Overview of Fmcg Sector

An Overview of the FMCG intentness in India chillibreeze writer Shital Vakhariya Looking for to a greater extent info contain our much oecumenical report of the same at India-Reports Read much ab bulge out Discount sell What atomic number 18 Fast woful Consumer Goods (FMCG)? Products which contract a quick turnoer, and relatively first base toll be known as Fast Moving Consumer Goods (FMCG). FMCG products argon those that compensate replaced within a year.Ex axerophtholles of FMCG gener wholey accommodate a wide range of frequently purchased consumer products much(prenominal) as toiletries, soap, cosmetics, tooth cleaning products, splinter products and detergents, as well as other(a) non-dur up to(p)s such as glassw ar, bulbs, batteries, paper products, and charge plate goods. FMCG may also include pharmaceuticals, consumer electronics, encase food products, passel worry drinks, tissue paper, and umber bars. A subset of FMCGs atomic number 18 Fast Moving Consumer Electronics which include innovative electronic products such as mobile ph sensations, MP3 players, digital cameras, GPS Systems and Laptops.These atomic number 18 replaced more frequently than other electronic products. White goods in FMCG refer to planetary house electronic items such as Refrigerators, T. Vs, symphony Systems, etc. In 2005, the Rs. 48,000-crore FMCG segment was one of the fast maturation industries in India. fit in to the AC Nielsen India study, the industry grew 5. 3% in respect between 2004 and 2005. Indian FMCG empyrean The Indian FMCG sector is the tail outsizedst in the economy and has a merchandise surface of US$13. 1 gazillion. Well-established diffusion networks, as well as intense contention between the organised and unorganised segments are the characteristics of this sector.FMCG in India has a strong and competitory MNC aim across the entire repute chain. It has been predicted that the FMCG market will reach to US$ 33. 4 bill ion in 2015 from US $ billion 11. 6 in 2003. The affectionateness class and the boorish segments of the Indian initiation are the most promising market for FMCG, and give brand brandrs the opportunity to convince them to branded products. Most of the product categories kindred jams, toothpaste, skin care, washs, etc, in India, have scummy per capita consumption as well as first penetration level, but the authorisation for growing is huge.The Indian Economy is inflate ahead by leaps and bounds, postponementing whole tone with rapid urbanization, increased literacy levels, and rising per capita income. The bighearted firms are growing bigger and nickel-and-dime companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the top light speed brands are owned by MNCs, and the balance by Indian companies. Fifteen companies own these 62 brands, and 27 of these are owned by Hindustan Lever. Pepsi is at number three followed by Thums Up. Britann ia takes the fifth place, followed by Colgate (6), Nirma (7), Coca-Cola (8) and Parle (9).These are figures the soft drink and cigarette companies have unceasingly shied away from revealing. Personal care, cigarettes, and soft drinks are the three biggest categories in FMCG. Between them, they handbilling system for 35 of the top 100 brands. represent I THE TOP 10 COMPANIES IN FMCG SECTOR S. NO. Companies 1. Hindustan Unilever Ltd. 2. ITC (Indian Tobacco Company) 3. nose India 4. GCMMF (AMUL) 5. Dabur India 6. Asiatic Paints (India) 7. Cadbury India 8. Britannia Industries 9. Procter & vitamin A Gamble hygienics and wellness Care 10. Marico Industries Source Naukrihub. comThe companies mentioned in Exhibit I, are the leaders in their respective sectors. The individual(prenominal) care family has the largest number of brands, i. e. , 21, inclusive of Lux, Lifebuoy, Fair and Lovely, Vicks, and Ponds. at that place are 11 HLL brands in the 21, aggregating Rs. 3,79 9 crore or 54% of the personal care family unit. Cigarettes account for 17% of the top 100 FMCG sales, and exclusively below the personal care syndicate. ITC solely accounts for 60% volume market consider and 70% by value of all filter cigarettes in India. The foods category in FMCG is gaining popularity with a swing of launches by HLL, ITC, Godrej, and others.This folk has 18 major(ip) brands, aggregating Rs. 4,637 crore. Nestle and Amul smoke it out in the powders segment. The food category has also seen innovations like softies in folderol creams, chapattis by HLL, ready to eat sift by HLL and pizzas by two GCMMF and Godrej Pillsbury. This category seems to have faster development than the stagnating personal care category. Amul, Indias largest foods connection, has a good presence in the food category with its ice-creams, curd, milk, butter, cheese, and so on. Britannia also ranks in the top 100 FMCG brands, dominates the biscuits category and has launched a series o f products at various prices.In the theater care category (like mosquito repellents), Godrej and Reckitt are two players. Goodknight from Godrej, is worth above Rs 217 crore, followed by Reckitts Mortein at Rs 149 crore. In the shampoo category, HLLs Clinic and Sunsilk make it to the top 100, although PampGs Head and Shoulders and Pantene are also hard hard to be positioned on top. Clinic is approximately double the surface of Sunsilk. Dabur is among the top phoebe bird FMCG companies in India and is a herbal specialist. With a turn over of Rs. 19 billion (approx.US$ 420 million) in 2005-2006, Dabur has brands like Dabur Amla, Dabur Chyawanprash, Vatika, Hajmola and Real. Asian Paints is enjoying a unnerving presence in the Indian sub-continent, atomic number 34 Asia, Far East, Middle East, South Pacific, Caribbean, Africa and Europe. Asian Paints is Indias largest paint company, with a turnover of Rs. 22. 6 billion ( approximately USD 513 million). Forbes Global magazine, USA, bedded Asian Paints among the 200 Best Small Companies in the World Cadbury India is the market leader in the chocolate confectionery market with a 70% market share and is ranked number two in the sum of money food drinks market.Its popular brands include Cadburys dairy Milk, 5 Star, Eclairs, and Gems. The Rs. 15. 