AnAssignmentonFMCG IndustrySubmitted By:

Navneet Kumar SinghRoll No-1082IISE, Lucknow

Fast Moving Consumer Goods (FMCG)FMCG are products that have a quick shelf turnover, at relatively low cost anddon't require a lot of thought, time and financial investment to purchase. Themargin of profit on every individual FMCG product is less. However the hugenumber of goods sold is what makes the difference. Hence profit in FMCG goodsalways translates to number of goods sold.Fast Moving Consumer Goods is a classification that refers to a wide range offrequently purchased consumer products including: toiletries, soaps, cosmetics,teeth cleaning products, shaving products, detergents, other non-durables suchas glassware, bulbs, batteries, paper products and plastic goods, such asbuckets.‘Fast Moving’ is in opposition to consumer durables such as kitchen appliancesthat are generally replaced less than once a year. The category may include

pharmaceuticals, consumer electronics and packaged food products and drinks,although these are often categorized separately.The term Consumer Packaged Goods (CPG) is used interchangeably with FastMoving Consumer Goods (FMCG).Three of the largest and best known examples of Fast Moving Consumer Goodscompanies are Nestlé, Unilever and Procter & Gamble. Examples of FMCGs aresoft drinks, tissue paper, and chocolate bars. Examples of FMCG brands areCoca-Cola, Kleenex, Pepsi and Believe.The FMCG sector represents consumer goods required for daily or frequent use.The main segments of this sector are personal care (oral care, hair care, soaps,cosmetics, toiletries), household care (fabric wash and household cleaners),branded and packaged food, beverages (health beverages, soft drinks, staples,cereals, dairy products, chocolates, bakery products) and tobacco.The Indian FMCG sector is an important contributor to the country's GDP. It is thefourth largest sector in the economy and is responsible for 5% of the total factoryemployment in India. The industry also creates employment for 3 m people indownstream activities, much of which is disbursed in small towns and rural India.This industry has witnessed strong growth in the past decade. This has been dueto liberalization, urbanization, increase in the disposable incomes and alteredlifestyle. Furthermore, the boom has also been fuelled by the reduction in exciseduties, de-reservation from the small-scale sector and the concerted efforts ofpersonal care companies to attract the burgeoning affluent segment in themiddle-class through product and packaging innovations.Unlike the perception that the FMCG sector is a producer of luxury items targetedat the elite, in reality, the sector meets the every day needs of the masses. The

lower-middle income group accounts for over 60% of the sector's sales. Ruralmarkets account for 56% of the total domestic FMCG demand.Many of the global FMCG majors have been present in the country for manydecades. But in the last ten years, many of the smaller rung Indian FMCGcompanies have gained in scale. As a result, the unorganized and regionalplayers have witnessed erosion in market share.

History of FMCG in IndiaIn India, companies like ITC, HLL, Colgate, Cadbury and Nestle havebeen a dominant force in the FMCG sector well supported by relatively lesscompetition and high entry barriers (import duty was high). These companieswere, therefore, able to charge a premium for their products. In this context, themargins were also on the higher side. With the gradual opening up of theeconomy over the last decade, FMCG companies have been forced to fight for amarket share. In the process, margins have been compromised, more so in thelast six years (FMCG sector witnessed decline in demand).Current ScenarioThe growth potential for FMCG companies looks promising over the longtermhorizon, as the per-capita consumption of almost all products in the countryis amongst the lowest in the world. As per the Consumer Survey by KSATechnopak,of the total consumption expenditure, almost 40% and 8% wasaccounted by groceries and personal care products respectively. Rapidurbanization, increased literacy and rising per capita income are the key growthdrivers for the sector. Around 45% of the population in India is below 20 years ofage and the proportion of the young population is expected to increase in thenext five years. Aspiration levels in this age group have been fuelled by greatermedia exposure, unleashing a latent demand with more money and a new

mindset. In this backdrop, industry estimates suggest that the industry couldtriple in value by 2015 (by some estimates, the industry could double in size by2010).In our view, testing times for the FMCG sector are over and driving ruralpenetration will be the key going forward. Due to infrastructure constraints (thisinfluences the cost-effectiveness of the supply chain), companies were unable togrow faster. Although companies like HLL and ITC have dedicated initiativestargeted at the rural market, these are still at a relatively nascent stage.The bottlenecks of the conventional distribution system are likely to be removedonce organized retailing gains in scale. Currently, organized retailing accounts forjust 3% of total retail sales and is likely to touch 10% over the next 3-5 years. Inour view, organized retailing results in discounted prices, forced-buying byoffering many choices and also opens up new avenues for growth for the FMCGsector. Given the aggressive expansion plans of players like Pantaloon, Trent,Shopper’s Stop and Shoprite, we are confident that the FMCG sector has abright future.Budget Measures to Promote FMCGSector2% education cess corporation tax, excise duties and custom dutiesConcessional rate of 5% custom duty on tea and coffee plantation machineryBudget ImpactThe education cess will add marginally to the tax burden of all FMCGcompaniesThe dividend distribution tax on debt funds is likely to adversely effect theother income components of companies like Britannia, Nestle and HLLThe measure to abolish excise duty on dairy machinery is a positive forcompanies like NestleConcessional rate for tea and coffee plantation machinery is a positive for TataTea, HLL, Tata Coffee and other such companies

Duty reduction in food grade hexane will have a marginally positive impact oncompanies like Marico and HLLArea specific excise exemptions for North East, J&K, Himachal Pradesh willcontinue to encourage FMCG companies to relocate to these areas.Budget over theyearsBudget 2001-02 Budget 2002-03 Budget 2003-04From 35-55% to75% for crudeedible oilFrom 45-65% to85% for refinededible oilFrom 35% to 70%for copra,coconut, tea andcoffeeFrom 25% to 55%for crude palm oilDevelopmentallowance of teaindustry raised to40% from 20%All foodpreparationsbased on fruitsIncreased focuson agriculturalreforms with anaim to integratethe countrywidefood marketDeregulation ofthe milkprocessingcapacityExcise dutystructure largelyuntouched. Onlyfor tea, the dutywas reduced fromRs 2 per Kg to Re1Customs duty on

tea and coffeeExcise on biscuitsreduced to 8%from 16%. Exciseon soft drinks andsugar boiledconfectionery alsoreducedAll states toswitch to VAT inFY04 (deadlinenow has beenextended till endFY05)Loans toagriculture and tosmall-scale sectorwill now beavailable atmaximu 2%and vegetables(pickles, sauces,ketchup, juices,jams etc.) madecompletelyexempt fromexcise dutyExcise oncosmetics andtoiletries halved to16%doubled to 100%Duty on importedpulses upped to80%Import duty onwine and liquorslashed from210% to 180%above primelending rate(PLR)Developmentplans for roads,ports, railwaysand airports

Customs duty onalcoholicbeveragesreducedIndia offers a large and growing market of 1 billion people of which 300 millionare middle class consumers. India offers a vibrant market of youth and vigor with54% of population below the age of 25 years. These young people work harder,earn more, spend more and demand more from the market, making India adynamic and aspirational society. Domestic demand is expected to double overthe ten-year period from 1998 to 2007. The number of households with "highincome" is expected to increase by 60% in the next four years to 44 millionhouseholds.India is rated as the fifth most attractive emerging retail market. It hasbeen ranked second in a Global Retail Development Index of 30 developingcountries drawn up by A T Kearney. A.T. Kearney has estimated India's total retailmarket at $202.6 billion, is expected to grow at a compounded 30 per cent overthe next five years. The share of modern retail is likely to grow from its current 2per cent to 15-20 percent over the next decade, analysts feel.The Indian FMCG sector is the fourth largest sector in the economy witha total market size in excess of US$ 13.1 billion. The FMCG market is set totreble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration levelas well as per capita consumption in most product categories like jams,toothpaste, skin care, hair wash etc in India is low indicating the untapped marketpotential. Burgeoning Indian population, particularly the middle class and therural segments, presents an opportunity to makers of branded products toconvert consumers to branded products.India is one of the world’s largest producers for a number of FMCGproducts but its FMCG exports are languishing at around Rs 1,000 crore only.

