FMCG: Industry Report, March 2013

FMCG
MARCH
2013
For updated information, please visit www.ibef.org
FMCG
MARCH
2013
Contents
Advantage India Market overview and trends Growth drivers Success stories: Major players Opportunities Useful information
FMCG
MARCH
2013
Advantage India
Growing demand
Attractive opportunities
2018E
Market size: USD74 billion
Rising incomes and a growing young population have been the key growth drivers for the sector Brand consciousness have also aided demand Rural demand is set to rise with rising incomes and greater awareness of brands Advantage
Low penetration levels in rural market offers room for growth There is a growing market for premium products Exports is another growth segment
India
Increasing investments
Policy support
Industry witnessed healthy FDI inflows as the sector accounted for 1.9 per cent of the countrys total FDI inflows over April 2000 - September 2012 Many players are pursuing inorganic growth by acquiring regional players
Investment approval of up to 100 per cent foreign equity in single brand retail and 51 per cent in multi-brand retail Introduction of Goods and Service Tax (GST) as a single unified tax system likely from April 2013
2011
Market size: USD30 billion
Notes: Emami, Market size estimates from Technopak 2018E - estimated figure for 2018
ADVANTAGE INDIA
FMCG
MARCH
2013
Contents
FMCG
MARCH
2013
The FMCG market has four main segment
FMCG
Household care
Personal care
Food & Beverages
Health care
Fabric wash, Household cleaners
OTC products and ethicals Oral care, hair care, skin care, cosmetics/deodorants, perfumes, feminine hygiene and paper products Health beverages, staples/cereals, bakery products, snacks, chocolates, ice cream, tea/coffee/soft drinks, processed fruits and vegetables, dairy products, and branded flour
Source: HUL Notes: OTC is over the counter products; ethicals are a range of pharma products
MARKET OVERVIEW AND TRENDS
FMCG
MARCH
2013
Evolution of FMCG in India
FMCG is the fourth largest sector in the Indian economy
Indian FMCG industry (USD billion) Gross block of FMCG industry (USD billion) Market size of chocolates (USD million) Market size of personal care (USD billion) HULs share in FMCG market (%)
9.0 2010-11 0.6
34.8
(2011)
2.3
(2010)
<100
625
(2011)
<3
8.6
(2011)
>50%
2000
<30%
(2011)
Source: IDFC, Business Today, Aranca Research Notes: Gross block of FMCG is the total value of all the assets in the sector
FMCG
MARCH
2013
Strong growth in the Indian FMCG sector
The FMCG sector in India generated revenues worth USD34.8 billion in 2011, a 15.2 per cent rise compared to the previous year The strong growth in 2011 should come as no surprise given the impressive performance of the sector over the years Over 2006-11, the sectors revenues posted a CAGR of 17.3 per cent
Trends in FMCG revenues over the years (USD billion)
34.8
CAGR 17.3 %
24.2 21.3 15.7 17.8
30.2
2006
2007
2008
2009
2010
2011
Source: Dabur, AC Nielsen, Aranca Research
FMCG
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Food products and personal care together make up two-thirds of the sectors revenues
Food products is the leading segment, accounting for 43.0 per cent of the overall market Personal care (22.0 per cent) and fabric care (12.0 per cent) are the other leading segments
8%
Market break-up by revenues (2009)

5%
4% 2%
4%
Food products
Personal care
Fabric care 43% Hair care Households OTC products 22% Baby care Others
12%
Source: Dabur, Aranca Research
FMCG
MARCH
2013
The urban market accounts for a major chunk of revenues
The urban segment is the largest contributor to the sector, accounting for over twothirds of total revenue Semi-urban and rural segments are growing at a rapid pace; they currently account for 33.5 per cent of revenues FMCG products account for 53.0 per cent of total rural spending
33.5%
Urban-rural revenue break-up (2011)
Urban
Rural 66.5%
FMCG
MARCH
2013
The rural segment is fast catching up
The urban FMCG market in India has been growing at a fairly steady and healthy rate over the years; encouragingly, the growth in rural markets has been more fastpaced During FY11, more than 80 per cent of FMCG products posted faster growth in rural markets as compared to urban ones Notable high growth sectors include salty snacks, refined edible oil, healthcare products, iodised salt, etc
Growth in urban and rural FMCG markets (FY11)

