CHAPTER - 1
About the industry:
Fast moving consumer goods are products that have a quick turnover, and relatively low cost. FMCG generally include a wide range of often purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-durables such as glassware, bulbs, condoms, batteries, paper products and plastic goods.
The purchasers usually put less thought into the purchase of FMCG than they do for other durable products such as electronic items. In comparison with other industries such as automobiles, computers, and airlines, FMCG business has a steady rate of growth, for it does not suffer from huge recession and layoffs every time the economy starts to dip. In FMCG business absolute profit made on the products is relatively small. Since they generally sell in large numbers, the overall profit on such products can be huge.
Indian FMCG industry is expected to grow at a base rate of at least 12% annually to become a ` 4,000 Billion industry in 2020, according to a new report by Booz & Company. The Report titled “FMCG Roadmap to 2020 – The Game Changers” was released at the CII FMCG Forum 2010 in New Delhi today. The Report noted that the positive growth drivers mainly pertain to the robust GDP growth, opening up and increased income in the rural areas of the country, increased urbanization and evolving consumer lifestyle and buying behavior. The big firms are growing bigger and small-time companies are catching up as well. According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies.
Some of the notable players in the Indian FMCG Industry:
1. Hindustan Unilever Limited (HUL)
2. ITC Limited
3. Nestle India Limited
5. Parle Products
6. Britannia Industries
7. Procter and Gamble
8. Asian Paints
9. Amul Dairy Limited
10. Cadbury India Limited
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianized, 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. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. The Company’s beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of ` 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which...
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