There is significant potential for increasing exports but there are certain factorsinhibiting this. Small-scale sector reservations limit ability to invest in technologyand quality up gradation to achieve economies of scale. Moreover, lower volumeof higher value added products reduce scope for export to developing countries.The FMCG sector has traditionally grown at a very fast rate and hasgenerally out performed the rest of the industry. Over the last one year, howeverthe rate of growth has slowed down and the sector has recorded sales growth ofjust five per cent in the last four quarters.The outlook in the short term does not appear to be very positive for thesector. Rural demand is on the decline and the Centre for Monitoring IndianEconomy (CMIE) has already downscaled its projection for agriculture growth inthe current fiscal. Poor monsoon in some states, too, is unlikely to help matters.Moreover, the general slowdown in the economy is also likely to have an adverseimpact on disposable income and purchasing power as a whole. The growth ofimports constitutes another problem area and while so far imports in this sectorhave been confined to the premium segment, FMCG companies estimate theyhave already cornered a four to six per cent market share. The high burden oflocal taxes is another reason attributed for the slowdown in the industryAt the same time, the long term outlook for revenue growth is positive. Give thelarge market and the requirement for continuous repurchase of these products,FMCG companies should continue to do well in the long run. Moreover, most ofthe companies are concentrating on cost reduction and supply chainmanagement. This should yield positive results for them.The profile of major leading FMCG Market Players is as follows:1. NESTLE INDIANestlé India is a subsidiary of Nestlé S.A. of Switzerland. With six factories and a

large number of co-packers, Nestlé India is a vibrant Company that providesconsumers in India with products of global standards and is committed to longtermsustainable growth and shareholder satisfaction.The Company insists on honesty, integrity and fairness in all aspects of itsbusiness and expects the same in its relationships. This has earned it the trustand respect of every strata of society that it comes in contact with and isacknowledged amongst India's 'Most Respected Companies' and amongst the'Top Wealth Creators of India'.Nestlé’s relationship with India dates back to 1912, when it began trading as TheNestlé Anglo-Swiss Condensed Milk Company (Export) Limited, importing andselling finished products in the Indian market.Brief HistoryAfter India’s independence in 1947, the economic policies of the IndianGovernment emphazised the need for local production. Nestlé responded toIndia’s aspirations by forming a company in India and set up its first factory in1961 at Moga, Punjab, where the Government wanted Nestlé to develop the milkeconomy. Progress in Moga required the introduction of Nestlé’s AgriculturalServices to educate, advise and help the farmer in a variety of aspects. Fromincreasing the milk yield of their cows through improved dairy farming methods,to irrigation, scientific crop management practices and helping with theprocurement of bank loans. Nestlé set up milk collection centres that would notonly ensure prompt collection and pay fair prices, but also instil amongst thecommunity, a confidence in the dairy business. Progress involved the creation ofprosperity on an on-going and sustainable basis that has resulted in not just thetransformation of Moga into a prosperous and vibrant milk district today, but athriving hub of industrial activity, as well. For more on Nestlé Agricultural

Services,Nestlé has been a partner in India's growth for over nine decades now and hasbuilt a very special relationship of trust and commitment with the people of India.The Company's activities in India have facilitated direct and indirect employmentand provides livelihood to about one million people including farmers, suppliers ofpackaging materials, services and other goods.The Company continuously focuses its efforts to better understand the changinglifestyles of India and anticipate consumer needs in order to provide Taste,Nutrition, Health and Wellness through its product offerings. The culture ofinnovation and renovation within the Company and access to the Nestlé Group'sproprietary technology/Brands expertise and the extensive centralized Researchand Development facilities gives it a distinct advantage in these efforts. It helpsthe Company to create value that can be sustained over the long term by offeringconsumers a wide variety of high quality, safe food products at affordable prices.Nestlé India is a responsible organization and facilitates initiatives that help toimprove the quality of life in the communities where it operates. Beginning with itsfirst investment in Moga in 1961, Nestlé’s regular and substantial investmentsestablished that it was here to stay. In 1967, Nestlé set up its next factory atCholadi (Tamil Nadu) as a pilot plant to process the tea grown in the area intosoluble tea. The Nanjangud factory (Karnataka), became operational in 1989, theSamalkha factory (Haryana), in 1993 and in 1995 and 1997, Nestlécommissioned two factories in Goa at Ponda and Bicholim respectively. NestléIndia is now putting up the 7th factory at Pant Nagar in UttaranchalProductsProduct Category BrandsMilk ProductsNESTLÉ EVERYDAY Dairy Whitener

NESTLÉ EVERYDAY GheeNESTLÉ CurdsNESTLÉ CEREMEALNESTLÉ Jeera RaitaNESTLÉ Fresh 'n' Natural DahiNESTLÉ Fruit 'N DahiNESTLÉ MilkNESTLÉ Slim MilkBeveragesNESCAFÉ CLASSICNESCAFÉ SUNRISENESTLÉ MILONESCAFÉ 3 in 1NESCAFÉ KoolerzPrepared Dishes MAGGI 2-MINUTE NoodlesChocolates &ConfectionariesMAGGI Healthy SoupsMAGGI Dal Atta NoodlesMAGGI MAGIC CubesNESTLÉ Milk ChocolateNESTLÉ KIT KATNESTLÉ MUNCHNESTLÉ MILKYBARNESTLÉ MILKYBAR CHOONESTLÉ BAR-ONEPOLONESTLÉ EclairsNESTLÉ ACTI-VPOLO Powermint1. Hindustan Lever Limited (HLL)The Global arm of Hindustan Levers Limited is Unilever's and its mission is toadd Vitality to life. Their products meet everyday needs for nutrition, hygiene, andpersonal care with brands that help people feel good, look good and get more outof life.HLL has deep roots in local cultures and markets around the world which givesthem a strong relationship with their consumers, which are the foundation fortheir future growth. They benefit from there wealth of knowledge and internationalexpertise to the service the local consumers - a truly multi-local multinational.

Brief HistoryIn the summer of 1888, visitors to the Kolkata harbour noticed crates full ofSunlight soap bars, embossed with the words "Made in England by LeverBrothers". With it, began an era of marketing branded Fast Moving ConsumerGoods (FMCG). In 1931, Unilever set up its first Indian subsidiary, HindustanVanaspati Manufacturing Company, followed by Lever Brothers India Limited(1933) and United Traders Limited (1935). These three companies merged toform HLL in November 1956; HLL offered 10% of its equity to the Indian public,being the first among the foreign subsidiaries to do so. Unilever now holds51.55% equity in the company. The rest of the shareholding is distributed amongabout 380,000 individual shareholders and financial institutions. Pond's (India)Limited had been present in India since 1947. It joined the Unilever fold throughan international acquisition of Chesebrough Pond's USA in 1986.The liberalization of the Indian economy, started in 1991, clearly marked aninflexion in HLL's and the Group's growth curve. Removal of the regulatoryframework allowed the company to explore every single product and opportunitysegment, without any constraints on production capacity.Simultaneously, deregulation permitted alliances, acquisitions and mergers. Inone of the most visible and talked about events of India's corporate history, theerstwhile Tata Oil Mills Company (TOMCO) merged with HLL, effective from April1, 1993. In 1995, HLL and yet another Tata company, Lakme Limited, formed a50:50 joint venture, Lakme Lever Limited, to market Lakme's market-leadingcosmetics and other appropriate products of both the companies. Subsequentlyin 1998, Lakme Limited sold its brands to HLL and divested its 50% stake in thejoint venture to the company.