70% 60% 50% 40% 30% 20% 10%
28% 24% 42% 27% 16% 11% 11% 14% 19% 21%
0%
45% 40% 35% 30% 25% 20% 15% 10% 5% 0%
Urban
Rural
UR Growth %
Source: AC Nielson, Aranca Research

Notes: UR - Urban Rural
10
FMCG
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2013
Penetration levels vary; grocers remain the main sales channel (1/2)
Hair oils, toothpastes and shampoos have significantly high penetration in both urban and rural markets Instant noodles, floor cleaners and hair dyes are picking up in the rural areas due to increased awareness
Penetration levels of few top selling FMCG (2011)

Floor cleaner 4% 5% 2% 3% 26% 19%
Hair dye Instant noodles Mosquito repellent Skin cream Hairoil Shampoo Toothpaste 0%
18%
18%
59% 32% 67% 80% 37% 42% 57% 77% 60% Rural 80%
20%
40% Urban
11
FMCG
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Penetration levels vary; grocers remain the main sales channel (2/2)
A total of 7.8 million retail outlets sell FMCG in India Grocers are the dominant retail format, accounting for 59.0 per cent
Sales channel breakdown (2010)
3% 6% 6% 8%
5%
Grocers General stores 59% Chemists Paan plus
Food stores
13% Modern trade Others
12
FMCG
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2013
Market share of companies in a few FMCG categories

Market Leader Others
Hair Oil
42%
15%
8%
5%
Shampoo
46%
24%
10%
6%
Oral care
50%
23%
13%
Skin care
59%
7%
7%
6%
Fruit juice
52%
35%
Source: Industry estimates
13
FMCG
MARCH
2013
Notable trends in FMCG (1/2)

Consolidation
Indian FMCG companies are consolidating their existing business portfolios
Product innovation
Several companies have started innovating or customising their existing product
portfolios for new consumer segments

Consumers are becoming more brand conscious and prefer lifestyle and premium range
Brand consciousness
products given their increasing disposable income

A number of companies are exploring the business potential of overseas markets and
Expanding horizons
several regional markets
Backward integration
Backward integration is becoming the preferred strategy for increasing profit margins
Focus on rural market Expanding distribution networks
Companies are now focusing on the rural market segment which is growing at a rapid
pace and contributes about 33 per cent to the total FMCG market
Companies are now focused on improving their distribution networks to expand their
reach in rural India

Source: Aranca Research
14
FMCG
MARCH
2013
Notable trends in FMCG (2/2)

This approach has helped FMCG companies focus on front-end marketing
Third-party manufacturing
Reservation of several items for SSI as well as additional tax incentives have made third
party manufacturing a popular route for many big players

Companies are increasingly introducing smaller stock keeping units at reduced prices.
Rising importance of smaller-sized packs
This helps them to sustain margins, maintain volumes from price-conscious customers and expand their consumer base
Small towns are emerging as significant hiring zones. FMCG companies are hiring field
Increased hiring from tier II/III cities
staff from areas such as Kalpa (Himachal Pradesh), Mangaliya (Madhya Pradesh), Kota (Rajasthan), and Shirdi (Maharashtra) to sell diverse products
FMCG companies entering Africa as it helps to be close to consumption markets within
Focus on enhancing presence in Africa
Africa
Such foreign investments are encouraged by local governments, as they offer incentives
to enter the markets Reducing carbon footprint and eco-friendly products

