Fmcg Sector

Topics: Financial ratios, P/E ratio, Dividend yield Pages: 24 (6825 words) Published: March 24, 2013
Executive summary

The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. FMCG market is expected to rise to 33.4 Billion US$ till 2015.

This report starts with a brief introduction of FMCG market along with industry Overview. It further state why FMCG sector us analyzed and why India. in this report three FMCG company “ HUL, Nestle India , and ITC” is analyzed there history their shareholding pattern with their product is being discussed.

The company’s fundamental analysis is shown in the report. An analysts evaluates the stocks based on different parameter like fundamentals of the company i.e. earnings of the company, P/E dividend yield and many more things.

The report also include the distinguish feature of FMCG as compared to other sector and a well-defined conclusion


* To know about the FCMG industry and how it is contributing towards Indian economy

* To find out how the judgment is taken by the analyst on the basis of fundamental analysis of the company.

* To guide investors for selecting industry by which they can able to make returns from the amount invested in that company.

* To analyze the ratios of selected company to find out financial condition of selected companies


Research methodology is a way to systematically solve the research problem. The research methodology is used to find out the solution of the research problem of analytical research methodology and some extend descriptive research methodology.

* Primary Data

* Primary data collect by discussing with my guide and other staff of the company. * Observation

* Secondary Data
The sources of secondary data to solve the problems are:- * Company Annual Report
* Company Internal Data
* Internet-Websites

Introduction of FMCG sector in India

What is Fast Moving Consumer Goods (FMCG)?
Products which have a quick turnover, and relatively low cost are known as Fast Moving Consumer Goods (FMCG). FMCG products are those that get replaced within a year. Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, tooth cleaning 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, soft drinks, tissue paper, and chocolate bars. Subsets of FMCGs are Fast Moving Consumer Electronics which include innovative electronic products such as mobile phones, MP3 players, digital cameras, GPS Systems and Laptops. These are replaced more frequently than other electronic products. White goods in FMCG refer to household electronic items such as Refrigerators, T.Vs, Music Systems, etc. In 2005, the Rs. 48,000-crore FMCG segment was one of the fast growing industries in India. According to the AC Nielsen India study, the industry grew 5.3% in value between 2004 and 2005.

The Indian FMCG sector is the fourth largest in the economy and has a market size of US$13.1 billion. Well-established distribution networks, as well as intense competition between the organized and unorganized segments are the characteristics of this sector. FMCG in India has a strong and competitive MNC presence across the entire value chain. It has been predicted that the FMCG market will reach to US$ 33.4 billion in 2015 from US $ billion 11.6 in 2003. The middle class and the rural segments of the Indian population are the most promising market for FMCG, and give brand makers the opportunity to convert them to branded products. Most of the product categories like jams, toothpaste, skin care, shampoos, etc., in India, have low per capita consumption as well as low penetration level, but the potential for growth is huge.

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