Mini Project-2: Fast Moving Consumer Goods (FMCG)

MINI
PROJECT-2
FAST MOVING CONSUMER GOODS (FMCG)
PRESENTED TO- PRESENTED BY-
DR. RASHMI MAINI PRASHANT KUMAR
2001160700093
‘C’
INTRODUCTION
Fast-moving consumer goods (FMCG) sector is India’s fourth largest sector with household and personal care
accounting for 50% of FMCG sales in India. Growing awareness, easier access and changing lifestyles have
been the key growth drivers for the sector. The urban segment (accounts for a revenue share of around 55%) is
the largest contributor to the overall revenue generated by the FMCG sector in India. However, in the last few
years, the FMCG market has grown at a faster pace in rural India compared to urban India. Semi-urban and
rural segments are growing at a rapid pace and FMCG products account for 50% of the total rural spending.
 The short term liquidity implies the capacity of the firm to repay the debt of a short term creditor and
trade payables. Long term solvency implies the capacity of the firm to pay off the claims of debenture holders,
preference shareholders and other long term creditors.
NATURE OF SECTOR
 FMCG SECTOR generally deals with FMCG products or ‘Fast Moving Consumer Goods’.
 FMCG products have a quick turnover and relatively low cost.
 India’s FMCG sector is 4th largest sector in the economy and contribute to around 3million
employment opportunities.
 FMCG market is in excess of RS.85,000 Cr.
 It includes household care, personal care, food & beverages.
 FMCG industry is characterized by a well established distribution network, low operating cost,
lower per capital consumption and intense competition between the organized and unorganized
segments.
PLAYERS OF FMCG SECTOR
 Top 3 FMCG Industry :
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestle India.
 Bottom 3 FMCG Industry :

1. Britannia Industries Ltd.
2. Procter & Gamble Hygiene & Health care.
3. Marico Industries Ltd.
HINDUSTAN UNILEVER LTD
 It is India’s largest consumer goods company based in Mumbai, Maharashtra.
 It is owned by the British – Dutch company unilever which controls 52% majority stake in HUL.
 HUL was formed in 1993.
 Its products includes foods, beverages, cleaning agents and personal care products.
 Revenue 40,415 Cr.
 Net income 6,764 Cr.
 Employees more than 21,000.
 Hindustan Unilever’s distribution covers over 2 million retail outlets across India directly and its products are available in
over 6.4 million outlets in the country. As per Nielsen market research data, two out of three Indians use HUL products.
 In 2012, HUL was recognised as one of the world’s most innovative companies bye Forbes. With a ranking of number of
number 6, it was the highest ranked FMCG company.
ITC (INDIAN TOBACCO COMPANY)
 It was formed in 1970 by Henry Overton wills and Yogesh Chander Deveshwar ,(Chairman). Headquarter in Kolkata, West Bengal,
India.
 In FMCG, ITC has a strong presence in:
 Cigarettes: W.D. & H.O. wills, gold flake kings, gold flake premium, navy cut, insignia, india kings, classic (Verve, Menthol,
Memthol Rush, Regular, Citric Twist, Mild & Ultra Mild), 555, Benson & Hedges, Silk cut, Scissors, Capstan, Berkeley, Bristol,
Lucky Strike, Players & flake.
 Foods: (Kitchen of India; Aashirvaad, minto, sunfeast, candyman, bingo, yippee, sunfeast pasta brands in ready to eat, staples,
biscuits, confectionery, noodles & snack foods).
 Apparel: (wills lifestyle and john players brands)
 Personal care: (Fiama di wills, Vivel; Essenza di wills; Superia; Vivel di wills brands of products in perfumes, hairs care and skin
care).
 Stationary: (Classmate and Papercraft brands).
 Safety Matches and Agarbattis: (Ship; Mangaldeep; Aim brands).