FMCG players in India are increasingly focussing on reducing their carbon footprint by
creating eco-friendly products. They generate the required energy from renewable sources and earn CER credits for the same
Source: AC Nielson, Aranca Research Notes: CER - Certified Emission Reductions; SSI - Small Scale Industry
15
FMCG
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2013
Contents
16
FMCG
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2013
Growth drivers of the FMCG sector in India
Rise of rural consumers
Increasing per capita income of urban and rural population
Growing popularity of organised retail
Governments pro-industry policies
FDI support
Source: Aranca Research Notes: FDI - Foreign Direct Investment
GROWTH DRIVERS
17
FMCG
MARCH
2013
Higher incomes have aided growth in both urban and rural markets
Per-capita income in the country expanded at a CAGR of 12.5 per cent over 2001-11 Strong income growth is set to continue in future as well; IMF forecasts point to a CAGR of 8.8 per cent over 2012-17 to USD2,428.5 An important consequence of rising incomes is growing appetite for premium products, primarily in the urban segment
3,000 2,500 2,000 1,500 1,000 500 0
Indias per capita income at current prices (USD)

30% 25% 20% 15% 10% 5% 0% -5%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F 2015F 2016F 2017F
Per capita income,USD
Annual growth rate
Source: IMF, Aranca Research Notes: F - Forecasted, CAGR - Compound Annual Growth Rate
GROWTH DRIVERS
18
FMCG
MARCH
2013
Government initiatives for rural development
The Indian government has been supporting the rural population with higher MSPs, loan waivers, and disbursements through the NREGA programme These measures have helped in reducing poverty in rural India and have thus propped up rural purchasing power
Total funds released by government for NREGA (USD billion)

7.0 6.2 7.3 6.1
Notes: MSP - Minimum support price, NREGA - National Rural Employment Guarantee Act
FY09
FY10
FY11
FY12
Source: NREGA, Aranca Research
GROWTH DRIVERS
19
FMCG
MARCH
2013
Increasing awareness and easier access is driving growth of modern retail
Growing awareness, easier access, and changing lifestyles has meant growing consumer spending in modern retail stores Spending at modern retail stores in India shot up by 31 per cent in 2011 compared to the previous year Modern retail spending is expected to shoot up to USD5 billion in 2015 from USD1.8 billion in 2011
Contribution of private label in modern trade (2011)

Jams and jelly Packaged ghee Toilet cleansers Bread Phenyls Packaged atta Glass cleansers Tissue paper 13% 13% 15% 17% 17% 22% 23% 23%
Floor cleanser
Packaged rice 0% 10% 20%
27%
37% 30% 40%
GROWTH DRIVERS
20
FMCG
MARCH
2013
FDI inflows have also gone up over the years
The sector has been witnessing healthy FDI inflows over the years; in fact, during FY01-13*, FMCG accounted for 1.9 per cent of total inflows Within FMCG, food processing was the largest recipient; its share was 46.8 per cent
Cumulative FDI inflows * (USD million)

Retail trading Tea,Coffee Vegetable oil 42.7 100.9 366.6
* April 2000 - Sep 2012 Soap, cosmetics Paper, pulp Food processing 0 500 1,000 1,500
509.9
861.4 1661.9 2,000
Source: DIPP, Aranca Research
GROWTH DRIVERS
21
FMCG
MARCH
2013
Policy and regulatory framework

GST for the purpose of integrating multiple indirect taxes under a unified tax system is
Goods and service tax (GST)
likely to be implemented in 2013

The rate of GST on services is likely to be 16 per cent and on goods is proposed to be
20 per cent
The current excise duty is 12 per cent
Excise duty
However, for consumers, it is expected that there will be more money to spend on
FMCG products as income tax exemptions limits have been hiked to INR200,000
Industrial license is not required for almost all food and agro-processing industries,
Relaxation of license rules
barring certain items such as beer, potable alcohol and wines, cane sugar, and hydrogenated animal fats and oils as well as items reserved for exclusive manufacture in the small-scale sector
In October 2009, the government amended the Sugarcane Control Order, 1966, and
Statutory Minimum Price
replaced the Statutory Minimum Price (SMP) of sugarcane with Fair and Remunerative Price (FRP) and the State-Advised Price (SAP)
The government recently approved 51 per cent FDI in multi-brand retail, which will
FDI in organised retail
boost the nascent organised retail market in the country

It also allowed 100 per cent FDI in the cash and carry segment and in single-brand retail
GROWTH DRIVERS
22
FMCG
MARCH
2013
New Goods and Service Tax (GST) would simplify tax structure
Supply chain structure
Introduction of GST as a unified tax regime will lead
Pricing and profitability

