Date post: | 15-Apr-2017 |
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Economy & Finance |
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Group Members:1. Komal Maheshwari2. Mayur Sadawarti3. Raghav BC4. Shibam kumar Gupta
FMCG Industry•The FMCG segment is the fourth largest sector in the Indian economy with a total market size in excess of US$ 33.4 billion.•Expected to grow at CAGR 14.7% during 2012-20, whereas rural FMCG at CAGR 17.7%•It accounted for 2.4% of GDP in the year 2013.•It has grown at annual average rate of 11% in the last decade.
Distinguishing features of
Indian FMCG Business
Design and Manufacturing
Low capital intensity
Technology
Third Party manufacturing
Marketing and Distribution
High Initial Launch Cost
Limited Mass Media Options
Huge Distribution
Network Competition
Rising per capita disposable incomeIncreasing discretionary
expenditure
Growing rural market Growing popularity of modern trade
Key Growth Factors for Future
Urban / semi-urban
customerUrban customer
semi-urban/rural customer rural customer
Retail stockist Kirana store
Semi urban retailer
Rural wholesaler
Carrying and forwarding agents in a certain state
Manufacturing facilities
Redistribution stockist
E-commerce
Rural retailer
Distribution Network
Logistics spending in Indian FMCG Sector (% of total sales)
Source: ETIC, Cygnus Research
The Procter & Gamble Company, also known as P&G, is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, USA. Its products include pet foods, cleaning agents and personal care products.
FOUNDERSWilliam Procter, a candle maker, and James Gamble, a soap maker,
emigrated from England and Ireland respectively.
P&G History: A Legend of Firsts
1837 Brothers-in-law William Procter and James Gamble start a partnership, making and selling candles and soap in Cincinnati
1859 P&G sales reach $1 million1879 The inexpensive, but high-quality Ivory soap is introduced1924 P&G is one of the first to create a market research department to study consumer preferences and
buying habits1955 Crest, the first toothpaste with fluoride clinically proven to fight cavities, is introduced1961 Pampers is introduced and eventually replaces cloth diapers1980 Sales reach $10 billion2002 P&G develops Naturally feminine pads specifically to meet the needs of low-income women in Latin
America.2005 High Frequency Stores, Consisting of nearly 20 million stores across the world, FS represents a
particular opportunity in fast-growing low income markets.Today P&G operates in 80 countries worldwide, employing more than 100,000.
Has 13 billion dollar brands in its portfolio: Charmin, Tide, Pantene, Iams, Folgers, Crest, Olay, Always, Ariel, Bounty, Downy, Pringles, Pampers.
In 2012, P&G recorded $83.68 billion dollars in sales. Fortune magazine awarded P&G a top spot on its list of "Global Top
Companies for Leaders", and ranked the company at fifth place of the "World's Most Admired Companies" list.
Chief Executive Magazine named P&G the best overall company for leadership development in its list of the "40 Best Companies for Leaders
Comparative statement (BS)Comparative statement
2014-13 (% Change) 2013-12 (% Change) 2012-11 (% Change) 2011-2010 (% Change)
Total Share Capital 0.00% 0.00% 0.00% 0.00%
Equity Share Capital 0.00% 0.00% 0.00% 0.00%
Total Debt -26.88% 9.41% 5.37% 14.69%
Inventories -0.32% 28.86% 41.24% 20.07%
Total Current Assets 29.48% 13.32% 42.64% 146.38%
Current Liabilities 0.99% -6.20% 66.88% -11.22%
P&G Comparative P&L
2014-13 2013-12 2012-11 2011-10
Net Sales 22% 31% 29.00% 11%
Total Income 19% 31% 31.00% 13%
Raw Materials 10% 36% 38.00% 40%
Total Expenses 11% 32% 33.00% 27%
Operating Profit 68% 25% 22.00% -32%
Reported Net Profit49%
12%20.00%
-16%
Earning Per Share (Rs)49%
12%20.00%
-16%
Jun '10 Jun '11 Jun '12 Jun '13 Jun '141.9
2
2.1
2.2
2.3
2.4
2.5
Current Ratio
Current Ratio
Jun '10 Jun '11 Jun '12 Jun '13 Jun '140
5
10
15
20
25
Inventory Turnover Ratio
Inventory Turnover Ratio
Jun '10 Jun '11 Jun '12 Jun '13 Jun '140
0.0005
0.001
0.0015
0.002
0.0025
0.003
0.0035
0.004
0.0045
Debt Equity Ratio
Debt Equity Ratio
Jun '10 Jun '11 Jun '12 Jun '13 Jun '140
0.5
1
1.5
2
2.5
Asset Turnover Ratio
Asset Turnover Ratio
Jun '10 Jun '11 Jun '12 Jun '13 Jun '140.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Average Collection Period
Average Collection Period
Jun '10 Jun '11 Jun '12 Jun '13 Jun '140
5
10
15
20
25
30
35
40
Debtors Turnover Ratio
Debtors Turnover Ratio