NESTLE INDIA
 It is a multinational nutritional and health-related consumer goods company headquartered in
Vevey, Switzerland. It is the Largest food company in the world measured by revenues.
 Nestle was listed No.1 in the fortune global 500 as the worls’s most profitable corporation.
 Nestle’s products includes baby foods, bottled water, breakfast cereals, coffee, confectionary, dairy
products, ice creams, pet foods and snacks.
 Nestle’s India’s first production facility was set up in 1961 at mogal (Punjab).
 The nestle india head office is located at Gurgaon along with other branch offices in Delhi,
Mumbai, Chennai, and Kolkata.
 It has 2,50,000 employees, 500 factories and 8000 range of products across the globe.
MARKET SHARES OF FMCG SECTOR
MARKET Sales
COMPANY
SHARES
Hindustan Unilever ltd. 36.4%
Indian tobacco 30%

company
Nestle 8.2%
Britannia 6%
Others 19.4% HUL ITC Nestle Britannia Others

THE FMCG MARKET HAS THREE MAIN
SEGMENT
 Food & Beverages (18%)
Sales
 Health Care (32%)
 Household and Personal Care (50%)
Food and Beverages Health care

Household and Personal care
MARKET STRATEGY PROCESS
 Understand customer.
 Analyze market.
 Analyze competition.
 Research distribution.
 Define marketing mix.
 Financial analysis.
 Review and revise.
SWOT ANALYSIS
STRENGTHS 1. Low operational cost.
2. Well established distribution network.
3. Strong brand & large market.
WEAKNESS 1. High advertisement cost.
2. Low export level.
3. Lower scope of investing in technology.
OPPORTUNITIES 1. Large domestic market.
2. Rising income level.
3. Online social network.
THREAT 1. Tax and regulatory structure.
2. Rural demand is cyclical in nature.
3. Different monsoon.
IMPACT OF COVID ON FMCG SECTOR
 The global spread of COVID-19 has created an unprecedented situation for the manufacturing sector, resulting from the
mandated lockdowns across the global ecosystem and it has been no different for food manufacturing industries.
 However, the packaged food business managed to recover early because of the essential nature of the product categories
and the increase in home consumptions with panic buying.
 In the post-COVID era, global manufacturing and supply chains are likely to be much more digital, as is already evident in
the immediate response to the crisis.
 It was evident that COVID-19 has had a lower impact wherever factory automation had already been incorporated in food
production lines and a high impact in places where there is operator-intense work due to norms of maintaining social
distancing etc.
 For manufacturers working to produce essential supplies and equipment with a reduced labour force, IoT-based
technologies can help support their goals.
GAP ANALYSIS
 In FMCG, the gap is about finding the difference between the performance of the product vs
what was expected of company. It could also be applied to the performance of the service, or
the performance of the company, or the whole Industry.
• Where we are now Vs Where we want to be
 “Where we are now” is the current is the current situation of the product. Your current
situation is the “where you are now.” That is the situation you are in now. The “where we
want to be,” is the ideal situation that the FMCG or the individual is trying to archive .
SUGGESTION FOR FMCG SECTOR
 Investigate energy efficient equipment and energy conservation.

 Make quality control a top priority.
 Focus on R&D.
 Check out software for food manufacturers.
 Invest in your employees.
CONCLUSION
 It is high risk area but with the promise of a large customer following as the prize for
those who succeed.
 The key to reducing the risk is to understand the market the consumer need and
behaviour.
 The consumer groups differs by occupations, income, social and cultural grouping.
 More and more peoples these days have started involving themselves in his fields as it
creates tremendous job opportunities for them.
THANK YOU

Mini Project-2: Fast Moving Consumer Goods (FMCG)

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MINI

 Bottom 3 FMCG Industry :

 HUL was formed in 1993.

 Revenue 40,415 Cr.

 Net income 6,764 Cr.

 Employees more than 21,000.

 In FMCG, ITC has a strong presence in:

 Apparel: (wills lifestyle and john players brands)

 Stationary: (Classmate and Papercraft brands).

 Safety Matches and Agarbattis: (Ship; Mangaldeep; Aim brands).

Indian tobacco 30%

Others 19.4% HUL ITC Nestle Britannia Others

Food and Beverages Health care

• Where we are now Vs Where we want to be

 Investigate energy efficient equipment and energy conservation.

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