Elimination of tax cascading is expected to lower
to a re-evaluation of procurement and distribution arrangements

Removal of excise duty on products would result in
input costs and improve profitability

Application of tax at all points of supply chain is
cash flow improvements
likely to require adjustments to profit margins, especially for distributors and retailers
Goods and Service Tax (GST)
Cash flow
Tax refunds on goods purchased for resale implies a
System changes and transition management

Changes need to be made to accounting and IT
significant reduction in the inventory cost of distribution

Distributors are also expected to experience cash
systems in order to record transactions in line with GST requirements Appropriate measures need to be taken to ensure smooth transition to the GST regime - through employee training, compliance under GST, customer education and inventory credit tracking
flow from collection of GST in their sales, before remitting it to the government at the end of the taxfiling period
GROWTH DRIVERS
23
FMCG
MARCH
2013
Key M&A deals in the industry (1/2)

Target name (segment)
United Spirits Hobi Kozmetik, Turkey L.D. Waxson, Singapore Halite Personal Care India Private Limited (Personal Care ) Paras Pharma (Personal Care) Namaste group (Personal Care) Cosmetica Nacional (Cosmetics) CC Health Care Products Pvt Ltd (Cosmetics) Eastern Condiments Pvt Ltd (Food - Misc/Diversified) Vietnam Spice Unit (Food and beverages) Noble Hygiene Pvt Ltd (Household and Personal Products)
Acquirer name (segment)

Diageo Plc. Dabur Wipro Consumer Marico Ltd (Food and Personal Care) Marico Ltd (Food and Personal Care) Dabur (Food) Godrej Consumer Products Ltd Colgate-Palmolive India Ltd ( Cosmetics and Toiletries) McCormick & Co Inc (Food-Misc/Diversified) Bafna Enterprises (Food and Beverages) Bennett Coleman & Co Ltd (Publishing)
Merger/Acquisition
Acquisition Acquisition Acquisition Acquisition Acquisition Acquisition
Acquisition
Acquisition Acquisition Acquisition Acquisition
Hobi Kozmetik, Turkey (Personal Care Products)
Dabur India (Personal Care)
Acquisition
Source: Company websites, Bloomberg, Aranca Research
GROWTH DRIVERS
24
FMCG
MARCH
2013
Key M&A deals in the industry (2/2)

Target name (segment)
Argencos, Argentina (Hair Care Products) Lotte India Corp Ltd (Food) Megasari, Indonesia (Soap and cleaning products ) Issue Group, Argentina (Hair products)
Acquirer name (segment)

Godrej Consumer Products Ltd (Home and Personal Care) Lotte Confectionery Co Ltd, South Korea (Food) GCPL (Home and personal care) GCPL (Home and personal care)
Merger/Acquisition
Acquisition Acquisition Acquisition Acquisition
Tura, Nigeria (Soap and cleaning products )

Tern Distilleries Pvt Ltd (beverages - wine/spirits) Vale Do Ivai SA Acucar E Alcool (sugar and ethanol) Greenol Laboratories Pvt Ltd (tea)
GCPL (Home and personal care)

United Spirits Ltd (beverages) Shree Renuka Sugars Ltd (food) Asian Tea & Exports Ltd (food - tea) UK-based Borelli Tea Holdings Ltd, a wholly-owned unit of Mcleod Russel India Ltd Cavinkare Pvt Ltd (food) Bacardi Martini BV, Netherlands (beverages) Godrej Consumer Products Ltd (home care) Britannia Industries Ltd (food)
Acquisition
Acquisition Acquisition Acquisition
Olyana Holding LLC (tea)

