FMCG – An Overview

They are the products which are:

 Sold quickly at relatively low cost

 Sold in large quantities
 Have Low absolute profit but high
cumulative profit
 Examples: Glassware, batteries, plastic
products, cosmetics, etc.
FMCG…Unscathed and Growing Despite
Recession
• “FMCG resilient to the economic slowdown
and dip in consumer sentiment”*
• One of the very few sectors undergoing M&A
(Merger and Acquisition) in recent times**
• India’s rural-market untapped, under-
penetrated**
• Expansion of Marico and Godrej consumer
products in West Asia, South Africa and
Egypt**

*- Business Standard
**- Economic Times
Top 10 Players in FMCG Sector (India)

1. Hindustan Unilever Limited

2. ITC (Indian Tobacco Company)
3. Nestle India
4. GCMMF (Amul)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter and Gamble
10. Marico Industries
Hindustan Unilever Limited
 Founded in 1933, it’s now India’s largest
consumer products company
 Turnover in 2007: 13,000 Crores; Total
Employment: 15,000
 Brands: Axe, Breeze, Close-Up, Knorr,
Rexona, Kissan, Kwality Walls, Brooke
Bond, Lakme, Annapurna, Surf Excel, Fair
& Lovely, Lifebuoy, Lux etc.
Continued…
 InDecember 2008, HUL registered
Sales growth and its FMCG growth by
17% and 21% respectively
 Food Business -- Beverages, processed
food, and ice cream – growth: 23%
 Amongst 4 Indian companies to be in
the list of “Leading Global Enterprises”*

* - Hewitt
Survey
 Shakti

 HUL launched an ambitious project

“Shakti” in 2001.
 It spans 15 states, 1,35,000 villages,
and reaches 150 million rural
consumers
 Also has 45,000 women entrepreneurs
in its fold
 Estimates: 100,000 “Shakti”
entrepreneurs; garbing 500,000
villages; reaching out to 600 million
Lifebouy Swasthya Chetana

 Also launched by HUL, in 2002.

 Successfully propagated the initiative of
rural health and hygiene
 Stressed on the importance of washing
hands with soap, which helped in
reducing diarrhoea
 Has touched 50,676 villages; 12 Crore
people in UP, MP, Maharashtra, West
Bengal, Bihar and Karnataka.
I.T.C.
 1.) THE COMPANY WAS FOUND IN THE YEAR 24TH AUGUST,
1910.

 2.) IT WAS ESTABLISHED AT RADHA BAZAAR LANE KOLKATA.

 3.) IN THE YEAR 1974 THE COMPANY TRANSFORMED ITS NAME.

 4.) THE COMPANY BASICALLY STARTED WITH THE

MANUFACTURING OF ITEMS WHOLLY BASED OF TOBACCO.
EVOLUTION OF ITC
 THE FIRST SIX DECADES DEVOTED ONLY TO CIGARETTES AND
LEAF BASED PRODUCT.

 THE MAJOR CORPORATE TRANSFORMATION CAME IN THE LATE

70S.

 THE COMPANY DIVERSIFIED INTO ENDLESS BUSINESSES.

 THE COMPANY CURRENTELY HEADED BY Y.C. DEVESHWAR.

 THE COMPANY IS OVERFLOWING REVENUES OF $4 BILLION.

 THE ORGANISATION HAD ALSO MADE IT TO THE FORTUNE

GLOBAL 2000 LIST.
RECESSION IS A BANE BUT FMCG
IS A BOON.
CAGR

0.3
24%
0.25
19%
0.2 18%
15%
0.15

0.1

0.05
0 0 0 0
0
1 2 3 4 5
RURAL INITIATIVE
 THE FIRM IS RUNNING AN AGRI-BUSINES COVERING COUNTLESS
VILLAGES.

 THE FIRM WITH ITS OBJECTIVE OF MAXIMIZING THE PROFIT,

CONTRIBUTING TO THE GROWTH OF VILLAGES.

 THE COMPANY IS ALSO THE BIGGEST EARNER OF FOREIGN

EXCHANGE($2 BILLION) FOR THE GOVERNMENT.

 THE COMPANY THROUGH THIS HELPING TO DEVELOP A DESIRED

RURAL INFRASTRUCTURE FOR THE COUNTRY.

 IN REGARD TO THIS THE COMPANY LAUNCHED A PROGRAMME NAMED

E-CHAUPAL FOR THE BETTERMENT OF THE VILLAGES.
 RIVALS OF ITC

miscll, 27% unilever, 25%

unilever
nestle
britannia
itc
miscll
itc, 13%
nestle, 20%

britannia, 15%
CORPORATE PHILANTHROPY
 E-CHAUPAL IS A RURAL INITAITIVE TO BRING CLOSER THE
ALREADY DISSECTED FARMERS.

 WALKING ON ITS MOTO IT IS CONSISTENTLY DEVELOPING A

META MARKET THAT WILL EMPOWER THE FARMERS TO
TRANSACT AT BETTER PRICES.

 THE E-CHAUPAL INITIATIVE SPANS AROUND 6400 CHAUPALS, 8

STATES AND MORE THAN 4 MILLION FARMERS IN ABOUT
40,OOO VILLAGES.

 THE OBJECTIVE IS TO ACHIEVE 20,OOO CHAUPALS AND 700

SAGARS TO REACH 10 MILLION FARMERS IN 1 LAKH VILLAGES
BY 2010.
CONT……..
 THE E-CHAUPAL WORKS ON 4 SIMPLE CONCEPT-

1.) ELIMINATION OF THE NON VALUE ADDED ITEMS.

2.) VALUE ADDED PRODUCT TRACEABLE THROUGH FARM PRACTICES.

3.) E-MARKET PLACE FOR SPOT TRANSACTIONS AND SUPPORT SERVICES

FOR FUTURE EXCHANGE.

4.) DIFFERENTIATED PRODUCT THROUGH IDENTITY PRESERVE SUPPLY

CHAIN.
 Nestlé

 Originally founded in Switzerland, it

truly arrived in India in 1961
 Has a total of 7 factories in States such
as Haryana, Tamil Nadu, Goa and
Uttarakhand
 Well known products include the
quintessential Maggi Noodles, Nescafé,
Kit Kat, Bar-One and Milkmaid
 Maggi…

 Although the noodle brand is generic,

its other products include instant soup,
sauce and ketchup
 Well known in South Africa, Brazil,
Australia, New Zealand, Malaysia,
Singapore and Philippines
 “Two-minute noodles” has become
synonymous with the brand in India and
Malaysia
 Nescafé

 Portmanteau of “Nestlé” and “café”;

was introduced in 1938. Now the most
popular coffee brand in India and the
World
 Popular variants include Necafé Classic,
Nescafé Sunrise, Nescafé Cappuccino
and Nestea and many
more.sssssssssssssssssssssssssssssssss
ssssssssssssssssssssssssssssssssssssss
sssssssssssssssssssssss
 Moga Revolution
 Nestlé arrived and established itself in the
Moga village of Punjab in 1961
 Currently, farmers in excess of 85,000 are
employed, Milk Collection Centre, among
other things, has been established
 Also introduced is the tuberculosis clinic for
the villagers; milk machines, fodder seeds,
veterinary medicines, and procurement of
bank loans for the farmers has become easier