HLL formed a 50:50 joint venture with the US-based Kimberly Clark Corporationin 1994, which markets Huggies Diapers and Kotex Sanitary Pads. HLL has alsoset up a subsidiary in Nepal, Nepal Lever Limited (NLL), and its factoryrepresents the largest manufacturing investment in the Himalayan kingdom. TheNLL factory manufactures HLL's products like Soaps, Detergents and PersonalProducts both for the domestic market and exports to India.The 1990s also witnessed a string of crucial mergers, acquisitions and allianceson the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquiredKothari General Foods, with significant interests in Instant Coffee. In 1993, itacquired the Kissan business from the UB Group and the Dollops Icecreambusiness from Cadbury India.As a measure of backward integration, Tea Estates and Doom Dooma, twoplantation companies of Unilever, were merged with Brooke Bond. Then in July1993, Brooke Bond India and Lipton India merged to form Brooke Bond LiptonIndia Limited (BBLIL), enabling greater focus and ensuring synergy in thetraditional Beverages business. 1994 witnessed BBLIL launching the Wall'srange of Frozen Desserts. By the end of the year, the company entered into astrategic alliance with the Kwality Icecream Group families and in 1995 theMilkfood 100% Icecream marketing and distribution rights too were acquired.In January 2000, in a historic step, the government decided to award 74 per centequity in Modern Foods to HLL, thereby beginning the divestment of governmentequity in public sector undertakings (PSU) to private sector partners. HLL's entryinto Bread is a strategic extension of the company's wheat business. In 2002,HLL acquired the government's remaining stake in Modern Foods.In 2003, HLL acquired the Cooked Shrimp and Pasteurised Crabmeat business

of the Amalgam Group of Companies, a leader in value added Marine Productsexports.Present StatureHindustan Lever Limited (HLL) is India's largest Fast Moving Consumer Goodscompany, touching the lives of two out of three Indians with over 20 distinctcategories in Home & Personal Care Products and Foods & Beverages. Theyendow the company with a scale of combined volumes of about 4 million tonnesand sales of Rs.10,000 crores.HLL is also one of the country's largest exporters; it has been recognised as aGolden Super Star Trading House by the Government of India.HLL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's,Sunsilk, Clinic, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's – are household names across the country and spanmany categories - soaps, detergents, personal products, tea, coffee, brandedstaples, ice cream and culinary products. They are manufactured in close to 80factories. The operations involve over 2,000 suppliers and associates. HLL'sdistribution network, comprising about 7,000 redistribution stockists, directlycovers the entire urban population, and about 250 million rural consumers.HLL believes that an organization’s worth is also in the service it renders to thecommunity. HLL is focusing on health & hygiene education, womenempowerment, and water management. It is also involved in education andrehabilitation of special or underprivileged children, care for the destitute andHIV-positive, and rural development. HLL has also responded in case of nationalcalamities / adversities and contributes through various welfare measures, mostrecent being the village built by HLL in earthquake affected Gujarat, and relief &rehabilitation after the Tsunami caused devastation in South India.

ProductsProduct Category Product Name BrandsPersonal CareSoapLuxPearsLifebuoyLirilHamamBreezeDoveRexonaSkin Care Pond’sFair & LovelyHair Care:SunsilkNaturalsClinicOral Care PepsodentCloseUpDeodorant AxeRexonaColor Cosmetics LakmeAyurvedic Healthcare AyshFabric Care Laundry Surf ExcelRinWheelBeverages Tea Brooke BondLiptonCoffee BruFoodsSalt Knnor AnnapurnaSauces KissanIce Creams Kwality Walls3. GLAXO SMITHKLINEGlaxoSmithKline is a leader in the worldwide consumer healthcare market. With nearly$5 billion in sales, over ten $100 million brands and present in 130 markets, theconsumer healthcare business brings an added dynamic dimension to GSK.Operating in the fiercely competitive environment of retail and consumer marketingGlaxoSmithKline Consumer Healthcare brings oral healthcare, over-the-countermedicines and nutritional healthcare products to millions of people.

Brand names such as Panadol the analgesic, Aquafresh toothpaste, Lucozade thenutritional and Nicorette/ Niquitin smoking cessation products are household namesaround the world. In one year GSK Consumer Healthcare produces - among many others- nine billion tablets to relieve stomach upsets, six billion tablets for pain relief tabletsand 600 million tubes of toothpaste.But the driving force behind GlaxoSmithKline's consumer healthcare business is science.With four dedicated consumer healthcare R&D centres and consumer healthcareregulatory affairs, the business takes scientific innovation as seriously as marketingexcellence and offers leading-edge capability in both.The CompanyThe company has a challenging and inspiring mission: to improve the quality of humanlife by enabling people to do more, feel better and live longer. This mission gives themthe purpose to develop innovative medicines and products that help millions of peoplearound the world. In fact, they are the only pharmaceutical company to tackle the WorldHealth Organization’s three ‘priority’ diseases – HIV/AIDS, tuberculosis and malaria.Headquartered in the UK and with operations based in the US, it is one of the industryleaders, with an estimated 7% of the world's pharmaceutical market.As a company has a emphasized more on research & development, estimated every hourthey spend more than £300,000 (US$562,000) to find new medicines. The medicinesproduced are mainly in six major disease areas – asthma, virus control, infections, mentalhealth, diabetes and digestive conditions. In addition, it is a leader in the important areaof vaccines and are developing new treatments for cancer.GSK at a glanceMission is to improve the quality of human life by enabling people to do more,feel better and live longerResearch-based pharmaceutical companyIt is the only pharmaceutical company to tackle the three "priority"

diseases identifiedby the World Health Organization: HIV/AIDS, tuberculosis and malariaIts business employs over 100,000 people in 116 countriesThey make approximately four billion packs of medicines and healthcare productsevery yearOver 15,000 people work in the research teams to discover new medicinesWe supply one quarter of the world's vaccines and by the end of 2005 we had 25vaccines in clinical developmentIn 2005 we donated 136 million albendazole tablets to help elimitate lymphaticfilariasis (elephantiasis)In 2005 we shipped 126 million tablets of preferentially-priced Combivir and Epivir(our HIV treatments) to developing countriesAlmost 100 countries benefitted from our humanitarian product donations in 2005We sold 23 million bottle of Lucozade Sport Hydro Active in 2005History1976The H2 blocker Tagamet (cimetidine) is introduced in the UK by the SmithKlineCorporation, and in the US in the following year.The treatment will revolutionise peptic ulcer therapy.1978Through the acquisition of Meyer Laboratories Inc, Glaxo’s business in the US isstarted, to become Glaxo Inc from 1980.The broad-spectrum injectable antibiotic Zinacef (cefuroxime) is introduced byGlaxo.1981The anti-ulcer treatment Zantac (ranitidine) is launched by Glaxo and is tobecome the world’s top-selling medicine by 1986. Augmentin (amoxicillin /clavulanate potassium), to combat a wide range of bacterial infections in childrenand adults, is launched by Beecham.The antiviral Zovirax (aciclovir) is launched by Wellcome for herpes infections1982SmithKline acquires Allergan, an eye and skincare business, and merges with

