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 PLAYERS
Company                              Sales as on 31 March   Product segment
                                     2010
                                     (US$ mn)
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             421.9                  Horlicks, Boost, Maltova, Eno, Iodex
Healthcare India Ltd
Godrej Consumer Products Ltd         425.2                  Ezee, Godrej Dish Wash Cinthol,
(GCPL)                                                      Color Soft FairGlow, No 1,
                                                            KeshKala.
Gujarat Cooperative Milk Marketing   1,700                  Amul
Federation (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
MARKET SHARE OF MAJOR PLAYERS

COMPANY              Market share   MARKET SHARE

Hindustan uniliver   36.4%
ltd.                                           HUL 36.4%

Indian tobacco       30%                       ITC 30%
company

Nestle               8.2%                      Nestle 8.2%

                                               Britania
Britania             6%                        6.0%
                                               Dabur 4.3%
Dabur                4.3%
                                               Others
                                               15.1%
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
                           LARGE AND
                         GROWING YOUTH
                          POPULATION




                                          EMERGENCE OF
        INFRASTRUCTURE
                                         ORGANISEDRETAIL
          DEVELOPMENT
                                            BUSINESS




                         Advantage
                           India


          SIGNIFICANT
          INCREASE IN                       GROWING
         CONSUMPTION                      URBANISATION
            LEVELS




                          INCREASING
                          DISPOSABLE
                            INCOME
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,1947
Chairman of ITC Limited

Education

Bachelor of Technology Degree in Mechanical Engineering
from the Indian Institute of Technology,Delhi in 1968
AMP Diploma from Harvard Business School, United States

Carrer

Honours & 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
Fmcg

Fmcg

  • 1.
    PRESENTATION ON FMCGINDUSTRY OF INDIA PRESENTED BY: RS4
  • 3.
    MARKET SIZE OFINDUSTRY Household Care  Personal Wash  Detergents Personal Care  Skin Care  Hair Care  Shampoos  Oral Care
  • 4.
    Food & Beverages  Food Segment  Tea  Coffee Growth Prospect  Large Market
  • 5.
    MAJOR PLAYERS Company Sales as on 31 March Product segment 2010 (US$ mn) 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 421.9 Horlicks, Boost, Maltova, Eno, Iodex Healthcare India Ltd Godrej Consumer Products Ltd 425.2 Ezee, Godrej Dish Wash Cinthol, (GCPL) Color Soft FairGlow, No 1, KeshKala. Gujarat Cooperative Milk Marketing 1,700 Amul Federation (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
  • 6.
    MARKET SHARE OFMAJOR PLAYERS COMPANY Market share MARKET SHARE Hindustan uniliver 36.4% ltd. HUL 36.4% Indian tobacco 30% ITC 30% company Nestle 8.2% Nestle 8.2% Britania Britania 6% 6.0% Dabur 4.3% Dabur 4.3% Others 15.1% Others 15.1%
  • 7.
    MAJOR CHALLENGES TOTHE 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.
  • 8.
    GLOBAL PLAYER ININDIA  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
  • 9.
    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).
  • 10.
    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%
  • 11.
    ADVANTAGE TO INDIA LARGE AND GROWING YOUTH POPULATION EMERGENCE OF INFRASTRUCTURE ORGANISEDRETAIL DEVELOPMENT BUSINESS Advantage India SIGNIFICANT INCREASE IN GROWING CONSUMPTION URBANISATION LEVELS INCREASING DISPOSABLE INCOME
  • 12.
    SWOT ANALYSIS OFFMCG INDUSTRY STRENGTHS  Low operational costs  Presence of established distribution networks in both urban and rural areas  Presence of well-known brands in FMCG sector
  • 13.
    WEAKNESSES  Lower scopeof 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.
  • 14.
    OPPORTUNITIES  Untapped ruralmarket  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
  • 15.
    THREATS  Removal ofimport restrictions resulting in replacing of domestic brands.  Slowdown in rural demand  Tax and regulatory structure
  • 16.
    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
  • 17.
    TOP EXECUTIVES OFFMCG COMPANIES
  • 18.
    YOGESH CHANDER DEVESHWAR Born on 4 Feb,1947 Chairman of ITC Limited Education Bachelor of Technology Degree in Mechanical Engineering from the Indian Institute of Technology,Delhi in 1968 AMP Diploma from Harvard Business School, United States Carrer Honours & Awards
  • 19.
    PAUL BULCKE  Bornon 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.
  • 20.
    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