By-

Sijin John Joseph

Pre-Colonial History
Indus valley civilization is considered to be the first of the
permanent settlements in the urban areas.
Barter systems were 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 taxation was revised, with adverse effect
on the farmers, a single currency system with fixed exchange rates,
`standardized` weights and measures, free trade was encouraged and
a kind of capitalist structure in the economy was introduced
Source: http://shodhganga.inflibnet.ac.in/
Post Independence History
The predominantly agricultural, forestry, fishing in 1947 to major
heavy transformational industries by late 1970s
Structural Transition
F.M.C.G. Sector was the one which used to serve through brick and mortar
stores located near the homes but over the period of time the Scope of the
Kirana Store have 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 Big
Cities like Delhi, Noida, and Mumbai etc.
Timeline of FMCG Industry
0
200
400
600
800
1000
1200
1400
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/
Basic Idea, History and growth
of the Industry
Market Size of FMCG till 2011 is USD30 billion
Increase15.2 per cent rise compared to the previous year
Over 2006-11, the sectors revenues posted a CAGR of 17.3 per
cent

15.7
17.8
21.3
24.2
30.2
34.8
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/
Projected Growth of the Industry
The market size is estimated to grow to US$ 74 billion by 2018, according to
market research firm Nielsen.
Source: www.ibef.org
Socio-economic changes:
The transition of Indias population across Income classes; from lower to higher
income classes
Efforts of the Govt. through the Food Bill to supplement the income of families
below the Poverty Level and improve their resources
A appreciable rise in the lower-middle and middle income household consumption
pattern
A growing young population which demands options.
The increasing migration of population from rural to urban cities.
Lifestyle changes:
The emergence of nuclear families; the increase of both partners working to
supplement family income
Rising incidence of lifestyle diseases; viz. diabetes and obesity
Adapting to different palates and cultures.
future growth
Major Segments in FMCG Sector
FMCG Industry
Household Care
Fabric wash, Household
Cleaner
Personal Care
Oral care, hair care,
skincare, cosmetics,
hygiene and paper
products
Food & Beverages
Health beverages,
staples/cereals, bakery,
snacks, chocolates, ice
cream, tea/coffee/soft
drinks, processed fruits &
vegetables, dairy products
& branded flour.
Health Care
OTC products and ethicals
Market Segmentation
22%
4%
4%
8%
5%
12%
2%
43%
Indian FMCG market Segment
Personal Care
Household
OTC Products
Hair Care
Food Products
Fabric Care
Baby Care
Others
Source: http://indiabulls.com/
characteristics of FMCG sector:
Products with quick turnover and relatively
low cost
Absolute Profit is relatively small
High Demand
Easily substitutable or replaceable
Profits driven by Sales Volume
FMCG Regulatory Bodies
1. ITC Ltd
Market Capitalization 256,769 crores

2. HUL
Market Capitalization 127,144 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/
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%
2012-13
2013-14
Source:https://www.deloitte.com/
Annual Increments 2012 13 (Actuals)
2013 14 (Projections)
SWOT Analysis



STRENGTHS
Low operational costs
Established distribution networks in
both urban and rural areas.
Presence of well-known brands in
FMCG sector



WEAKNESS
Lower scope of investing in technology
and 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
Updates in FMCG Industry
Source: http://economictimes.indiatimes