Vivekanand Education Society Institute of Management

Studies
& Research

FINAL REPORT
ON
Equity Research on FMCG
By
Dilip Khanchand Kalyani
Roll Number:-38

Faculty Mentor
Prof. K.V.Ramakrishnan

Industry Mentor
Mr.Iqbal Singh Bansal

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 INDEX
Sr.No. Contents Page No.

1 Declaration 2

2 Acknowledgement 3

3 Executive Summary 4

4 Skill Sets required 6

5 Introduction of Insurance Industry 16

6 Competitors Profiling of Industry 17

7 Industry Financials 23

8 About the Company 24

9 Genesis of Company 26

10 Vision & Values of the Company 29

11 Product & Services of the Company 30

12 SWOT Analysis 33

13 F.M.C.G. Sector 34

14 Infographics 48

15 Reports 49

16 Overview of Fundamental & Technical Analysis 50

17 On the Job Training 55

18 Mutual Funds Allocation 56

19 Conclusion 61

20 Bibliography 62

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 DECLARATION

This is to declare that I Dilip Khanchand Kalyani student of Vivekananda Education

Society’s Institute of Management Studies and Research, Mumbai MMS batch 2017-2019, have
given original data and information to the best of my knowledge in the project report titled
“Equity Research on F.M.C.G” is a record of independent work carried out by me under the
guidance and supervision of the Prof. K.V.Ramakrishnan towards the partial fulfilment of
requirement for the MMS course.

I also agree in principal not to share the vital information with any other person outside
the organization and that I have not submitted it for any award or any other title, degree or
diploma.

Date:

Place: Mumbai

Name: Dilip Khanchand Kalyani

Roll No: 38

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4 |Page
 Acknowledgement

I take this opportunity to sincerely express my gratitude to my project guide Mr. Iqbal Singh
Bansal for giving me an opportunity to work as an intern with his organization.

The experience and the knowledge acquired of the interaction with the guide has contributed a
great deal in helping me to successfully complete this project.

Also, I would like to thank Prof. K.V.Ramakrishnan for his constant support, guidance and
encouragement that helped me to stay focused on the project. His thoughtful review and
indispensable suggestions have contributed a great deal in helping me to successfully complete
this project.

Last but not the least I would like to thank all those who supported and helped me to stay
focused on this project and provided me with the constant motivation and encouragement for
perseverance.

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 1 Executive Summary

The objective of this report was to understand the FMCG sector along with factors
affecting the growth and downfall of the sector. The project includes market share,
market size, and major players in this industry. This also include fundamental
analysis done by me.

Report also states about the FMCG sector overview which will give insights of the
future developments that may happen in India. This report tries to find out the
growth opportunities and threat of F.M.C.G industry and also cover the recent
developments, investments in this segment. Report also tried to cover the impacts
of other factors on the industry.

This report will help you to understand the FMCG sector.

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• PROJECT TITLE:- Equity Research on FMCG sector

• DURATION :- 4th April;2018 to 5th july;2018

• PLACE OF WORK:- Aditya Birla Captial(Ghatkopar branch)

• COMPANY:- Aditya Birla Capital

• MENTOR:- prof.k.v.Ramakrishanan

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 SOFT SKILLS REQUIRED DURING THE INTERNSHIP:-

• Communication.
• Flexibility.
• Leadership.
• Motivation.
• Patience.
• Persuasion.
• Problem Solving Abilities.
• Teamwork.

WHAT ARE THE TECHNICAL SKILLS REQUIRED ON THE JOB:-

Technical skills are the abilities and knowledge needed to perform specific tasks.
They are practical, and often relate to mechanical, information technology,
mathematical, or scientific tasks. Some examples include knowledge of
programming languages, mechanical equipment, or tools.
While technical skills are often most important for jobs related to information
technology (IT) and other fields in the sciences, many other industries also want
employees with at least some technical skills.
Many technical skills require training and experience to master. They are also
typically a type of hard skill. Hard skills are those that can be learned, and can be
defined, evaluated, and measured (as opposed to soft skills).
Here's a list of technical skills for resumes, cover letters, job applications, and
interviews. Included is a detailed list of five technical skills that are most desired
across industries.
How to Use Skills Lists
You can use these skills lists throughout your job search process. Firstly, you can
use these skill words in your resume. In the description of your work history, you
might want to use some of these key words.
Secondly, you can use these in your cover letter. In the body of your letter, you
can mention one or two of these skills, and give a specific example of a time
when you demonstrated those skills at work.
Finally, you can use these skill words in an interview.

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Make sure you have at least one example for a time you demonstrated each of
the top five skills listed here.
Of course, required skills will vary based upon the job for which you're applying,
so be sure to be specific when listing hardware, software, programs, applications,
etc. Take the time to match your qualifications to the job, and review our other
lists of skills listed by job and type of skill.
Top Five Technical Skills
1. Big Data Analysis
Nearly every industry today relies on data, whether it is data about their clients,
or the success of their product. While it is easy for companies to get data, they
need employees who can collect, organize, and then interpret that data. Here are
some of the big data analysis skills it’s good to have:
• Algorithms
• Analytical Skills
• Big Data
• Calculating
• Compiling Statistics
• Data Analytics
• Data Mining
• Database Design
• Database Management
• Documentation
• Modeling
• Modification
• Needs Analysis
• Quantitative Research
• Quantitative Reports
• Statistical Analysis

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2. Coding and Programming
Even if the job you’re applying for is not for a “coder” or “programmer,” most
employers will look carefully at an applicant with some coding experience. Being
able to code, and to understand multiple programming languages, will make you
a strong candidate in many jobs. Several of the key technical skills sought in IT
job candidates include:
• Applications
• Certifications
• Coding
• Computing
• Configuration
• Customer Support
• Debugging
• Design
• Development
• Hardware
• Implementation
• Information Technology
• Infrastructure
• Languages
• Maintenance
• Network Architecture
• Network Security
• Networking
• New Technologies
• Operating Systems
• Programming
• Restoration

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• Security
• Servers
• Software
• Solution Delivery
• Storage
• Structures
• Systems Analysis
• Technical Support
• Technology
• Testing
• Tools
• Training
• Troubleshooting
• Usability

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3. Project Management
This might seem to be more of a soft skill than a hard, technical skill, but project
management is critical for all technical projects. Being a good project manager
means being a good leader, delegating tasks, and measuring the success of
each project. Being a good project manager means more successful projects,
which employers always want.
• Benchmarking
• Budget Planning
• Engineering
• Fabrication
• Following Specifications
• Operations
• Performance Review
• Project Planning
• Quality Assurance
• Quality Control
• Scheduling
• Task Delegation
• Task Management

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4. Social Media Experience
Throwing a phrase like “experienced in social media” into your resume is no
longer enough to impress most employers – today, so many people use social
media.
However, if you can explain your experience with certain media platforms, you
will be able to get a leg up on your competition.
This skill is particularly useful if you are looking for jobs in PR, marketing, web
development, or anything related to social media.
• Blogging
• Digital Photography
• Digital Media
• Facebook
• Instagram
• Networking
• Pinterest
• SEO
• Social Media Platforms
• Twitter
• Web Analytics

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5. Technical Writing
Many jobs that involve written communication require you to explain complex
things in a way that is easy to understand. You might have to send messages to
clients or manufacturers, or write press releases, web content, or manuals for
clients. Being able to communicate complex ideas in a clear way will make you
stand out in many jobs.
• Client Relations
• Email
• Requirements Gathering
• Research
• Subject Matter Experts (SMEs)
• Technical Documentation

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Job-Specific Skills to Use During a Career Search
In addition to the technical skills that are needed in the workplace, your
command of job-specific skills can help ensure you get hired or promoted.
These hard skills include the knowledge and expertise required to do a job,
knowledge of specific software and hardware applications, and advanced design
skills.

