In the FMCG sector, - food & beverages, healthcare and household & personal care products are the three segments accounting to 19%, 31% and 50% respectively. Usually, FMCG products don’t haven higher profit margins but since they are sold in high volumes through extensive distribution system allows companies to thrive. According to a report, the FMCG sector has grown to US$ 49 billion in FY 2016-17. The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of 20.6 per cent to reach US$ 103.7 billion by 2020.
The segment which had been confused over GST is now fast recovering. Prices are now falling in the FMCG segment a month after the GST introduced. Top players in the FMCG sector like Hindustan Unilever, ITC have reduced prices of FMCG products such as shampoo, detergents, biscuits and snacks. Industry observers’ notes that it is the impact of fresh stocks as the products that had been stocked during pre-GST period are now sold out completely. The drop in the prices will boost the sales,according to experts in the field.
Here a few leading FMCG’s in India:
Patanjali Ayurved Limited
Established in 2006, with a vision for rural and urban development, this Indian company is one of the fastest growing FMCG’s in India. Led by Yogarishi Swami Ramdev and Acharya Balkrishna, the company manufactures more than 900 products including 45 types of cosmetic products and 30 types of food products along withbeauty care and baby care products. Last year, Patanjali has also announced its entry into textile manufacturing. Patanjali plans to invest Rs.5000 crore in the country in the current financial year and also plans to set up units in adhya Pradesh, Maharashtra, the North-East, Jammu and Kashmir, Uttar Pradesh, Rajasthan and Andhra Pradesh. The company is valued at approximately Rs.3000 crore. Patanjali Ayurved Limited is also actively involved in the sectors of social welfare, health, philosophy and spirituality. The increasing processing units, retail outlets across the nation and the flourishing sale-profit figures are proof for the company’s growth in a short term.
Amul based in Anand, Gujarat is a brand managed by the cooperative body- Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF) engaged in the production and distribution of milk and milk products along with sweets and health beverages. Dr Verghese Kurien, founderchairman of the GCMMF for more than 30 years is credited with the wide success of Amul. It operates through 56 Sales Offices and has a dealer network of 10000 dealers and 10 lakh retailers, one of the largest such networks in India. Amul products are now available in more than 60 countries across the globe. In 2016-17, it recorded revenue of Rs.2,70,850 million. The organisation aims to achieve a business turnover of Rs.50,000 crore and become the largest FMCG organisation in India by 2020-21. Currently ranked as the thirteenth largest dairy organisation globally, it thrives to establish as the largest dairy organisation in the world. Despite of the slow growth rate in the global dairy market, Amul has been successful in extending its operations in USA witnessing positive growth and has been successful in starting the export of Ice-cream as well as Rasmalai.
Hindustan Unilever Limited
With more than 400 brands in 190 countries, Hindustan Unilever Limited (HUL) touches many lives in many ways. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956. The portfolio of HUL ranges from nutritionally balanced foods to ice creams, affordable soaps, luxurious shampoos and everyday household care products to name a few. HUL produces world-leading brands including Lipton, Knorr, Dove, Axe, Hellmann’s and Omo, alongside trusted local names such as Blue Band, Pureit and Suave. Unilever has more than 400 brands, 14 of which generate sales in excess of €1 billion a year. The turnover recorded for the company in 2014 was €48.4 billion. Globally, it employees more than 1,72,000 people and is the number one fast-moving consumer goods employer of choice. The company has distributers in every part of India and over 2 million retails shops are selling HUL products. HUL’s headquarters is located at Andheri, Mumbai. With more than 80 years of operations in India, HUL is still one of the leading FMCG’s in India.
Established in 1910 as the Imperial Tobacco Company of India Limited, the company was renamed as the Indian Tobacco Company Limited in 1970.Headquartered in Kolkata, West Bengal, the company has been involved in hotels, paperboards & packaging, agri business and information technology apart from FMCG products. ITC Limited has set an internal target of generating Rs.65,000 crore from packaged foods by 2030 to reach its goal of Rs.1-trillion revenue from noncigarette packaged goods. According to the reports, the company has an revenue of Rs.34,001.98 crore alone from cigarettes while the total revenue is Rs.55,001.69 crore. At present, ITC products reach around 5.8 million of the estimated 10 million retail outlets in India. Of this, ITC’s direct reach is limited to around two million shops. The company is also building 20 integrated factories for consumer goods with logistics facilities, and has lined up an investment of Rs.25,000 crore in 65 projects. Three of the planned factories will be operational this year, and four more over the next one year.
Nestlé is the world’s largest food and beverage company. With more than 2000 brands ranging from global icons to local favourites, and presence in 191 countries around the world, Nestle is committed to create products that enhance quality of life and contribute to a healthier future. Last year, company celebrated its150th anniversary. Globally Nestle employees around 3,28,000 people.It has also got 418 factories in 86 countries. The global business portfolio of the company includes a wide range of brands from food and beverages to health care nutrition, skin health and pet care. Nestle India has presence across India with 8 manufacturing facilities and 4 branch offices located at Delhi, Mumbai, Chennai and Kolkata to help and facilitate the sales and marketing activities. Nestle India’s Head Office is located in Gurgaon, Haryana. Suresh Narayanan is Nestle India’s Chairman and Managing Director. In 2016, Nestle India recorded Rs.92,238 million total revenue from operations.
