OVERVIEW OF THE FMCG

IN INDIA

LOGOS

What is Fmcg companies

Products which have a quick turnover & relatively low cost are known as fmcg (fast moving consumer goods) this products generally replaced within a year some of the EXAMPLES TOILETRIES,SOAPS,COSMETICS,TOOTHPASTE, SHAVING POWDER,DETERGENTS

INDIA FMCG SECTOR

Fourth largest in economy & has a market size of 13.1 billion $ Fmcg in india has a strong mnc prsence Fmcg market will reach to 33.4 billion $ in 2015

TOP TEN COMPANIES

HUL(completing 75 years in India) ITC NESTLE INDIA AMUL CADBURY BRITANIA MARICO INDIA PROTER &GAMBLE DUKES

IMPACT OF INFLATION ON FMCG

With high rise in inflation fmcg are expecting a slowdown in a consumer buying habits Last year fmcg recorded the highest net profit around 36%, its clearly a worried now for them due to change in buying behaviour of customer The industry is forced either to cut down the price or to reduce the quantity of their product to battle high raw material cost Shift in consumer durability product is also the major factor in this aspect of inflation Inspite of subcds provided in the form of excise duty to 8 to 16% breakfast,cereals,cornflakes,are unlikelyto become cheaper Inspite of exemptions of excise on packaged coconut water ,buns,puffed rice,milk containing nuts,coffee there is no impact on consumers pocket

SOLUTION TO PROBLEM
Reduction in packaging materials which most of the companies following now a days ExampleMaggie cut its quantity(from 100gm to 95gm) and providing the product at the same price and holding its market share Fmcg have set up manufacturing facilities in excise free zones so that short term profitability indices moved up Tightenning monitary policy to control the inflationary pressure Big emerging economies like china & india are contributing to increase globalization particularly of commodities Govt has to hike interest rates to curb prices &also inflationary expectation Biofuel production should be limited to recycling of bio waste &with