FMCG Industry ppt.pptx
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IN USTRY
By-
Sijin John Joseph
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Pre-Colonial History
Indus valley civilization is considered to be the first of the
permanent settlements in the urban areas.Bartersystemswere commonly used in these days for variety of
trades which included agriculture, domestication of animals
from copper, bronze and tin
Colonial History
The whole process of taxationwas revised, with adverse effecton the farmers, a single currency system with fixed exchange rates,`standardized` weights and measures, free trade was encouraged anda kind of capitalist structure in the economy was introduced
Source: http://shodhganga.inflibnet.ac.in/
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Post Independence History
The predominantly agricultural, forestry, fishing in 1947 to majorheavy transformational industries by late 1970s
Structural Transition
F.M.C.G. Sector was the one which used to serve through brick and mortarstores located near the homes but over the period of time the Scopeof the
Kirana Storehave started decreasing With the Development of Malls in metros and higher expectancy of the
consumer. Today, the Share of Shopping Malls is continuously increasing in BigCities like Delhi, Noida, and Mumbai etc.
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Timeline of FMCG Industry
0
200400
600
800
1000
12001400
1600
1800
FY
01
FY
02
FY
03
FY
04
FY
05
FY
06
FY
07
FY
08
FY
09
FY
10
FY
11
FY
12
In Billions
Series 1
Source: http://www.booz.com/
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Basic Idea, Histor and gro thof the Industry
Market Size of FMCG till 2011 is USD30 billionIncrease15.2 per cent rise compared to the previous year
Over 2006-11, the sectors revenues posted a CAGR of 17.3 percent
15.7 17.821.3
24.2
30.234.8
0
10
20
30
40
2006 2007 2008 2009 2010 2011
Trends in FMCG revenues over the years (USD billion)
Trends in FMCG revenues
over the years
Source: http://www.ibef.org/
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Projected Growth of the Industry
The market size is estimated to grow to US$ 74 billion by 2018, according tomarket research firm Nielsen.
Source: www.ibef.org
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Socio-economic changes:
The transition of Indias population acrossIncome classes; from lower to higherincome classes
Efforts of the Govt. through the Food Bill to supplementthe income of familiesbelow the Poverty Leveland improve their resources
A appreciable risein the lower-middle and middle incomehousehold consumption
pattern
A growingyoung populationwhich demands options.
The increasing migrationof population from rural to urban cities.
Lifestyle changes:
The emergence of nuclear families; the increase of both partners working tosupplement family income
Rising incidence of lifestyle diseases; viz. diabetes and obesity
Adapting to different palates and cultures.
future growth
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Major Segments in FMCG Sector
FMCG Industry
Household Care
Fabric wash, HouseholdCleaner
Personal Care
Oral care, hair care,skincare, cosmetics,hygiene and paper
products
Food & Beverages
Health beverages,staples/cereals, bakery,snacks, chocolates, icecream, tea/coffee/soft
drinks, processed fruits &
vegetables, dairy products& branded flour.
Health Care
OTC products and ethicals
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Market Segmentation
22%
4%
4%
8%
5%12%
2%
43%
Indian FMCG market Segment
Personal Care
HouseholdOTC Products
Hair Care
Food Products
Fabric Care
Baby Care
Others
Source: http://indiabulls.com/
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characteristics of FMCG sector:
Products with quick turnover and relativelylow cost
Absolute Profit is relatively small
High Demand
Easily substitutable or replaceable
Profits driven by Sales Volume
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FMCG Regulatory Bodies
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1. ITC LtdMarket Capitalization256,769 crores
2. HUL
Market Capitalization127,144 crores
3. Nestle
Market Capitalization 49,768 crores
4. Godrej Consumer Products Ltd
Market Capitalization 28,107 crores
5. Dabur
Market Capitalization 27,261 crores
Major Players
Source:http://www.mbaskool.com/
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Future Projections
12%15% 15%
12%10%
12%10%
11.20% 10.60%
13.10%
9.60% 10.30%
0%2%4%
6%8%
10%12%14%16%
2012-132013-14
Source:https://www.deloitte.com/
Annual Increments 201213 (Actuals)201314 (Projections)
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SWOT Analysis
STRENGTHS
Low operational costs
Established distribution networks inboth urban and rural areas.
Presence of well-known brands inFMCG sector
WEAKNESS
Lower scope of investing in technologyand achieving economies of scale.
Low exports levels
Counterfeit Products
OPPORTUNITIES
Untapped rural market
Rising income levels
Large domestic market-.
Export potentialHigh consumer goods
spending
THREATS
Removal of import restrictions
Tax and regulatory structure
SWOT
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Updates in FMCG Industry
Source:http://economictimes.indiatimes
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