Fmcd Sector

8/19/2019 Fmcd Sector

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Industry Analysis Project Report

On

FMCD Sector

Submitted By:

Shashat Chhetry

Pratee! Chaudhary

Su"anya Dhanase!aran

M#B#A# $ P#%#P#M# Students o& '()* + '(), Batch

O&

Mysore -ni.ersity

Submitted /o:

IBMR International Business School 0IBMR + IBS1

2o# )3'nd Cross3 4#R# %arden3 5( Feet Road3

Opp# 2DDB6 2ear Passport O&&ice3

4orman"ala3 Ban"alore + 7,( (873 India

#ibmrban"alore#com

Semester )0'()* + '(),1 September '()*


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/AB9 OF CO2/2/S

C;AP/R+): I2D-S/R< PROFI9 )+)8

• FMCD SECTOR

• Factors influencing FMCD Sector

• Size of FMCD in India and Globally and the contributions to GDP of Indian Econoy

• To! "# Indian and Global FMCD co!anies

C;AP/R+': COMPA2< PROFI9 )8+'=

• $istory of the co!any% Founder and the current &oard of Directors % Size of the

co!any o!erations

DISC'SSED COMP()IES

♦ *oltas

♦ +el,inator

♦ Sasung

♦ -hirl!ool

♦ Godre.

♦ &a.a.

♦ )o/ia

C;AP/R+>: S?O/ Analysis 0Stren"ths3 ?ea!nesses3

Opportunities3 /hreats1 '5+>,

• &usiness (nalysis

• Co!etitors (nalysis

• S-OT (nalysis


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C;AP/R+*: PROD-C/S @ SRICS >,+>8

• Ma.or !roducts0ser,ices

• To! !erforing !roducts details

C;AP/R+7: *(+*7

1ob o!!ortunities for M&( graduates in the FMCD sector and

Salaries !ro,ided to the M&( fresher in the FMCD sector2

C;AP/R+, *7+*=

Suary and Conclusion


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C;AP/R )

I2D-S/R< PROFI9

FMCD SC/OR

FMCD stands for Fast Mo,ing Consuer Durables2 In econoics ters% hard goods or

durable goods are those that do not 3ear out instantly o,er a !eriod of tie2 These goods last

long and can be used for the future2 The best e4a!le of !erfect durable goods is a bric/ that

theoretically doesn5t 3ear out2 The goods li/e refrigerators% cars% obile !hones and se,eral

other electronic gadgets coe under 6$igh Durables7% as they can be easily used o,er a !eriod

of three or ore years2 Durable goods are ty!ically characterised by long !eriods bet3een

successi,e !urchases2 The best e4a!les of FMCD are all household a!!liances li/e

refrigerators% tele,isions% 3ashing achines% s!orts e8ui!ents etc2

-ithin the !ast 9: years !ost inde!endence% there has been a a.or change in the econoy of

India2 India has seen anifold increase in the incoe of its !eo!le2 Due to this% there has been

a change in the outloo/ of the !eo!le to3ards !urchasing any aterial2 Today the custoer

deands for high end% technologically enhanced !roducts and the deand is stiulated by the

rising earning ebers and technological a3areness aong the coon !ublic2 This shift is

also because of the large scale !roduction of branded !roducts and the narro3ing do3n the

!rices bet3een the branded and the non branded !roducts2 The co!etition is so high in the

consuer durables ar/ets that e,ery co!any is !ro,iding ne3 a,enues for the custoers to

in,est their oney2 They !ro,ide all technical assistance% free offers and other e4tra ser,ices2

Due to this% the FMCD sector sees to be in 3hat 3e call as 6&OOM7 in the current day

scenario2 The giants in the FMCD sector in India include co!anies li/e Godre.% -hirl!ool%

Sasung% Microa4% *oltas etc2 In today5s India the ar/et has becoe so huge that

coodities li/e air;conditioners% refrigerators% obile !hones etc ha,e becoe the need of

the consuers rather than a 3ant2 Furtherore% 3esternisation has also changed the outloo/ of

the Indian ar/et2


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FAC/ORS I2F9-2CI2% /; FMCD SC/OR

The follo3ing are the ain factors that influence the FMCD sector2

)# Rise in disposable income: + -ith the increase of the 3or/ing class and dual incoe

failies and the rise in the dis!osable incoe% the deand for the electrical goods has

been rising at a stu!endous rate2 The gro3ing 6Middle Class7 has becoe a big target

custoer for the FMCD co!anies 3ho are there in the ar/et to 3oo the2 ( ,ery

recent e4a!le can be cited2 The sale of 2? seconds% 3e

can iagine the custoer base on FMCD2 This has been a fashion or a custo 3e aycall it@ the ,entures of FMCD and E;coerce to 3oo the custoers and increase the

deands2

'# Product pricin"A ; Today the custoers being highly /no3ledgeable technologically%

the ar/et scenario of FMCD is furiously co!etiti,e2 The !roduct !ricing !lays a ,ery

i!ortant role in attracting the custoers and a/ing a difference2 Today% the 3or/ing

class is al3ays after 6chea! and best7 !roducts2 E,ery !enny added or subtracted fro a

!roduct counts2 Of course for the higher range custoers% the brand nae a/es ore

of a difference but as a 3ise custoer if sae facilities and sae features are !ro,ided

at a chea!er rate anyone 3ould buy it2 )o3adays% the brands ha,e e,en coe u! 3ith

instalent !ayents to eet the needs of the custoers2 (ll these schees attract the

custoers ore and ore and thus affect the sector directly2

># A.ailability o& neer .ariants o& a productA ; In the FMCD sector% the custoers are

s!oiled for choices2 For a single !roduct% there are any ,ariants2 Today% a custoer can

choose to buy a single !roduct fro at least three to four co!anies2 For instance% a

custoer needs to buy a refrigerator% there are co!anies li/e BG% Sasung%

+el,inator% -hirl!ool etc2 So there are so any choices that e,ery co!any has to

coe u! 3ith soe ne3 and inno,ati,e to 3oo the custoers2 In order to sur,i,e the

co!etition% e,ery co!any in this sector has to !ro,ide 8uality% style and uni8ueness

to 3in the hearts of the custoers2


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*# Inno.ati.e ad.ertisin" and brand promotionA ; &y the e4tensi,e use of the internet

the custoers are already a3are of the !roducts and their s!ecifications2 The co!anies

ha,e to be ,ery inno,ati,e 3ith their ad,ertiseents and offers2 The target custoers

ust be reached ,ery effecti,ely2 The brand !ositioning ust be carefully done2 Sales

and !rootion easures li/e discounts% offers% schees% e4change offers etc a/e a

co!any distinguish itself fro others2

5. Rise in the share o& or"anied retailA Rise in organized retail 3ill set the gro3th !ace

of the Indian consuer durables industry2 (ccording to a 3or/ing !a!er released by the

Indian Council for Research on International Econoic Relations ICRIER% organized

retail 3hich constituted a ere "9 of the retail sector in F">;"= is li/ely to gro3 at

?;# !er annu and double its share in the total retail !ie => by >#"?;"2 The

share 3ill gro3 3ith bigger !layers entering the ar/et.