Beckman Instruments Inc, a company specialising in diagnostics andmeasurement instruments and supplies.The company is renamed SmithKline Beckman. John Vane of the WellcomeResearch Laboratories is awarded the Nobel Prize, with two other scientists, "fortheir discoveries concerning prostaglandins and related biologically activesubstances."1983Glaxo Inc moves to new facilities in Research Triangle Park and Zebulon, NorthCarolina. The broad-spectrum injectable antibiotic Fortum (ceftazidime) islaunched.Wellcome launches Flolan (epoprostenol) for use in renal dialysis.1986Beecham acquires the US firm Norcliff Thayer, adding Tums antacid tablets andOxy skin care to its portfolio.1987The AIDS treatment Retrovir (zidovudine) is launched by Wellcome. Glaxointroduces the oral antibiotic Zinnat (cefuroxime axetil).1988SmithKline BioScience Laboratories acquires one of its largest competitors,International Clinical Laboratories, Inc, increasing the company's size by half andestablishing SmithKline BioScience Laboratories as the industry leader.The Nobel Prize for medicine is awarded to George Hitchings and Gertrude Elion,of Burroughs Wellcome Inc, and to Sir James Black, who had worked at theWellcome Foundation and Smith Kline and French Laboratories, "for theirdiscoveries of important principles for drug treatment."1989SmithKline Beckman and The Beecham Group plc merge to form SmithKlineBeecham plc. Engerix-B hepatitis B vaccine (recombinant), a geneticallyengineered hepatitis B vaccine, is launched in the US and France.1990The synthetic lung surfactant Exosurf and the anti-epileptic drug Lamictal

(lamotrigine) are launched by Wellcome.Glaxo introduces long-acting Serevent (salmeterol) for asthma, the inhaledcorticosteroid Flixotide (fluticasone propionate) and Zofran (ondansetron) antiemeticfor cancer patients.1991Glaxo launches its novel treatment for migraine, Imigran (sumatriptan), Lacipil(lacidipine) for high blood pressure, and Cutivate (fluticasone propionate) in theUS for skin diseases.SmithKline Beecham moves its global headquarters to New Horizons Court atBrentford, England. SmithKline Beecham’s Seroxat/Paxil (paroxetinehydrochloride) is launched in the UK, its first market.1992Mepron (atovaquone) for AIDS-related pneumonia is introduced by BurroughsWellcome in the US.SmithKline Beecham’s Havrix hepatitis A vaccine, inactivated, the world’s firsthepatitis A vaccine, is launched in six European markets.1993SmithKline Beecham and Human Genome Science negotiate a multi-milliondollarresearch collaboration agreement for identifying and describing thefunctions of the genes in the human body.Glaxo introduces Flixotide (fluticasone propionate) for bronchial conditions.1994SmithKline Beecham purchases Diversified Pharmaceutical Services, Inc, apharmaceutical benefits manager.Sterling Health also is acquired, making SmithKline Beecham the third-largestover-the-counter medicines company in the world and number one in Europe andthe international markets.With the intention of focusing on human healthcare, SmithKline Beecham sells itsanimal health business.1995Glaxo and Wellcome merge to form Glaxo Wellcome.Glaxo Wellcome acquires California-based Affymax, a leader in the field of

combinatorial chemistry.Glaxo Wellcome’s Medicines Research Centre opened at Stevenage in England.Valtrex (valaciclovir) is launched by Glaxo Wellcome as an anti-herpes successorto Zovirax (acyclovir).SmithKline Beecham acquires Sterling Winthrop's site in Upper Providence,Pennsylvania, to fulfil US R&D expansion needs.1996Community Partnership is established by SmithKline Beecham to focusphilanthropy on community-based healthcare.SmithKline Beecham Healthcare Services is formed by combining the clinicallaboratories, disease management and Diversified Pharmaceutical Servicesbusinesses.1997SmithKline Beecham’s research centre, New Frontiers Science Park, opens atHarlow in England.SmithKline Beecham and Incyte Pharmaceuticals create a joint venture -diaDexus - to discover and market novel molecular diagnostics based on the useof genomics.1998SmithKline Beecham and the World Health Organization announce acollaboration to eliminate lymphatic filariasis (elephantiasis) by the year 2020.The largest pharmaceutical company in Poland is created with the acquisition ofPolfa Poznan by Glaxo Wellcome.1999The 30th anniversary of the launch of Ventolin (albuterol) is marked as respiratorybecomes Glaxo Wellcome’s largest therapeutic area.Sharpening its focus on pharmaceuticals and consumer healthcare, SmithKlineBeecham divests SmithKline Beecham Clinical Laboratories and DiversifiedPharmaceutical Services.GSK ProductsProduct name: AquafreshMajor Markets

North and South AmericaEuropeEast and South AfricaMiddle EastAsiaAustralia and New ZealandAquafresh is one of the world's largest and fastest growing toothpaste andtoothbrush brands. The unique red, white and blue stripes of the toothpastemake the product not only visually attractive, but also underline the triple benefitsof strong teeth, healthy gums and fresh breath – whole mouth protection. TheAquafresh range of manual and electric toothbrushes not only clean teetheffectively, they are also gentle on gums because of their flexible necks. Theirflexible heads and brush tips have been designed for cleaning even the hardestto-reach parts of the mouth. The Aquafresh range also includes whitening,sensitive, tartar control and children's toothpaste, children's toothbrushes, dentallozenges and dental gum.Product name: ENOMajor MarketsIndiaBrazilSouth Africa and ThailandENO is the most global of GSK's gastrointestinal brands with sales of £29 million.The fast-acting effervescent fruit salts, used as an antacid and reliever ofbloatedness, was invented in the 1850s by James Crossley ENOProduct name: HorlicksMajor MarketsIndia and UKHorlicks, 'The Great Family Nourisher,' is a nutritional drink made from wheat,milk and malted barley and is sold in powdered form. The brand is such anenormous success in its key market, India, that alongside the traditional familyformula, there is a special formulation for children between one and three years

of age and another for breast-feeding mothers.Financial reviewOperating profit and earnings per shareOperating profit of £1,911 million grew by 13%, which was above the turnovergrowth of 9%, reflecting an improved cost of sales margin and higher otheroperating income partly offset by increased R&D expenditure. SG&A grew 8%.Excluding costs for legal matters, SG&A grew by 2%, well below turnover growth.In the quarter, gains from asset disposals were £91 million (£10 million in 2005),costs for legal matters were £123 million (£33 million in 2005), the fair valuemovements on the Quest collar and Theravance options were unfavorable £69million (£9 million unfavorable in 2005) and net income related to restructuringprogrammes was £4 million (£24 million charge in 2005). The total operatingprofit impact of these items was a £97 million charge in 2006, compared with a£56 million charge in 2005, resulting in a 2 percentage point reduction inoperating profit growth for the quarter.Profit after taxation grew by 14% which was marginally higher than the growth inoperating profit and reflected lower net interest costs, partially offset by a higherexpected tax rate for the year.EPS of 23.3 pence increased 15% in CER terms(14% in sterling terms) compared with Q2 2005. The adverse currency impact of1% on EPS reflected exchange losses on settlement of foreign currencybalances in the quarter partly offset by a stronger dollar.

