AN ASSIGNMENT ON FMCG INDUSTRY IN INDIA PREPARED BY:

GAURANG ISHAN MEHUL HARDIK VADHANI(54) PRAJAPATI(33) VEDIYA(58) SHELAR(44)

CH-1 INTRODUCTION
Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Its principal constituents are Household Care, Personal Care and Food & Beverages. Indias FMCG sector is the fourth largest sector in the economy. The growth potential for FMCG companies looks promising over the long-term horizon, 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% was accounted by groceries and personal care products respectively. Rapidurbanization, increased literacy and rising per capita income are the key growth drivers for the sector. Around 45% of the population in India is below 20 years of age and the proportion of the young population is expected to increase in the next five years.

SEGMENT PRODUCTS HOUSEHOLD Fabric wash; household CARE cleaners (dish/utensil cleaners,floor cleaners,air fresheners,insecticides and mosquito repellents,metal polish and furniture polish). PERSONAL Oral care, Hair care,Skin CARE care,Personal wash (soaps),cosmetics & toiletries,deodorants,perfu mes, female hygiene products.

MAJOR PLAYER HUL,Nirma,Godre j Consumer products,ITC,P& G,DaburReckett & Coleman. Colgate Palmolive,HUL, Amway,LOreal,L akme,Marico,Cavi n Care,Fem Care,Emami,P&G, Himalaya,ITC, Godrej Consumer products.

SEGMENT

PRODUCTS

FOOD : Staples, cereals, bakery products (biscuits, breads, cakes, snack foods, FOOD chocolates, icecreams, &BEVERAGES branded flour, branded rice, ready-to-eat packaged foods etc. BEVERAGE : Health United beverages,Tea,Coffee,Bottled Breweries,GlaxoS Water,Juices,Liquor etc. mith Kline,PEPSICO,C oca Cola,Radico,Dabur ,Real etc

MAJOR PLAYERS Parle Agro, Brittania, Nestle, Cadbury, Pepsi Co., CocaCola etc.

INDIAN MARKET FOR PERSONAL CARE PRODUCTS

PROJECTED GROWTH
Subject to sustained overall GDP growth rates of ~8-9% p.a., the overall Indian personal care market has the potential to grow at 15%-16% p.a. (much higher rates for select segments like colour cosmetics, skin care and deodorants) and thereby double to ~$8-bn by 2012-13.

SKIN CARE INDUSTRY OF INDIA

The skin care market belongs to the Personal Care segment of the FMCG sector in India and is valued at $180 million in India (Approx. Rs.72,000 Cr.) With safe and effective procedures, advancement in medical technology, increase in awareness, the Indian Skin care solutions business is growing very fast

The skin care market can be segregated into toners, cleansers, sunscreens, anti-wrinkle creams, dark circle removing creams, astringents, facial creams, moisturizers, fairness creams, day and night creams, etc. NEED SATISTACTION : - Personal hygiene - Soft & Smooth skin - (to look beautiful)

The skin care market is at a primary stage in India. The penetration level for the rural market is relatively low. However, within a period of five-six years, the use of skin care products has increased significantly in India. New players such as Avon and Oriflame have entered the market with the natural ingredient benefit platform, which could further spur growth.

REASONS FOR GROWTH IN THE SKIN CARE INDUSTRY IN INDIA Concerns about hygiene and personal grooming drive sales. Discounts boost growth in the face of economic uncertainty. Domestic players expand their presence. Chained retailers create opportunities for point-of-sale marketing. Rising affluence and sophistication to drive future growth.

VALUE CHAIN ANALYSIS

MAJOR PLAYERS OF THE SKIN CARE INDUSTRY OF INDIA MARKET SHARE (%) OF SKIN CARE COMPANIES (Basis retail value rsp. 09)

21.8%

3.9%

3.4%
2.5%

Cavin Care
3.4% 12.0%

HUL

53.0%

Hindustan Unilever Godrej Revlon Others

CavinKare Emami L'Oreal

CONCLUSION: Multinational players with international brands have a strong presence in the Indian personal care segment. Local brands too are gaining a foot-holding the market by innovatively developing value offerings to meet the unique needs of the Indian consumer. Going ahead, it will be important to develop R&D capabilities to further customize products for Indian consumers, create greater awareness among the burgeoning middle class and ensure effective distribution reach to service them. The companies that are able to develop a judicious mix of the above will be the eventual winners. The time is ripe to review ones strategy and come up with innovative approaches to help realize the full potential of the Indian skin care sector.