FMGC SECTOR

PRESENTED BYSUBMITTED To

Prof. Ms. SEEMA LADHA

FMGC Sector

The fast-moving consumer goods (FMCG) sector in India is the fourth largest sector

in the economy.

The FMCG sector in India has market size in excess of US$ 13.1 billion as of the year

2012

The FMCG sector in India had a growth rate of 15% in the year 2011.

Introduction

Hindustan Unilever Limited (HUL) is India's largest consumer goods company based in Mumbai, Maharashtra.

It is owned by the British-Dutch company Unilever which controls 52% majority stake

in HUL.

Its products include foods, beverages, cleaning agents and personal care products.

It is headquartered in Mumbai, India and has an employee strength of over 16,500

employees and contributes to indirect employment of over 65,000 people.

Hindustan Unilever's distribution covers over 2 million retail outlets across India

directly and its products are available in over 6.4 million outlets in the country.

As per Nielsen market research data, two out of three Indians use HUL products

History

Date of Establishment 1933

Industry Consumer goods

Headquarters Mumbai, Maharashtra, India

Key people Harish Manwani (Chairman), Nitin Paranjpe (CEO and

MD)

Business Operation Foods, beverages, cleaning agents and personal care products

Net income 22,691 crore (US$489.76 million) (2011-2012

VISION

Work to create a better future every day.

To earn the love and respect of india ,by making a real difference to every india

Help people feel good, look good and get more out of life with brands and

services that are good for them and good for others.

Develop new ways of doing business with the aim of doubling the size of our

company while reducing our environmental impact.

Mission or Goal

Unilever's mission is to add Vitality to life and meet everyday needs for nutrition,

hygiene, and personal care with brands that help people feel good, look good

and get more out of life.

The main aim of the company is to make a billion of Indians feel safe and

secure

SWOT Analysis

Strength

HUL is a part of the Unilever group, hence strong brand equity

It has over 16500 employees

Reach 6.4 million retail outlets which includes direct reach to over

5 million retail outlets

Two R&D centers in India in Mumbai and Bangalore

Products with presence in over 20 consumer categories with over

700 million Indian consumers using its products

SWOT Analysis Cntd..

Weakness

Market share is limited due to presence of other strong FMCG brands

HUL products has stiff competition from big domestic players and international brands

Opportunity

Tap rural markets and increase penetration in urban areas

Mergers and acquisitions to strengthen the brand

Increasing purchasing power of people thereby increasing demand

SWOT Analysis cntd..

Threats

Intense and increasing competition amongst other FMCG companies

FDI in retail thereby allowing international brands

Competition from unbranded and local products

Value Chain

PORTER’S 5 FORCES MODEL

PEST ANALYSIS

Political

Since the budget range is decontrolled, no political effects are

envisaged.

Economic

Increasing per capita income resulting in higher Disposable

income

Growing middle class/urban population ± increase in Demand

Low cost of production ± better penetration

PEST ANALYSIS Cntd..

Social

Per capita consumption expected to increase fashion

Increasing gifts culture so, increase in demand

Technology

Will have to reinforce technology to international levels Once India is

a fully free economy

COMPETITIVE STRATEGIES ARE

Best cost providers strategy

Focused low cost strategy

Focused differentiation strategy

Competition

Competitors

Marico

L'Oréal

Nirma Ltd

ITC

Colgate-Palmolive

Procter and Gamble

Dabur

Market share - (Year 2012)

Contribution to Different Sectors

HOME & PERSONAL CARE

FOODS

EXPORTS

OTHERS(CHEMICALS, WATER)

16.2%

7.3%

2.2%

THANK YOU