Fmcg

PRESENTATION ON FMCG INDUSTRY OF INDIA

PRESENTED BY: RS4

MARKET SIZE OF INDUSTRY

Household Care Personal Wash Detergents

Personal Care Skin Care Hair Care Shampoos Oral Care

Food & Beverages Food Segment Tea Coffee

Growth Prospect Large Market

MAJOR PLAYERSCompany 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.

Nestlé India Ltd. 1,068.6 Everyday, Nescafé, Classic, Maggi, KitKat, Munch.

MARKET SHARE OF MAJOR PLAYERS

MARKET SHARE

HUL 36.4%ITC 30%Nestle 8.2%Britania 6.0%Dabur 4.3%Others 15.1%

COMPANY Market share

Hindustan uniliver 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, role, of distribution and pricing. Low price high quality. Competent front end sales force.

GLOBAL PLAYER IN INDIA

Hindustan Unilever Limited Procter & Gamble Hygiene &

Health Care Limited (P&G) Godrej Consumer Products Limited

(Godrej) Dabur India Limited (Dabur) Colgate-Palmolive (India) Limited Nestle India Limited

MARKET SEGMENTS

Food products is the largest consumption category in India, accounting for nearly 21 per cent of the country‘s GDP.

Some of the leading players in this segment include Britannia Industries Ltd, Dabur India Ltd, GlaxoSmithKline Consumer Healthcare India Ltd and Gujarat Cooperative Milk Marketing Federation (GCMMF).

MARKET SEGMENT

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

Advantage

India

LARGE AND GROWING

YOUTH POPULATION

EMERGENCE OF

ORGANISEDRETAIL BUSINESS

GROWING URBANIS

ATION

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-tooʺ 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,1947Chairman of ITC LimitedEducationBachelor of Technology Degree in Mechanical Engineering from the Indian Institute of Technology,Delhi in 1968AMP Diploma from Harvard Business School, United StatesCarrerHonours & Awards

PAUL BULCKE

Born on 1954 CEO of Nestle on 20th 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 20th 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