,# Festi.e season salesA; During the festi,e seasons% the deands for consuer durables

touch the s/y2 (ccording to our ar/et sur,ey the deand of BCD and BED tele,isions

8uadru!le2 Siilar case 3ith the sart !hones2 These coodities coe u! 3ith festi,e

offers too to attract the custoers2

SUCCESS IN THE INDUSTRY WOULD DEPEND ON ADDRESSING KEY FACTORS

Market positioning and branding

(ddressing /ey custoer re8uireents

that act as deand dri,ers by !roacti,e

ar/eting and establishing strong

brand association

Product technology

Pro,iding technologies that benefit the

custoer through lo3 !o3er

consu!tion% lo3 ser,ice re8uireent%

lo3 cost of o!eration% etc2 Distribution and service network

Fro saturated urban regions to lo3;

!enetration rural areas and tier;II0III

to3ns% distribution net3or/s and brand

recognition 3ill continue to !lay

significant roles

Attractive locations

-ith ra3 aterials foring a

significant chun/ of costs% !roduction

facilities located near !orts to i!ort

chea!er ra3 aterials could !ro,ide an

ad,antage

Sie o& FMCD in India and the ?orld


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FMCD I2 I2DIA3 "roth in the comin" years and its e&&ect on the

conomy

India is e4!ected to reach 'S H ">2 billion by the financial year >#" fro 'S H 2 billion in

F "> 3hich 3ould a/e India the fifth largest consuer durable ar/et in the 3orld2 In the

consuer durables ar/et in India% the urban ar/et holds 9 share2 The deand in the

urban ar/ets is increasing due to the deand for !roducts li/e BED T*% air conditioners%

la!to!s% 3ellness !roducts etc2 (s the Go,ernent of India is !lanning to in,est hea,ily on

electrification in the rural ar/et% the consuer durable ar/et in the Rural India is also li/ely

to increase in anifolds soon2

Due to the "## FDI allo3ed in the electronics and hard3are anufacturing sector% the

gro3th has been stu!endous o,er the years% 3ith a co!ounded annual gro3th rate C(GR

of "#2: o,er F#=;">2

This sector is li/ely to ha,e a C(GR of "# in the F "?;" as the deand fro rural and

sei urban areas is e4!ected to increase2


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The Indian consuer durables ar/et co!rises of the follo3ing segents2

• -hite goods

• &ro3n goods

• Consuer Electronics

-hite Goods &ro3n Goods Consuer Electronics

(ir conditioners Micro3a,e o,ens Tele,isions and audio

systes

Refrigerators Coo/ing range Electronic accessories

-ashing achines Chineys Co!uters and Ba!to!s

-atches and cloc/s Mi4ers and Grinders Mobile !honesCleaning e8ui!ents Electronic Fans Cacorders

Se3ing achines Irons Pro.ectors

The bro3n goods and the consuer electronics are the ost !enetrati,e ar/ets@ obile

!hones and the electric fans being the ost 3idely used !roducts both in the urban and the

rural ar/ets2

(!!liances F #? F #J F "?

Colour Tele,isions 9: ""# ":

(ir conditioners >= ? J

Refrigerators =" " :"

-ashing Machines "" >" =9

Total "== >>J =J

Fi,e ears C(GR ;;; ""2 ">

The table sho3s the $ousehold (!!liances Industry in &illion

Furtherore% India5s doestic ,ideo% audio and gaing de,ice ar/et is also e4!ected to

gro3 in the F " to the ,alue of 'S H >"2 billion2

Mar!et Share o& .arious se"ments


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Samsung; 21%

LG; 21%

Sony; 22%

Videocon; 14%

Panasonic; 9%

O!e"s; 13%

Flat Panel Television

LG; 23%

#!i"$oo$; 2&%

Samsung; 2&%

God"e'; 18%

Videocon; 16%

O!e"s; 3%

Refrigerators


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LG; 28%

Samsung; 21%Vo$as; 19%

(iac!i; 8%

O!e"s; 23%

Air Conditioners

LG; 29%

Samsung; 27%

#!i"$oo$; 15%

God"e'; 11%

O!e"s; 17%

Microwave Ovens


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Samsung; 32%

)o*ia; 27%

+ic"oma,; 9%

-a"on; 6%

/$e; 4%

O!e"s; 23%

Smartphones

The /ey co!anies in the Indian FMCD ar/et include the follo3ing giants2

• Sasung

• BG

• *ideocon

• -hirl!ool

• Godre.

•

Sony• Panasonic

Soe of these co!anies 3ill be discussed in the second cha!ter2


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Industry Sie3 %roth3 /rends

The consuer durables ar/et in India 3as estiated to be around 'SH ?2 billion in >##9;

#2 More than illion units of consuer durable a!!liances ha,e been sold in the year >##9;

# 3ith colour tele,isions CT* foring the bul/ of the sales 3ith =# !er cent share of

,olues2 CT*% refrigerators and (ir;conditioners together constitute ore than 9# !er cent of

the sales in ters of the nuber of units sold2

Key Consumer Durables - Share by Volume

Colour Tele,isionsets CT*s =#E

Refrigerators ":E

(ir;conditioners "=E

-ashing Machines GE

Others =?E

Source: Cygnus Qur!er"y Re#or!$ Aug %&&'$ E(e")e*ss Re#or! on In(us!r*" Pro(uc!*on

In the refrigerators ar/et% the frost;free category has gro3n by :2= !er cent 3hile direct cool

segent has gro3n by J !er cent2 Co!anies li/e BG% -hirl!ool and Sasung ha,e

registered double;digit gro3th in the direct cool refrigerator ar/et2

In the case of 3ashing achines% the sei;autoatic category 3ith a higher base and fully;


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autoatic categories ha,e gro3n by ? !er cent to >9%### units and by : !er cent to >>J%###

units% res!ecti,ely2

In the air;conditioners segent% the sales of 3indo3 (Cs ha,e gro3n by => !er cent and that

of s!lit (Cs by J !er cent2

Since the !enetration in the urban areas for these !roducts is already 8uite high for both

CT*s and refrigerators are shifting to the sei;urban and rural areas2

The gro3th across !roduct categories in different segents is assessed in the follo3ing

sections2

Consumer lectronics

The CT* !roduction 3as "2"# illion units in >##9;# and is e4!ected to gro3 by at least >

!er cent2 (t the disaggregated le,el% con,entional CT* ,olues ha,e been falling 3hile flat

T*s ha,e gro3n strongly2 Mar/et sources indicate that ost CT* a.ors ha,e !hased out

con,entional T*s and ha,e been instead focusing ore on flat T*s2 The flat segent of CT*s

no3 accounts for o,er 9# !er cent of the total doestic T* !roduction and is li/ely to be

around 9 !er cent in >##;#:2

$igh;end !roducts such as li8uid crystal dis!lay BCD and !lasa dis!lay CT* gre3 by

?## !er cent and "# !er cent res!ecti,ely in >##9K# follo3ing a shar! decline in !rices of

these !roducts and this trend is e4!ected to continue2

The audio0,ideo !layer ar/et has seen significant gro3th rates in the doestic ar/et as

!rices ha,e dro!!ed2 This trend is e4!ected to continue through >##;#:% as co!etition is

li/ely to intensify to scale and ca!ture the ass ar/et2

Mobile Phones /he 2e Opportunity

Mobile !hone !roduction in India is e4!ected to gro3 at a Co!ound (nnual Gro3th Rate

C(GR of >:2= !er cent fro =" illion units in >##9 to "# illion units in >#""2


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Production of obile !hones is e4!ected to be a 'SH "=29 billion industry by >#""2 The

current 'SH ?2J billion industry re,enue is gro3ing at a C(GR of >929 !er cent2 The gro3th

of obile tele!hony ar/et is highest in India 3ith 9 to illion subscribers being added on

a onthly basis co!ared to the 'S% 3hich adds > illion subscribers and China% 3hich adds

about illion subscribers2

India is also eerging as a global base for handsets as /ey global !layers2 India !roduced

nearly =" illion obile !hones in >##9 3orth about 'SH billion2 This segent ade the

largest contribution to o,erall electronics !roduction re,enue and the total a,ailable ar/et for

seiconductors2 For >##% it is !ro.ected that the handset !roduction 3ill increase by 9: !er

cent in ,olue to about " illion units and 9 !er cent in ,alue ters2 Starting on an already

strong base% o,er si4 illion users are being added e,ery onth and are building a large local

ar/et for obile anufacturers

Bo3 obile !enetration and fa,ourable go,ernent !olicies are dri,ing global obile !hone

anufacturers to set u! anufacturing facilities in India2 )o/ia started its anufacturing unit

in Chennai in 1anuary >##9 and !roduced about > illion handsets in the first year of its

o!eration2 India has no3 becoe the second largest ar/et for )o/ia !hones in the 3orld2

)o/ia is also e4!orting obiles fro its Indian facilities to Sri Ban/a2 Motorola and

