Submitted by: Submitted by Shishir
Views: 567
Words: 580
Pages: 3
Category: Business and Industry
Date Submitted: 02/13/2011 08:22 AM
FMCG SECTOR
Industry Overview
* The Indian FMCG sector is estimated at US$ 25 billion (2008) by FICCI.
* The sector is estimated to grow at a CAGR of 12%.
* By 2018 the sector will be tripled in size i.e. US$ 74 billion.
FMCG Industry Category Breakup
* Food and Beverages – 53%
* Personal Care – 20%
* Tobacco – 15%
* Household Care – 10%
* Lighting – 2%
Contribution of FMCG Sector
* Economic Contribution
* Approximately 12-13 million retail stores in India, out of which 9 million are FMCG Kirana stores.
* The sector is responsible for the livelihood of almost 13 million people.
* FMCG’s contribution by way of employment salary, taxes and payouts to other sectors comes to an estimated US$ 17 billion.
* Fiscal Contribution
* Almost 30% of the revenue of the sector goes into both direct and indirect taxes. The contribution to the exchequer of approximately US$ 6.5 billion (30% 0f US$ 25 billion).
* Contribution to other Sectors
* Agriculture – FMCG Sector spends on the raw materials i.e. 9% of its total turnover (US$ 2.2 billion)
* Ancillary Industries
* Manufacturing – 9-10% of the total sector’s production is out-sourced to contract manufacturing units taking the total size to US$ 1.7-2 billion.
* Distribution
* ITC Services 1.1 million outlets
* Marico reaches 1.6 million outlets through 900 direct distributors, 100+ super distributors, catering 2500 small stockists and 4600 van markets.
* HUL reaches 50,000 villages through 6,000 stockists, apart from 3.5 lakh direct selling agents and distributes products to 6.5 million retail outlets.
* Packaging Industry
* The packaging industry for the FMCG sector alone is worth US$ 2.9 billion.
* Media Industry
* 40% of the media industry earnings from advertising i.e. US$ 2 billion.
Growth Drivers: Discretionary Spending on the Rise
* Demand – side Drivers
* Consistent GDP Growth
* Increasing Consumer...