WHAT IS THE DIFFERENCE BETWEEN TECHNICAL AND SOFT SKILLS:-

are usually those personality or personal attributes that enable a persons

social interactions and effectiveness. This can lead to enhanced (business)
relationships, job performance and career prospects. Unlike technical or hard
skills, which tend to be specific to a certain type of task or activity, soft skills
are applicable to everyone in different measures.

Defining softskills

Soft-skills are usually described as personal attributes, for example:

• Accepts Responsibility
• Willing and able to bear high levels of responsibility: making decisions,
being accountable.
• Openness
• Positive Attitude
• Integrity
• Commitment
• Toughness
• People Skills
• Judgement
• Organized
• Dependable
and interpersonal abilities, such as:

• Assertiveness
• Dealing with Aggression
• Listening Skills
• Counselling Skills
• Stress Management
• Confidentiality

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• Group Working
• Interpersonal Communication Skills
• Negotiation
• Problem Solving
• Decision Making
• Reflection & Clarification
Many training providers consider:

• Influencing
• Team management
• Delegating
• Appraising
• Presenting
Purely soft skills?
To be purely soft skills – they are not. Success depends on knowing the
technical elements of the skills, and then using effective social skills to fully
deploy the skill.

For example take presentation skills.

Being able to talk to people is one thing (confidence, clarity etc), but without
good structure, effective planning and research.
Without good structure and order the content could be meaningless – but
“entertaining” (easy to listen to).

What I mean by this is that a presenter can have a technically good

presentation. It can have a beginning, middle & end. It can have a story, logic
and structure. But if the person lacks the passion, animation, engagement,
interpersonal skills the presentation can be ineffective. For an effective
communicator so to give a good presentation requires both good design
(content) and good skills in communicating that message.

Often the DIFFERENCE between average and good performance are the
social or soft skills deployed. Not just in presentation skills!

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What is Soft-skills?
Some professionals believe Soft skills to be a sociological term relating to a
person’s “EQ” (Emotional Intelligence Quotient), – in the broadest terms not
just as the well known psychometric test. This includes a cluster of personality
traits, social graces, communication, language, personal habits, friendliness,
and optimism that characterise relationships with other people.

However we look at it, Soft skills complement technical or hard skills, which
are the occupational requirements of a job or role and many other work and
life activities. generally speaking the best performers are those with both good
technical skills and highly developed soft or social skills.

Despite the term “soft skills”, there is nothing fuzzy or unmeasurable about
them. In a given situation with 2 people having similar technical skills, the
difference in performance is that of “soft or social skills” development.

For those of us in senior management and leadership roles, only those of us

with strong interpersonal skills (softskills) will be able to deliver the job
performance required along with the complex array of change management
projects and board level politics that surround us in our every day work.

No matter what people say, few of us work in isolation, therefore social or soft
skills are critical for all of us. Even those roles which in the past have been
considered to be “knowledge” and skill based such as engineers, IT
technicians, Lawyers etc. The difference is their ability to interact and
communicate with others to ensure effectiveness.

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 2.1 Introduction of Insurance Industry

There are 53 insurance companies in India of which 24 are in life insurance business and 29 are
non-life insurers. Life Insurance Corporation (LIC) is the sole public sector company between all
insurers. From the remaining there are six public sector non-life insurers. General Insurance
Corporation of India (GIC Re) is sole national Reinsurer. Agents, brokers, surveyors and third party
administrators servicing health insurance claims are other stakeholders in insurance market.

There are 29 non-life insurance companies out of which five private sector insurers are registered to
underwrite policies exclusively in health, personal accident and travel insurance segments. They are
Star Health and Allied Insurance Company Ltd, Apollo Munich Health Insurance Company Ltd,
Max Bupa Health Insurance Company Ltd, Religare Health Insurance Company Ltd and Cigna
TTK Health Insurance Company Ltd. Export Credit Guarantee Corporation of India for Credit
Insurance and Agriculture Insurance Company Ltd for crop insurance are two more specialised
insurer belonging to public sector.

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Competitors profiling of industry

• HDFC Life Insurance

HDFC Standard Life Insurance Company Limited is a joint venture between HDFC Ltd., one of
India’s leading housing finance institution and Standard Life Aberdeen, a global investment
company. HDFC Life is a leading long-term life insurance solutions provider in India. They
provide wide a range of individual and group insurance solutions that meet various customer
needs such as Protection, Pension, Savings, Investment and Health. Customers have the added
advantage of customising plans, by adding optional benefits called riders, at a nominal price. As
on March 31, 2018, the Company had 34 individual and 11 group products in its portfolio, along
with 8 optional rider benefits, catering to a diverse range of customer needs. HDFC Life
continues to benefit from its increased presence across the country having a wide reach with 414
branches and additional distribution touch-points through several new tie-ups and partnerships
comprising 139 partners across traditional and non-traditional channels including NBFCs, MFIs,
SFBs, etc. The Company has a strong base of financial consultants.

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• Life Insurance corporation of India
Life Insurance Corporation of India is an Indian state-owned insurance group and investment
company. Its subsidiary are LIC Lanka, LIC Cards Services, LIC Pension Fund Ltd, LIC
International, LIC Nomura Mutual Fund Life Insurance Corporation , the largest
insurance company in India has business(profit) of US$ 9.257billion (2015) is a
leader in insurance industry, with an estimated asset value of ₹1,560,482
crore (US$230 billion). As of 2013 it had total life fund of Rs.1433103.14
crore with total value of policies sold of 367.82 lakh that year. LIC had
11,95,916 agents as on 31 March 2014, out of which the number of active
agents were 11,32,677 (94.71%). LIC offers a variety of insurance products to its
customers such as insurance plans, pension plans, unit-linked plans, special plans and group
schemes. LIC holds a market share of 78,308 crores in FY15.

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• ICICI Prudential Life Insurance
ICICI Prudential Life Insurance Company Limited (ICICI Prudential Life) is promoted by ICICI
Bank Limited and Prudential Corporation Holdings Limited. ICICI Prudential Life began its
operations in fiscal year 2001 and has consistently been amongst the top players* in the Indian
life insurance sector. Our Assets Under Management (AUM) as on 31st March 2018 were
`1,395.3 billion. At ICICI Prudential Life, we operate on the core philosophy of customer
centricity. We offer long term savings and protection products to meet different life stage
requirements of our customers. We have developed and implemented various initiatives to
provide cost-effective products, superior quality services, consistent fund performance and a
hassle-free claim settlement experience to our customers.

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• Bajaj Allianz Life Insurance

Bajaj Allianz is a joint venture between Bajaj Finserv Limited and Allianz SE. The joint
venture incorporates global expertise with local experience. Both enjoy a reputation of expertise,
stability and strength. The comprehensive life insurance solutions, technical expertise and
experience of Allianz SE combines with the in-depth market knowledge and goodwill of "Bajaj"
brand in India. Competitive pricing and customized life insurance solutions have earned Bajaj
Allianz Life the customer's trust and market leadership in a very short time. Bajaj Allianz Life
has developed life insurance solutions that cater to every segment and age-income profiles.
Currently Bajaj Allianz Life has a strong life insurance portfolio and caters to all kinds of
customer needs from ULIPs to Child plans, from group insurance to health insurance.

