FMCG

FMCGFAST MOVING CONSUMER

GOODS

ROAD MAP OF THE PRESENTATION

1.INTRODUCTION2. GLOBAL SCENARIO 3.INDIAN SCENARIO4.COMPARISON BETWEEN THREEMAJOR INDIAN COMPANIES5.STAGES OF FMCG6.EMPLOYMENT OPPURTUNITIES7.CONCLUSION

It refers to consumers non-durable goods

Sold quickly at relatively low cost.

Generally sold at large quantities.

This sector touches every aspects of human life from looks to hygiene to palate.

This sector mainly consists of sub segments viz: personal care, oral care, and household products

INTRODUCTION

FMCG PRODUCTSDetergents

Soaps

Beverages

Shampoos

Confectionaries

Creams

Per Capita Consumption(US$)

GLOBAL SCENARIO

India China Thailand South Africa

0

2

4

6

8

10

12

Laundry Shampoo Skincare Deodrants

Per capita consumption in US $

INDIAN SCENARIO

India is an important market for FMCG players The Indian FMCG sector is the 4th largest in

the economy with total market size of around US$ 13.1 billion

During 1950’s to 1980’s there was a low investment as the purchasing power was low.

The govt. had put a lot of emphasis on the development of small scale sector.

The existing companies like HLL were purely focused on the urban area.

However, post liberalization the scenario changed marking the entries of the MNCs in the country.

The focus shifted from urban to rural areas.

Large Base: With a population of 1 bn people, around 70% of the household lives in the rural areas. The total number of rural households is expected to rise from 144 mn in 2007 to 153 mn in 2010 which represents the largest potential market in the world.

RURAL & URBAN POTENTIAL

URBAN RURAL

Population 06-07( m household)

59 144

Population 09-10( m household)

69 153

% of Distibution (06- 07)

29 71

Market ((Towns/Villages)

3768 627000

SOURCE:STATISTICAL OUTLINE OF INDIA(06-07),NCAER

INDIA – A LARGE CONSUMER GOODS SPENDER

1510

1116

8

40

Savings Others

Clothings Entertainment

Personal Care Grocery

CHANGING LIFESTYLESOURCE:HLL INVESTOR MEET 2006

DEODRANTS

TOOTH

PAST

E

SKIN

CREA

M

SHAM

POO

UTENSI

L CLE

ANER

INST

ANT COFF

EE

WASH

ING P

OWDER

DETER

GENT

BAR

TOILET

SOAP

0

10

20

30

40

50

60

70

80

90

100

0 2.1

48.6

22

38

28

6.6

86.1 88.691.5

5.5

74.9

31.5

52.1

59.9

15.5

90.7 91.497.4

0.600000000000001

37.6

17.8

31.9

14.6

2.8

84.187.4 88.9

ALL INDIA URBAN % RURAL %

3 MAJOR INDIAN COMPANIES

HINDUSTAN UNILEVER

AMUL

DABUR INDIA LIMITED

HINDUSTAN

UNILEVER

No 1 company in India Sales turnover of Rs 13,718 crores Produces 35 different brands with

15,000 employees

AMUL

4th largest company in India Sales turnover of Rs 2745.74 crores It has 15 different brands with

20,000 employees

DABUR INDIA LTD

6th largest company in India Sales turnover of 2,396 crores It has 32 different brands with

6,500 employees

COMPARISON OF TOP THREE PLAYERS IN INDIA

COMPARISON ON THE BASIS OF SALES

COMPARISON ON THE BASIS OF OF EMPLOYEES

HUL AMUL DABUR0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

15000

20000

6500

NO.OF EMPLOYEES

COMPARISON ON THE BASE OF BRANDS & CATEGORY

HUL AMUL DABUR0

5

10

15

20

25

30

3535

15

32

20

11

17

BRANDS CATEGORY

STAGE IN INDUSTRY LIFE CYCLE

TREMENDOUS INCREASE FOURTH LARGEST IN NATIONAL

ECONOMY IT VARY FROM DIRECT SALES TO

INDUSTRIAL SALES TO INDIRECT SALE

CUSTOMER FIND DIFFICULTY TO CHOOSE PRODUCTS

NECESSITY OF SALES PERSONNEL

THEY HELP TO CHOOSE PRODUCT

NUTSHELL

ATTRACT MOST SECTORS FOR THE GOVT.

GOVT. SPENDING IS HUGE IN THIS SECTOR

INCREASE IN OVERALL GDP WHICH LEADS TO INCREASE IN REAL INCOME.

CUSTOMER SPENDS A LOT ON THIS SECTOR.

EASY FLOW OF CAPITAL IN ECONOMY.

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