In this article, one can expect to learn about the FMCG sector future outlook and some top companies in India.
FMCG (Fast Moving Consumer Goods) products satisfy our basic needs, and our lives depend on them. FMCG products have a short shelf life and are produced in large quantities with low cost. This includes household items, food, personal care items, medicine, stationery and consumer electronics. The FMCG sector is India’s fourth-largest sector and has created employment for more than three million people.
FMCG is the fourth largest market in the Indian economy. The market size for FMCG in India was estimated to grow from US$30 billion in 2011 to US$103.7 billion in 2020. Easier access and changing lifestyles have been the key growth drivers; in turn, FMCG brands are investing more in health and personal care. FMCG Companies focus on R&D for growth and to create the next generations of products. The top FMCG companies are listed below.
1.Hindustan Uniliver Ltd (HUL)
Hindustan Unilever Limited is India’s largest FMCG company for over 80 years. It is a subsidiary of Unilever, which is a British dutch company. The Company was founded in 1933 and had headquartered in Mumbai. It has over 35 brands across 20 categories which includes famous names like Dove, Lux, Lifebuoy, Surf Excel, Rin, Wheel, Sunlight, Vim, Pureit, Fair & Lovely, Pond’s, Vaseline, Clinic Plus, Wheel, Sunsilk, Knorr, Kissan, Kwality, Axe, etc.
In April 2020, HUL merged with GlaxoSmithKline Consumer Healthcare for Rs 3,045 Crores. Apart from Horlicks, brands such as Boost, and Viva are part of GlaxoSmithKline Consumer, which has now come under HUL’s umbrella.
2. ITC Ltd
The Company was established on August 24, 1910, as Imperial Tobacco Company of India Limited. The name was changed to India Tobacco Company Limited in 1970 and then to ITC Limited in 1974. ITC has been in the Indian markets for over 110 years and is known to guarantee a standard in manufacturing and packaging, and has wide distribution channels. The brands included are Bingo, Sunfeast, Aashirvaad, Fiama Di Wills, Vivel, Savlon soaps and hand wash, Papercraft, and Classmate. ITC has a monopoly in the Indian Cigarettes market share.
It has a diversified product portfolio comprising Personal Care, Cigarettes and Cigars, Education & Stationery Products, Safety Matches; Hotels and Information Technology.
3. Nestle India Ltd
Globally the Company has been there for more than 150 years. In India, Nestle dates back to 1912 and its Head Office is located in Gurgaon. They aim to cater the nutritional and wellness requirements of Indians.
Nestle provides a wide range of products, including beverages, milkshakes, breakfast cereals, instant foods, and health care nutrition. A few of the brands they own are Nescafe, Maggi, Milky Bar, Kit Kat, Bar One, Milkmaid, Nestea, etc. The Company has 2000+ brands ranging from global icons to local favourites and is present in more than 190 countries. Today, NESTLÉ India has 8 manufacturing facilities and 4 branch offices.
4. Britannia Industries Ltd
Britannia Industries is also one of India’s oldest FMCG Companies with a 100-year legacy. It is one of the most trusted food brands, which include Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold. Britannia’s product portfolio comprises Biscuits, Bread, Cakes, Rusk, and Dairy products. It is known as the first Zero Trans Fat Business, and they have an extensive distribution network in India and 60 other countries.
The Dairy business contributes close to 5% of revenue, and Britannia dairy products directly reach 100,000 outlets. It is in the top four FMCG companies in India.
5. Patanjali Ayurved Limited
Patanjali Ayurved Limited was incorporated in 2006 with the aim to develop rural and urban areas. The Company is not merely a firm but a thought of creating a healthy society through Yog and Ayurved. The company recognizes farmers as its main assets. They provide organic products on contract farming and take various initiatives for farmers to raise their income.
Farmers are provided with all sorts of information and technical aid for efficient farming. It processes consumables like food items, medicines etc. These are then sold to customers through Authorized Patanjali Stores and retail shops.
6. Dabur India Ltd
It is the world’s largest and leading Ayurvedic and Natural Health Care Company with 135 years of rich experience. The business model is divided into three Strategic Business Units, which are, Consumer Care Business, Foods Business, and International Business. Consumer Care Business covers interests in Health Care and Home & Personal Care. Dabur has a strong presence across the globe and the products enjoy good market shares in categories such as Hair Oils, Hair Gels, Shampoos, Dental Care, and Skin Care.
Following are some important figures for the above mentioned companies:
|Company Name||Market Cap (in INR Cr.)||Promoter Holdings||Sales Growth (5 Yrs)|