4. COLGATE PAMOLIVE INDIA LIMITEDFrom a modest start in 1937, when hand-carts were used to distributeColgate Dental Cream, Colgate-Palmolive (India) today has one of the widestdistribution networks in India – a logistical marvel that spans around 3.5 millionretail outlets across the country, of which the Company services 9.40,000 outletsdirectly. The Company has grown to a Rs. 9600 million plus with an

outstandingrecord of enhancing value for its strong shareholder base.Colgate's tight focus in Oral Care in India while building its Personal Carebusiness coupled with a simple, but sound worldwide financial strategy, hashelped deliver consistent shareholder value. Colgate consistently increasesgross margin while at the same time reducing overhead expenses. The increasein gross margin and the reduction in overhead expenses provide the money toinvest in advertising to support the launch of new products, while at the sametime increasing operating profit.Today, Colgate is a household name in India with one out of two consumersusing a modern dentifrice. Consistently superior quality, innovation and value formoney products emerging out of advanced technology employed, has enabledColgate to be voted ‘The Most Trusted Brand’ in India across all brands andcategories for the third consecutive year in the Brand Equity AC Nielson ORGMARG2005 survey. Colgate has been the only brand to be ranked in the topthree for all the five surveys and to hold the premier position for threeconsecutive years. This is a true measure of the trust and confidence thatgenerations of consumers have placed in Colgate for their oral care needs.History1975Caprice hair care launches in Mexico. Today, hair care products are sold in over70 countries, with variants to suit every type of hair need.1976Colgate-Palmolive acquires Hill's Pet Nutrition. Today Hill's is the global leader inpet nutrition and veterinary recommendations.1983Colgate Plus toothbrush is introduced. Today over 1.6 billion Colgatetoothbrushes are sold annually worldwide. If you lined them up end to end, theywould circle the globe 16 times.1985

Protex bar soap is introduced, and today offers all-family antibacterial protectionin over 56 countries. Colgate-Palmolive enters into a joint venture with HongKong-based Hawley & Hazel, a leading oral care company, which adds strengthin key Asian markets.1986The Chairman's You Can Make A Difference Program is launched, recognizinginnovation and executional excellence by Colgate people.1987Colgate acquires Softsoap liquid soap business from the MinnetonkaCorporation. Today, Colgate is the global leader in liquid hand soap.1989Annual Company sales surpass the $5 billion mark.1991Colgate acquires Murphy Oil Soap, the leading wood cleaner in the U.S. Today,its product portfolio has expanded to include all-purpose cleaners, sprays andwipes.1992Colgate acquires the Mennen Company. Today, Mennen products are sold inover 52 countries.1995Colgate enters Central Europe and Russia, expanding into fast-growing markets.Colgate acquires Kolynos Oral Care business in Latin America and launchesmarket-leading Sorriso toothpaste.1996Bright Smiles, Bright Futures oral health education program expands to reach 50countries with in-school programs and mobile dental clinics.1997Colgate Total toothpaste is introduced and quickly becomes the market leader inthe U.S. Only Colgate Total, with its 12-hour protection, fights a complete rangeof oral health problems.2004Colgate acquires the GABA oral care business in Europe, with its strength in theimportant European pharmacy channel and its ties with the dental

community.2006Today, with sales surpassing $10 billion, Colgate focuses on four corebusinesses: Oral Care, Personal Care, Home Care and Pet Nutrition. Colgatenow sells its products in 222 countries and territories worldwide.ProductsOral Care:Colgate – Toothpaste, Tooth Powder, Whitening ProductsPamolive - Shower Gel, Shower Cream, Bar Soap, Liquid Hand Wash,Shave Preps, Skin CareHousehold Care:Axion Surface Clean5. BRITANIAThe story of one of India's favorite brands reads almost like a fairy tale. Onceupon a time, in 1892 to be precise, a biscuit company was started in anondescript house in Calcutta (now Kolkata) with an initial investment of Rs. 295.The company we all know as Britannia today.The beginnings might have been humble-the dreams were anything but. By1910, with the advent of electricity, Britannia mechanized its operations, and in1921, it became the first company east of the Suez Canal to use imported gasovens. Britannia's business was flourishing. But, more importantly, Britannia wasacquiring a reputation for quality and value. As a result, during the tragic WorldWar II, the Government reposed its trust in Britannia by contracting it to supplylarge quantities of "service biscuits" to the armed forces.As time moved on, the biscuit market continued to grow and Britannia grew alongwith it. In 1975, the Britannia Biscuit Company took over the distribution ofbiscuits from Parry's who till now distributed Britannia biscuits in India. In thesubsequent public issue of 1978, Indian shareholding crossed 60%, firmlyestablishing the Indianness of the firm. The following year, Britannia BiscuitCompany was re-christened Britannia Industries Limited (BIL). Four years later in1983, it crossed the Rs. 100 crores revenue mark.

On the operations front, the company was making equally dynamic strides. In1992, it celebrated its Platinum Jubilee. The Wadia Group acquired a stake in thecompany and became an equal partner with Groupe Danone in Britannia. Thesubsequent year saw sales cross landmark 100,000 tones of biscuits or 1 billionpacks of 100g.Britannia strode into the 21st Century as one of India's biggest brands and thepre-eminent food brand of the country. It was equally recognized for its innovativeapproach to products and marketing: the Lagaan Match was voted India's mostsuccessful promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became India's most successful product launch. In 2002,Britannia's New Business Division formed a joint venture with Fonterra, theworld's second largest Dairy Company, and Britannia New Zealand Foods Pvt.Ltd. was born. In recognition of its vision and accelerating graph, Forbes Globalrated Britannia 'One amongst the Top 200 Small Companies of the World', andThe Economic Times pegged Britannia India's 2nd Most Trusted Brand.Today, more than a century after those tentative first steps, Britannia's fairy tale isnot only going strong but blazing new standards, and that miniscule initialinvestment has grown by leaps and bounds to crores of rupees in wealth forBritannia's shareholders. The company's offerings are spread across thespectrum with products ranging from the healthy and economical Tiger biscuits tothe more lifestyle-oriented Milkman Cheese. Having succeeded in garnering thetrust of almost one-third of India's one billion population and a strongmanagement at the helm means Britannia will continue to dream big on its pathof innovation and quality. And millions of consumers will savour the results,happily ever after.

1975Britannia Biscuit Company takes over biscuit distributionfrom Parry's1979 Re-christened Britannia Industries Ltd. (BIL)1983Sales cross Rs.100 crore1989The Executive Office relocated to Bangalore1992BIL celebrates its Platinum Jubilee1993Wadia Group acquires stake in ABIL, UK and becomes anequal partner with Groupe Danone in BIL1997Re-birth - new corporate identity 'Eat Healthy, Think Better'leads to new mission: 'Make every third Indian a Britanniaconsumer'BIL enters the dairy products market1999"Britannia Khao World Cup Jao" - a major success! Profit upby 37%2000Forbes Global Ranking - Britannia among Top 300 smallcompanies2001BIL ranked one of India's biggest brandsNo.1 food brand of the countryBritannia Lagaan Match: India's most successful promotionalactivity of the yearMaska Chaska: India's most successful FMCG launch2002BIL launches joint venture with Fonterra, the world's secondlargest dairy companyBritannia New Zealand Foods Pvt. Ltd. is bornRated as 'One amongst the Top 200 Small Companies of theWorld' by Forbes GlobalEconomic Times ranks BIL India's 2nd Most Trusted BrandPure Magic -Winner of the Worldstar, Asiastar and Indiastaraward for packaging2003'Treat Duet'- most successful launch of the yearBritannia Khao World Cup Jao rocks the consumer lives yetagain2004Britannia accorded the status of being a 'Superbrand'Volumes cross 3,00,000 tons of biscuitsGood Day adds a new variant - Choconut - in its range2005Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes thepopular chant!Britannia launched 'Greetings' range of premium assortedgift packsThe new plant in Uttaranchal, commissioned ahead ofschedule.The launch of yet another exciting snacking option - Britannia50-50 Pepper ChakkarPRODUCTS

