Growth

Experiencing exponential growth - Indias retail sector is experiencing

exponential growth, with retail development taking place not just in major
cities and metros, but also in Tier-II and Tier-III cities.

Emerging as one of the largest sector

Net retail sales are significant - Indias net retail sales are quite significant
among emerging and developed nations; the country is ranked third (after
China and Brazil)

2nd largest in employment generation retail industry in india is 2nd largest in

terms of employment generation

Taking online retail in big way - Indias population is taking to online retail in a
big way.

Online retail
Online retail business is the next generation - Online retail business is the next
generation format which has high potential for growth in the near future. After conquering
physical stores, retailers are now foraying into the domain of e-retailing

From US$ 6 billion to US$ 70 billion The online retail market is expected to
grow from US$ 6 billion to US$ 70 billion during FY15-FY20

Major area supporting retail growth in India - E-commerce is expected to be

the next major area supporting retail growth in India. The industry is projected
to touch US$ 100 billion by 2020 growing from US$ 30 billion in 2016
100% FDI in e-commerce - The government plans to allow 100 per cent FDI in
e-commerce, under the arrangement that the products sold must be
manufactured in India

Promotional prices - Online retailers continue promotional prices in the

market, offering a significant boost to e-retailing in consumer durable sector

FMCG

1950-80 The growth of FMCG industry was not

significant between 1950s to the 80s. The FMCG
industry previously was not attractive from investors
point of view due to low purchasing power and the
governments favouring of the small-scale sector

1990 FMCGs growth story further continued following

the deregulation of Indian economy in early 1990s.
With relatively lesser capital and technological
requirements, a number of new brands emerged
domestically as well

Mid 90s In the mid - nineties, the growth of the sector

was very fast where as it declined rapidly at the end of
the decade. The initial growth was due to increase in
product penetration and consumption levels

2006-13 The Indian FMCG sector growth between

2006 to 2013 has been phenomenal. The industry has
tripled in size over the last 10 years , growing much
faster than in past decades

The Fast Moving Consumer Goods (FMCG) sector is

the key contributor of the Indian economy. This fourth
largest sector of Indian economy provides employment
to around 3 million people

The industry is highly competitive due to presence of

multinational companies, domestic companies and
unorganized sector. A major portion of the market is
captured by unorganized players

Urban India accounts for 66% of total FMCG

consumption, while rural India accounts for the
remaining 34%.

Riding on a rapidly growing economy, increasing per-

capita incomes, and rising trend of urbanization, the
FMCG market in India is expected to further expand to
$100 billion by 2025

Food products is the leading segment, accounting for 43

per cent of the overall market. Personal care (22 per
cent) and fabric care (12 per cent) come next in terms of
market share.