Garden Namkeens Pvt Ltd (food - misc.) Bacardi Martini India Ltds 26 per cent shares from Gemini Distillery Private Ltd (beverages) Godrej Hygiene Care Pvt Ltd (home care) Britannia New Zealand Foods Pvt Ltd (joint venture partner Fonterra Cooperative Group Ltd) (food)
Acquisition
Acquisition Acquisition Merger Acquisition
Source: Bloomberg, Aranca Research
GROWTH DRIVERS
25
FMCG
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Contents
26
FMCG
MARCH
2013
Emami - one of the fastest growing FMCG companies (1/2)
Salient features
Niche category player and innovator Key brands are strong market leaders in their respective categories Portfolio includes Zandu, one of the strongest Ayurvedic brands Over 80 per cent of business comes from wellness categories The company's revenues has expanded at a CAGR of 21.2 per cent over the last five years
130.7 115.9
Net sales (USD million)
CAGR 21.2 %
230.7
284.0
302.8
170.3
145.8
FY07
FY08
FY09
FY10
FY11
FY12
H1FY13
Source: Company reports, Aranca Research
SUCCESS STORIES: MAJOR PLAYERS
27
FMCG
MARCH
2013
Emami - one of the fastest growing FMCG companies (2/2)
Awards and recognitions

Among Asia's 'Best Under A Billion' 2010 list of companies compiled by Forbes magazine Emamis Zandu Balm, Navratna and Boroplus were ranked among the top 20 brands in the country by Brand Equity Survey of Economic Times, 2012 Ranked 125th among BT (Business Today) Most Valuable Companies of India in private Sector Ranked 272nd among Fortune 500 Indias largest corporations on profitability
Celebrity promotion Rural reach
Leveraging existing distribution network
Differentiated value for money products

Product innovation
Strategy to drive revenue
New geographies
Brand extension
28
FMCG
MARCH
2013
Dabur - riding on strong brand equity in India (1/2)
Salient features
Sales (USD million)

1,100.6
Among top four FMCG companies in India 10 brands with sales worth over USD20 million each Wide distribution network covering 2.8 million retailers across the country 17 world-class manufacturing plants catering to needs of diverse markets Over 30 per cent of revenues generated from international markets
433.4
CAGR 20.4 %
856.2 711.8 624.7
596.7 499.2
FY07
FY08
FY09
FY10
FY11
FY12
H1FY13
29
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2013
Dabur - riding on strong brand equity in India (2/2)
Awards and recognitions in 2011-12

Ranked amongst the worlds top 100 beauty companies in WWD Beauty Inc.s top 100 2012 53rd Ranked 33 in Indias 100 most valuable brands, 2012 by 4Ps Business and Marketing magazine
Expand
Ranked 184 in Fortune India 500 list

Ranked 78 in Super - 100 (Business India) Ranked 45 among Most Trusted Brands in India (Brand Trust Report, India Study, 2011) Dabur Uveda range of Ayurvedic skin care products listed amongst the '30 New Beauty Finds' by India Today Woman
Strategy
Innovate
Acquire
During FY12, Dabur ranked as the second-most Social Brand of India
30
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31
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Growth opportunities in the Indian FMCG industry

Leading players of consumer products have a strong distribution network in rural India; they also stand to gain from the
Rural market
contribution of technological advances such as internet and e-commerce to better logistics
Rural FMCG market size is expected to touch USD100 billion by 2025
Innovative products
Indian consumers are highly adaptable to new and innovative products. For instance there has been an easy acceptance of
mens fairness creams, flavoured yoghurt, and cuppa mania noodles
With rise disposable incomes mid- and high-income consumers in urban areas have shifted their purchase trend from
Premium products
essential to premium products
In response, firms have started enhancing their premium products portfolio
Sourcing base
Indian and multinational FMCG players can leverage India as a strategic sourcing hub for cost-competitive product
development and manufacturing to cater to international markets
Penetration
Low penetration levels offer room for growth across consumption categories Majors players are focusing on rural markets to increase their penetration in those areas
Source: Assorted articles and reports, AC Nielson, Aranca Research
OPPORTUNITIES
32
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33
FMCG
MARCH
2013
Industry Associations (1/3)

