For the national economy, fundamental analysis might focus on economic data to assess the present and future growth of the economy. Fraud risks in the consumer products and retail sector. The first chapter of the thesis presents an overview of indian fmcg sector, fmcg segment overview, contribution of. Impact of gst on fmcg sector impact of gst on fmcg sector. The fastmoving consumer goods fmcg sector represents one of the largest industries worldwide. Eic analysis itc submitted by nisha economy india gdp growth rate 2012 was 5%, 20 is 5. Company analysis 2012 20 2014 2015 2016 current assets 857. Landscape of the retail sector in india characterise the indian retail sector is its structure. Swot analysis of fmcg sector by aditi shah in marketing.
Working capital management of indian fmcg companies. Overview of the indian biscuit industry top players. The combined impact of the bushfires and the coronavirus outbreak will weigh on private consumption growth in 2020. In fy18, fmcgs rural segment contributed an estimated 10 per cent of the total income and it is forecasted to contribute 1516 per cent in fy 19. Fmcg sector is forecasted to grow at 12 per cent between apriljune 2019. As such, the cost per ton of food imports rose from usd 1,060 in 2010 to usd 1,190 in 2014, reflecting the fact that rising international food prices during that period have been transmitted to the local economy through the rise in cost of food imports.
An investigation of consumer buying behavior for fmcg. Food products is the leading segment, accounting for 43 per cent of the overall market. This sector is expected to grow to a usd 333 billion industry by 2015 and to a whopping usd 100 billion by the year 2025. Fmcg packaging market global industry analysis, size and. Fast moving consumer goods fmcg is considerably a large sector in the indian economy. Jan 30, 2019 fastmoving consumer goods fmcg sector is the 4th largest sector in the indian economy with household and personal care accounting for 50% of fmcg sales in india. Fastmoving consumer goods, fmcg and retail industry analysis. But not all ecommerce categories are created equal. Marketing management section of our research repository. An overview and trade analysis eipstr001042016 sector report. Its overall size is estimated to be inr31trillion usd534 billion in 2014, with a cagr of 15 per cent over the last five years, which is. This study is aimed at to shed light on competitive conditions prevailing in the fmcgs retail trade sector.
Introduction there are vast differences between the economies of isolated, small, selfsufficient societies and largescale ones that are integrated into the modern system of global commerce. Amsterdam, 2017 fast moving consumer goods analytics framework point of view. Abstract in india more than 72% population is living in villages and fmcg companies are famous in selling their products to the middleclass households, it means rural india is a profitable and potential market for fmcg. We have fully equipped analytics and forensic labs set up at mumbai, delhi and bangalore that support our endeavors. Working capital trends and liquidity analysis in the present study an attempt has been made to analyze, assess and evaluate the working capital management wcm through ratio analysis and wc trends and liquidity position of some selected fmcg companies in. Amidst the hustle bustle going around the nation, gst became a game changer for the indian economy, certainly affecting the aam aadmi to the business entrepreneurs as well. The analysis found consistent performance of nestle and hul even with. How does fmcg innovation differ between china and india. We expect that the high inflationary pressure will subside to some extent in the coming months.
Also labelled the consumer packaged goods cpg sector, it is mainly characterised by companies that supply lowcost products that are in constant high demand. Comparative analysis of celebrity endorsements on rural and. This global fmcg packaging market study offers a comprehensive analysis of the business models, key strategies, and respective market shares of some of the most prominent players in this landscape. Indias fmcg sector is the fourth largest sector in the economy and creates employment for. Major segments in fmcg food products and personal care together make up twothird of the sectors. There are three main segments in the sector food and beverages which accounts for 19% of the sector, healthcare which accounts for 31% and household and personal care which accounts for the remaining 50%. Working capital trends and liquidity analysis of fmcg. Keeping in view the significance of working capital management as a gray area of corporate finance function, an attempt has been made to examine the working capital trends and practices particularity in fmcgs sector in india by selecting top two fmcg companies named as hindustan unilever limited, nestle india limited. The fast moving consumer goods fmcg segment is the fourth largest sector in the indian economy. India fmcg sector report may 2014 linkedin slideshare.
