Fmcg Sector In One Page

As of now totally unorganized 92% of all outlets are smaller than 250 sq.ft. in size

Oral care; hair care; skin care; personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; paper products (tissues, diapers, sanitary); shoe care.

Only 15% of the outlets are in metros out of the 1.8 million organized outlets. Greater market share comes from super markets, departmental stores and large grocers – constituting only 8% of organized retailers

Personal Care Current Trends

Major Players

30% of all outlets generate a daily turnover of less than Rs.300. Only 2% of the outlets are able to generate daily revenues of more than Rs.5000. Household care Sales up by 35%

Industry Segments

HLL

PAT up by 9% Sales up by 38%

Dabur

PAT up by 15%

back on growth path Packaged Food

Godrej Consumer

Sales up by 42% PAT up by 21%

Increasing Demand Reduction in Price

Fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellants, metal polish and furniture polish). Major Players

Reasons

Hindustan Lever, Nirma and Reckitt Benckiser

Health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; processed fruits, vegetables and meat; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc Major Players

Spirits and Tobacco

Boom in FMCG

Fast economic Growth

Hindustan Lever; Colgate-Palmolive, Marico, Dabur and Procter & Gamble.

Hindustan Lever, Nestle, Cadbury and Dabur

ITC, Godfrey Philips, UB and Shaw Wallace

Shaving cream (20 %)

FMCG Sector

Deodorant (40 %)

Changing Lifestyles

Branded coconut oil (10 %)

High Growth

Fuelled by reduction in excise duty

Anti dandruff shampoos (15 %)

Thinly explored Rural markets an opportunity

Hair dyes (25 %) Cleaners & repellents (20 %).

Market size Rs 60,000 Cr

Fourth Largest sector in indian economy

Key products

Personal health care (-3 %) Laundry soaps (-5 %)

Used at least once a month Used directly by end customer

Negative Growth

comprises of Consumer Non Durable Products

Dish wash (-3 %) Toilet soap (-4.5%)

Sold in packaged form

Tooth paste (-5 %)

Generally Branded

Tooth powder (-8 %). Cos Devote Considerable effort and money on branding Heavy dependence on DN as the market is fragmented and problems on infras

Branding

Whats FMCG?

Contract Manufacturing

Characterised by large Unorganised Sector

FMCG Sector.mmap - 8/27/2006 -

Personal Credit has increase from Rs 50,000 cr in 2000 to 1,60,000 Cr in 2003

Industry Characteristics

Industry Characterised by contract Manufacturing As the main focus is in Brand building, product development and DN

Credit no more a fear

Distribution Network

Consumer Behaviour

Consumer Spending pattern

Increased in the Consumer Durable sector