PPT WILL GIVE U SHORT DESCRIPTION ABOUT FMCG SECTOR WHICH WILL HELP U GUYS IN PRESENTATION AND SPECIALL TOOTHPASTE SEGMENT WHICH IS GIVEN IN THE PPT ENJOY #RIHANSHU

1. INDUSTRY TYPE

2. TABLEOF CONTENT
I. INTRODUCTION
II. INDIA’S FMCG SECTOR
III. MAJORCOMPETITORS
IV. TRENDS
V. SWOTANALYSIS
VI. MARKETING STRATIGIES

3.  FMCG is popularly known as consumer
packaged goods.
 Items in this category includes all the
consumables(except groceries).
 Meant for daily or frequent consumption.
 Product with quick turnover
 Relatively lower costs.
 Profit on FMCG product is relatively small
but they are sold in large quantities
thereby large profits.

4. DURABLE PRODUCTS NON-DURABLE PRODUCTS
 A good that doesnot quickly
wear out.
 Example-
cleaning
Cosmetics,
products,
Teeth
shaving
products, etc.
 Goods that are meant to be
consumed immediately.
food,
 Example- Packaged
Beverages,light bulbs, etc.

5. VARIOUS
CATEGORIES
Food and Beverages
Eg:soft drinks, tea,
coffee, bakery items
Personal Care
Eg:oral care, hair
care, skin care,
cosmetics
Household Care
Eg:laundry soap,dish
washer,mosquito
repellent

6.  4th largest sectorin Indian economy.
 Createsemployment for more than 3million people.
 Revenue sincelast 10yearshasgrown at a rate of 21.4%every
year. Revenue for 2020 isexpected to be US$103B.
FMCG
Household &
Personal Care
Healthcare
Food &
Beverages
31%
19%
50%
Hindustan
Unilever
12%
Nestlé 3%
Britannia 3%
Patanjali Ayurved 4%
Market Shareby Revenue
ITC 14%

7.  Urban sectoraccountsfor 55%of revenue generated by FMCGin
India.
 Rural sector in India is growing at a faster pace.
 Due to improved distribution channels and manufacturing, demand for
quality goods and services have improved.
 Growth rate as of 2019 :-
Urban sector 5%
Rural sector 8%
URBAN
55%
RURAL
45%

8. GST 5%
Sugar,cereal,tea,
coffee,milk powder,
oil, honey....
GST 12%
Processed items,
ketchup, dryfruits
(packed), ghee,
butter.....
GST 18%
Biscuits,pasta,jam,
cornflakes,hairoil,
shampoo,detergent
,pastes,soap....
GST 28%
Soft drinks,tobacco,
pan masala, bidi,
chewing gum.....

9.  Estimated number
of online users by
2025 – 850millions.
 Retail market is
expected to reach US
$1.1trillion by 2020.
 Patanjali isrankedas
the most trusted
FMCGin India.
Reached US$
52.75Bin FY18.
Rural FMCG
market – US$
23.63Bin FY18.
Expected to
reach US$
103.70B by
2025.
Rural FMCG is
expected – US$
220B by 2025
Online FMCG
market to
reach US$ 45B
by 2021.
CURRENT
FORECAST
SOURCE: IBEF

10. Hindustan Unilever Limited isIndia’s fast-moving
consumergoods(FMCG) company and hasa
wide Product list with a Historical presencein
India of over 80 years. Nine Out of ten Indian
householdsuseone or more of HULBrands.
Divisions – Home Care, Beauty & PersonalCare
and Foodsand Refreshment.
ITCLimited wasincorporated onAugust 24,1910,
under the name Imperial Tobacco Company of
India Limited. Asthe Company’s ownership
progressivelyIndianised, the name of the
Company waschanged to India Tobacco
Company Limited in 1970and then to I.T.C.
Limited in 1974.ITCLimited hassustainedits
position asone of the fastest-growing FMCG
businessesin thecountry.

11. Nestlé isthe world’s largest food and beverage
company. Thecompany hasmore than 2000
brands ranging from global iconsto local favorites,
and are present in 191countries around the world.
After more than a century-old associationwith
the country, today, NESTLÉIndia hasa presence
acrossIndia with 8manufacturing facilities and
4 branch offices.It isthe third Largest in Top
FMCGCompanies in India
Britannia IndustriesLtd isamong the most trusted
food brands in India with a wide and growing
portfolio of products in the food segmentcovering
Biscuit, Bread, Cake, Rusk,Dairy and Adjacencies.
Britannia Industriesisone of India’s leading food
companieswith a 100year legacy.

12. HUL ITC Britannia NESTLE
MARKET
CAPITALISATION
510000 Cr. 239000 Cr. 92000 Cr. 155000 Cr.
DEBT EQUITY
RATIO (%)
0 0 0.35 0.8
PROFIT
(2019-20)
6738 Cr. 15136 Cr. 1485 Cr. 1969 Cr.
INVENTORY
TURNOVER RATIO
(%)
5.45 2.17 9.33 4.20
EARNING PER
SHARE (Rs.)
32 12.5 61 201

13.  Population hasbeen diverging towards premium products.
 Risein the income of the middleclass.
1. INCREASEIN NUMBER OFGOVERNMENTINITIATIVES
 Subsidized Farm loans.
 Direct Benefit Transfer and development of infrastructure
in rural areas.
 Union budget 2019-20 ,the focushasbeen shifting
towards urbanization.
2. CHANGESIN LIFESTYLEAND TRADITIONAL CULTURE

14. 3. CHANGESIN POLICIESAND REGULATIONS
 Global companies operating in the FMCGindustry are eyeing India markets.
 Relaxation of licenserules and approval of 100%Foreign Direct Investment.
100%FDI in single-brand retail stores
50% FDI in multi-brand stores
 Regulatory framework are one of the main changes.
 GSTcouncil hasreduced the tax rate down to 5%
on processedfood items.
 Personal care product – GSTreduced to 18%

15. 4. RISINGADVERTISEMENTCOSTBYFMCG COMPANIES
 Companies have increased their expenditure costfor salespromotion and
advertisement by 10-20%
 More and more investments are made by companies in advertisement.
Establishing strong
customer base
Reducing market
competition

16.  Operational costs for FMCG sectors in India are relatively low.
 Presence of established distribution networks in both URBAN and
RURAL areas.
 Favourable government policies.
 Low labour costs as compared to others.
STRENGHTS
WEAKNESS
 There is lower scope of investing in technology and achieving
economic of scales, especially in small sector.
 There are low exports levels.
 Advertising costs are really high.

17. OPPORTUNITIES
 Rising income levels of peoples.
 Large domestic markets.
 Opportunity in food sector.
 Large untapped markets available, especially the
rural areas.
STRENGHTS
 Removal of import restrictions resulting in replacing of
domestic brands.
 Tax and regulatory structure.
 Rural demand is cyclical in nature and also depends upon
monsoon.
 Intense and increasing competition from local as well as
MNCs.
 Steadily rising fuel costs, leading to increased distribution
costs.