The fastmoving consumer goods sector is an important contributor to indias gdp. The industry is poised to grow between 10 to 12 per cent annually. Indicus income distributions, euromonitor, bcg analysis, irs. Fmcg industry in india 2014 trends, overview, analysis. Sentiment analysis business challenges analytics solution and results capture customer feedback across various social media platforms and derive meaningful conclusions, which could be sent to relevant functions within the organisation improve brand strength and engage with customers. Introduction fmcg sector generally deals with fmcg products or first moving consumer goods. Financial analysis of the indian fmcg industry slideshare. This paper discusses on overview of the sector, its critical analysis and future prospectus. Indian stock market sector research and analysis equitymaster. Indias fmcg sector is the fourth largest sector in the economy and creates employment for more than three million. Pdf fundamental analysis of fmcg sector researchgate. The fmcg sector in india is at present, the fourth largest sector with a total market size in excess of usd million as of 2012. Others created 4 years ago updated 4 years ago by dharmik moni 0 comments, 2069 views the indian fmcg sector has shown a good.
Over the last one decade the market is growing at the rate of 18. For longterm investors, the importance of understanding the dynamics of a sector cannot be understated. Mar 03, 2020 the growth of the fmcg sector in the philippines has put the country in 8th position across the asiapacific region with volume growth of 0. Fmcg products have a quick turnover and relatively low cost. Pdf an overview of indian fmcg sector researchgate. Though the absolute profit made on fmcg products is relatively small, they generally sell in large quantities, so the. For handpicked, premium jobs in the fmcg industry, please visit. These products are consumed on a small scale and are generally available in a variety of outlets including. Rural markets account for 56% of the total domestic fmcg demand fmcg sector size cont. Fmcg is the fourth largest sector in the indian economy with an estimated market size of rs. Fast moving consumer goods fmcgs constitute a large part of consumers budget in all countries.
After demonetization, gst has been one of the biggest transformations that india has seen in years. Fmcg sector to expand at 9% in fy20, growth to improve in fy21. The fmcg industry has shown steady growth over the last few years and continues to deliver superior returns over. Despite the positive closing figures for sales in 2014.
The fastmoving consumer goods fmcg industry or consumer packaged goods cpg industry is mainly responsible for producing, distributing and marketing fastmoving consumer goods. Fast moving consumer goods fmcg also known as consumer packaged goods are products that can be bought at a low cost. Also labelled the consumer packaged goods cpg sector, it is mainly. In the last 10 years, the revenue in fmcg industry in india has been growing at the rate of 21. Distribution growth, innovations around sachet offerings, employment rates and index of industrial production iip are key influencers of fmcg sales in india. Cumulative fdi inflows into india from april 2000 to april 20 in the food processing sector stood at rs. In fy18, fmcg s rural segment contributed an estimated 10 per cent of the total income and it is forecasted to contribute 1516 per cent in fy 19. Although it picked up in 2019 as a whole, retail sales volumes growth slowed in the final quarter. This is a research report on swot analysis of fmcg sector uploaded by aditi shah in category. These differences are not only in terms of the scale of the economies.
We also provide supply market intelligence and spend analysis and benchmarking solutions. Along with an indepth commentary on the key influencing factors, market statistics in terms of revenues, segmentwise data, regionwise data, and. Overview the fastmoving consumer goods fmcg sector represents one of the largest industries worldwide. Our teams use stateoftheart forensic technology to ensure that data is handled with maximum efficiency. Fastmoving consumer goods fmcg sector is the 4th largest sector in the indian economy with household and personal care accounting for 50% of fmcg sales in india. May 26, 2014 for handpicked, premium jobs in the fmcg industry, please visit. Fmcg products are consumed frequently by every section of the. The fmcg sector in india is the fourth largest sector in the indian economy. The dream of every creative man, any investor, advertising agency, or bschool graduate to work in or for fmcg company. Understanding dynamics forms a very critical part in stock selection. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector. However, it witnessed phenomenal growth rate in the next half of the decade.
