A REPORT

ON FMCG
INDUSTRY IN
INDIA
 CONTENTS
PEST Analysis
PORTERS FIVE FORCE
MODEL
SWOT ANALYSIS
PEST ANALYSIS
POLITICAL:
1. Tax exemption in sales and excise duty for small
scale industiers .
2. Transportation and infrastructure development
in rural areas helps in distribution network.
3. Restrictions in import policies.
4. Help for agricultural sector .

ECONOMICAL:
1. GDP rate

2. Inflation rate: -1.27

3. Increase in Disposable income
Year DI in 1000 US $
2003 556
2015 1150
4. Indian FMCG Recorded 16% Sales Growth in Last Fiscal
5. The FMCG sector is a 4th largest sector of Indian economy with
market size of more than 60,000 crore.

SOCIAL:
1) Demographical analysis

Year Total hhlds in mn strivers achievers rich

1. 2003 181 131 46 3
2. 2013 231 96 124 11

2) The Indian culture, social & life styles are changing

drastically.

TECHNOLOGY
1. Technology has been simplified and available in the industry .
2. Foreign players helps in high technological development.
 INDUSTRY ANALYSIS
( FMCG )
1.The fmcg sector in india is expected grow at a
compound annual growth rate at 9% to a size of
1,43,000 crs by 2010 from rs 93000 crs at present.
2. The industry is growing double digit growth in
last 2 yrs .
3. Annual revenues of us $14.74 billion.
4. Market growth rate – Rural -40%, urban -25%
5. FMCG Market size

6. Average Indian spending on groceries and personal

care is 48%. Groceries 40% & personal care 8%.
COMPITATORS :
ITC (Indian Tobacco Company)
Nestlé India
Dabur India
Marico Industries
SWOT ANALYSIS :
Strengths –
1. well established distribution network .
2. extending to the rural areas.
3. low cost operations .
Weakness –
1. Low export levels
2. small scale sector reservations limit ability to
invest in technology and achieve economies of
scale .
3. several me-too products
Opportunities –
1. large domestic market
2. export potential
3.increasing income level will result in faster
revenue growth
Threats –
1. Import policies
2. Tax and regulatory structures
3.slow down in rural demand .
4.Growth of unorganized markets.

COMPANY ANALYSIS (HUL)