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m Fast Moving Consumer Goods(FMCG) is the fourth largest sector in the economy
m Goods have low profit but sold in high quantity-High cumulative profit
m Household Care, Personal Care and Food & Beverages
m Expected to grow to $95bn by 2018 from $32bn
|trengths:-
- Low operational costs
- Presence of established distribution
networks in both urban and rural areas
- Presence of well-known brands in
FMCG sector
Opportunitiesa
- Untapped rural market
- Rising income levels, i.e. increase in
purchasing power of consumers
- Large domestic market- a population
of over one billion.
- Export potential
- High consumer goods spending
Weaknessesa
- Lower scope of investing in technology
and achieving economies of scale,
especially in small sectors
- Low exports levels
- "Me-too products, which illegally mimic
the labels of the established brands.
- Products narrow the scope of FMCG
products in rural and semi-urban market.

a
- Removal of import restrictions resulting in
replacing of domestic brands
- |lowdown in rural demand
- Tax and regulatory   
m P&G-The U| FMCG giant incorporated in 1873

m It operates through three separate arms in the Indian market

- 100 per cent owned P&G Home Products

- ß
  
        

- Gillette India

m P&G Home Products -personal care and laundry brands (Ariel, Tide, Pantene, Head and

|houlders, Rejoice, Pampers, Olay)

m Gillette India -male grooming and oral care brands (Gillette,Mach3, VectorPlus, Oral B).

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m P&G Hygiene's is essentially a two-product portfolio comprising just of key brand
Vicks and Whisper (these have a number of extensions).
m P&G Hygiene has managed robust growth rates both in its sales and profits, merely
by focusing on its existing product portfolio and regularly churning out new variants
and brand extensions.
m Market leadership in its chosen segments
m Underpenetrated feminine hygiene
m Highly promising category
m P&G TRADING AT VERY HIGH PE
- Hindustan Unilever (28 times)
- Nestle India (36 times) and
- Dabur India (35 times)
m It¶s a small size company (the company's sales amount to just 4 per cent of HUL's
and 15 per cent of Nestle India's annual sales) and its narrow product portfolio.
m Marico is a leading Indian Group in Consumer Products & |ervices in the Global
Beauty and Wellness space.
m Marico's brands and their extensions occupy leadership positions with significant
market shares in most categories- Coconut Oil, Hair Oils, Post wash hair care, Anti-
lice Treatment, Premium Refined Edible Oils, niche Fabric Care etc.
m Marico is also present in the |kin Care |olutions segment through Kaya |kin
Clinics in India, Middle East and Bangladesh.
m The company has 3 divisions the Consumer Products Group(CPB), The
International Business Group and Kaya
m M | ! 
   "| ## "| "$ % "& "
| "M ""  "M ' " "( "$ " "
)* ! 
m The management is confident of sustaining 20-25% growth across geographies
driven by better distribution reach and new product launches.

m Hence, assuming a high growth period of 25% and terminal growth rate of 4%, the
share value of Marico Ltd. came upto Rs.112.73 as on 31st March,2010. The actual
market price as on that date was Rs. 107.03

m |o, it¶s a fairly valued stock.

m Born out of Bengal under the parentage of Mr R | Agarwal and Mr R | Goenka
since 1974.
m A leading player in the personal and healthcare consumer products industry in India
engaged in manufacturing and marketing of health, beauty and personal care
products that are based entirely on Ayurvedic formulation.
m By repeatedly outperforming the industry standard, Emami Ltd has maintained a
CAGR of 25% over the last few years.
m The power brands of the company are Boroplus and Navratna
m PRODUCT|:- !
 M  + " !,  ,  " !, 
, " (   $ " $  (  #" M  "
&   " &   " |    , 
m The price as per March¶10 according to valuation was 353 but the actual market
price was 310.|o it was undervalued then.
m But last 6 months has seen a huge rally with the stock price reaching a level of
470.|o it looks very overvalued at current levels.
m This is because the market seems to be assuming a growth rate of around 27% for
the company in the next 5 years which we feel is not practical and we have assumed
it around 23%
m In 1806, William Colgate introduced starch, soap and candle factory on Dutch |treet
in New York City under the name of "William Colgate & Company".
m In 1857, William Colgate died and the company was reorganized as "Colgate &
Company" under the management of |amuel Colgate, his son.
m In 1873, the firm introduced its first toothpaste, an aromatic toothpaste sold in jars
m His company sold the first toothpaste in a tube, w



w , in
1896.
m In 1928, Palmolive-Peet bought the Colgate Company to create the Colgate-
Palmolive-Peet Company
m In 1953 "Peet" was dropped from the title, leaving only "Colgate-Palmolive
Company", the current name.
m Today Colgate has numerous subsidiary organisations spanning 200 countries, but it
is publicly listed in only two, the United |tates and India
m Colgate has been ranked as India¶s #1 Most Trusted Brand across all categories for
four consecutive years from 2003 to 2007
- 51% market share in the toothpaste segment.
- 48% market share in the toothpowder market.
- 30% share in the toothbrush market.
m Presently it is facing competition from no. 2 player HUL. E.g. Pepsodant
m On 4|ept.2009,Colgate-Palmolive signed |RK as its Brand ambassador.
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