The fastmoving consumer goods fmcg sector is an important contributor to indias gdp. Household and personal care products accounts for 50% of the sales in the industry, healthcare accounts for 32% and. Analysis of solvency of selected fmcg companies in india. For this purpose, i have done fundamental analysis of fmcg sector. Fastmoving consumer goods, fmcg and retail industry. The fast moving consumer goods fmcg sector is a corner stone of the indian economy which touches every aspects of human life. Basic idea one of the fastest growing sector in early 1980s till 1990s. The sector is further expected to grow at a compound annual growth rate cagr of 27. Fmcg industry is expected to maintain a robust growth rate as the population is increasing. The fast moving consumer goods fmcg industry is the fourthlargest sector of the indian economy.
To forecast future stock prices, fundamental analysis combines economic, industry, and company analysis to derive a stocks fair value called intrinsic value. Fmcg market is expected to grow at 910 per cent in 2020. Fmcgs are generally cheap products that have a short shelf life, and are purchased by consumers on a regular basis. The companies examined were nestle india, godrej consumer products limited gcpl, dabur india, hindustan unilever limited hul, and itc limited. The organised sector is account to 1418% of the shares. That said, companies operating in the fmcg sector should be mindful of changes in. New research released today by kantar worldpanel reveals that growth in consumer fmcg spend in emerging markets has slowed significantly from 8. Fmcg download and upload project reports related to fmcg.
As per the reports of the 200506 financial years, the market size of the sector was registered as usd. The most popular ecommerce categories, not surprisingly, are non. In energy sector europe and latin america has the lowest turnover with also asia and the us higher. While it has matured over the years, it is still highly fragmented, with an estimated 12 to 15 million outlets. Ecommerce is big business and getting bigger every day. Through this section, equitymaster offers you a one stop guide to indian industry. Strategic marketing fmcg sector market analysis profit. Fmcg also known as consumer packaged goods cpg, are products that are sold quickly at relatively low cost. The fmcg industry is the fourth largest sector in the indian economy. The growth of the fmcg sector in the philippines has put the country in 8th position across the asiapacific region with volume growth of 0. Indias fmcg sector is 4th largest sector in the economy and contribute to around 3mln employment opportunities.
Mitigating fraud risks in the consumer products and retail sector 9. Products that are classified under the fmcg banner include food, beverages, personal. The fmcg sector in india involves a strict competition between the organized and unorganized sectors of consumer durables. Fast moving consumer goods sector analysis report equitymaster. This sector is characterized by strong mnc presence and a well established distribution network. After 1990s, fmcg started losing their sheen due to introduction of other product types total lack of imagination on the part of fmcg companies. This case study offers insights into how spendedge helped a leading fmcg sector client identify the latest fmcg trends and realize overall savings upward of 5%. Fast moving consumer goods has gained importance with retailing gaining prominence. Analysis of working capital management of indian fmcg companies. Fmcg industry in india 2016 trends, overview, analysis. The biggest moneymaking opportunity available right now fast moving consumer goods fmcg is the 4th largest sector in the indian economy. Pwcs 2012 outlook for the retail and consumer products sector in asia. Fmcg sector group members vivek varun saurabh ayushi ashima neha fmcg sector fmcg are products that have a quick shelf turnover, at relatively low cost and dont require a lot of thought, time and financial investment to purchase fast moving customer goods is in opposition to consumer. The analysis was done on the data sourced from the annual reports and accompanying schedules of the company from fy 20102014.
1641 585 1053 594 1162 1355 1008 312 677 883 954 819 858 1553 1139 895 1328 1404 743 194 367 858 244 168 574 988 947 750 725 972 12 347 274 1325 171