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 • Exide Life
Insurance Company Limited
Exide Life Insurance Company Limited, an established and profitable life insurance company,
commenced operations in 2001-02 and is head quartered in Bengaluru. The company is 100%
owned by Exide Industries Limited. The company serves over 15 lakh customers and manages
assets of over INR 12,500 Crores. During the financial year 2017-18, the company achieved
Total Premium Income of over INR 2,500 crores and delivered INR 60 crores in Profits (PBT).
Exide Life Insurance distributes its products through multi-channels viz. Agency, Banc
assurance, Corporate Agency & Broking, Direct Channel and Online. The Agency channel
comprises of 45,000+ advisors who are attached to over 200 company offices across the country.
The company also offers group life insurance solutions.

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• IDBI Federal Life Insurance Corporation Limited
Our reason to exist, our purpose, is to provide means for people to live a life and lifestyle
of their choice. We achieve that by helping people plan for the future with life insurance.
This focus on human relationships has bolstered our growth over the years. It has helped
us make a positive difference in the lives of all our stakeholders, be it our customers,
employees, shareholders or community in general. Our gross written premium has almost
doubled in the last three years proving that more people are willing to invest in us. In a
recent report, published by IRDAI, we were mentioned as the only life insurance
company to have retained over 50% of our customers for over 5 years, evidence of our
constant focus on post-sale engagement We were declared among the top 10 most trusted
life insurance brands in the country, as per Economic Times’ Brand Equity survey. What
is notable is the fact that we are the only second generation life insurance company to
feature in the list. In a short time, we have made significant progress to gain the trust of
people.

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Industry Financials

During April 2015 to March 2016 period, the life insurance industry recorded a new premium
income of Rs 1.38 trillion (US$ 20.54 billion), indicating a growth rate of 22.5 per cent. The
general insurance industry recorded a 12 per cent growth in Gross Direct Premium underwritten
in April 2016 at Rs 105.25 billion (US$ 1.55 billion).

India’s life insurance sector is the biggest in the world with about 360 million policies which are
expected to increase at a Compound Annual Growth Rate (CAGR) of 12-15 per cent over the
next five years. The insurance industry plans to hike penetration levels to five per cent by 2020.

The country’s insurance market is expected to quadruple in size over the next 10 years from its
current size of US$ 60 billion. During this period, the life insurance market is slated to cross US$
160 billion.

The general insurance business in India is currently at Rs 78,000 crore (US$ 11.44 billion)
premium per annum industry and is growing at a healthy rate of 17 per cent.

The Indian insurance market is a huge business opportunity waiting to be harnessed. India
currently accounts for less than 1.5 per cent of the world’s total insurance premiums and about 2
per cent of the world’s life insurance premiums despite being the second most populous
nation. The country is the fifteenth largest insurance market in the world in terms of premium
volume, and has the potential to grow exponentially in the coming years.

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 ABOUT THE COMPANY

• INTRODUCTION

Aditya Birla Capital Limited (ABCL) is one of the largest financial services players
in India.
Formerly known as Aditya Birla Financial Services Limited, ABCL is the holding
company of all the financial services businesses of the Aditya Birla Group. With a
strong presence across the life insurance, asset management, private equity,
corporate lending, structured finance, project finance, general insurance broking,
wealth management, equity, currency and commodity broking, online personal
finance management, housing finance, pension fund management and health
insurance business, ABCL is committed to serving the end-to-end financial
services needs of its retail and corporate customers under a unified brand —
Aditya Birla Capital.

Anchored by more than 14,500 employees, ABCL has a nationwide reach through
over 1,500 points of presence across 400 plus cities and more than 190,000
agents / channel partners. Aditya Birla Capital manages, through its subsidiaries
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and joint ventures, aggregate assets worth Rs. Over 3000 billion and has a
lending book of Rs. 514 billion as of March 31st, 2018, placing it among the top 5
private diversified NBFCs in India (Source: CRISIL), the 3rd largest assets
management company in India by domestic AAUM as published by AMFI for the
quarter ended March 2018 and as one of the Top 5 Fund Managers in India (excl.
LIC).

Aditya Birla Group

Aditya Birla Capital Limited is a part of the Aditya Birla Group, a USD 40 billion
Indian multinational in the league of Fortune 500. Anchored by an extraordinary
force of over 120,000 employees, belonging to 42 nationalities, the Aditya Birla
Group operates in 36 countries across the globe. About 50 per cent of its
revenues flow from its overseas operations.

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• GENESIS OF COMPANY

• SUNLIFE FINANCIAL INC.

• Sun Life Financial Inc. Is a leading international financial services organization

providing a diverse range of wealth accumulation and protection products and
services to individuals and corporate customers. Tracing its route back to 1865,
Sun Life Financials and its partners today have operations in key markets
worldwide, including Canada, The United States, The United Kingdom, Hong
Kong, The Philippines, Japan, Indonesia, India, China and Bermuda.

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• BIRLA SUN LIFE INSURANCE CO. LTD.
• Birla Sun Life Insurance Company Limited (BSLI) is a joint venture between the
Aditya Birla Group and Sun Life Financial Inc, one of the leading international
financial services organisations from Canada. With experience of over a decade,
BSLI has contributed to the growth and development of the Indian life insurance
industry and currently is one of the leading life insurance companies in the
country.

• Birla Sun Life Insurance has an extensive distribution reach of over 500 cities
through its network of over 632 branches, 134,000 empanelled advisors and over
200 partnerships with corporate agents and banks. Assets under Management
(AUM) of Birla Sun Life Insurance is close to Rs.22,000 crore and it has a robust
capital base of over Rs.2,450 crore as on 31 March 2013.

• BSLI has a customer base of over two million policy holders and has attained
recognition as the 3rd Most Trusted Life Insurance Company in the 'Most Trusted
Brands' survey 2013 conducted by Brand Equity (The Economic Times Group)
with Neilsen. The Company offers a complete range of offerings comprising
protection solutions, children's future solutio ns, wealth with protection solutions,
health and wellness solutions, retirement solutions and savings with protection
solutions. It has an extensive distribution reach in over 500 cities through its

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 network of over 540 branches, more than 81,000 empanelled advisors and over
140 partnerships with corporate agents, brokers and banks. Birla Sun Life
Insurance has total assets under management of 24,775 Crores and a robust capital
base of over 2,170 Crores, as on 31st Mar, 2014.

• BSLI is in its five successful years of operations have contributed significantly to

the growth and development of the life insurance industry in India. It pioneered
the launch of Unit Linked Life insurance Plans (ULIP) amongst the private players
in India. It was the first player in the industry to sell its policies through bank
assurance route and through the internet. It was also the first private sector player
to introduce a pure term plan in the Indian market. This was supported by new to
the market. The process of getting sales illustrations signed by customers, offering
a free look period on all policies, which are now industry standards were
introduced by BSLI.

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 • VISION & VALUES OF THE COMPANY:-

"To be a leader and role model in a broad-based and integrated financial

services business."
The 4 pillars of our vision that will help us achieve it are:

• To be a leader – we are committed to being a leader in all facets of our

businesses, rather than being just another participant in this race.
• To be a role model – we will not become leaders by cutting corners or
making compromises. Whatever we do, we will strive to be the best in class. And
if we are the best, then our customer will have no reason to go elsewhere –
therefore our leadership is assured, on pure merit.
• To be a broad-based player – we are committed to meeting all the felt
and unfelt needs of our target customer. And thereby, we can retain him or her
across their needs and life-stages.
• We aim to be an integrated player –we believe that this approach gives
us a competitive edge through sharing of best practices, deriving cross – business
synergies & providing talent pool with world of opportunity to grow.
Our customers place a lot of trust when they choose us as a partner for
fulfilment of their dreams - be it buying a dream home or investing their
hard earned money in mutual funds or for meeting their retirement or
child's education or protection needs or taking a business loan for
expansion. At Aditya Birla Capital, our endeavor is to become a preferred
financial services brand of choice for all our customers’ needs across their
life cycle - a brand that customers will not only just trust but also happily
endorse. Keeping this customer insight in mind, we have created a unique
strategy & structure to present our spectrum of businesses and offerings
under one virtual brand. From a customer perspective, this offers
simplicity & convenience. For our employees, we offer a world of growth
opportunities across all our financial services offerings. And to our
shareholders, this gives the reassurance that we will attract and retain our
customers, cost effectively, across their life-cycle needs.