Electronics Manufacturing Ser,ice ,endors EMS li/e Fo4conn and Fle4tronics ha,e also set

u! !lants in India2

(ccording to a study by Gartner% though the 3orld5s to! fi,e handset a/ers 3ill retain a

a.or share of !roduction ,olue% local anufacturers can be e4!ected to ca!ture u! to a fifthof India5s o,erall obile !hone !roduction ,olue by the end of >#""2 Gro3ing deand for

lo3;cost obile !hones and the need for EMS ,endors to reduce their re,enue e4!osure to

)o/ia% Motorola and Sony Ericsson% for 3ho they are no3 anufacturing in India% are the

/ey factors e4!ected to contribute to this trend2 Most of the co!onents are i!orted today2

De,elo!ent of local co!onent anufacturing industry 3ill be essential for continuous

gro3th of total handset anufacturing2 Gi,en the !rice;sensiti,ity of the Indian consuer%

accesses to lo3;cost% feature;rich and local;s!ecific chi! designs% as 3ell as a strong

distribution net3or/% reain /ey considerations in this ar/et2 +ey sta/eholders in the obile

!hone industry ,alue chain !ro,ide these% and local anufacturers could be e4!ected to loo/


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to for alliances and !artnershi!s2

?hite %oods

Increased consuer deand is e4!ected to boost the 3hite goods segent to achie,e

!roduction le,els of 'SH 2#J billion by the end of >##;#: against 'SH ?2? billion in >##9;

#% 3ith a gro3th rate of ">2 !er cent2

A*r+Con(*!*oners

Gro3th in the 3hite goods segent 3as largely dri,en by the (ir;conditioner (C segent2

-ithin this% s!lit (Cs ha,e been the ain gro3th dri,ers% recording a gro3th of o,er J# !er cent in >##92 Gro3th% albeit at a slo3er rate of => !er cent% has also been e4!erienced in the

segent of 3indo3 (Cs2 The 3indo3 (C segent is slightly less organised as co!ared to

s!lit (C segent2 The ar/et for air;conditioners is di,ided 8uite uniforly across custoer

segents% 3ith about ? !er cent share for !ri,ate sector cor!orates% ># !er cent for doestic

use% " !er cent each for !ublic sector co!anies and go,ernent use and !er cent for

hos!itals2Ws,*ng -c,*nes

The sale of 3ashing achines has gro3n fro about :#%### units to "%J?:%### units during

the !eriod% fiscal year "JJJ to >##% registering a near ">2> !ercent annual gro3th rate2 The

3ashing achine ar/et ay be segented into sei;autoatic and fully autoatic

achines2 Sei;autoatic 3ashing achines en.oy a doinant share of : !er cent2 Fully

autoatic 3ashing achines ha,e been gaining share as a conse8uence of !roduct

i!ro,eent% co!etiti,e !ricing and resultant con,enience2 $o3e,er% sei;autoatic

achines 3ill continue to !lay a a.or role in the Indian ar/et for 8uite soetie2 Fully

autoatic 3ashing achines ha,e been the gro3ing at ??2 !er cent and sei;autoatic

segent% at about ": !er cent2

The entry of M)Cs has 3idened the range to ore than "# brands 3ith a !roliferation of

odels% 3hile ensuring technology u! gradation2 ( ,isible i!act of this churn has been the

e4it of a fe3 established !layers fro the ar/et2

Re.r*ger!ors


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Refrigerators are one of the ost sought after a!!liances in Indian iddle class hoes2 The

refrigerator ar/et has t3o segentsA Direct Cool and the relati,ely ne3 Frost;Free ty!e2 The

ar/et for refrigerators in >##9;# 3as about 92 illion units2 The gro3th of refrigerator

segent is !ro.ected to be bet3een ": to >> !er cent o,er the ne4t years2

( critical success factor for the refrigerator ar/et% gi,en its 3ides!read use% is dee!er

reach into the ar/et and increased !enetration2 Recently% the ar/et is getting reinforced by

the re!laceent segent as 3ell2

/cuu0 C"eners

*acuu Cleaners are an eerging segent in the Indian ar/et% still at a nascent stage2 The

dri,ers for deand ha,e been the i!ro,eent in life style and higher as!irations of urban

iddle class and the to! incoe brac/ets2 -hile the ar/et has been gro3ing% this segent is

not e4!ected to reach significant ,olues soon2

Part of this could be attributed to the lifestyle co!atibility of Indian custoers 3ith the

!roduct2 In the large a.ority of Indian houses% for instance% floors are not car!eted and the

!roduct 3ill ha,e to eet dual re8uireents of s3ee!ing and o!!ing2 (nother i!edient

to the ado!tion of ,acuu cleaners has been the a,ailability of chea! doestic hel! in ost

cities2

Do0es!*c E"ec!r*c" A##"*nces

&ro3n goods or doestic /itchen a!!liances are indicators of the changing consuer scenario

in !ost;liberalisation econoic en,ironent2 The a.or !roducts constituting the bro3n goods

ar/et are i4ers% grinders% irons% icro3a,e;o,ens% rice coo/ers% 3ater heaters or geysers%

electric fans and e4hausts2

The branded bro3n goods ar/et has e4!anded at a significant !ace and is e4!ected to

retain the oentu into the future as 3ell2 The ar/et has been transfored by the entry of

o,er a dozen ne3 brands% oreo,er co!etition has intensified2 -hile focus on !rice

co!etency reains a /ey !riority% !layers ha,e also started focusing on other !roduct

features such as safety and total cost of o3nershi! of the de,ice2


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Goods% li/e the rice coo/er ha,e been continuously gro3ing in a slo3 and steady anner

o,er a significant !eriod of tie% 3hile icro3a,e o,ens ha,e gro3n e4!onentially after the

initial !eriod of custoisation to local re8uireents2

The electrical iron ar/et can be di,ided into t3o segentsA hea,y and light;3eight2 The

ar/et is also segented into t3o sub;segentsA stea and non;stea irons2

India being a tro!ical country% electric fans are an essential utility for ore than si4 onths

of the year in ost !arts of the country2 The !resent ar/et size is estiated at around ""29

illion !ieces2 The ar/et is di,ided aong ceiling% !edestal% 3all and table fans2 Industrial

and e4haust fans are another i!ortant segent2 The a.or !layers include Orient Fan%

Cro!ton Grea,es% 1ay Engineering% &a.a. Electricals% Polar% +haitan and (lstho2

The electrical a!!liances industry% 3hich had been focused on the urban ar/et% is no3

reaching out to sei;urban and rural ar/ets as 3ell% because of the shift in li,ing style of the

!o!ulation% increasing electrification of ,illages and relati,ely higher !urchasing !o3er of

consuers2 (s the ar/et !enetrates into the core iddle class segent in both urban and

rural areas% it is e4!ected to e4!and !henoenally% offering large ,olues to the industry2

FMCD in the %lobal Mar!et

Computer and peripherals

• -orld3ide PC shi!ents declined :2= y0y to :2 illion units in

=L5">2Gartner

• Global noteboo/ shi!ents declined ?2 808 and ""29 y0y to ?: illion units in

=L5">2Digities Research

• Global noteboo/ shi!ents 3ill sli! #2: y0y to "J? illion units in >#"> and then

increase 2J y0y to ># illion units in >#"=2MIC

• 'ltra boo/s shi!ents 3ill reach "#2= illion units in >#"> 3ith ore

than half of shi!ents occurring in >$5">2I$S


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• 'ltra;sli PC shi!ents 3ill gro3 fro =2? illion in >#"" to 92# illion by >#"2

)PD Dis!lay Search

• Internet connected de,ices 3ill reach J29 billion de,ices in >#">2IMS

Research

• Sart connected de,ice shi!ents increased >2? y0y and >2: 808 to

>92= illion units in >L5">2IDC

Consumer lectronics

• Global consuer electronics ar/et re,enues 3ill e4!and "2= to 'SH=9" billion in

>#">2I$S iSu!!li

• O,erall holiday s!ending is e4!ected to increase "" y0y in >#">% 3ith s!ending on

consuer electronics is increasing to a,erage of H>>2CE(

• -earable technology de,ices shi!ents are e4!ected to gro3 fro "?