Britannia Trea t proffers a wide variety of flavours, such as the classicfavourites Bourbon & Elaichi, the Fruit Flavoured Creams such as Orange,Pineapple, Mango, and Strawberry, the Jam Filled Centres under the JimJam range, and the Duet RangeTiger, launched in 1997, became the largest brand in Britannia's portfolioin the very first year of its launch and continues to be so till today. Tigerhas grown from strength to strength and the re-invigoration.Britannia Good Day was launched in 1986 in two delectable avatars -Good Day Cashew and Butter. Over the years, new variants wereintroduced - Good Day Pista Badam in 1989, Good Day Chocochips in2000 and Good Day Choconut in 2004.Britannia 50-50 is the leader in its category with more than one-third ofmarket share. The versatile and youthful brand constantly aims to providea novel and exciting taste experience to the consumer.Britannia's oldest brand enjoys a heritage that spans the last 50 years -and going strong., Britannia Marie Gold has maintained its stronghold. It isthe #1 brand in its category by a long shotIn 1996, Milk Bikis launched a variant called Milk Cream. These roundbiscuits come with smiley faces and are full of milk cream that makesthem very popular with children.To offer something to consumers who cherish healthy living, Britanniaintroduced Nutri-Choice biscuits. In 1998, Nutri-Choice Thin Arrowroot wasmorphed from Jacob's Thin Arrowroot (a popular brand in East India).Before Timepass, Britannia's offering in the salted cracker category wasSnax. Launched in 1999, Snax was promoted as a tastier base fortoppings through edgy advertising.Little Hearts was launched in 1993 and targeted the growing youthsegment. A completely unique product, it was the first time biscuits wereretailed in pouch packs like potato wafers.Britannia Nice Time was the pioneer of sugar sprinkled biscuits in India.This unique product managed to create such a strong consumer pull thatsoon there was a rush of pretender products in the market, clearlyindicative of the success of the concept.

Till 1958, there were no breads in the organised sector and breadconsumption was a habit typified by the British. Then, a mechanised breadunit was set up in Delhi with the name "Delbis" which produced slicedbread and packed it under the Britannia name. Thus, Britannia was notonly the pioneer, but also inculcated in the people of Delhi the habit ofeating white sliced bread. The Mumbai unit came up in 1963, and thereagain Britannia was the first branded bread in the city.6. DABUR INDIADabur India Limited is a leading Indian consumer goods company with interestsin health care, Personal care and foods. Over more than 100 years we havebeen dedicated to providing nature-based solutions for a healthy and holisticlifestyle.Through our comprehensive range of products we touch the lives of allconsumers, in all age groups, across all social boundaries. And this legacy hashelped us develop a bond of trust with us.1979 Sahibabad factory / Dabur Research Foundation1986 Public Limited Company1992 Joint venture with Agrolimen of Spain1993 Cancer treatment1994 Public issues1995 Joint Ventures1996 3 separate divisions1997 Foods Division / Project STARS1998 Professionals to manage the Company2000 Turnover of Rs.1,000 crores2003 Dabur demerges Pharma Business2005 Dabur aquires Balsara2006 Dabur announces Bonus after 12 years2006 Dabur crosses $2 Bin market Cap, adopts US GAAP

Dabur Health Care Product RangeDaburChyawanprash-DaburChyawanshakti-Glucose DDaburLal tail-Dabur Baby oliveoil-Dabur JanmaGhunti-

Hajmola Yumstick -Hajmola MastMasala -Anardana -Hajmola -Hajmola candy -Hajmola CandyFun2 -Pudin hara -(Liquid andpearls)Pudin hara G -Dabur Hingoli -Shilajit Gold -Nature Care -Sat Isabgol -Shilajit -Ring Ring -Itch Care -Back-aid -Shankha Pushpi -Dabur Balm -Sarbyna Strong -Dabur Personal Care Product RangeAmla Hair Oil -Amla Lite Hair Oil-- Anmol Silky Black Shampoo- Vatika HennaConditioning ShampooVatika Hair Oil -Anmol SarsonAmla -- Vatika Anti-Dandruff Shampoo- Anmol Natural Shine ShampooGulabari -Vatika FairnessFace Pack -- Dabur Red Gel- Dabur Red Toothpaste- Babool Toothpaste- Meswakl Toothpaste- Promise Toothpaste- Dabur Lal Dant Manjan- Dabur Binaca ToothbrushDabur Foods Product Range

Tastes like eating afruit100% Natural Fruit JuicePure natural HoneyHommade - a rangeofculinary ingredientsgiving you 'The tasteof Indian Kitchen'.Lemoneez is a Natural LemonJuiceCapsico - a fiery red-peppersauce.7. GODFREY PHILLIPSGodfrey Phillips is a company driven by passion - the passion to excel, innovateand win, a passion to be the leader, to emerge as the most respected companyin the tobacco industry, not just in India but all over the world.Godfrey Phillips is today the second largest player in the Indian cigarette industrywith an annual turnover of over US$ 265 million.Incorporated in India in 1936, the Company established its own manufacturingfacilities in 1944. Today, the operations span the entire northern and western partof the country, with two manufacturing facilities located in Ghaziabad (near Delhi)and in Andheri (Mumbai), a state of the art R&D centre in Mumbai and a tobacco-buying unit in Guntur (Andhra Pradesh). Headquartered in Delhi, the Companyhas its sales offices across the country at Ahmedabad, Mumbai, Delhi,Chandigarh and Hyderabad.The Company today is the proud owner of some of the most popular cigarettebrands in the country like Red and White, Four Square, Jaisalmer, Cavanders,Tipper and Prince. Its products are distributed through an extensive India widenetwork comprising 484 exclusive distributors and over 800,000 retail outlets.Over the years, Godfrey Phillips has emerged as a professionally managed,highly efficient corporate entity. Today, the Company has one of the highest

productivity rates of workers in the entire country and an enviable organisationalstructure. Over the years the Company has also become an active player inoverseas markets, with significant export volumes.Godfrey Phillips has two major stakeholders, one of India's leading industrialhouses - the K.K. Modi Group and one of the World's largest tobacco companies,Philip Morris. Godfrey Phillips has the strong backing of over 15,000shareholders in the Country and is today, through the sheer determination &passion of every employee of the organization, growing from strength to strength.From its modest beginning in London way back in 1844, Godfrey Phillips, a majorplayer in the Indian tobacco industry, has come a long way.The history of the Company reflects the strong determination and passionamongst the founders & the employees of the Company to establish itself as aleader of the tobacco industry in the Country.Mr. Godfrey Phillips, founder of Godfrey Phillips & Sons commenced business inthe Barbican (London), as a Cigar manufacturer in 1844. From the Barbican hemoved to Primrose Street and after that to Commercial Street London. B.D.V, thepacket tobacco with which the name of Godfrey Phillips was intricatelyconnected, is practically contemporary with Mr. Phillips embarkation in tobaccocutting in the year 1887.At that time packet tobaccos were in their infancy. After B.D.V. came "Marigold"and Guinea Gold. Mr. Phillips, a splendid judge of tobacco himself, looked forappreciation of quality in his customers and stuck to his belief that quality willultimately determine success, something that is still the strongest belief in theCompany. Messrs Godfrey Phillips, D.H. Wilmer and H.C. Water incorporatedGODFREY PHILLIPS INDIA as a Private Ltd. Co. on 3rd December 1936. TheCompany imported cigarettes from Godfrey Phillips Ltd. U.K.In the year 1942, plans for setting up a manufacturing facility in

Calcutta weremade, however it got shelved due to World War II. In 1944, after the war,GODFREY PHILLIPS bought Master Tobacco Co., Chakala, Andheri (Mumbai)thereby establishing its first factory in the Country. In October 1946, GODFREYPHILLIPS became a Public Ltd. Co. with its manufacturing operations in Mumbai.GODFREY PHILLIPS was then primarily a manufacturing company and madecigarette brands like Cavanders, Abdulla No. 7, DERESKE, Marcovich, Red &White. In 1951/52 Godfrey Phillips UK bought out George Dobie & Son's, famousFour Square brand.In 1967, D. Macropolo & Co., which was the sole selling agent for GODFREYPHILLIPS, opened a subsidiary company called "International Tobacco Co.", withits manufacturing facility in Ghaziabad (near Delhi) to manufacture cigarettes forGODFREY PHILLIPS.In 1967-68, Philip Morris acquired substantial holding in Godfrey Phillips Ltd.,U.K. and Godfrey Phillips Investment Corporation which was holding substantialshares of Godfrey Phillips India Ltd. It also acquired a large share holdinginterest in George Dobie & Sons. Thus in 1968, Godfrey Phillips Ltd., U.K.,George Dobie & Sons, and GODFREY PHILLIPS became affiliates of PhilipMorris.Philip Morris is a large professionally managed multinational with diversifiedbusiness interests. It has a wide range of tobacco and other products, with"Marlboro" being its leading brand in the world. It took major initiatives in 1968 forGODFREY PHILLIPS to re-organise its operations. A major thrust was given tomarketing & sales and it was decided to merge D. Marcopolo & Co. with GodfreyPhillips, a process, which began in 1969. The merger was finally completed on

