Fmcg Strategy
The Indian FMCG Industry
Dinodia Capital Advisors September 2012
Index
I. II. Executive Summary Market Overview
– – – – Industry Overview Evolution of the Indian FMCG Sector Porter’s Five Forces Model SWOT Analysis Key Challenges Trends in the Industry Growth Drivers Government Policies Major Segments
III.
Industry Analysis
– – – – –
IV. Investments in the Sector
– Recent M&A Deals – Recent Private Equity Deals
V.
Major Players
– Major Players – Common Stock Comparison
1
Index
VI. Profiles of the Major Players
– – – – – – – – – ITC HUL Nestle Dabur Godrej Consumer Colgate-Palmolive Marico GSK Consumer Britannia
VII. Corporate Profile (Dinodia Capital Advisors)
2
Executive Summary (1/2)
The Fast Moving Consumer Goods (FMCG) sector in India has been growing at a healthy CAGR of 11% over the last decade Riding on the back of increasing demand and changing consumer preferences, thanks to higher disposable incomes and the retail revolution, the sector has been posting double-digit growth over the past couple of years The industry is volume driven and is characterized by low margins. The products are branded and backed by skilled marketing, heavy advertising, slick packaging and strong distribution networks. Also, raw material prices play an important role in determining the pricing of the final product Modern retail formats too have contributed in a major way in pushing the growth in the FMCG sector. With rising income levels and the spread of modern retail, the FMCG industry’s future prospects look bright which is expected to further boost sales
Growth in the sector is led by higher urban and rural demand. Going forward , the government’s growing support to agriculture will drive long-term growth in consumption from the rural sector
In our view, amongst all the FMCG segments, the food segment will outperform over the coming years
3
Executive Summary (2/2)
The Indian food industry is a significant part of the
Dinodia Capital Advisors September 2012
Index
I. II. Executive Summary Market Overview
– – – – Industry Overview Evolution of the Indian FMCG Sector Porter’s Five Forces Model SWOT Analysis Key Challenges Trends in the Industry Growth Drivers Government Policies Major Segments
III.
Industry Analysis
– – – – –
IV. Investments in the Sector
– Recent M&A Deals – Recent Private Equity Deals
V.
Major Players
– Major Players – Common Stock Comparison
1
Index
VI. Profiles of the Major Players
– – – – – – – – – ITC HUL Nestle Dabur Godrej Consumer Colgate-Palmolive Marico GSK Consumer Britannia
VII. Corporate Profile (Dinodia Capital Advisors)
2
Executive Summary (1/2)
The Fast Moving Consumer Goods (FMCG) sector in India has been growing at a healthy CAGR of 11% over the last decade Riding on the back of increasing demand and changing consumer preferences, thanks to higher disposable incomes and the retail revolution, the sector has been posting double-digit growth over the past couple of years The industry is volume driven and is characterized by low margins. The products are branded and backed by skilled marketing, heavy advertising, slick packaging and strong distribution networks. Also, raw material prices play an important role in determining the pricing of the final product Modern retail formats too have contributed in a major way in pushing the growth in the FMCG sector. With rising income levels and the spread of modern retail, the FMCG industry’s future prospects look bright which is expected to further boost sales
Growth in the sector is led by higher urban and rural demand. Going forward , the government’s growing support to agriculture will drive long-term growth in consumption from the rural sector
In our view, amongst all the FMCG segments, the food segment will outperform over the coming years
3
Executive Summary (2/2)
The Indian food industry is a significant part of the