Million in >#"" to J>2 illion units by >#"92IMS Research

/OP /2 FMCD COMPA2IS I2 I2DIA A2D /; ?OR9D

/OP /2 /C; COMPA2IS I2 /; ?OR9D

"2 (!!le Inc % 'S(% 'SH "92 billion

>2 Sasung Electronics% South +orea 'S H"?J billion=2 $e3lett Pac/ard% 'S(% 'S H">#2 billion?2 Fo4conn% Tai3an% 'S H ""2" billion2 I&M% 'S(% 'S H "#92 billion92 Panasonic% 1a!an% 'S H JJ29 billion


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2 Toshiba% 1a!an% 'S H ?2=J billion:2 Microsoft% 'S(% 'S H =2> billionJ2 Sony% 1a!an% 'S H 92? billion"#2 Dell% 'S(% 'S H 9>2# billion

/OP /2 FMCD COMPA2IS I2 I2DIA

"2 Sasung India% = Mar/et Shares>2 BG India% >= Mar/et Shares=2 Toshiba India?2 Sony India% >";>> Mar/et Shares2 *ideocon India% "> Mar/et Shares

92 Panasonic India% 9 Mar/et Shares2 Mirc ElectronicsO)ID(:2 $itachi IndiaJ2 -hirl!ool India% ># Mar/et Shares in refrigerators"#2 Godre.% "" Mar/et shares in Micro3a,e o,ens

C;AP/R '

COMPA2< PROFI9

Follo3ing are the to! co!anies of FMCD in the 3orld;

oltas

Ty!e ; Public Co!any

Industry K $oe (!!liances Engineering

Founded; "J?

CEO; Mr2 San.ay 1ohri

$ead8uarters K *oltas $ouse% Mubai% India

Products K $eating% (ir conditioning% Refrigeration% *entilation

Re,enue K Rs2 =9?=2 illion 'SD H:J# illion


20/48

2&

O!erating Incoe; Rs2 ??J92J illion 'SD H illion

)et Incoe; Rs2=:?29 illion 'SDH9? illion

-ebsite; 3332,oltas2co

*oltas Biited is an engineering% air conditioning and refrigeration co!any based in

Mubai% India2 It a/es e8ui!ent for industries in areas such as heating% ,entilation and air

conditioning% refrigeration% construction e8ui!ent% aterials handling% 3ater anageent%

building anageent systes% indoor air 8uality and cheicals2

The Co!any 3as incor!orated on 9 Se!teber "J? at Mubai2 The Co!any 3as

!rooted in "J? by M0s2 *ol/art &rothers andTatas

*oltas is a !art of the Tata Grou!2 The anaging director is Mr2 San.ay 1ohri2 Its shares are

traded on the &obay Stoc/ E4changeunder sybol ## 3ith a turno,er of I)R =9?=2

illion in >#"";">2

*oltas !ro,ided the air;conditioning for the 3orldNs biggest ocean liner% the RMS Lueen Mary

> and also the 3orldNs tallest building% the &ur. +halifa

The *oltas co!any has large Ser,ice )et3or/2 *oltas has its o3n ser,ice center in each

a.or city2


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4el.inator

Ty!e; Di,ision of Electrolu4

Industry; (!!liances

Founded;"J"?

Products; Coercial refrigeration for food ser,ice

+el,inator 3as founded in "J"?% in Detroit% Michigan% 'nited States by engineer )athaniel &2

-ales 3ho introduced his idea for a !ractical electric refrigeration unit for the hoe to

Edund Co!eland and (rnold Goss2

-ales% a young in,entor% secured financial bac/ing fro (rnold Goss% then secretary of the

&uic/ (utoobile co!any% to de,elo! the first household echanical refrigerators to be

ar/eted under the nae Electro;(utoatic Refrigerating Co!any2(fter !roducing a

nuber of e4!eriental odels% -ales selected one for anufacturing2

In February "J"9% the nae of the co!any 3as changed to +el,inator Co!any in honor

of &ritish !hysicist% Bord +el,in% the disco,erer of absolute zero2 +el,inator 3as aong soe

t3o dozen hoe refrigerators introduced to the '2S2 ar/et in "J"92 In "J": +el,inator

introduced the first refrigerator 3ith any ty!e of autoatic control2

Frustrated by icebo4es% the Grand Ra!ids Refrigerator Co!any introduced a !orcelain lined

Beonard Cleanable ice cabinet2 +el,inator began buying BeonardNs bo4es for its electric

refrigerated odels2 &y "J>=% the +el,inator Co!any held :# !ercent of the (erican

ar/et for electric refrigerators2

On 1uly =% "J>% +el,inator bought )izer Cor!oration in a tri;!arty erger ,alued at

H>#%###%###2


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Samsun" lectronics

Ty!e K Public

Industry; Consuer electronics% Telecos e8ui!ent%Sei conductors% $oe a!!liances

Founded; "J::

CEO K &+ oon

$ead8uarters; Su3on% Gyeonggi Pro,ince% South +orea

Products; BCD BED Panels% Tele,isions% Mobile Phones

Re,enue; >>:29J> trillion >#"=₩

O!erating Incoe; =92: trillion >#"=₩

Profit; >J2:>" trillion >#"=₩

Total assets; >"?2# trillion >#"=₩

Total e8uity; "#2#"9 trillion >#"=₩

E!loyees; =>9%### >#"?

-ebsite; 3332sasung2co

Sasung Electronics Co2 Btd2 is a South +orean ultinational electronics co!any

head8uartered in Su3on% South +orea2 It is the flagshi! subsidiary of the Sasung Grou!%

aounting to # of the grou!Ns re,enue in >#">% and has been the 3orldNs largest inforation

technology co!any by re,enues since >##J2Sasung Electronics has assebly !lants and

sales net3or/s in :# countries and e!loys around =#%### !eo!le2 For >#"> the CEO is

+3on Oh;$yun2


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23

Sasung has long been a a.or anufacturer of electronic co!onents such as lithiu;ion

batteries% seiconductors% chi!s% flash eory and hard dri,e de,ices for clients such as

(!!le% Sony% $TC and )o/ia2

In recent years% the co!any has di,ersified into consuer electronics2 It is the 3orldNs largest

anufacturer of obile !hones and sart!hone fuelled by the !o!ularity of its Sasung

Gala4y line of de,ices2 The co!any is also a a.or ,endor of tablet co!uters% !articularly

its (ndroid;!o3ered Sasung Gala4y Tab collection% and is generally regarded as !ioneering

the !hablet ar/et through the Sasung Gala4y )ote faily of de,ices2

?hirlpool Corporation

Ty!e; Public

Industry; $ousehold (!!liances

Founded; "J""

Founders; Bouis '!ton% Eory '!ton

$ead8uarters;&enton Charter To3nshi!% Michigan% 'S

Products; Ma.or and Sall a!!liances

Re,enue; 'SH ":29J billion >#"=

O!erating incoe; 'SH "2>?J billion >#"=

Profit;'SH :> illion >#"=

Total assets;'SH "2?? billion >#"=

Total e8uity;'SH ?2J>? billion >#"=

E!loyees;9J%### >#"=


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The -hirl!ool Cor!oration is an (erican ultinational anufacturer and ar/eter of hoe

a!!liances head8uartered in &enton Charter To3nshi!% Michigan% 'nited States% near &enton

$arbor% Michigan2 The Fortune ##Q? co!any has annual re,enue of a!!ro4iately H"J

billion% 9J%### e!loyees% and ore than # anufacturing and technology research centers

around the 3orld2 The co!any ar/ets -hirl!ool% Maytag% +itchen(id% 1enn;(ir% (ana%

Gladiator Garage -or/s% Ingles% Estate% &raste!% &au/necht and Consul2 (fter ac8uiring the

Maytag Cor!oration on March ="% >##9% the -hirl!ool Cor!oration sur!assed Electrolu4 to

becoe the largest hoe a!!liance a/er in the 3orld2

In the '2S2% -hirl!ool has : anufacturing facilitiesA (ana% Io3a@ Tulsa% O/lahoa@Cle,eland% Tennessee@ OhioA Clyde% Findlay% Green,ille% Marion and Otta3a2

%odrej

Ty!e;Public co!any

Industry;Congloerate

Founded ;":J

Founders; (rdeshir Godre.% Piro.sha Godre.

