FAST MOVING CONSUMER GOODS:

Fast-moving consumer goods (FMCG), also known as consumer packaged

goods (CPG), are products that are sold quickly and at a relatively low cost.
examples include non-durable household goods such as packaged, foods,
Beverages, Toiletries candies, cosmetics, over-the-counter-drugs dry goods, and
other consumables.
FMCG is the most common acronym in use across most of Europe, Asia,
and Oceania while CPG is used more frequently in the Americans.

Fast-moving Consumer Goods are products that sell quickly at relatively

low cost. These goods are also called Consumer Packaged goods

FMCGs have a short shelf life because of high consumer demand (e.g.,
soft drinks and confections) or because they are perishable (e.g., meat, dairy
products, and baked goods). These goods are purchased frequently, are
consumed rapidly, are priced low, and are sold in large quantities. They also
have a high turnover when they're on the shelf at the store

Fast-Moving Consumer Goods and E-Commerce

Shoppers across the globe increasingly purchase things they need online
because it offers certain conveniences—from delivering orders right to the
door to broad selection and low prices—that brick-and-mortar stores can't.

The most popular e-commerce categories, not surprisingly, are non-

consumable goods—durables and entertainment-related products. The online
market for buying groceries and other consumable products is growing, as
companies redefine the efficiency of delivery logistics which shorten delivery
times. While non-consumable categories may continue to lead consumable
products in sheer volume, gains in logistics efficiency have increased the use
of e-commerce channels for acquiring FMCGs.

Major Players in this sector include Hindustan Unilever Ltd., ITC (Indian
Tobacco Company), Nestlé India, GCMMF (AMUL), Dabur India, Asian Paints (India),
Cadbury India, Britannia Industries, Procter & Gamble Hygiene and Health Care, Marico
Industries, Nirma, Coca-Cola, Pepsi and others. As per the analysis by ASSOCHAM,
Companies Hindustan Unilever Ltd , Dabur India originates half of their sales from rural
India. While Colgate Palmolive India and Marico constitutes nearly 37% respectively,
however Nestle India Ltd and GSK Consumer drive 25 per cent of sales from rural India.

A rapid urbanization, increase in demands, presence of large number of

young populations, a large number of opportunities is available in the FMCG sector. The
Finance Minister has proposed to introduce an integrated Goods and Service Tax by April
2010.This is an exceptionally good move because the growth of consumption, production,
and employment is directly proportionate to reduction in indirect taxes which constitute no
less than 35% of the total cost of consumer products - the highest in Asia..

The bottom line is that Indian market is changing rapidly and is showing
unprecedented consumer business OPPORTUNITY

FAST MOVING CONSUMER GOODS are retail items that are

bought frequently, such as coffee, tea, milk, and bread
FMCG goods are the quickest items to leave the shelves at a supermarket, and
usually have the lowest price due to that fact.

FMCG retailers specialize in products with a relatively short shelf life, either

because they have a high turnover or because the products deteriorate quickly.

FMCG are retail items that are bought frequently, such as coffee, tea, milk, and
bread.

TYPES OF FMCG:
As mentioned above, fast-moving consumer goods are
nondurable goods, or goods that have a short lifespan, and are consumed at a
rapid or fast pace.

FMCGs can be divided into several different categories including:

 Processed foods: Cheese products, cereals, and boxed pasta

 Prepared meals: Ready-to-eat meals
 Beverages: Bottled water, energy drinks, and juices
 Baked goods: Cookies, croissants, and bagels
 Fresh, frozen foods, and dry goods: Fruits, vegetables, frozen peas
and carrots, and raisins and nuts
 Medicines: Aspirin, pain relievers, and other medication that can be
purchased without a prescription
 Cleaning products: Baking soda, oven cleaner, and window and glass
cleaner
 Cosmetics and toiletries: Hair care products, concealers, toothpaste,
and soap
 Office supplies: Pens, pencils, and markers

UNDERSTANDING FAST MOVING CONSUMER GOODS:

 Consumer goods are products purchased for consumption by the average
consumer divided into three different categories: durable, nondurable goods, and
services. Durable goods have a shelf life of three years or more while nondurable
goods have a shelf life of less than one year.

Fast-moving consumer goods are the largest segment of consumer goods.

They fall into thenondurable category, as they are consumed immediately and have
a short shelf life.Nearly everyone in the world uses fast-moving consumer goods
(FMCG) every day. They are thesmall-scale consumer purchases we make at the
produce stand, grocery store, supermarket, andwarehouse outlet.