31st December 1975, bringing the four sales branches and "InternationalTobacco Co." under its fold.In 1973 GODFREY PHILLIPS, successfully launched Four Square Kings, India 'sfirst King Size filter cigarette. It was the sheer passion to be close to theconsumer that helped the Company recognize the demands of the emergingconsumer long before anyone in the cigarette industry.In 1979, Philip Morris. joined hands with the K.K. Modi Group and in thefollowing year the Modi Enterprises took over the management of GODFREYPHILLIPS with a substantial financial stake. Modi enterprise was new to thecigarette business, but an area in which they saw a huge potential for growth.They took on this new challenge with a lot of passion, vigour and confidence.The business was given a fresh look in all its areas of operation. Professionalmanagers were inducted to head the various functions to bring about change andvigor in the organization to meet the challenges of the eighties. The existingbrand franchises were rejuvenated, each brand was modernized with the primeobjective of growing their brand equity. Modernization of the factories wasinitiated; product development and research activities were stepped up.Aggressive marketing and sales strategies were drawn up and implemented andeach employee was empowered to bring about the desired change. Everythingwas restarted with renewed passion and determination.Godfrey Phillips is best known by the brands it manufactures and today theCompany is the proud owner of some of the best FMCG brands of the country. Atleast 3 of our cigarette brands today feature in the top 50 FMCG list. They are:Four Square Special, Red & White and Cavanders.Apart from these champions, the Company also has other cigarette brands that

cater to a large and varied range of consumer segments.The year 2002 also saw the Company re-launch some of its brands, by givingthem an entirely new look & positioning, while some new, innovative productswere also introduced. These brands are already making their presence felt in theindustry. They are: Jaisalmer (re-launched in 2003), Tipper & Piper (newinnovative products introduced in 2002) and Prince (another re-launch for theyear 2002).Prepared with utmost dedication and passion, to deliver the customer with themost satisfying smoke, each cigarette going out into the market bears theGodfrey Phillips stamp of quality and assurance.CigaretteFour SquareJaisalmerRed & WhiteCavandersTipperNorth PolePrinceCigars - BrandsDon DiegoHav-a-tampaPhilliesSanta Damiana H-2000 Rothschild8. GODREJThe foods division of Godrej Industries produces and markets edible oils,vanaspati, fruit drinks, fruit nectar and bakery fats.The division has two state-of-the-art manufacturing facilities: at Wadala inMumbai, the capital of the western Indian state of Maharashtra; and atMandideep near Bhopal in the northern Indian state of Madhya Pradesh. It has anational distribution network consisting of 800 distributors and 24 consignmentagents.The plants are equipped with the best of modern equipment for theprocessing and packaging of a wide variety of food products. These include:The 'Jumpin' range of fruit drinks, which come in flavors such as

mango, apple,pineapple and orange. The 'Xs' range of fruit nectar (mango, litchi, and sweetorange and pineapple flavors). Tomato Puree (under the Godrej brand). Fruitpulps and juices in bulk aseptic packaging. Health and dietetic foods. Refinededible oils of low color in different varieties of groundnut, sunflower andsoyabean. Processed hydrogenated fats for edible purposes such as vanaspatiand bakery shortenings.Godrej Industries, in keeping with the philosophy of the Godrej Group, believesthat quality is the product of a combination of man and machine. The foodsdivision has people of outstanding caliber to go with the modern technologies ituses. The result: the ability to deliver outstanding products.Soymilk is the rich creamy milk of whole soybeans. With its unique nutty flavorand rich nutrition, soymilk can be used in a variety of ways.Plain, unfortified soymilk is an excellent source of high-quality protein, B-vitaminsand iron. Some brands of soymilk are fortified with vitamins and minerals and aregood sources of calcium, vitamin D and vitamin B-12.Soymilk is free of the milk sugar lactose and is a good choice for people who arelactose intolerant. Also, it is a good alternative for those who are allergic to cow'smilk. Children can enjoy homemade or commercially prepared soymilk after theage of 1 year. Infants under 1 year of age should be fed breast milk,commercially prepared infant formula or commercial soymilk infant formula.Soymilk is available as a plain, unflavored beverage or in a variety of flavorsincluding apple, mango, malt and plain. Soymilk can be used in almost any waythat cow's milk is used.Godrej Industries Limited is India's leading manufacturer of oleochemicals andmakes more than a hundred chemicals for use in over two dozen industries. Italso manufactures edible oils, vanaspati and bakery fats. Besides, it

operatesbusinesses in medical diagnostics and real estate.GIL is a member of the Godrej Group, which was established in 1897 and hassince grown into a Rs 6,000 crore conglomerate. The company was calledGodrej Soaps Limited until March 31, 2001. Thereafter, the consumer productsdivision got de-merged into Godrej Consumer Products Limited, and the residualGodrej Soaps became Godrej Industries Limited. This led to the formation of twoseparate corporate entities: Godrej Consumer Products and Godrej Industries.Besides its three businesses, Godrej Industries also runs four divisions —Corporate Finance, Corporate HR, Corporate Audit and Assurance and Researchand Development — which operate on behalf of the entire Godrej Group.GIL has built a strong manufacturing base capable of delivering internationalquality products at competitive prices. It operates two plants, one at Valia in theIndian state of Gujarat and a second at Vikhroli in suburban Mumbai. Thecompany's products are exported to 40 countries in North and South America,Asia, Europe, Australia and Africa, and it leads the Indian market in theproduction of fatty acids, fatty alcohols and AOS9. NIRMANirma is one of the few names - which is instantly recognized as a true Indianbrand, which took on mighty multinationals and rewrote the marketing rules towin the heart of princess, i.e. the consumer.Nirma, the proverbial ‘Rags to Riches’ saga of Dr. Karsanbhai Patel, is a classicexample of the success of Indian entrepreneurship in the face of stiff competition.Starting as a one-man operation in 1969, today, it has about 14, 000 employeebaseand annual turnover is above Rs. 25, 00 crores.India is a one of the largest consumer economy, with burgeoning middle classpie. In such a widespread, diverse marketplace, Nirma aptly

concentrated all itsefforts towards creating and building a strong consumer preference towards its‘value-for-money’ products.It was way back in ‘60s and ‘70s, where the domestic detergent market had onlypremium segment, with very few players and was dominated by MNCs. It was1969, when Karsanbhai Patel started door-to-door selling of his detergentpowder, pricedat an astonishing Rs. 3 per kg, when the available cheapest brand in the marketwasRs. 13 per kg. It was really an innovative, quality product – with indigenousprocess, packaging and low-profiled marketing, which changed the habit ofIndian housewives’ for washing their clothes. In a short span, Nirma created anentirely new market segment in domestic marketplace, which is, eventually thelargest consumer pocketand quickly emerged as dominating market player – a position it has never sincerelinquished. Rewriting the marketing rules, Nirma became a one of the widelydiscussed success stories between the four-walls of the B-school classroomsacrossthe world.The performance of Nirma during the decade of 1980s has been labeled as‘Marketing Miracle’ of an era. During this period, the brand surged well ahead itsnearest rival – Surf, which was well-established detergent product by HindustanLever. It was a severing battering for MNC as it recorded a sharp drop in itsmarket share. Nirma literally captured the market share by offering value-basedmarketing mix of four P’s, i.e. a perfect match of product, price, place andpromotion.Now, the year 2004 sees Nirma’s annual sales touch 800,000 tones, making it