$ead8uarters; Mubai% Maharashtra% India

Products; Real estate% FMCG% industrial engineering% hoe a!!liances% furniture% security%

(gri care

Re,enue; >"9 billion 'SH=29 billion>#"=

E!loyees; >9%### >#"=

The Godre. Grou! is an Indian congloerate head8uartered in Mubai% Maharashtra% India%

anaged and largely o3ned by the Godre. faily2 It 3as founded by (rdeshir Godre. and

Piro.sha Godre. in ":J% and o!erates in sectors as di,erse as real estate% consuer !roducts%

industrial engineering% a!!liances% furniture% security and agricultural !roducts2 Subsidiaries


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and affiliated co!anies include Godre. Industries and its subsidiaries Godre. Consuer

Products% Godre. (gro,et% and Godre. Pro!erties% as 3ell as the !ri,ate holding co!any

Godre. &oyce2

Bajaj lectricals

Industry; Electrical e8ui!ent

Founded ;"? 1uly "J=:

Founders ; +aalnayan &a.a.

$ead8uarters ;Mubai% Maharashtra% India

+ey !eo!le; She/har &a.a.% Chairan and MD% Mr (nant &a.a.% 1oint Managing Director

Products; $oe (!!liances% Fans% Bighting Engineering and Products

Re,enue ; >2 billion 'SH?9# illion >#""

Parent ; &a.a. Grou!

Subsidiaries; Starlite Bighting

&a.a. Electricals Btd &EB is an Indian consuer electrical e8ui!ents anufacturingco!any based in Mubai% Maharashtra It is a !art of the =:# billion 'SH92= billion &a.a.

Grou!2 It has di,ersified 3ith interests in lighting% luinaries% a!!liances% fans% BPG based

Generators% engineering and !ro.ects2 Its ain doains are lighting% consuer durables%

engineering and !ro.ects2 Bighting includes la!s% tubes and luinaries2 Consuer durables

include a!!liances and fans2 Engineering and !ro.ects include transission line to3ers%

telecounications to3ers% high ast% !oles and s!ecial !ro.ects% and others include diecasting% 3ind energy solar energy2 Soe notable !ro.ect includes lighting 3or/s at the

Coon3ealth Gaes stadiu and the &andra -arli Sea Bin/


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26

It has "J branch offices s!read in different !arts of the country 3ith a chain of about "###

distributors% ?### authorised dealers% o,er ?##%### retail outlets and o,er >:> Custoer Care

centres2

2o!ia

Ty!e; Public co!any

Industry Telecounications e8ui!ent

Internet; Co!uter soft3are

Founded; Ta!ere% Grand Duchy of Finland ":9

incor!orated in )o/ia ":"

Founders Fredri/ Idesta

Beo Mechelin

$ead8uarters; Es!oo% 'usiaa% Finland

(rea ser,ed;-orld3ide

+ey !eo!le Risto Siilasaa Chairan

Ra.ee, Suri President and CEO

Tio Ihauotila CFO

Products ;Bist of )o/ia !roducts

Ser,ices ;Ma!s and na,igation% usic% essaging and edia

Re,enue ; ">2# billion >#"=

O!erating incoe; "J illion >#"=

)et incoe; ;9" illion >#"=


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Total assets; >2"J billion >#"=

Total e8uity; 92?9 billion >#"=

E!loyees ;J#%J:" >#"=

)o/ia is a Finnish counications and inforation technology ultinational cor!oration that

is head8uartered in Es!oo% 'usiaa2 The co!any !ro,ides Internet ser,ices% including

a!!lications% gaes% usic% edia and essaging ser,ices% including free;of;charge digital

a! inforation and na,igation ser,ices deli,ered through its 3holly o3ned subsidiary2 Its

)o/ia )et3or/s subsidiary !ro,ides telecounications net3or/ e8ui!ent and ser,ices2

(s of >#"=% )o/ia e!loyed J#%### !eo!le across "># countries% conducts sales in ore than

"# countries and re!orted annual re,enues of around ">2 billion2 )o/ia is a !ublic liited;

liability co!any listed on the $elsin/i Stoc/ E4change and )e3 or/ Stoc/ E4change2 It is

the 3orldNs >?th;largest co!any easured by >#"= re,enues according to the Fortune

Global ##2

In Se!teber >#"=% )o/ia sold 3hat 3as once the 3orldNs largest ,endor of obile !hones to

Microsoft as !art of an o,erall deal totaling 2?? billion 'SH2" billion2 Ste!hen Elo!%

)o/iaNs forer CEO% and se,eral other e4ecuti,es .oined the ne3 Microsoft Mobile subsidiary

of Microsoft as !art of the deal% 3hich closed on > (!ril >#"?2


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C;AP/R >

B-SI2SS A2A9##?;>##:% the Indian consuer electronics ar/et is

e4!ected to follo3 siilar !attern in the forthcoing years u! to >#"=2

The Indian consuer electronics ar/et generated total re,enues of H?%"J929 illion in >##:%

re!resenting a co!ound annual gro3th rate C(GR of J2 for the !eriod s!anning >##?;

>##:2 In co!arison% the Chinese and 1a!anese ar/ets gre3 3ith C(GRs of "=2? and 9

res!ecti,ely% o,er the sae !eriod% to reach res!ecti,e ,alues of H>9%#2J illion and

H>>%?J>2 illion in >##:2 Electricals and Electronics Retailers5 sales !ro,ed the ost

lucrati,e for the Indian consuer electronics ar/et in >##:% generating total re,enues of

H=%:>"2 illion% e8ui,alent to J"2" of the ar/etNs o,erall ,alue2 In co!arison% sales fro

Discount% *ariety Store% and General Merchandise Retailers generated re,enues of H=#>

illion in >##:% e8uating to 2> of the ar/etNs aggregate re,enues2 The !erforance of the

ar/et is forecast to decelerate% 3ith an antici!ated C(GR of 92? for the fi,e;year !eriod


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>##:;>#"=% 3hich is e4!ected to dri,e the ar/et to a ,alue of H%>2 illion by the end of

>#"=2 Co!arati,ely% the Chinese and 1a!anese ar/ets 3ill gro3 3ith C(GRs of 2 and

"2> res!ecti,ely% o,er the sae !eriod% to reach res!ecti,e ,alues of H=?%?==29 illion andH>=%:>>2? illion in >#"=2

MAR4/ A9-

The Indian consuer electronics ar/et gre3 by 2 in >##: to reach a ,alue of H?2>

billion2 The co!ound annual gro3th rate of the ar/et in the !eriod >##?;>##: 3as

J22Electricals and electronics retailers5 sales !ro,ed the ost lucrati,e for the Indianconsuer electronics ar/et in >##:% generating J"2" of the ar/etNs o,erall re,enues2 Sales

fro discount%,ariety store% and general erchandise retailers generated 2> of the ar/etNs

aggregate re,enues#

MAR4/ A9- FORCAS/

In >#"% the Indian consuer electronics ar/et is forecast to ha,e a ,alue of H2 billion% an

increase of =92 since >##:2 The co!ound annual gro3th rate of the ar/et in the !eriod

>##:;>#"= 3as !redicted to be 92?2

;O-S;O9D APP9IA2CS

The household a!!liances ar/et reflects the sale of si4 !roduct sectorsA refrigeration

a!!liances including fridges% freezers and fridge freezers% coo/ing a!!liances including

coo/ers% icro3a,es% o,ens% coo/er hoods% food !rocessors and toasters% 3ashing a!!liances

including 3ashing achines% clothes dryers and 3asher;dryers% roo cofort and 3ater

heater a!!liances 3hich include air conditioning% circulating and ,entilation fans% s!ace