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• PRODUCT AND SERVICES OF THE COMPANY:-

1. Protecting:-
i. Life insurance:-
A.protection
a) ABSLI DigiShield Plan
b) ABSLI Income Shield Plan
c) ABSLI Life Shield Plan
B. Wealth with protection
a) ABSLI Wealth Max Plan
b) ABSLI Wealth Secure Plan
c)ABSLI Wealth Assure Plan
d) ABSLI Fortune Elite Plan
e) ABSLI Wealth Aspire Plan
C. Children’s plan:-
a) ABSLI Vision Star Plan
D.Health plan:-
a) ABSLI Cancer Shield Plan
b) ABSLI Hospital Plus Plan
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c) ABSLI CritiShield Plan

E. Retirement plan:-
a) ABSLI Empower Pension Plan
b) ABSLI Immediate Annuity Plan
c) ABSLI Empower Pension - SP Plan

F.Savings with protection plan:-

a) ABSLI SecurePlus Plan

b) ABSLI Vision MoneyBack Plus Plan

c) ABSLI Vision LifeIncome Plan

d) ABSLI Savings Plan

e) ABSLI Vision LifeSecure Plan

f) ABSLI Income Assured Plan

g) ABSLI Vision Endowment Plus Plan

h) ABSLI Guaranteed Milestone Plan

i) ABSLI POS – Jeevan Bachat Plan

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 2. Investing
I. Mutual funds
II. Wealth management
III. Portfolio management services
IV. Pension funds
V. Stocks and Securities
VI. Real Estate Investment
3. Financing
I. Home Finance
II. Personal Finance
III. SME Finance
IV. Real Estate Fiance
V. Loan against securities
4. Advising:-
I. Money for life planner
II. My universe
• SERVICE PROFILE

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• SWOT ANALYSIS:-

Strengths
(1) Backed by Aditya Birla Group
and Sunlife Financial Services
(2)Emphasis on customer satisfaction
through transperent functioning
(3) Strong capital base
Weakness
(1)Low presence in rural market
(2) Lesser advertisement as compared
to compitators

Threat
Opportunities
(1) Economic Crisis and Economic
(1)To grow potential in rural market stability
and expand client base
(2) Entry Of new NBFCS in the
(2)Better awarness amongst people sector
for getting Insurance

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•FMCG Sector:-
I. FMCG is the 4th largest sector in the Indian economy

II. Household and Personal Care is the leading segment, accounting for 50 per cent
of the overall market. Hair care (23 per cent) and Food and Beverages (19 per
cent) comes next in terms of market share

III. Growing awareness, easier access and changing lifestyles have been the key
growth drivers for the sector
IV. The number of online users in India is likely to cross 850 million by 2025.
V. Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 672
billion in 2016, with modern trade expected to grow at 20 per cent - 25 per cent
per annum, which is likely to boost revenues of FMCG companies
VI. People are gracefully embracing Ayurveda products, which has resulted in
growth of FMCG major, Patanjali Ayurveda, with a revenue of US$ 1.57 billion in
FY17. The company aims to expand globally in the next 5 to 10 years.

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Introduction

Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian
economy with Household and Personal Care accounting for 50 per cent of FMCG sales
in India. Growing awareness, easier access and changing lifestyles have been the key
growth drivers for the sector. The urban segment (accounts for a revenue share of
around 40 per cent) is the largest contributor to the overall revenue generated by the
FMCG sector in India and recorded a market size of around US$ 52.75 billion in
2017-18. However, in the last few years, the FMCG market has grown at a faster pace
in rural India compared with urban India. Semi-urban and rural segments are growing at
a rapid pace and FMCG products account for 50 per cent of total rural spending.
Market Size
The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840
billion in 2017, with modern trade expected to grow at 20 per cent - 25 per cent per
annum, which is likely to boost revenues of FMCG companies. In 2016-17, revenue for
FMCG sector have reached US$ 49 billion and is expected to grow at 9-9.5 per cent in
FY18 supported by expectations of the total consumption expenditure reaching nearly
US$ 3,600 billion by 2020 from US$ 1,595 billion in 2016. Direct selling sector in India is
expected to reach Rs 159.3 billion (US$ 2.5 billion) by 2021, if provided with a
conducive environment through reforms and regulation. #

37 | P a g e
Investments/ Developments

The government has allowed 100 per cent Foreign Direct Investment (FDI) in food
processing and single-brand retail and 51 per cent in multi-brand retail. This would
bolster employment and supply chains, and also provide high visibility for FMCG brands
in organised retail markets, bolstering consumer spending and encouraging more
product launches. The sector witnessed healthy FDI inflows of US$ 13.07 billion, during
April 2000 to December 2017. Some of the recent developments in the FMCG sector
are as follows:
• The Hershey Co plans to invest US$ 50 million over the next five years in India,
its fastest growing core market outside of US.

• As a part of its Rs 25,000 crore (US$ 3.88 billion) investment package, ITC will
invest Rs 10,000 crore (US$ 1.55 billion) to expand its food processing segment.

• The bottling arm of Coca-Cola India, Hindustan Coca-Cola Beverages (HCCB) is

planning to increase its retail reach by one million new outlets and is targeting
revenue of US$ 2.5 billion by 2020.

• Future Retail will acquire HyperCity, which is owned by Shoppers Stop for Rs
911 crore (US$ 139.7 million) to further consolidate its business and have a
better footing in the hypermarket segment.

• Patanjali will spend US$743.72 million in various food parks in Maharashtra,

Madhya Pradesh, Assam, Andhra Pradesh and Uttar Pradesh.
Government initiatives
Some of the major initiatives taken by the government to promote the FMCG sector in
India are as follows:
• In the Union Budget 2017-18, the Government of India has proposed to spend
more on the rural side with an aim to double the farmer’s income in five years; as
well as the cut in income tax rate targeting mainly the small tax payers, focus on
affordable housing and infrastructure development will provide multiple growth
drivers for the consumer market industry.
• The Government of India’s decision to allow 100 per cent Foreign Direct
Investment (FDI) in online retail of goods and services through the automatic
route has provided clarity on the existing businesses of e-commerce companies
operating in India.
• With the demand for skilled labour growing among Indian industries, the
government plans to train 500 million people by 2022 and is also encouraging
private players and entrepreneurs to invest in the venture. Many governments,
corporate and educational organisations are working towards providing training
and education to create a skilled workforce.

38 | P a g e
 • The Government of India has drafted a new Consumer Protection Bill with
special emphasis on setting up an extensive mechanism to ensure simple,
speedy, accessible, affordable and timely delivery of justice to consumers.

