968
AMP Diploma from Harvard Business School, United States
Carrer
Honours & Awards
PAUL BULCKE
Born on 1954
CEO of Nestle on 20
th
Sep,2007
Education
graduated as a commercial engineer at the
Katholieke Universiteit Leuven and is an
alumnus of the Vlerick Leuven Gent
Management School. He also, attended the
program for Executive Development at the
Swiss leading business school International
Institute for Management Development, IMD in
Lausanne.

ROBERT A MCDONALD
Born on 20
th
June,1953
President & CEO of Procter & Gamble
Early Life & Carrer
Awards & Positions
In 2007, McDonald received the inaugural
Leadership Excellence Award from the U.S.
Naval Academy and Harvard Business
Review