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3&

heaters and 3ater heaters% ,acuu cleaners% and dish3ashers2 The ar/et ,alue has been

calculated using anufacturer selling !rices2 The !erforance of the ar/et is forecast to

decelerate% 3ith an antici!ated C(GR of "# for the fi,e;year !eriod >##:;>#"=% 3hich ise4!ected to dri,e the ar/et to a ,alue of H2 billion by the end of >#"=2The Indian

household a!!liances ar/et has gro3n at a strong rate in recent years2 Further strong gro3th

is e4!ected for the forecast !eriod2

The Indian household a!!liances ar/et generated total re,enues of H?2: billion in >##:%

re!resenting a co!ound annual gro3th rate C(GR of ">2 for the !eriod s!anning >##?;

>##:2 In co!arison% the 1a!anese and Chinese ar/ets gre3 3ith C(GRs of "2" and 2%

res!ecti,ely% o,er the sae !eriod% to reach res!ecti,e ,alues of H":29 billion and H>?2? billion

in >##:2

Mar/et consu!tion ,olues increased 3ith a C(GR of "=2> bet3een >##?;>##:% to reach

a total of =?2 illion units in >##:2 The ar/etNs ,olue is e4!ected to rise to >2> illion

units by the end of >#"=% re!resenting a C(GR of "# for the >##:;>#"= !eriods2

Refrigeration a!!liance sales !ro,ed the ost lucrati,e for the Indian household a!!liances

ar/et in >##:% generating total re,enues of H"%??2= illion% e8ui,alent to =# of the

ar/etNs o,erall ,alue2 In co!arison% sales of coo/ing a!!liances generated re,enues of

H"%?# illion in >##:% e8uating to >J2" of the ar/etNs aggregate re,enues2

The !erforance of the ar/et is forecast to decelerate% 3ith an antici!ated C(GR of "# for

the fi,e;year !eriod >##:;>#"=% 3hich is e4!ected to dri,e the ar/et to a ,alue of H2

billion by the end of >#"=2 Co!arati,ely% the 1a!anese and Chinese ar/ets 3ill gro3 3ith

C(GRs of #2? and ?2% res!ecti,ely% o,er the sae !eriod% to reach res!ecti,e ,alues of

H":2J billion and H=#2 billion in >#"=2


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MAR4/ A9-

The Indian household a!!liances ar/et gre3 by J2? in >##: to reach a ,alue of H?2:

billion2 The co!ound annual gro3th rate of the ar/et in the !eriod >##?;>##: 3as ">22

MAR4/ O9-M

The Indian household a!!liances ar/et gre3 by ""2: in >##: to reach a ,olue of =?2

illion units2 The co!ound annual gro3th rate of the ar/et ,olue in the !eriod >##?;

>##: 3as "=2>2Refrigeration a!!liance sales !ro,ed the ost lucrati,e for the Indian

household a!!liances ar/et% generating =# of the total re,enues2 In co!arison% coo/ing

a!!liance sales account for a further >J2" of the ar/etNs re,enue2

MAR4/ A9- FORCAS/

In >#"% the Indian household a!!liances ar/et is forecast to ha,e a ,alue of H2 billion% an

increase of 9#2 since >##:2 The co!ound annual gro3th rate of the ar/et in the !eriod

>##:;>#"= is "#2

MAR4/ O9-M FORCAS/

In >#"=% the Indian household a!!liances ar/et is forecast to ha,e a ,olue of >2> illion

units% an increase of #2? since >##:2 The co!ound annual gro3th rate of the ar/et

,olue in the !eriod >##:;>#"= is !redicted to be :22


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COMP/I/IO2 A2A9" Sony -orld and

Sony E4clusi,e outlets and >" direct branch locations2 The co!any also has !resence across

the country 3ith >" co!any o3ned and "> authorized ser,ice centres2


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Sharp India 9td

Shar! India ltd 3as incor!orated in "J: as +alyani Telecounications and Electronics P,t

Btd% the co!any 3as con,erted into a !ublic liited co!any in the sae year2 The nae

3as changed to +alyani Shar! India in "J:92 The co!any 3as entered into a .oint ,enture

3ith Shar! Cor!oration% 1a!an ; a leading anufacturer of consuer electronic !roducts to

anufacture *CRs0*CPs0*TDMs2 The co!any anufactures consuer electronic goods

such as T*s% *CRs% *CPs and audio !roducts2 The !roducts 3ere sold under the O!tonica

brand nae2 Shar! has a !roduction base in >9 countries 3ith == !lants% and its !roducts are

used in "== countries2 The co!any 3as accredited 3ith the ISO;J##" certification in the

onth of February% >##"2

;itachi India

$itachi India Btd $IB 3as established in 1une "JJ: and engaged in ar/eting and sells a

3ide range of !roducts ranging fro Po3er and Industrial Systes% Industrial VCo!onents

E8ui!ent% (ir Conditioning Refrigeration E8ui!ent to International Procureent of

soft3are% aterials and co!onents2 Soe of $IB5s !roduct range includes Seiconductors

and Dis!lay Co!onents2 It also su!!orts the sale of Plasa T*s% BCD T*s% BCD Pro.ectors%

Sart &oards and D*D Cacorders2

Mirc lectronics 0O2IDA1

The co!any coands strong brand e8uity aong consuers largely o3ing to the success

of its Onida brand2

$igh;8uality designs ha,e ade the co!any a leading !layer in the electronics and

entertainent business2 Its !o!ular de,il ad although had engendered a strong eotional !ull

to3ards the brand% technologically it re!resented no ad,anceent2 The co!any !lugged the

ga! by touting its digital technology2 Bi/e *ideocon% it has also been able to hold its ar/et

share2 The 3orld;class 8uality of Onida has enabled the co!any to a/e a brea/through on

the e4!ort front2 Onida is a leading brand in Gulf ar/et and also e4!orts its odels to (frica%


34/48

34

&angladesh% Sri Ban/a and )e!al2 It has technical tie;u! 3ith the 1a!an *ictor Co!any%

better /no3n as 1*C2 So focused is Onida on !ositioning itself on the !reiu% high;tech

!lan/ that it is e,en !lanning to !ush its o3n en,elo!e on obsolescence% uch li/e Intel has

been doing in its o3n industry2 The strategy is aied at further broad basing the !roduct

offering of the co!any% 3hich has largely doinated the to!;end of the tele,ision ar/et%

across ulti!le ar/et segents2 &esides understanding the strategy ado!ted by different

!layers% se,eral other factors; industry gro3th% concentration and balance% cor!orate sta/es%

fi4ed cost% and !roduct differences need to be analysed to deterine the e4tent of ri,alry

bet3een the e4isting !layers2

ideocon 0C-RR2/ MAR4/ S;AR+)'1

It is the ar/et leader in the consuer electronics and hoe a!!liances segents in India@

the co!any anufactures hoe a!!liances such as refrigerators% icro3a,e o,ens%

co!ressors% air conditioners and 3ashing achines2

It has !lans to ac8uire Dae3oo5s consuer electronics businesses 3orld3ide to bring BCD

T*s% !lasa T*s and co!onents into its fold@ the o,e 3ould also hel! it ac8uire a

consuing !artner for the recently;ac8uired Thoson5s !icture tube business2 *ideocon has

al3ays been a !rice !layer and has an iage of a lo3 !rice brand2 This entails !ro,iding ore

features at a gi,en !rice ,is;W;,is co!etitors2 It has ta/en o,er ultinational brands to cater

to un ser,ed segents% li/e Sansui; to flan/ the flagshi! brand *ideocon in the lo3 to id

!riced segent% essentially to fight against brands li/e &PB% Phili!s% Onida and ta/en o,er

(/ai; tail end brand or brands li/e (i3a2 *ideocon is one of the largest anufacturers of

tele,ision and its co!onents in India and thus has ad,antages of econoies of scale and lo3

cost due to indigenisation2 It has the 3idest distribution net3or/ in India 3ith ore than ###

dealers in the a.or cities 2It also has a strong base in the sei;urban and rural ar/ets2 Due

to its ulti;brand strategy% it has at !resent ulti!le brands at the sae !rice !oint2 This has

led to a state of diffused !ositioning for its brands2 It has also led to a cannibalisation of sales

aong these brands2 The flagshi! brand *ideocon has lost ar/et share due to the !resence of

