fmcg industry ppt.pptx

8/10/2019 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


5. Dabur


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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fmcg industry ppt.pptx

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