Fast Moving Consumer GoodsWatching its Moves

The number of Moves

• Fourth largest sector in the economy with a total market size

• What is the market Size?

billion US $1 3

Source: Ibef

The Three Nodes

Household Care

Food and Beverages

Personal Care

Market size

= number of buyers in the market

xquantity purchased by an average buyer in

the market per year

xprice of an average unit

The Consumption Pie

Grocery

PersonalCare

Source: Ibef

What keeps you moving?The good factors for the GOODS

1. Individual segments2. Per Capita Consumption3. Penetration Levels4. MGI

Why is it so promising?

1. Individual SegmentsFICCI throws up a double digit• Household

– Laundry– Home Cleanliness– Repellants

• Personal Care– Bath Soaps– Deodorants– Skin Care– Oral Care

• Foods & Beverages– Tea– Coffee– Ready To Eat

23 %

40 %

10 - 15 %

Source: Ibef

2. Per Capita Consumption

Source: Ibef

3.Penetration Levels a.] High Penetration Category

Category Market SizeUS $

UrbanPenetration

RuralPenetration

TotalPenetration

Fabric Wash 1210 90 % 83% 85%

Personal Wash 938 98% 91% 93%

Packet Tea 635 91% 82% 85%

Drive Upgradation and Consumption

Source: Ibef

3 b.] Low Penetration Category

Category Market SizeUS $

UrbanPenetration

RuralPenetration

TotalPenetration

Toothpaste 409 70 % 32 % 44 %

Skin 312 37 % 20 % 25 %

Hair Wash 230 40 % 16 % 23 %

Talcum Powder

148 66 % 37 % 45 %

Branded Atta 107 44 % 30% 34%

Dish Wash 102 55% 12% 24%

Drive PenetrationSource: Ibef

4.Mc Kinsey Global Index [MGI]

• Based on Annual Disposable Income

Bracket Individual

Deprived Migrated workers

Aspirers Shopkeepers,Farmers

Seekers Middle class

Strivers Upper Middle Class

Global Indians

Source : Mc Kinsey Report

Higher Disposable Income

1% 2%

23%

43%

30%

Yr 2015 - Households Millions

Globals Strivers Seekers Aspirers Deprived

Source : Mc Kinsey Report

Different Strokes for Different Folks

Wheel

Rin

Surf Excel

Surf Excel Matic

Opportunity to Upgrade

Source : Mc Kinsey Report

How we consume?Watching the consumer

FMCG growth driversIncreased growth due to rising demand, fiscal incentives and improved performance of leading companies

Changing dynamics

• Luxury goods are now being perceived as necessities

• Increased demand for value-added and aspirational products

• Focus on the neighbouring markets• Revival in rural markets

Numbers speak….Company Major Brands Top line

GrowthBottom line Growth

Tata Tea Tea Tea 1.3% 138%

P&G Head & Shoulders 25% 43%

Dabur Babool 18.4% 18%

Colgate-Palmolive Colgate 14% 16%

GSK Consumer Horlicks 21% 5%

Godrej Consumer Cinthol 27% (7%)

Marico Parachute 30% 11.5%

HUL Surf 20% 7%

ITC Sunfeast 18% 13%

Source:

That’s all Folks !!!Keep Moving