FMCG Sector

Stock Exchange Present By :

Prof. Anita Bobade Name Roll No.

Dinesh Bhatavkar 07
Santosh Cholake 13
Manoj Chorge 14
Rupesh Talawdekar 48

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 FMCG stands for Fast Moving Consumer Goods.
 FMCG Products and Categories.
 Personal Care, Oral Care, Hair Care, Skin Care, Personal Wash (soaps).
 Cosmetics and toiletries, deodorants, perfumes, feminine hygiene, paper
products.
 Household care fabric wash including laundry soaps and synthetic
detergents; household cleaners, such as dish/utensil cleaners, floor
cleaners, toilet cleaners, air fresheners, insecticides and mosquito
repellents, metal polish and furniture polish.
 Frequently replaced electronic products, such as audio equipments,
digital cameras, Laptops, CTVs; other electronic items such as
Refrigerator, washing machines, etc. coming under the category of
White Goods in FMCG.

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FMCG is the fourth largest sector of the Indian Economy
Main Characteristics of FMCG Sector :
Well established distribution Network
Intense competition
Wide range of products
Presence across value chain
Availability of raw materials
Low cost labor

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 Hindustan Unilever Ltd.
 ITC (Indian Tobacco Company)
 Nestle India
 GCMMF (AMUL)
 Dabur India
 Asian Paints (India)
 Cadbury India
 Britannia Industries
 Procter & Gamble Hygiene and Health Care
 Marico Industries.

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 SWOT ANALYSIS
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-too" products, which illegally mimic the labels of the
established brands. These products narrow the scope of FMCG
 products in rural and semi-urban market.
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 SWOT ANALYSIS
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

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 ITC Limited
ITC was incorporated on August 24, 1910 under the name
Imperial Tobacco Company of India Limited

In 1970 CO. Name Changed to India Tobacco Company Limited

and then to I.T.C. Limited in 1974

Company's multi-business portfolio encompassing a wide range

of businesses - Cigarettes & Tobacco, Hotels, Information
Technology, Packaging, Paperboards & Specialty Papers, Agri-
business, Foods, Lifestyle Retailing, Education & Stationery and
Personal Care

Market capitalisation of nearly US $ 18 billion and a turnover of

over US $ 5 billion.
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Exemplary Contribution

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ITC - Product Range

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SALES & PBIT MIX

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ITC on Stock Market

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 Hindustan Unilever Ltd.
Hindustan Unilever Limited (HUL), earlier called Hindustan
Lever Limited (HLL) was established in 1933 as Lever Brothers
India Limited.
HUL is India's largest FMCG Company, with a customer base of
2 out of every 3 Indian in the category of Home & Personal Care
Products and Foods & Beverages.
The company has combined volumes of about 4 million tonnes
and sales of Rs.10, 000 crores.
HUL is also one of the country's largest exporters; the
Government of India has recognized HUL as a Golden Super
Star Trading House.
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HUL on Stock Market

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Quarterly Performance

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 Ratio Analysis of FMCG
Inventory Debtors Current
COMPANIES EPS D/E PAT% ROCE% EBIT%
turnover turnover ratio
HUL 11.46 9.26 20.95 0.2 0.89 11.4 122.83 13.86
Asian paints 37.78 9.8 16.02 0.06 1.03 7.97 49.35 12.39
Britannia 75.51 14.54 64.88 0.03 0.84 5.75 25.29 6.08
ITC 8.65 5.51 21.32 0.01 1.42 29.18 34.61 28.38
Dabur 4.32 10.94 22.63 0.19 1.19 17.19 47.98 17.11
Marico 2.33 8.22 37.42 0.84 1.48 7.35 38.8 13.06 17
Compare with Sensex

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 CONCLUSION
HUL's up-and-running business model is a treat for investors
seeking exposure in the FMCG segment. The company has
delivered in the past and has the potential to do better in
future. In the small and medium term, ITC's growth story is still
evolving.

ITC is eyeing the pie which HUL and other FMCG players
currently enjoy. Though risky, the company's business model
will pay off in the long run. ITC has proved its expertise in the
cigarettes, hotels, paper and agri-businesses. Investors who
want to bank on its execution ability in FMCG can consider the
stock with a long-term horizon.

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 RECOMMENDATIONS
According to us the companies should continue with
their CSR and also continue with their strategies.
The thing need to be changed is that, ITC should go for
more diversification in Non cigarette segment (FMCG)
HUL should come up with the new strategies that could
take the new product forward to create a new segment.
A common recommendation for both is that they
should focus on rural area more.

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 BIBLIOGRAPHY
Web Sites :

Investopedia.com
Itcportal.com
HUL.co.in
Moneycontrol.com
Articalesbase.com

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