SIP- WEEK1
FMCG
Submitted to
Dr. (Prof.) Hanish Rajpal
Presented by-
Priyanka Valechha
201911030
Structure of Industry- FMCG
MONOPOLISTIC
• Product similar but not identical
• Demand is elastic
• Barriers to entry are low
• Imperfect information
• In order to raise prices, products are to be differentiated
FMCG at a glance
Expected Growth Rate
• Rural segment – 5%
• Urban segment – 8%
• Overall expected growth- 5.6%
• Pre-covid forecast- 9-10%
• Post- covid forecast- 5-6%
Source:Nielsen
Players in
FMCG
Industry
• HUL- 515,872 cr
• ITC- 363,714 cr
• Colgate-Palmolive-
39,728 cr
• Marico- 37,149 cr
• Dabur- 86,471 cr
• Nestle- 174,642 cr
Key financials of companies
HUL
Sales Growth(%) Profit Growth(%) ROE % ROCE %
1 YEAR 10.58 15.94 80.29 113.29
3 YEAR 6.76 13.36 74.31 103.41
5 YEAR 6.1 8.9 83.82 117.55
Britannia
1 YEAR 11.51 15.14 30.32 44.36
3 YEAR 9.6 11.95 33.44 47.92
5 YEAR 9.84 23.89 43.43 58.63
ITC
1 YEAR 11.29 12.36 23.8 34.39
3 YEAR 7.25 8.79 24.4 35.27
5 YEAR 6.32 7.97 26.26 34.39
Marico
1 YEAR -7.02 -50.5 41.22 41.51
3 YEAR 7.21 8..70 37.61 43.6
5 YEAR 4.99 12.26 37.47 43.16
ITC LTD.
• Incorporated in year 1910 as Imperial
Tobacco Company of India
• Chairman & MD- Mr. Sanjiv Puri
• HQ- Kolkata
• The cigarette business fetches about 80
percent of the profit but 80 percent of the
capital is invested in non-tobacco
businesses.
• Market cap of around 3 lakh crores
• Vision: Sustain ITC’s position as one of
India’s most valuable corporation through
world-class performance, creating growing
value for the Indian economy and
Company’s stakeholders.
• Mission: To enhance the wealth generating
capability of the enterprise in a globalization
environment, delivering superior and
sustainable Stakeholder value.