6 billion (USD 380 Million) Marico is a leading Indian group in consumer products and services in the Global kayo and Wellness space. Scope Of The Sector The Indian FMCG sector with a market size of US$13. 1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the unionized and unorganized segments characterize the sector. FMCG Sector is anticipate to grow by over 60% by 2010. That will translate into an yearbook growth of 10% over a 5-year period.It has been estimated that FMCG sector will elevate from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, ma le grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. though the sector witnessed a slower growth in 2002-2004, it has been open to make a fine recovery since then. For example, Hindustan Levers expressage (HLL) has shown a healthy growth in the tolerate quarter. An estimated double-digit growth over the next fewer daylights shows that the good times are likely to continue.Growth Prospects With the presence of 12. 2% of the world population in the villages of India, the Indian boorish FMCG market is something no one digest overlook. Increased focus on promote sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. rectify infrastructure facilities will meliorate their provide chain. FMCG sector is also likely to clear from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth.And if the companies are able to change the mindset of the consumers, i. e. if they are able to take the consumers to branded products and offer naked as a jaybird generation products, they would be able to sire higher growth in the come future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas produce their position in terms of consumption.At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, inc luding skin care, household care and feminine hygiene, will keep growing at relatively attractive(a) rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas. Indian fighting and Comparison with the World MarketsThe following factors make India a competitive player in FMCG sector? Availability of blunt materials Because of the different agro-climatic conditions in India, there is a large raw material base sufficient for food processing industries. India is the largest producer of livestock, milk, sugar atomic number 50e, coconut, spices and cashew tree and is the second largest producer of rice, wheat and fruits &vegetables. India also produces caustic tonic water and soda ash, which are required for the production of soaps and detergents. The availability of these raw materials gives India the location advantage. Labor damage comparison Low embody sweat gives India a competitiv e advantage. Indias labor cost is amongst the lowest in the world, after mainland China amp Indonesia. Low labor cost give the advantage of low cost of production. Many MNCs have established their plants in India to outsource for domestic and export markets. ? nominal head across value chain Indian companies have their presence across the value chain of FMCG sector, right from the supply of raw materials to packaged goods in the food-processing sector. This brings India a more cost competitive advantage.For example, Amul supplies milk as well as dairy products like cheese, butter, etc. Strategic Intent We designate to significantly accelerate profitable growth. To do this, we will * Focus on growing our core brands across categories, reaching out to new geographies, within and outside India, and improve operational efficiencies by leveraging engine room * Be the preferred company to assume the health and personal grooming demand of our target consumers with safe, efficacious, natural solutions by synthesizing our mysterious knowledge of ayurveda and herbs with modern science * win our consumers with innovative products ithin easy reach * defecate a platform to enable Dabur to constitute a global ayurvedic leader * Be a professionally managed employer of choice, attracting, developing and retaining musical note personnel * Be responsible citizens with a commitment to environmental protection * suffer superior returns, relative to our peer group, to our shareholders * Dabur India expressage * Dabur India Limited is Indias leading FMCG company with interests in health care, personal care and foods. Dabur has a history of more than 100 years and the company has carved a turning point for it self in the field of Ayurvedic medicines.The products of Dabur are marketed in more than 50 countries worldwide. The company has 2 major strategic business organization units (SBU) Consumer Care Division (CCD) amp Consumer Health Division (CHD), and 3 Subsidiary group companies Dabur Foods, Dabur Nepal and Dabur International. Dabur International has 3 step down subsidiaries Asian Consumer Care in Bangladesh, African Consumer Care in Nigeria and Dabur Egypt. The origin of Dabur can be traced back to 1884 when Dr. S. K. Burman started a health care products manufacturing facility in a small Calcutta pharmacy.In 1896, as a provide of growing popularity of Dabur products, Dr. Burman set up a manufacturing plant for mass production of formulations. In early 1900s, Dabur entered the specialized area of character based Ayurvedic medicines. In 1919, Dabur established search laboratories to develop scientific processes and quality checks. In 1936, Dabur became a full-fledged company with the spend a penny Dabur India (Dr. S. K. Burman) Pvt Ltd. Dabur shifted its operations to Delhi in 1972. Dabur became a humanity Limited Company in 1986 and Dabur India Limited came into existence after reverse optical fusion with Vidogum Limited.In 1992, Dabur entered into a joint venture with Agrolimen of Spain to fashion and market confectionary items in India. In 1994, Dabur raise its first IPO. In 1998, day to day running of the company was handed over to professionals. In 2000, Dabur achieved a turnover of Rs molarity crores. In 2005, Dabur acquired Balsara. Dabur crossed $ 2 billion market cap in 2006. around of the well-known brands of Dabur are Amla Chyawanprash, Hajmola, Lal Dantmanjan, Nature Care, Pudin Hara, Babool Toothpaste, Hingoli, Dabur Honey, Lemoneez, Meswak, Odonil, Real, RealActiv and Vatika.