28-06-2012, 12:39 PM
FMCG SECTOR IN INDIA
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INTRODUCTION
India’s FMCG sector is the fourth largest sector in the economy and creates employment for more than three million people in downstream activities. The total FMCG market is in excess of Rs. 85,000 Crores. It is currently growing at double digit growth rate and is expected to maintain a high growth rate. FMCG Industry is characterized by a well established distribution network, low penetration levels, low operating cost, lower per capita consumption and intense competition between the organized and unorganized segments. This industry essentially comprises Consumer Non Durable (CND) products and caters to the everyday need of the population. . The lower-middle income group accounts for over 60percent of the sector's sales. Rural markets account for 56percent of the total domestic FMCG demand The fast moving consumer goods business is characterized by two pillars ' strong brand equity and a wide distribution network. The growth potential for FMCG Company’s look promising over the long- term horizon, as the per-capita consumption of almost all products in the country is amongst the lowest in the world.
OBJECTIVE OF THE STUDY
The FMCG Sector is one of the largest growing sectors each fiscal year and still there is immense growth left in coming years. So the main objective of my study is to show-
The swot analysis, growth opportunities, competitiveness, market players and future of fmcg sector in india.
Hence, these are the areas that I am going to cover in this project and would give the overview of the fmcg sector in India.
RESEARCH METHODOLOGY
Primary data-
The researcher has interviewed Pratik Jain with few questionnaire.
Secondary data-
secondary data has been collected from various resources like several books, journals, government officials and many websites are used to study the topic under research.
CONCEPTUAL FRAMEWORK
2.1 FMCG -fast moving consumer goods
2.2 Margin- it is collateral that the holder of a financial instrument has to deposit to cover some or all of the credit risk of their counterparty
2.3 Premium- it is a promotional item that can be received for a small fee when redeeming proofs of purchase
2.4 Fiscal- it is the use of government expenditure and revenue collection (taxation) to influence the economy
2.5 Blue print- it is a type of paper-based reproduction usually of a technical drawing, documenting an architecture or an engineering design.
2.6 Global warming- it refers to the rising average temperature of Earth's atmosphere and oceans and its related effects.
INTRODUCTION TO FMCG SECTOR IN INDIA
The Fast Moving Consumer Goods (FMCG) sector is the fourth largest sector in the Indian economy with a total market size in excess of Rs. 80,000 Crores. Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, shaving products and detergents, as well as other non-durables such as glassware and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products, tissue paper, and chocolates. Its principal constituents are Household Care, Personal Care and Food & Beverages. Availability near the consumer through a wide distribution network is another crucial success factor, as products are of small value, frequently purchased daily use items. The margin of profit on every individual FMCG product is less. However the huge number of goods sold is what makes the difference. Hence profit in FMCG goods always translates to number of goods sold.