• The Goods and Services Tax (GST) is beneficial for the FMCG industry as many
of the FMCG products such as Soap, Toothpaste and Hair oil now come under
18 per cent tax bracket against the previous 23-24 per cent rate.
Road Ahead
Rural consumption has increased, led by a combination of increasing incomes and
higher aspiration levels; there is an increased demand for branded products in rural
India. The rural FMCG market in India is expected to grow at a CAGR of 14.6 per cent,
and reach US$ 220 billion by 2025 from US$ 29.4 billion in 2016. In FY18, FMCG’s rural
segment contributed an estimated 10 per cent of the total income and it is forecasted to
contribute 15-16 per cent in FY 19. ^
On the other hand, with the share of unorganised market in the FMCG sector falling, the
organised sector growth is expected to rise with increased level of brand
consciousness, also augmented by the growth in modern retail.
Another major factor propelling the demand for food services in India is the growing
youth population, primarily in the country’s urban regions. India has a large base of
young consumers who form the majority of the workforce and, due to time constraints,
barely get time for cooking.
Online portals are expected to play a key role for companies trying to enter the
hinterlands. The Internet has contributed in a big way, facilitating a cheaper and more
convenient means to increase a company’s reach. It is estimated that 40 per cent of all
FMCG purchases in India will be online by 2020, thereby making it a US$ 5-6 billion
business opportunity. By the year 2025, e-commerce will contribute around 10-15 per
cent sales of few categories in the FMCG sector*.
Mr Mark Mobius, Executive Chairman, Templeton EM, opined that the Goods and
Services Tax (GST) will lead to mergers and rise of world class consumer companies in
India. GST and demonetisation are expected to drive demand, both in the rural and
urban areas, and economic growth in a structured manner in the long term and improve
performance of companies within the sector.
Exchange Rate Used: INR 1 = US$ 0.016 as on FY2018
References: Media Reports, Press Information Bureau (PIB), Union Budget 2017-18
Note - * According to a CII-BCG report, # - according to a study by Assocham, ^ -
According to CRISIL report.

39 | P a g e
•Companies in FMCG sector:-

Tata Global Beverages is the 2nd largest player in branded tea in the world.
They have a strong portfolio of brands, including Tata Tea, Tetley, Jemča, Vitax, Eight
O’Clock Coffee, Himalayan, Grand Coffee and Joekels. Around 300 million servings of
their products are consumed every day. Tata Global Beverages focusses on branded
natural beverages tea, coffee and water. With a long history and experience in the
beverages market, and a heritage of innovation and development, the Company has
evolved from a predominantly domestic Indian tea farming entity to a marketing and
brand-focussed global organisation.
Over 60% of their consolidated revenue originates from markets outside India and more
than 90% of their turnover is from branded products. The business has diversified and
expanded significantly over the last decade, with the Company now employing 3,000
plus people, and having a significant brand presence in 40 countries worldwide.
The company has a joint venture with Starbucks called Tata Starbucks Limited, to own
and operate Starbucks cafés in India. Since the inauguration of the flagship store in
Mumbai in October 2012, this 50:50 JV has expanded to Mumbai, New Delhi, Pune,
Bengaluru, Chennai and Hyderabad, with many more Starbucks stores planned across
the country. Its tea extraction business is engaged in the manufacture and sale of
instant black tea and instant green tea. These are crucial ingredient for ready to drink
products such as iced tea, 3 in 1 teas, etc.

About Tata Global Beverages>

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 Colgate-Palmolive Company is an American consumer products firm founded in
1806 and headquartered in New York. The Indian headquarter is in Mumbai running
successfully since 1902. It is the leading name in India in the oral care segment, and the
products offered by the company in the oral care segment include toothpaste,
toothbrushes, tooth powder, mouthwash and whitening products. The company also
manufactures personal care products such as liquid hand wash, body wash, skin care,
hare care and shaving products. Certain other products offered by the company include
treatments for gingivitis, sensitivity, mouth ulcers and products such as fluoride therapy
and specialty cleaning products.
In the toothpaste category, the Company offers products, including Colgate Total
Charcoal Deep Clean Toothpaste, Colgate Active Salt Neem Toothpaste and Colgate
Sensitive Pro-Relief (CSPR) Enamel Repair Toothpaste. In the toothbrush category, the
Company offers the Colgate 360 degree Toothbrush range, including 360 degree
Charcoal Gold, 360 degree Whole Mouth Clean, 360 degree Visible White and 360
degree Floss-Tip, and Colgate ZigZag Black Toothbrush. In the Personal Care
category, the Company offers Palmolive's Foaming Hand Wash range in approximately
two variants.
The company is known for adapting quickly to changes in customer behavior and
constantly innovates so as to offer best products to its customers. It does that with its
technological expertise as well as investing in hiring the best talent from across the
country for its technical as well as managerial roles. Colgate in association with Indian
Dental Association aims at improving the oral health awareness and oral care across
India on a mass scale. It does that through mechanisms such as exhibitions, lectures,
demonstrations, training programs, etc. ...
About Colgate Palmolive>

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 Founded in 1991, Marico is a leading Indian consumer goods company based
out of Mumbai and operating in the beauty and wellness space. Currently present in 25
countries across emerging markets of Asia and Africa, Marico has nurtured multiple
brands in the categories of hair care, skin care, edible oils, health foods, male grooming,
and fabric care. Its India business markets household brands such as Parachute,
Parachute Advanced, Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet,
Mediker and Revive among others that add value to the life of 1 in every 3 Indians. The
International business offers unique brands such as Parachute, HairCode, Fiancée,
Caivil, Hercules, Black Chic, Isoplus, Code 10, Ingwe, X-Men and Thuan Phat that are
localized to fulfil the lifestyle needs of their international consumers.
Charting an annual turnover of INR 59 billion (Financial Year 2016 - 2017) across their
portfolio, Marico's sustainable growth story rests on an empowering work culture that
encourages our members to take complete ownership and make a difference to the
entire business ecosystem.

About Marico>

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 Dabur India Limited, founded in 1884 and headquartered in Ghaziabad is
world’s largest Ayurvedic medicine and natural health care company with over 250
herbal/ayurvedic products. The company has offerings in key consumer product
categories such as Health suppliments, Oral care, Hair care, Skin care, Home care,
Medicines and Digestives.
Dabur India is also a world leader in Ayurveda with a portfolio of over 250
Herbal/Ayurvedic products. Its FMCG portfolio today includes five flagship brands with
distinct brand identities -- Dabur as the master brand for natural healthcare products,
Vatika for premium personal care, Hajmola for digestives, Réal for fruit juices and
beverages and Fem for fairness bleaches and skin care products. It operates in key
consumer product categories like Hair Care, Oral Care, Health Care, Skin Care, Home
Care and Foods. The ayurvedic company has a wide distribution network, covering 6
million retail outlets with a high penetration in both urban and rural markets. The
company is dedicated to the health and well-being of every household. Its innovation
mindset helps it evolve its products offerings based on the changes in the needs and
demands of the customers.

