FAST MOVING CONSUMER GOODS

FMCG

ROAD MAP OF THE PRESENTATION

1.INTRODUCTION 2. GLOBAL SCENARIO 3.INDIAN SCENARIO 4.COMPARISON BETWEEN THREE MAJOR INDIAN COMPANIES 5.STAGES OF FMCG 6.EMPLOYMENT OPPURTUNITIES 7.CONCLUSION

INTRODUCTION
It

refers to consumers non-durable goods Sold quickly at relatively low cost. Generally sold at large quantities. This sector touches every aspects of human life from looks to hygiene to palate. This sector mainly consists of sub segments viz: personal care, oral care, and household products

FMCG PRODUCTS
Detergents Shampoos

Confectionarie s

Soaps Beverages Creams

GLOBAL SCENARIO
12 10 8

PerPer capita consumption in Capita Consumption(US$) US $

6
4 2 0 India China Thailand South Africa

Laundry

Shampoo

Skincare

Deodrants

INDIAN SCENARIO
India is an important market for FMCG players The Indian FMCG sector is the 4th largest in the economy with total market size of around US$ 13.1 billion During 1950s to 1980s there was a low investment as the purchasing power was low. The govt. had put a lot of emphasis on the development of small scale sector. The existing companies like HLL were purely

However, post liberalization the scenario changed marking the entries of the MNCs in the country. The focus shifted from urban to rural areas. Large Base: With a population of 1 bn people, around 70% of the household lives in the rural areas. The total number of rural households is expected to rise from 144 mn in 2007 to 153 mn in 2010 which represents the largest potential market in the world.

RURAL & URBAN POTENTIAL

URBAN RURAL

Population 06-07( m 59 household)

144

Population 09-10( m 69 household)

% of Distibution (06- 29 07) Market ((Towns/Villages) 3768

153

71

627000

SOURCE:STATISTICAL OUTLINE OF INDIA(0607),NCAER

INDIA A LARGE CONSUMER GOODS SPENDER

15 40

10
11 8 16

Savings Clothings

Others Entertainment

Personal Care

Grocery

CHANGING LIFESTYLE
SOURCE:HLL INVESTOR MEET 2006

ALL INDIA
100 90 80 70 60 48.6 50 40 30 20 10 0 2.1 5.5 0.6 37.6 31.5 22 17.8 38 74.9

URBAN %

RURAL %
90.7 86.1 84.1 97.4 91.5 91.4 88.9 88.6 87.4

59.9 52.1

31.9

28 14.6 15.5

6.6

2.8

3 MAJOR INDIAN COMPANIES

HINDUSTAN UNILEVER

AMUL

DABUR INDIA LIMITED

HINDUSTAN UNILEVER

No 1 company in India Sales turnover of Rs 13,718 crores Produces 35 different brands with 15,000 employees

AMUL

4th largest company in India Sales turnover of Rs 2745.74 crores It has 15 different brands with 20,000 employees

DABUR INDIA LTD

6th largest company in India Sales turnover of 2,396 crores It has 32 different brands with 6,500 employees

COMPARISON OF TOP THREE PLAYERS IN INDIA

COMPARISON ON THE BASIS OF SALES

COMPARISON ON THE BASIS OF OF EMPLOYEES

20000 20000 18000 16000 14000 12000 10000 8000 6000 4000

15000

6500

2000
0 HUL AMUL NO.OF EMPLOYEES DABUR

COMPARISON ON THE BASE OF BRANDS & CATEGORY

35 35 32

30
25 20 20 15 15 10 5 0 11 17

HUL
BRANDS

AMUL
CATEGORY

DABUR

STAGE IN INDUSTRY LIFE CYCLE

TREMENDOUS INCREASE FOURTH LARGEST IN NATIONAL ECONOMY IT VARY FROM DIRECT SALES TO INDUSTRIAL SALES TO INDIRECT SALE CUSTOMER FIND DIFFICULTY TO CHOOSE PRODUCTS NECESSITY OF SALES PERSONNEL THEY HELP TO CHOOSE PRODUCT