Parle Agro is the first Indian global Food & Beverage company and the largest in India among Food & Beverage. Frooti, India’s first mango drink in a tetra pak, Appy, India’s first ever apple drink, Appy Fizz, the country’s first sparkling apple drink, manufactured by Parle Agro has acquired iconic stature in one of the most competitive markets in the world. The latest offering from Parle Agro in beverages include Café Cuba, the carbonated coffee soft drink, and Frio, a range of deliciously flavoured aerated drinks. The company entered into Foods category in 2009 with Hippo Baked Munchies. Parle Agro is also the only beverage company in India to manufacture its own PET preforms. Parle Agro, today, is a ‘Rs.2500 Cr organisation’. The company has four business verticals: Beverages (Fruit drinks, Nectars, Sparkling drinks and Carbonated soft drink), Packaged Drinking Water, Foods and PET Preforms. The company has got 76 manufacturing facilities including overseas, and has developed a widespread network of 3500 channel partners that cater to more than 6 lakh outlets in the country. Last year the company recorded an revenue of Rs.2800 crore and aims to reach an annual revenue of Rs.5000 crore by 2018.
Godrej Consumer Products Limited
Godrej Consumer Products Limited (GCPL) is a leading emerging markets company building a presence in 3 emerging markets- Asia, Africa, Latin America across 3 categories care. GCPL rank among the largest household insecticide and hair care players in emerging markets. In household insecticides, it is the leader in India, the second largest player in Indonesia. Among the soaps in India GCPL products rank two and it is also the number one player in air fresheners and wet tissues in Indonesia. It is also a leading player in hand sanitisers and female deodorants in the United Kingdom. Among Indian consumer firms, GCPL claims to have a fill rate of 99 per cent domestically - the highest in an industry with an average of 92 per cent. GCPL, which has presence in Latin America, Africa, and Asian markets including Indonesia, has cornered 48 per cent of revenue from international business in the last fiscal. The home-grown firm had clocked a strong sales of Rs.9,600 crore in India in 2016-17. In the last fiscal, GCPL had reported 16 per cent sales growth globally
Marico Limited is one of India’s leading consumer products companies operating in the beauty and wellness space. Currently present in 25 countries across emerging markets of Asia and Africa, Marico has nurtured multiple brands in the categories of hair care, skin care, edible oils, health foods, male grooming, and fabric care. Marico’s India business markets household brands such as Parachute, Parachute Advansed, Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet, Mediker and Revive among others. The International business offers unique brands such as Parachute, HairCode, Fiancée, Caivil, Hercules, Black Chic, Code 10, Ingwe, X-Men and Thuan Phat. Charting an annual turnover of Rs.61 billion (Financial Year 2015 - 2016) across its portfolio, Marico’s sustainable growth story rests on an empowering work culture that encourages our members to take complete ownership and make a difference to the entire business ecosystem.
Harsh Mariwala (who is also the current Chairman) established Marico in 1988. By 1994, it had established its first overseas office in Dubai. In 2010, it introduced Masala Oats to India. By 2014, Marico group reported a turnover of Rs.5000 crore. During 2016-17, Marico recorded a turnover of Rs.59 billion through its sales in 25 countries across emerging markets of Asia and Africa. Every month, over 152 million consumer packs reach consumers through a widespread distribution network of around 4.6 million outlets. The headquarters of Marico is located at Bandra, Maharashtra.
Procter & Gamble
Procter & Gamble (P&G) is one of the largest and amongst the fastest growing consumer goods companies in India. Established in 1964, P&G India now serves over 650 million consumers across India. Its presence pans across the Beauty & Grooming segment, the Household Care segment as well as the Health & Well Being segment, with trusted brands that are household names across India. These include Vicks, Ariel, Tide, Whisper, Olay, Gillette, Ambipur, Pampers, Pantene, Oral-B, Head & Shoulders, Wella and Duracell. Superior product propositions and technological innovations have enabled P&G to achieve market leadership in a majority of categories it is present in. P&G India is committed to sustainable growth in India, and is currently invested in the country via its five plants and over nine contract manufacturing sites, as well as through the 26,000 jobs it creates directly and indirectly.
In 2000, P&G launched ‘Tide’, a detergent brand and in 2011 it become India’s first 1000 crore brand. The company has more than 1,25,000 employees that works to manufacture best quality products using innovative technology. P&G operates under three entities in India - two listed entities “Procter & Gamble Hygiene and Health Care Limited” and ‘Gillette India Limited’, as well as one 100% subsidiary of the parent company in the U.S. called ‘Procter & Gamble Home Products’.