About Dabur India Ltd>

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 Britannia Industries, an Indian food products corporation based out of
Bangalore. Currently owned by the Wadia Group, its principal activity is the sale and
manufacture of bakery prodDabur India Limited, founded in 1884 and headquartered in
Ghaziabad is world’s largest Ayurvedic medicine and natural health care company with
over 250 herbal/ayurvedic products. The company has offerings in key consumer
product categories such as Health suppliments, Oral care, Hair care, Skin care, Home
care, Medicines and Digestives.
Dabur India is also a world leader in Ayurveda with a portfolio of over 250
Herbal/Ayurvedic products. Its FMCG portfolio today includes five flagship brands with
distinct brand identities -- Dabur as the master brand for natural healthcare products,
Vatika for premium personal care, Hajmola for digestives, Réal for fruit juices and
beverages and Fem for fairness bleaches and skin care products. It operates in key
consumer product categories like Hair Care, Oral Care, Health Care, Skin Care, Home
Care and Foods. The ayurvedic company has a wide distribution network, covering 6
million retail outlets with a high penetration in both urban and rural markets. The
company is dedicated to the health and well-being of every household. Its innovation
mindset helps it evolve its products offerings based on the changes in the needs and
demands of the customers.
ucts including biscuits, bread, cakes, rusk and dairy products such as cheese, milk,
butter, dahi and ghee. The company has an estimated market share of 38% across t...
About Britannia industries Ltd>

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 Godrej Consumer products limited, subsidiary of the Godrej group, is an
Indian consumer goods company established in 2001 and headquartered in Mumbai.
The company has manufacturing units across various regions of the country such as
Madhya Pradesh, Assam, Himachal Pradesh, Pondicherry, Sikkim and Tamil Nadu. It
offers products across three segments personal care, hair care and household care.
The products offered by the company include soaps, hair colour, liquid detergents, room
fresheners, hand wash, mosquito and pest repellent products. Some of the brands of
this company are Cinthol, Godrej expert, Godrej No. 1, Hit, Good Knight, Ezee, Aer,
Protekt, Godrej Fair Glow, etc. The company is a leader in hair colour, household
insecticides and liquid detergents and number two player in soaps in India.
GCPL's R&D offices concentrate on growing new items, institutionalizing new diagnostic
strategies and discovering less expensive and more plentiful options to key crude
materials. Through this innovative work focus, GCPL constantly collaborates with
customers to acquire feedback on its items and data obtained is utilized to for the
betterment of their new product development strategies.
About Godrej Consumer Products Ltd>

45 | P a g e
 Nestle India is a subsidiary of NESTLÉ S.A. of Switzerland. With eight
factories, 4 branch offices and a large number of co-packers, it provides consumers in
India with products of global standards and is committed to long-term sustainable
growth and shareholder satisfaction. The products offered by Nestlè in India range
across categories such as milk and nutrition, chocolates and confectionary, beverages
and prepared dishes and cooking aids.
Some of the famous brands of the company are Nescafe, Nestlè Everyday, Sunrise,
Maggi, Kitkat, Milkybar, Milkmaid, Nestea, Munch, Bar one, Polo and many more. It has
focused on Taste, Nutrition, Health and Wellness and well-being of the customers and
its tagline ‘Good Food, Good life’ resonates with that. It aims to create value to the
customers by offering a wide variety of safe, high quality food products at prices that are
affordable. It constantly develops its product range so as to meet the changing needs
and demands of the customers. The company with its product offerings has also given a
major push to the dairy sector of the country and has helped develop the milk economy.
Nestle is the market leader in various categories such as Infant Cereals (96.5%), Instant
Pasta(65.2%), Instant Noodles (59.5%), White Chocolates and wafers (62.6%).
About Nestle India>

46 | P a g e
 Patanjali Ayurved Limited, the fastest growing FMCG Company in the country
is a mineral and herbal products company established in 2006 and headquartered in the
industrial areas of Haridwar. The products offered by the company are in the personal
care and foods segments including baby care and beauty products.
Currently it has around 450 different kinds of products and it also manufactures over
300 medicines for the treatment of a range of body ailments. The company claims that
all its products are made from natural components and Ayurveda. Patanjali’s Dant
Kanti, Ghee, Kesh Kanti, herbal bath soap and honey are some of the its best-selling
products which have propelled the growth of this company. Patanjali’s noodles were an
attempt to promote a more healthy eating habit in the kids of the country.
The reasons for the success of the company are two folds; one is the shift in the lifestyle
of the Indian customers towards using more natural and Ayurvedic products, the second
reason is that the Patanjali products are significantly less expensive than other personal
care and food products in the market. This has made a significant proportion of Indian
middle class to move towards Patanjali.
About Patanjali Ayurved Limited>

47 | P a g e
 Hindustan Unilever Limited is the largest consumer goods company in India,
established in 1933 and is based out of Mumbai. The company known for its presence
across almost all categories of consumer products, has a variety of products in each of
the categories targeted at almost all the customer segments. It has products in over 20
consumer categories majorly Food & Drink, Personal care, Home care and Water
purifier serving over 700 million customers across the country and is undoubtedly the
market leader in the FMCG sector.
Some of the famous brands of HUL are Dove, Lux, Lifebuoy, Pears, Hamam, Lyril,
Rexona, Surf Excel, Wheel, Comfort, Clinic Plus, Sunsilk, Fair & Lovely, Pond’s, Lakmè,
Vaseline, Bru, Taj Mahal, Lipton, Brooke Bond, Cornetto, Kisan, Annapurna, Magnum,
Close up, Pepsodent, and many more.
The company with its exhaustive product range and wide distribution network aims to
provide products fulfilling the needs and demands of all the segments of the society
across the country. The company has always focused on innovative product offerings
and adapting itself to the market changes, which has helped it maintain its market
leadership.
About Hindustan Unilever (HUL)>

48 | P a g e
 ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. As the Company's ownership progressively Indianised, the
name of the Company was changed from Imperial Tobacco Company of India Limited to
India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974.
It is a holding company, which is engaged in the marketing of fast moving consumer
goods (FMGC). The Company operates through four segments: FMCG; Hotels;
Paperboards, Paper and Packaging, and Agri Business. The FMCG segment includes
Cigarettes, such as cigarettes and cigars, and Others, such as branded packaged foods
businesses (Staples, Snacks and Meals; Dairy and Beverages, and Confections);
Apparel; Education and Stationery Products; Personal Care Products; Safety Matches,
and Agarbattis. Its Hotels segment includes Hoteliering. Its Paperboards, Paper and
Packaging segment includes paperboards; paper, including specialty paper, and
packaging, including flexibles. Its Agri Business segment includes Agri commodities,
such as soya, spices, coffee and leaf tobacco. Its brands include Aashirvaad, Sunfeast
Dark Fantasy, Bingo!, Yumitos, YiPPee!, Candyman, GumOn, Classmate, Fiama Di
Wills, Vivel, Superia, Engage, Wills Lifestyle, John Players, Mangaldeep and Aim,
among others.
ITC is one of India's foremost multi-business enterprise with a market capitalisation of
US$50 billion and a turnover of US$8 billion.
About ITC Limited>

49 | P a g e
• Infographics

50 | P a g e
 • Reports

Fast moving consumer goods (FMCG) is the 4th largest sector in the Indian
economy. There are three main segments in the sector – food and beverages which
accounts for 19 per cent of the sector, healthcare which accounts for 31 per cent and
household and personal care which accounts for the remaining 50 per cent.
The FMCG sector has grown from US$ 31.6 billion in 2011 to US$ 52.75 billion in
2017-18. The sector is further expected to grow at a Compound Annual Growth Rate
(CAGR) of 27.86 per cent to reach US$ 103.7 billion by 2020.FMCG revenue grew 14.8
per cent during October-December 2017. FMCG sector is expected to register net
revenue growth of 11.8 per cent in Q4 March 2018. Indian FMCG sector is forecasted to
report revenue growth of around 11-12 per cent in FY19 from 8 per cent in FY18.
FMCG’s urban segment is expected to have a steady revenue growth at 8 per cent in
FY19 and the rural segment is forecasted to contribute 15-16 per cent of total income in
FY19.*
Accounting for a revenue share of around 45 per cent, rural segment is a large
contributor to the overall revenue generated by the FMCG sector in India. Demand for
quality goods and services have been going up in rural areas of India, on the back of
improved distribution channels of manufacturing and FMCG companies. Urban segment
accounted for a revenue share of 55 per cent in the overall revenues recorded by
FMCG sector in India.
FMCG Companies are looking to invest in energy efficient plants to benefit the society
and lower costs in the long term. Dabur is planning to invest Rs 250-300 crore (US$
38.79-46.55 million) in FY19 for capacity expansion and is also looking for acquisitions
in the domestic market.
Growing awareness, easier access, and changing lifestyles are the key growth drivers
for the consumer market. The focus on agriculture, MSMEs, education, healthcare,
infrastructure and employment under the Union Budget 2018-19 is expected to directly
impact the FMCG sector. These initiatives are expected to increase the disposable
income in the hands of the common people, especially in the rural area, which will be
beneficial for the sector.
* - According to CRISIL report

51 | P a g e
It's the Earnings

It's all about earnings. That's the bottom line that investors want and need to know: How much
money is the company making and how much is it likely to make in the future?