Sansui in the sae segent2 &ecause of reduction in i!ort duties on CPT the cost ad,antage


35/48

35

of *ideocon is also on the decline2 $ence it is facing rough 3eather and also trying to boost

e4!orts2

Panasonic India 0C-RR2/ MAR4/ S;AR+,1

Panasonic Cor!oration based in Osa/a% 1a!an is a 3orld3ide leader in the de,elo!ent and

anufacture of electronic !roducts for a 3ide range of consuer% business% and industrial

needs2 Panasonic Electric -or/s Co2% Btd2 traces its roots to the co!any started in "J": by

+onosu/e Matsushita2 Panasonic India !lans to in,est 'SD "## illion in its ne3 !lasa T*

!roduction facility in >#""2

The co!any currently has fi,e !roduction units in the country% at )oida% Gurgaon% *adodara%

Chennai and Delhi2 It also launched the 3orlds sliest% ";inch !lasa T* called *ierra PDP

X"2(ccording to Panasonic The ar/et !otential for !lasa T* 3as uch greater in India

than China% the deand for such high;end sets 3as increasing at a rate of ?;"# !er cent in the

country2 The co!any has !riced its !lasa T* bet3een Rs >?%### and Rs =# la/h for a "#=;

inch screen2 It has already sold ten such units this onth2

S?O/ A2A9


36/48

36

The deand is seasonal and is highest only during the festi,e seasons

Bo3 !urchasing !o3er of consuers

Opportunities

In India% the !enetration le,el of the 3hite goods is uch less than other countries

'ne4!loited rural ar/et

Ra!id urbanization

Increasing the earning ca!acity of the custoers

Easy a,ailability of finance

T,re!s

$igher i!ort duties on the ra3 aterials i!osed

Chea! i!orts fro Singa!ore% China and other (sian countries2

C;AP/R *

Consuer Goods Products and ser,ices

Consuer electronics bro3n goods

o Tele,isions

o (udio and ,ideo systes

o CD and D*D !layers


37/48

37

o Personal co!uters

o Ba!to!s

o Digital caeras

o Electronic accessories

o Cacorders

Consuer a!!liances 3hite goods

o (ir conditioners

o Refrigerators

o -ashing achines

o Se3ing achines

o Electric fans

o Cleaning e8ui!ent

o Micro3a,e o,ens

o Other doestic a!!liances

Consumer electronics+ !ey products

Colour /s 0C/s1

CT*s are the largest contributors to this segent@ ar/et size estiated at ": illionunits in >#"#2

During this !eriod% >";inch CT*s doinated the ar/et 3ith a 9 !er cent share

9iEuid crystal displays 09CDs1

BCDs are !ercei,ed as high;end !roducts

Indian BCD ar/et in >#"# 3as about =2> illion units


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The !rice decline due to relati,ely lo3 i!ort duty on BCD !anels and the introduction

of sall entry;size odels ha,e triggered gro3th in BCD sales

Di"ital .ideo discs 0DDs1

The Indian D*D ar/et 3as estiated at 92> illion units in >##J

The organised ar/et accounts for :# !er cent of the total D*D ar/et

Direct+to+home 0D/;1

The set;to! bo4 ST& ar/et is gro3ing ra!idly% due to the e4!ansion of DT$ and

introduction of the conditional access syste C(S in etros

During >#"#;>#">% the subscriber base is e4!ected to gro3 fro >= illion to ?>

illion% a/ing India the largest DT$ ar/et in the 3orld2


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Re&ri"erators

The Indian refrigerator ar/et 3as estiated at 92 illion units in >#"#% the largest in this

segent

Reduction in !rices and high deand for frost;free segent are dri,ing gro3th

Air conditioners 0ACs1

(Cs are !ercei,ed as high;end !roducts% current !enetration stands at = !er cent

S!lit (Cs is dri,ing gro3th in the ar/et

?ashin" appliances

-ashing achines are the second largest contributor to this segent after refrigerators@ total

ar/et in >#"# 3as ?2 illion units

Fully autoatic 3ashing achines are garnering an increasing share of the ar/et due to

reduction in !rices

lectric &ans

This is a highly !enetrated ar/et

Electric fans are an essential utility for ore than si4 onths of the year in ost !arts of the

country


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4&

/op Per&ormin" Companies in the FMCD sector

C;AP/R 7

OB OPPOR/-2I/IS FOR MBAGS

COMPANY PRODUCT CATEGORY

&B'E ST(R (Cs% refrigerators and s!ecialty cooling !roducts

D(I+I) (Cs and cooling e8ui!ent

GODRE1

Refrigerators% (Cs% 3ashing achines% icro3a,eo,ens% D*D !layers% digital;iaging !roducts andaudio;,isual !roducts

B2G

BIFE US GOOD

(udio;,isual solutions% co!uters% obile !hones%refrigerators% 3ashing achines% icro3a,eo,ens% ,acuu cleaners and (Cs

O)ID(

BCDs% 3ashing achines% D*D !layers% (Cs%icro3a,e o,ens% obile !hones% !ro.ectors anddis!lay !roducts

P$IBIPS

T*s% hoe theatre systes% D*D !layers% audio !roducts% !ersonal care !roducts% household !roducts% co!uters and !hones

S(MS')G

T*s% hoe theatre systes% D*D !layers% obile !hones% digital caeras and cacorders%refrigerators% (Cs% 3ashing achines% icro3a,eo,ens and co!uters

SO)

T*s% !ro.ectors% D*D !layers% audio systes%

hoe theatre systes% digital caeras andcacorders% co!uters% ,ideo;gaing !roductsand recording edia

*IDEOCO)

T*s% D*D !layers% icro3a,e o,ens%refrigerators% 3ashing achines% (Cs and !o3er

bac/u! solutions

-$IRBPOOB

Refrigerators% 3ashing achines% icro3a,eo,ens% 3ater !urifiers and !o3er bac/u! solutions


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Fast Mo,ing Consuer Durables industry creates a 3ide range of .ob o!!ortunities2 This

industry is a stable% di,erse% challenging and high !rofile industry !ro,iding a 3ide range of

.ob categories li/e sales% su!!ly chain% finance% ar/eting% o!erations% !urchasing% huan

resources% !roduct de,elo!ent% and general anageent2

Bist of !ros!ecti,e roles for s!ecialization students in FMCD IndustryA

Product Manager

Sales Manager

Product Ca!aign Manager

Regional 0 Xonal anager

*endor De,elo!ent Manager

)ational Sales Manager

Product Mana"er + FMCD

+no3ledge ofA

; Prootional a!!roaches2

; &randing2

; O,erall ar/eting and sales !ractices and !rinci!les2

; Tie anageent and organizational s/ills2

S/ills toA

; Gather and re!ort nuerical data and !roduce statistical re!orts2

; -rite e4ce!tional original aterial% edit% !roofread% and finalize 3ritten aterial2

(bility toA;

; &uild effecti,e internal and e4ternal !artnershi!s and alliances2

; -or/ 3ell 3ith custoer care% sales% design and de,elo!ent% finance% legal etc2

; Thin/ analytically and be a !roble sol,er2


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; Pro,ide e4cellent custoer ser,ice2

; Maintain confidentiality of Co!any inforation 3hen re8uired2

; Create a tea en,ironent% be !ositi,e% and sustain e!loyee orale2

Sales Mana"er

"2 Forulate !roduct;3ise onthly sales and collection !lans for his area and oti,ate his

tea to deli,er !lans on *alue gro3th and 3ithin s!ecified discount and credit nors

>2 Ensures that ob.ecti,es laid out by the organization are deli,ered for the assignedgeogra!hyA

a2 Pricing

b2 Managing deli,ery of $igh Potential +ey Retailer Plans 0 Channel E4!ansion Plans 0

