ANALYSIS OF FMCG SECTOR
(FAST MOVING CONSUMER GOODS)
Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG).FMCG industry, alternatively called as CPG (Consumer packaged goods) industry primarily deals with the production, distribution and marketing of consumer packaged goods. The Fast Moving Consumer Goods (FMCG) are those consumables which are normally consumed by the consumers at a regular interval. Its principal constituents are Household Care, Personal Care and Food & Beverages. Examples of FMCG commonly include a wide range of repeatedly purchased consumer products such as toiletries, soap, cosmetics, oral care products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products etc.
* ECONOMIC ANALYSIS
FMCG industry provides a wide range of consumables and accordingly the amount of money circulated against FMCG products is also very high. The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector with total market size of US$13.1 billion. FMCG Sector in India is estimated to grow 60% by 2010. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5% of Gross Domestic Product (GDP). The economy of India is the eleventh largest in the world by nominal GDP and the third largest by purchasing power parity (PPP).The country is one of the G-20 major economies and a member of BRICS. After the independence-era Indian economy (before and a little after 1947) was inspired by the Soviet model of economic development, with a large public sector, high import duties combined with interventionist policies, leading to massive inefficiencies and widespread corruption. However, later on India adopted free market principles and liberalized its economy to international trade under the guidance of Manmohan Singh, who then was the Finance Minister of India under the leadership of P.V.Narasimha Rao the then Prime Minister who eliminated License Raj a pre- and post-British Era mechanism of strict government control on setting up new industry. Following these strong economic reforms and a strong focus on developing national infrastructure such as the Golden Quadrilateral project by Atal Bihari Vajpayee the then Prime Minister the country's economic growth progressed at a rapid pace with very high rates of growth and large increases in the incomes of people. It’s one of the fastest-growing economies in the world.
* Decline in Indian market
* FII pulled out as much as Rs 213 crore from the Indian equity market. * Rupee depreciated
* The 27 EU countries have a share of 18.6% in India`s exports. The share of EU countries in India`s total exports has declined from 20.2% in FY10 to 18.6% in FY11 on account of the sovereign debt crisis in major economies of this region. * Slowdown in the Manufacturing and Service sectors
* Market votality
GDP indicates the total dollar value of all the goods and services produced over a specific period of time
Senses was last trading down 1.1 % after government data showed the nation's annual economic growth slumped to a nine-year low of 5.3 in the January-March quarter.
MIDDLE EAST CRISIS AND RISING OIL PRICES
The world is badly placed to cope with another oil crisis
* Libya, Bahrain, Yemen, Iran and Algeria (which contribute to a tenth of the world’s oil supplies). * These regions hold a whopping 35% of the world’s oil resources. * Oil prices has shot above $115...