Earnings are profits. They can be complicated to calculate, but that's what buying a company is
all about. Increasing earnings generally leads to a higher stock price and, in some cases, a
regular dividend.

When earnings fall short, the market can hammer the stock. Companies report earnings every
quarter, and analysts follow major companies closely. They sound the alarm when and if those
companies fall short of projected earnings.

Fundamental Analysis Tools

Although earnings are important, they can't really tell you anything by themselves. They don't
identify how the market values the stock on their own. You'll also need some fundamental
analysis tools to begin building a picture of how the stock is valued.

These ratios aren't difficult to calculate and, in fact, you can find most of them already
completed for you on websites like CNN Money or MSN MoneyCentral.

But if you want to wade in yourself, keep in mind that some of the most popular tools of
fundamental analysis focus on earnings, growth, and value in the market. These are some of
the factors you'll want to identify and include:

• Earnings per Share (EPS): How much of a company's profit is assigned to each share of
stock? Earnings per share is calculated as net income fewer dividends on preferred stock
divided by the number of outstanding shares.

• Price to Earnings Ratio (P/E): This ratio compares the current sales price of a company's
stock to its per-share earnings.

• Projected Earnings Growth (PEG): PEG anticipates the one-year earnings growth rate of
the stock.

• Price to Sales Ratio (P/S): The price to sales ratio values a company's stock price as
compared to its revenues. It's also sometimes called the PSR, revenue multiple, or sales
multiple.

• Price to Book Ratio (P/B): This ratio, also known as the price to equity ratio, compares a
stock's book value to its market value. You can arrive at it by dividing the stock's most
recent closing price by last quarter's book value per share. Book value is the value of an
asset as it appears in the company's books. It's equal to the cost of each asset less
cumulative depreciation.

52 | P a g e
• Dividend Payout Ratio: This compares dividends paid out to the stockholders to the
company's total net income. It accounts for retained earnings, income that is not paid
out but rather retained for potential growth.

• Dividend Yield: This, too, is a ratio: yearly dividends compared to share price. It's
expressed as a percentage. Divide dividends paid in a one-year period per share by the
value of a share.

• Return on Equity: Divide the company's net income by shareholders' equity to find its
return on equity. You might also hear this expressed as the company's return on net
worth.

53 | P a g e
TECHNICAL

• Stock Charts — Since cleanliness is the most crucial criterion for choosing the stock
analysis tool; therefore we would like to place Stock Charts in the list of top five options.
The clean interface and ease of use of this stock analysis tool is really impressive. This is
the reason why this stock charting website is being widely used by the financial bloggers
around the world. The wide range of free tools offered by Stock Charts is really helpful
for the financial experts in analyzing the stocks.

• Simple Moving Average — This stock market analysis tool provides you the average of
the previous N number of days, and that too on daily basis. Most of the users of this tool
utilize it for three time period options- 20, 50, and 200 days. In this way, three dissimilar
levels of time information can be gathered through this tool. One can use this stock
market analysis tool for providing support as well as resistance regions, and also to make
decisions on buying and selling the stocks. For those who do not have much idea on using
stock market tools, the Simple Moving Average can be an excellent option to start with.

• Relative Strength Index — If you can handle complex mathematical calculations, then
this one can be an excellent option for you. This stock analysis tool makes comparison
between gains and losses, and based on the comparison result, it prepares the chart. For
this reason, when the relative strength index of a stock is shooting up at a significant
rate, it means that the value of the stock and its profit are quickly out numbering its
losses; that too on a daily basis.

• Support and Resistance

You may hear or read technical experts recommending support and resistance levels.
But plotting support and resistance and finding it yourself is a simple job. As you know,
prices move in a zig-zag fashion and form lows and highs. A support is plotted at the
daily low price and resistance at the daily high price.
• Fibonacci Retracement
Fibonacci retracement is based on the assumption that the markets retrace by a few
predictable percentages, the best known of which are 38.2%, 50% and 61.8%. So, when
the market retraces 38%, it will generate either a sell or a buy call depending on the
trend.
You have to plot Fibonacci retracement from the peak price. The software will give the
above mentioned retracement levels. When the price reaches the 38.2% level and
bounces, it means the price of the stock at which the chart plots the 38.2% retracement
is the support level and you can buy. However, if the price falls below the 38.2% level,
you may look at the price at 50% retracement level as your next support. The chart,
Fibonacci Retracement, shows how the 38.2% retracement is working well for the
Ranbaxy stock.

54 | P a g e
Mutual Funds

I. Open-Ended - This scheme allows investors to buy or sell units at any point in time. This does
not have a fixed maturity date.

1. Debt/ Income - In a debt/income scheme, a major part of the investable fund are
channelized towards debentures, government securities, and other debt instruments. Although
capital appreciation is low (compared to the equity mutual funds), this is a relatively low
risk-low return investment avenue which is ideal for investors seeing a steady income.

2. Money Market/ Liquid - This is ideal for investors looking to utilize their surplus funds in
short term instruments while awaiting better options. These schemes invest in short-term debt
instruments and seek to provide reasonable returns for the investors.

55 | P a g e
3. Equity/ Growth - Equities are a popular mutual fund category amongst retail investors.
Although it could be a high-risk investment in the short term, investors can expect capital
appreciation in the long run. If you are at your prime earning stage and looking for long-term
benefits, growth schemes could be an ideal investment.
• 3.i. Index Scheme - Index schemes is a widely popular concept in the west. These follow
a passive investment strategy where your investments replicate the movements of
benchmark indices like Nifty, Sensex, etc.

3.ii. Sectoral Scheme - Sectoral funds are invested in a specific sector like infrastructure,
IT, pharmaceuticals, etc. or segments of the capital market like large caps, mid caps, etc.
This scheme provides a relatively high risk-high return opportunity within the equity
space.

3.iii. Tax Saving - As the name suggests, this scheme offers tax benefits to its investors.
The funds are invested in equities thereby offering long-term growth opportunities. Tax
saving mutual funds (called Equity Linked Savings Schemes) has a 3-year lock-in period.

4. Balanced - This scheme allows investors to enjoy growth and income at regular
intervals. Funds are invested in both equities and fixed income securities; the proportion
is pre-determined and disclosed in the scheme related offer document. These are ideal
for the cautiously aggressive investors.

II. Closed-Ended - In India, this type of scheme has a stipulated maturity period and
investors can invest only during the initial launch period known as the NFO (New Fund
Offer) period.

• 1. Capital Protection - The primary objective of this scheme is to safeguard the principal
amount while trying to deliver reasonable returns. These invest in high-quality fixed
income securities with marginal exposure to equities and mature along with the
maturity period of the scheme.