Indian Dairy Association Secretary (Establishment) Indian Dairy Association, Sector - IV, New Delhi - 110022 Phone: 91-11-26170781, 26165355, 26179780; Fax: 91-11-26174719 E-mail: ida@nde.vsnl.net.in Website: www.indairyasso.org All India Bread Manufacturers Association PHD House, 4/2, Siri Institutional Area, August Kranti Marg, New Delhi - 110016 Phone: 91-11-26515137; Fax: 91-11-26855450 E-mail: aibma@rediffmail.com; mallika@phdcci.in Website: www.aibma.com All India Food Preservers Association 206, Aurobindo Place Market Complex Hauz Khas, New Delhi - 110016 Phone: 91-11-26510860, 26518848; Fax: 91-11-26510860 Website: www.aifpa.net
USEFUL INFORMATION
34
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MARCH
2013

Federation of Biscuit Manufacturers of India PHD House, 4/2, Siri Institutional Area, August Kranti Marg, New Delhi - 110016 Phone: 91-11-26515137; Fax: 91-11-26855450 E-mail: fbmi@rediffmail.com; mallika@phdcci.in Website: www.biscuitfederation.com
Indian Soap & Toiletries Manufacturers Association Raheja Centre, 6th Floor, Room No 614, Backbay Reclamation, Mumbai 400021 Phone: 91-22-2824115; Fax: 91-22-22853649 E-mail: istma@bom3.vsnl.net.in
Indian Soft Drinks Manufacturers' Association 702, Ansal Bhawan, 16 KG Marg, New Delhi - 110001 Phone: 91-11-46470200; Fax: 91-11-23327747
USEFUL INFORMATION
35
FMCG
MARCH
2013

The Solvent Extractors' Association of India 142, Jolly Maker Chambers, No 2, 14th Floor, 225, Nariman Point, Mumbai 400021 Tel: 91-22-22021475, 22822979; Fax: 91-22-22021692 E-mail: solvent@mtnl.net.in Website: www.seaofindia.com
Vanaspati Manufacturers Association of India 903, Akashdeep Building, 26 - A, Barakhamba Road, New Delhi -110001 Phone: 91-11-23312640; Fax: 91-11-23315698
USEFUL INFORMATION
36
FMCG
Glossary

MARCH
2013
FDI: Foreign Direct Investment MSP: Minimum Selling Price
NREGA: National Rural Employment Guarantee Act

FY: Indian financial year (April to March)
So FY09 implies April 2008 to March 2009
SEZ: Special Economic Zone MoU: Memorandum of Understanding USD: US Dollar
Conversion rate used: USD 1= INR 48
Wherever applicable, numbers have been rounded off to the nearest whole number
USEFUL INFORMATION
37
FMCG
Disclaimer
MARCH
2013
India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this
presentation to ensure that the information is accurate to the best of Aranca and IBEFs knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.
DISCLAIMER
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FMCG

For updated information, please visit www.ibef.org

For updated information, please visit www.ibef.org

For updated information, please visit www.ibef.org

For updated information, please visit www.ibef.org

The FMCG market has four main segment

Food & Beverages

Fabric wash, Household cleaners

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Evolution of FMCG in India

FMCG is the fourth largest sector in the Indian economy

9.0 2010-11 0.6

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Strong growth in the Indian FMCG sector

Trends in FMCG revenues over the years (USD billion)

Source: Dabur, AC Nielsen, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Market break-up by revenues (2009)

Source: Dabur, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

The urban market accounts for a major chunk of revenues

Urban-rural revenue break-up (2011)

Source: Dabur, AC Nielsen, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

The rural segment is fast catching up

Growth in urban and rural FMCG markets (FY11)

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

Source: AC Nielson, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Penetration levels of few top selling FMCG (2011)

Source: Dabur, AC Nielsen, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Sales channel breakdown (2010)

Grocers General stores 59% Chemists Paan plus

Source: AC Nielson, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Market share of companies in a few FMCG categories

Source: Industry estimates

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Notable trends in FMCG (1/2)

Several companies have started innovating or customising their existing product

portfolios for new consumer segments

products given their increasing disposable income

several regional markets

Focus on rural market Expanding distribution networks

reach in rural India

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Notable trends in FMCG (2/2)

party manufacturing a popular route for many big players

Rising importance of smaller-sized packs

Increased hiring from tier II/III cities

Focus on enhancing presence in Africa