Examples include milk, gum, fruit and vegetables, toilet paper, soda, beer,
andover-the-counter drugs like aspirin.FMCGs account for more than half of
all consumer spending, but they tend to be low-involvement purchases. Consumers
are more likely to show off a durable good such as a new caror beautifully designed
smartphone FMCGs account for more than half of all consumer spending, but they
tend to be low-involvement purchases.

Consumers are more likely to show off a durable good such as a new caror
beautifully designed smartphone than a new energy drink they picked up at the
convienience store.

PROBLEMS OF FMCG:

Fast Moving Consumer Goods (FMCG), are products that are sold quickly at
relatively low cost. Though the absolute profit made from (FMCG) products is relatively
small, they generally sell in large quantities, so the cumulative profit on such products can be
large.
Examples of FMCG generally include a wide range of frequently purchased consumer
products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and
detergents, as well as other nondurables such as glassware, light bulbs, batteries, paper
products and plastic goods.

Fast Moving Consumer Goods companies matured in the 1960s and the massive
competition that followed forced the companies to consolidate and find new ways of making
money. They did this by learning to segment markets into groups of customers with common
need

The Fast-Moving Consumer Goods Industry:

Because fast-moving consumer goods have such a high turnover rate, the
market is not only very large, it is also very competitive. Some of the world's largest
companies compete for market share in this industry including Tyson Foods, Coca-
Cola, Unilever, Procter & Gamble, Nestlé, PepsiCo, and Danone. Companies like
these need to focus their efforts on marketing fast-moving consumer goods to entice
and attract consumers to buy their products.

That's why packaging is a very important factor in the production process. The
logistics and distribution systems often require secondary and tertiary packaging to
maximize efficiency. The unit pack or primary package is critical for product
protection and shelf life and provides information and sales incentives to consumers.

FCMGs are sold in large quantities, so they are considered a reliable source of
revenue. This high volume of sales also offsets the low profit margins on individual
sales as well.

As investments, FMCG stocks generally promise low growth but are safe bets
with predictable margins, stable returns, and regular dividends

Fast moving consumer goods (FMCG) is the fourth largest sector in the Indian
economy. There are three main segments in the sector food and beverages, which
accounts for 19% of the sector; healthcare, which accounts for 31% of the share;
and household and personal care, which accounts for the remaining 50% share.

FMCG market is expected to grow 5 6% in 2020. FMCG’s urban segment

grew by 8%, whereas, its rural segment grew 5% in the quarter ending September
2019, supported by moderate inflation, increase in private consumption and rural
income.
Indian online grocery market is estimated to exceed sales of about Rs. 22,500 crores
(US$ 3.19 billion) in 2020, a significant jump of 76% over the previous year.

FMCG companies are looking to invest in energy efficient plants to benefit

the society and lower cost in the long term. Dabur had plans to invest Rs. 250 300
crores (US$ 38.79 46.55 million) in FY19 for capacity expansion and possible
acquisitions in the domestic market.

The sector witnessed healthy FDI inflow of US$ 16.54 billion during April
2000 June 2020. Investment intentions related to FMCG sector arising from paper
pulp, sugar, fermentation, food processing, vegetable oils and vanaspati, soaps,
cosmetics, and toiletries industries worth Rs. 19,846 crores (US$ 2.84 billion) was
implemented until December 2019.

Growing awareness, easier access, and changing lifestyle are the key growth
drivers for the consumer market. The focus on agriculture, MSMEs, education,
healthcare, infrastructure and tax rebate under Union Budget 2019 20 was expected
to directly impact the FMCG sector. Initiatives undertaken to increase the disposable
income in the hands of common man, especially from rural areas, will be beneficial
for the sector.

WORKING AT AN FMCG COMPANY:

 The multi-million-dollar FMCG industry is creative and innovative.
Companies are always on the lookout for consumer products that are both
affordable and readily available. FMCG products are used by most people day in and
day out. As an employee, you can easily identify with the industry.

If you’re looking for a work environment that promotes the sharing of ideas
and creativity, you may want to consider working with an FMCG company. With the
huge selection of products being offered to consumers regularly, the industry needs
to keep up with the demand and continually come up with new product ideas.

With core areas such as sales, marketing, information services,

finance, research and methology, and human resources, the industry offers a wide
variety of career opportunities. Here are some of the roles that you may see in an
FMCG company:

1. Procurement Analyst

The procurement analyst role involves analysis and interpretation of

technical data to better understand the expenses incurred by the different aspects of
the business.

2. Sales Manager

Sales play a significant role in the FMCG industry. A sales manager is

essential in growing the business by attracting new customers and retaining existing
ones.

3. Stock Control Manager

The stock manager role entails the proper distribution of stocks and
monitoring stock levels to meet business targets.

