A REPORT ON FMCG INDUSTRY IN INDIA
CONTENTS PEST Analysis PORTERS FIVE FORCE MODEL SWOT ANALYSIS
PEST ANALYSIS POLITICAL: 1. Tax exemption in sales and excise duty for small scale industiers . 2. Transportation and infrastructure development in rural areas helps in distribution network. 3. Restrictions in import policies. 4. Help for agricultural sector .
ECONOMICAL: 1. GDP rate
2. Inflation rate: -1.27
3. Increase in Disposable income Year
DI in 1000 US $
2003
556
2015
1150
4. Indian FMCG Recorded 16% Sales Growth in Last Fiscal
5. The FMCG sector is a 4th largest sector of Indian economy with market size of more than 60,000 crore. SOCIAL: 1) Demographical analysis Year 1. 2003 2. 2013
Total hhlds in mn 181 231
strivers 131 96
achievers 46 124
rich 3 11
2) The Indian culture, social & life styles are changing drastically. TECHNOLOGY 1. Technology has been simplified and available in the industry . 2. Foreign players helps in high technological development.
INDUSTRY ANALYSIS ( FMCG )
1.The fmcg sector in india is expected grow at a compound annual growth rate at 9% to a size of 1,43,000 crs by 2010 from rs 93000 crs at present. 2. The industry is growing double digit growth in last 2 yrs . 3. Annual revenues of us $14.74 billion. 4. Market growth rate – Rural -40%, urban -25% 5. FMCG Market size
6. Average Indian spending on groceries and personal care is 48%. Groceries 40% & personal care 8%. COMPITATORS : ITC (Indian Tobacco Company) Nestlé India Dabur India Marico Industries
SWOT ANALYSIS : Strengths – 1. well established distribution network . 2. extending to the rural areas. 3. low cost operations . Weakness – 1. Low export levels 2. small scale sector reservations limit ability to invest in technology and achieve economies of scale . 3. several me-too products Opportunities – 1. large domestic market 2. export potential 3.increasing income level will result in faster revenue growth Threats – 1. Import policies 2. Tax and regulatory structures 3.slow down in rural demand .
4.Growth of unorganized markets.
COMPANY ANALYSIS (HUL)