Fortress Co!any Plans

c2 &illing to ade8uate nuber of accounts !er sales !ersonnel and Range

Selling

d2 De,elo!er

e2 Ensuring all accounts are 3or/ing to o!tiu ca!acity

=2 Maintain and nourish strategic relationshi! 3ith /ey channel !artners for greater stoc/

u!ta/e and to garner ar/et intelligence2

?2 I!leent To3n0cluster s!ecific deand Generation acti,ities to enhance brand !reference

aong influencers0consuers as also i!leent )ational 0 Regional DG Initiati,es2

2 (dhere to the laid do3n sales !rocesses in res!ect of A


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; In,iolable Controls

; PDR Plan ;do;re,ie3

; P1P Peranent 1ourney Plans

; DSR Daily Sales Re!orts

; Sales Forecast

; Custoer Ser,ice CSO K Tele caller KCF Manager

To ensure standardization of !rocesses for effecti,e sales strategy e4ecution

92 Dri,e tiely co!letion of Perforance Manageent e4ercise and identify the training and

de,elo!ent needs of the tea2

Functional Res!onsibilities0)et3or/ /indly liit to a a4iu of fi,e

; Interaction 3ith the Regional Bogistics Manager on de!ot o!eration and su!!lies

; Interaction 3ith the Regional Trade Mar/eting Manager on deand generation and

acti,ation !lans

; Interaction 3ith the Regional Coercial Manager and (ccounts de!artent ; Interaction

3ith the Regional $uan Resource Manager for all $R re8uireents2

Product Campai"n Mana"er

; -or/ closely 3ith the different business grou!s and others to de,elo! ar/eting ca!aigns

; -or/ 3ith the business grou!s and Sr2 leadershi!0anageent tea on !lanning

conferences% essaging and collateral

; Dri,e differentiation of Phili!s !roducts ,s2 co!etition

; Bead Patient acti,ation ca!aigns to increase !atient flo3 for ne3 technologies and createar/et a3areness

; -or/ 3ith cor!orate ar/eting tea on PR and edia related acti,ities


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; Manage relationshi!s 3ith (gencies

Re"ional6Honal Mana"er

; Res!onsible for o,erall !erforance of assigned grou! of branches in the zone2

; Maintain onthly forecast and sales !i!eline

; Pre!are -ee/ly and Monthly Sales re!orts2

; (ssist in onitoring o,erall custoer satisfaction2

; Maintain records on other related ar/et acti,ities including those on co!etiti,e !roducts

to ad,ise anageent accordingly2

; 'se /no3ledge of the local ar/et to assist anageent in de,elo!ing the a!!ro!riate i4

of !roducts for your regional ar/et2

; Create and e4ecute on detailed sales !lan to achie,e re,enue ob.ecti,es

endor De.elopment Mana"er

; The incubent shall occu!y a /ey !osition as !art of the o,erall su!!ly chain of the

business% and shall be res!onsible for !rocureent of all in!ut aterials ra3 aterials and

!ac/aging aterials for the !ersonal care !roducts business on a tiely basis and as !er

!lanned re8uireents% and at inial cost2

; E,aluate the re8uireents of a ra!idly gro3ing business% and fine tune the !rocureent

odel on a regular basis2

; Inculcate global best !ractice into the !rocureent function% es!ecially in the areas of

su!!lier relationshi! anageent% !erforance onitoring% in,entory anageent and

logistics% etc2


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; Res!onsible for resolution of all issues related to 8uality% s!ecifications% re,alidations%

daages0losses% etc2

; -or/ closely 3ith !roduct de,elo!ent teas to identify !roduct i!ro,eent !ro.ects

together 3ith su!!liers2

; Function as a tea !layer to i!leent end to end solutions across the su!!ly chain%

including interactions 3ith the deand !lanning% anufacturing and logistics teas and

,endors other e4ternal agencies2

2ational Sales Mana"er

Ma.or 1ob res!onsibilitiesA

; $andling Sales for doestic ar/et%

; Chal/ing i!leenting Strategy% brand anageent2

; Managing distributors offline channel sales2

; Res!onsible for PB account of the Organization2

Salaries Paid &or Fresher

Salaries are different fro !ost to !ost of the anager in FMCD sector for Fresher in M&(2

Regarding soe of the co!anies the list for the salary for fresher are as follo3sA

Sales Mana"er

SalaryA I)R "% #%### ; =% ##%### P2(2 Con,eyances% Mobile (llo3ance

Product Mana"er

SalaryA I)R >2%##%### ; =% ##%###P2(

Relationship Mana"er

SalaryA I)R >% ##%### ; =% ##%###P2(


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Re"ional Mana"er

SalaryA I)R "2%##%### ; =% ##%###P2(

endor De.elopment Mana"er

SalaryA I)R "2%##%### ; =% ##%###P2(

2ational Sales Mana"er

SalaryA I)R ;>% ##%### ; =% ##%###P2(

C;AP/R ,

S-MMAR< A2D CO2C9-SIO2S

Summary

Consuer Durables Industry in India to !ost Y" C(GR gro3th o,er ne4t fi,e years2

-e belie,e that the consuer durables industry5s gro3th has been t3o !rongedA a dri,en

by lo3er !enetration in rural ar/ets and

b )e3 inno,ations and re!laceent deand in urban ar/ets2

+ey gro3th dri,ers includeA

"2 Continued econoic gro3th deonstrated through :2? C(GR gro3th in GDP o,er

last years

>2 Fa,ourable deogra!hics@ 9? of the !o!ulation in 3or/ing age category

=2 Increasing 'rbanization% nuclear failies

?2 Increase in dis!osable incoes@ 3hich dri,es consu!tion

2 Increasing affordability cou!led 3ith declining !rices of !roducts

92 Bo3er consuer !roduct !enetration

2 (,ailability of ne3 !roducts and technologies%


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:2 Easy financing schees and

J2 Increase in organized retail

$o3e,er% increasing ra3 aterial !rices% intense co!etition and increased cost of ser,ice

and distribution are a.or challenges being faced by industry2

*aluation and ,ie3A In a scenario of shorter !roduct life cycles and increasing co!etition%

3e belie,e that the co!anies 3ith strong RD% 3ide distribution net3or/% strong brand

3ould doinate the segent2 Indian consuer durables sector has liited stoc/ selection

a,ailable for ,alue in,estors2

Conclusion

-e belie,e that the Indian consuer durables industry 3ill !ost strong double digit gro3th

of Y" o,er the ne4t years2

-e belie,e that the industry 3ill continue to gro3 led by lo3er !enetration% increasing

dis!osable incoe% easy credit a,ailability cou!led 3ith declining !rices2 Increasing rural

deand 3ould be the /ey feature of the industry gro3th going ahead2

$o3e,er% increase in ra3 aterial !rices and intense co!etition aong !layers% are /ey

challenges for the industry2

In a scenario of shorter !roduct life cycles and increasing co!etition% 3e belie,e that the

co!anies 3ith strong RD% 3ide distribution net3or/% strong brand 3ould benefit ost

fro the strong industry gro3th2

Of the /ey listed consuer durable stoc/s% 3e li/e &a.a. Electricals !riarily due to its

strong rural reach cou!led 3ith di,ersified !roduct !ortfolio sall doestic a!!liances and

strong balance sheet2 -e also li/e TT+ !restige gi,en the strong deand gro3th for its

!roduct% inno,ati,e !roduct launches and sound fundaentals@ one can consider in,esting in

this stoc/ e,en though it is trading at rich ,aluations2


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In the sall ca! s!ace% the stoc/ to 3atch out for is $itachi $oe Bifestyle2 It is 3ell

!laced to benefit fro strong gro3th in (C segent and it is aggressi,ely launching !roducts

to car,e a niche for itself2

$o3e,er% as ost of the co!anies in consuer durable s!ace are id;ca! and sall ca!

co!anies Mar/et ca!ital less than Rs2 =>bn% they ha,e an inherent li8uidity ris/ and high

,olatility ris/ attached to the2

Fmcd Sector

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