2. Fixed Maturity Plans (FMPs) - FMPs, as the name suggests, are mutual fund schemes
with a defined maturity period. These schemes normally comprise of debt instruments
which mature in line with the maturity of the scheme, thereby earning through the
interest component (also called coupons) of the securities in the portfolio. FMPs are
normally passively managed, i.e. there is no active trading of debt instruments in the
portfolio. The expenses which are charged to the scheme, are hence, generally lower
than actively managed schemes.

III. Interval - Operating as a combination of open and closed ended schemes, it allows
investors to trade units at pre-defined intervals.

56 | P a g e
 ON THE JOB TRAINING:-

1.TRAINING ON HOW TO TRADE IN EQUITY MARKET

2.BUSINESS CYCLE

3.MOTIVATIONAL INCIDENTS

4.CASE STUDIES

5.MUTUAL FUNDS ALLOCATIONS

6.DIFFERENT PLANS OF INSURANCE

7.SELLING OF INSURANCE

8.COMMUNICATING WITH DIFFERENT CUSTOMERS AND UNDERSTANDING THEIR

NEEDS

9. TECHNICAL AND FUNDAMENTAL ANALYSIS TOOLS

57 | P a g e
 Mutual Fund Allocation of F.M.C.G. Sector.

NIFTY FMCG INDEX = 28519.6

Funds to be Allocated =10 cr.

Date : 20-6-2018

Companies Prices P.E Ratio Valued E.P.S L.T.P.T P.E.G Growth

Ratio pick
Emami 1073.8 78.73 Over 13.64 1073.8772 5.7719941 -
35
Britannia 6012.75 76.17 Over 78.95 6013.6215 0.9647878 Growth
4
Godrej 600 83.5 Over 7.18 599.63 11.629526 -
46
H.U.L 381.25 66.43 Over 24.19 1606.9417 2.7461761 -
06
Colgate 1195 48.26 Under 24.76 1994.9176 1.9491114 -
7
Dabur 380.9 62.75 Under 6.07 380.8925 10.337726 -
52
Marico 334.15 60.37 Under 5.56 335.6572 10.857913 -
67
Godrej 1166.75 79.56 Over 14.68 1167.9408 -
5.4196185
Consumer 29

P&G 9958.95 79.22 Over 125.71 9958.7962 0.6301805 Growth

74
Jubliant 2735 87.43 Over 31.28 2734.8104 -
2.7950767
Foods 26

United 668.95 86.54 Over 7.73 668.9542 -

11.195342
Spirits 82

Glaxo Smith 6102.4 36.73 Under 166.47 6114.4331 0.2206403 Growth

56
I.T.C 263.85 28.68 Under 9.2 263.856 3.1173913 -
04
United 1265.1 84.80 Over 14.9 1263.52 -
5.6912751
Breweries 68

Tata Global 260.55 30.77 Under 8.47 260.6218 -

3.6328217
Beverage 24

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Average 65.996

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 Ratio Analysis & Ranking

Companies E.P.S Rank R.O.C.E. Rank R.O.N.W Rank C.R Rank A.T.O.R Rank

Emami 13.64 9 25.95 9 20.22 9 0.46 14 1.21 11

Britannia 78.95 3 48.5 4 32.67 4 2 3 4 2

Godrej 7.18 13 1.54 15 -8.99 15 0.24 15 0.78 15

H.U.L 24.19 6 104.12 2 74.02 2 0.94 10 5.09 1

Colgate 24.76 5 66.84 3 45.33 3 0.97 8 3.6 3

Dabur 6.07 14 33.24 7 27.29 6 0.83 11 1.54 9

Marico 5.56 15 38.06 5 28.81 5 1,68 5 1.73 7

Godrej 14.68 8 24.14 10 19.28 10 0.66 12 1.14 12

Consumer

P&G 125.71 2 129.66 1 82.24 1 1.31 6 2.32 6

Jubliant 31.28 4 12.89 14 7.89 14 0.61 13 3.19 4

Foods

United 7.73 12 16.89 11 8.76 13 0.97 8 1.55 8

Spirits

Glaxo Smith 166.47 1 32.44 8 21.02 8 2.4 2 1.45 10

I.T.C 9.2 10 34.22 6 22.49 7 1.94 4 1.06 13

United 14.9 7 14.87 12 9.83 12 1.25 7 1.8 6

Breweries

Tata Global 8.47 11 14.46 13 12.68 11 2.6 1 0.79 14

Beverage

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 sAs on 20-6-2018

Value of Funds

Companies Net Total Net Amount Allotted No.of shares

Rank (in cr.)

Emami 50 12 0.3 2796

Britannia 16 2 1.5 2502

Godrej 75 15 0.1 1667

H.U.L 20 3 1.25 7801

Colgate 23 4 1 8384

Dabur 47 8 0.5 13165

Marico 35 6 0.5 14908

Godrej Consumer 48 10 0.3 2581

P&G 15 1 1.75 1759

Jubliant Foods 54 14 0.2 734

United Spirits 48 10 0.3 4497

Glaxo Smith 29 5 1 1649

I.T.C 42 7 0.5 18957

United Breweries 47 8 0.5 3960

Tata Global 50 12 0.3 11501

Beverage

NAV 10

As on 18-7-2018

Value of Funds

Nifty FMCG Index = 29074.55

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 Amount Allocation
Companies Prices No.of shares
(in cr.)
Rank
Emami 551.2 2796 0.15411552
12
Britannia 6380 2502 1.596276
2
Godrej Industries 598.2 1667 0.09971994
15
H.U.L 1655 7801 1.2910655
3
Colgate 1127.95 8384 0.94567328
4
Dabur 379.8 13165 0.5000067
8
Marico 351.3 14908 0.52371804
6
Godrej Consumer 1327.65 2581 0.342666465
10
P&G 10298 1759 1.8114182
1
Jubliant Foods 1427.55 734 0.10478217
14
United Spirits 573.4 4497 0.25785798
10
Glaxo Smith 6400 1649 1.05536
5
I.T.C 269.7 18957 0.51127029
7
United Breweries 1134.9 3960 0.4494204
8
Tata Global Beverage 240 11501 0.276024
12
NAV 9.919374485

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CONCLUSION :

My Internship at ADITYA BIRLA CAPITAL was the first instance when I was able to gain
practical knowledge in corporate life, Although I had an experience of 9 months as
Trainee(Accounts). Atmosphere at ADITYA BIRLA was very welcoming and staff at the
office of GHATKOPAR branch was very supportive.

This internship helped me to overcome my fear of working so many hours at a single

place, it taught me that if you organize and plan your day and daily activities well you
can be a successful person. It also helped me to develop my soft skills, technical skills
and analytical skills. Summer internship project’s experience was one the of the most
beautiful summer experience as I was able to learn a lot which will be fruitful to me
for my whole life.

Getting a tag of working with ADITYA BIRLA was a prestigious one for me and these 3
months of training was amazing as I was able to meet new people which will definitely
create opportunities in future for me to grab on.

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Bibliography:-
1. Indian FMCG Industry Analysis - IBEF
https://www.ibef.org › Industry › FMCG

2. Aditya Birla Capital

https://www.adityabirlacapital.com

3. Moneycontrol
https://www.moneycontrol.com

4. Insurance Sector in India: Industry Overview, Market Size & Trends | IBEF
https://www.ibef.org › industry › insuran...

5. 5 technical indicators you should know as an investor - Business Today

https://m.businesstoday.in › story › five-t...

6. Financial Reports - Aditya Birla Capital

https://www.adityabirlacapital.com › fina...

7. Aditya Birla Sun Life MF | Invest in Mutual Fund | adityabirlacapital.com

Adsipnow.adityabirlacapital.com/Plan_Your_Luck/Online_Process

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