one ofthe largest volume sales with a single brand name in the world. Looking at theFMCG synergies, Nirma stepped into toilet soaps relatively late in 1990 but thisdid not deter it to achieve a volume of 100,000 per annum. This makes Nirma thelargest detergent and the second largest toilet soap brand in India with marketshare of 38% and 20% respectively.It has been persistent effort of Nirma to make consumer products available tomasses at an affordable price. Hence, it takes utmost care to provide finestproducts at the most affordable prices. To leverage this effort, Nirma has gone formassive backwardintegration along with expansion and modernization of the manufacturingfacilities.The focal objective behind modernization plan is of up gradation with resourcesavvytechnology to optimize capabilities. Nirma’s six production facilities,located at different places, are well equipped with state-of-art technologies. Toensure regular supply of major raw materials, Nirma had opted for backwardintegration strategies. These strategic moves allowed Nirma to manage effectiveand efficient supply-chain.Nirma has always been practiced ‘value-for-money’ plank. Nirma plans to extendthe same philosophy in categories as commodity food products, personal careproducts and packaged food. Distinct market vision and robust infrastructureallowed Nirma to have cost leadership. Apart from this, lean distribution network,umbrella branding and low profile media promotions allowed it to offer qualityproducts, at affordable prices.In present scenario, an inspiring 59-year-old persona, Dr. Karsanbhai K. Patel,leads Nirma, playing role of key strategic decision-maker, whereas his nextgeneration has already skilled management capabilities. Shri Rakesh K

Patel – aqualified management graduate, is spearheading the procurement, productionand logistic functions, whereas Shri Hiren K Patel – a qualified Chemicalengineer and management graduate, heads the marketing and finance functionsof the organization. Shri Kalpesh Patel, Executive Director, leads the professionalorganizational structure.ProductsNirma Bath SoapNirma Beauty SoapNirma Lime Fresh SoapNima RoseNima SandalNirma Washing PowderNirma Detergent CakeSuper Nirma Washing PowderSuper Nirma Detergent CakeNirma Popular Detergent PowderNirma Popular Detergent CakeNirma Shudh Iodized SaltNirma Clean Dish Wash BarNima Bartan Bar10. ITCITC is one of India's foremost private sector companies with a marketcapitalization of over US $ 13 billion and a turnover of US $ 3.5 billion. Ratedamong the World's Best Big Companies by Forbes magazine and among India'sMost Respected Companies by Business World, ITC ranks third in pre-tax profitamong India's private sector corporations.ITC has a diversified presence in Cigarettes, Hotels, Paperboards & SpecialtyPapers, Packaging, Agri-Business, Packaged Foods & Confectionery,Information Technology, Branded Apparel, Greeting Cards, Safety Matches andother FMCG products. While ITC is an outstanding market leader in its traditionalbusinesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it israpidly gaining market share even in its nascent businesses of Packaged Foods& Confectionery, Branded Apparel and Greeting Cards.As one of India's most valuable and respected corporations, ITC is

widelyperceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls thissource of inspiration "a commitment beyond the market". In his own words: "ITCbelieves that its aspiration to create enduring value for the nation provides themotive force to sustain growing shareholder value. ITC practices this philosophyby not only driving each of its businesses towards international competitivenessbut by also consciously contributing to enhancing the competitiveness of thelarger value chain of which it is a part."ITC's diversified status originates from its corporate strategy aimed at creatingmultiple drivers of growth anchored on its time-tested core competencies:unmatched distribution reach, superior brand-building capabilities, effectivesupply chain management and acknowledged service skills in hoteliering. Overtime, the strategic forays into new businesses are expected to garner asignificant share of these emerging high-growth markets in India.ProductsCigarettesITC is the market leader in cigarettes in India. With its wide range ofinvaluable brands, it has a leadership position in every segment of the market. Itshighly popular portfolio of brands includes Wills, Insignia, India Kings,Gold Flake, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.FoodsITC made its entry into the branded & packaged Foods business in August2001 with the launch of the Kitchens of India brand. A more broad-based entryhas been made since June 2002 with brand launches in the Confectionery,Staples and Snack Foods segments.The packaged foods business is an ideal avenue to leverage ITC's provenstrengths in the areas of hospitality and branded cuisine, contemporarypackaging and sourcing of agricultural commodities. ITC's world

famousrestaurants like the Bukhara and the Dum Pukht, nurtured by the Company'sHotels business, demonstrate that ITC has a deep understanding of the Indianpalate and the expertise required to translate this knowledge into delightful diningexperiences for the consumer.The Foods business is today represented in 4 categories in the market.These are:Ready To Eat FoodsStaplesConfectionerySnack FoodsLifestyle RetailingOver the last six years, ITC's Lifestyle Retailing Business Division hasestablished a nationwide retailing presence through its Wills Lifestyle chain ofexclusive specialty stores. Beginning with its initial offering of Wills Sportrelaxed wear from the first store at South Extension, New Delhi in July 2000,it has expanded its basket of offerings to the premium consumer with WillsClassic work wear, Wills Clublife evening wear and a tempting range ofdesigner accessories that complete the Look.Greeting, Gifting & StationeryITC's stationery brands Paper Kraft & Classmate are the most widelydistributed brands across India. ITC's Greeting & Gifting products includeExpressions greeting cards and gifting products like autograph books, slambooks, party invitations, pop up & mini books. The business also marketsExpressions Regalia, a collection of premium greeting cards & social causecards & desk calendars in association with SOS Children's Villages of India.Expressions greetings & gifting products are available in multi brand retail outletsacross India.

FUTURE PROSPECTS:

The Indian FMCG sector with a market size of US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network, intense competition between the organized and unorganized segments characterizes the sector. FMCG Sector is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that FMCG sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then.

For example, Hindustan Levers Limited (HLL) has shown a healthy growth in the last quarter. An estimated double-digit growth over the next few years shows that the good times are likely to continue.

Growth ProspectsWith the presence of 12.2% of the world population in the villages of India, the Indian rural FMCG market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2007, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption. At present, urban India accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34%. However, rural India accounts for more than 40% consumption in major FMCG categories such as personal care, fabric care, and hot beverages. In urban areas, home and personal care category, including skin care, household care and feminine hygiene, will keep growing at relatively attractive rates. Within the foods segment, it is estimated that processed foods, bakery, and dairy are long-term growth categories in both rural and urban areas.

CONCLUSION:

The FMCG industry in India is having huge potential to grow. The Industry is now focusing towards the semi-urban and rural market for growth as there are many remote areas in our country which are untouched and they don’t have the exposure to number of alternatives or brands, so by focusing on these aspects of Indian economy the fmcg sector in India has a huge potential to grow further. Further,the companies like TATA and HUL are using CSR ie. Corporate social responsibility to further strengthen their brand or create a positive image in the minds of people thus it will help in increasing their revenues. The advertising campaigns have also changed to the changing scenario in Indian economy,and the companies in the fmcg sector are becoming more cautious on making

false claims as the consumer in India has evolved and is more informed than its ancestors. According to my views the product or the brand or the company which has a positive image in the minds of the people and which is innovative in its ideas to fast changing consumer preference and which gives the best value for price is going to survive in the long run or else they have to either change their strategy or quit the Indian FMCG market.