PERFORMANCE OF FMCG IN INDIA:

Indian economy is one of the world’s largest and fastest growing economy. Indian
businesses are promising about the growth of rural sector. Rural sector is contributing to the
growth of Fast-Moving Consumer Goods (FMCG) sector. According to the government
survey, FMCG is the fourth largest sector in India. FMCG market in India is estimated to
grow by US$74 billion in 2018.
Changing lifestyles, new economic orders, changing consumer consumption is
very difficult for the common man to make rational investment decision for investing in the
stock market. There are many internal and external factors because of which investor will
not be able to follow a disciplined investment approach.
For making rational investment decision, lot of credit rating agencies like CARE,
ICRA, etc. provides information about the financial instruments, but no information is
provided for equity investors. Availability of incomplete information left the investor
indecisive for analysing risk and return relationship. then he started to time the market and
out of anxiety he ended up by panic selling.
This led to drain of his hard-earned money. This research paper will analyse
the financial ratios and discriminate the performance of FMCG companies based on Ratios.
With the help of discriminant analysis, Stock market performance of FMCG companies can
be analysed and classified as Marker Under-Performers, Market Average-Performers and
Market Out-Performers. This paper is to test the discriminatory power of the ratios and
differentiate companies’ performance.

For the performance analysis of Fast-Moving Consumer Goods (FMCG)

industry, discriminatory power of financial ratios are examined by using Wilks’ lambda and
Multiple discriminant function analysis. For this purpose, sample of eighteen FMCG
companies listed with Bombay Stock Exchange is taken into account. Market capitalization is
taken as basis for selecting these companies.
Data is collected for twelve years ranges from 1 April 2006 to 31 March 2017. For
effective implementation of discriminant analysis, firstly average stock market returns are
computed from the annual stock prices of the selected companies and average stock market
returns are classified in to three groups viz. ‘Market Underperformers’, ‘Market Average-
Performers’ and ‘Market Out-Performers’.
It has been found that revenue from operations/share is the most important ratio and
having impact to assess the company’s market performance. Debt equity ratio and
inventory turnover ratio having moderate impact in assessing the company’s stock market
performance of companies and dividend pay-out ratio is the ratio having less impact in
assessing the company’s stock market performance.

HISTORY OF SOAP:
The first concrete evidence we have of soap-like substance is dated around
2800 BC., the first soap makers were Babylonians, Mesopotamians, Egyptians, as well
as the ancient Greeks and Romans. All of them made soap by mixing fat, oils and
salts. Soap wasn't made and use for bathing and personal hygiene but was rather
produced for cleaning cooking utensils or goods or was used for medicine purpose

In the early beginnings of soap making, it was an exclusive technique used by

small groups of soap makers. The demand for soap was high, but it was very
expensive and there was a monopoly on soap production in many areas. Over time,
recipes for soap making became more widely known, but soap was still expensive.

Back then, plant by-products and animal and vegetable oils were the main
ingredients of soap. The price of soap was significantly reduced in 1791 when a
Frenchman by the name of LeBlanc discovered a chemical process that allowed soap
to be sold for significantly less money.

More than 20 years later, another Frenchman identified relationships between

glycerine, fats and acid what marked the beginning of modern soap making. With
the 1800 discovery of another method of making soap ingredients, soap became
even less expensive. Since that time, there have been no major discoveries and the
same processes are used for the soap making we use and enjoy today

Advances came as the science of chemistry developed because more

understood about the ingredients. In the mid-nineteenth century, soap for bathing
became a separate commodity from laundry soap, with milder soaps being
packaged, sold and made available for personal use. Liquid Hand Soap were invented
in the 1970s and this invention keeps soaps in the public view.

More and more soap manufactures are trying to capture a commanding

market share by introducing new products. The soap industry in India faces a cut
throat competition with multinational companies dominate the market. They are also
facing several threats from dynamic and enterprising new entrance especially during
1991-92. Soap is produced by a saponification or basic hydrolysis reaction of a fat or
oil. Currently, sodium carbonate or sodium hydroxide is used to neutralize the fatty
acid.

Saponification is a process that involves the conversion of fat, oil, or lipid

into soap and alcohol by the action of heat in the presence of aqueous alkali
(e.g. NaOH). Soaps are salts of fatty acids and fatty acids are monomers of lipids
that have long carbon chains (at least 10) e.g. sodium phosphate.

Today, there are many different soaps made for a vast array of purposes.

Soap is available for personal, commercial and industrial use. There is handmade,
homemade and commercially produced soap, there is soap used to wash clothes,
dishes and cars, there is soap used for your pet, soap for your carpet and soap for
your child... but for many types of cleaning, soaps are a lesser used product these
days, as alternatives to soap are the main choice.