The ITC group in a growing FMCG sector

Type :

Research papers

Pages :

50 pages

Format :

.doc

Published date :

05/09/2009

Category :

Business & market

Sub category :

Business strategy

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Summary :

Introduction
Environmental analysis of FMGC sector
1. Growth prospects
An overview of the Indian FMCG industry
The top 10 companies in FMCG sector
Analysis of Indian FMCG sector
Company overview: ITC Group
1. History
2. Structure
3. Awards and certificates
SWOT analysis of ITC
Financial statement analysis of ITC
Project methodology
Findings and recommendations
Conclusion
Bibliography

Abstract

Well-established distribution networks, intense competition between the organized and unorganized segments characterize the FMGC sector. It is expected to grow by over 60% by 2010. That will translate into an annual growth of 10% over a 5-year period. It has been estimated that fmcg sector will rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010. Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery categories are estimated to be the fastest growing segments, says an HSBC report. Though the sector witnessed a slower growth in 2002-2004, it has been able to make a fine recovery since then. For example, Indian Tobacco Company Limited (itc) has shown a healthy growth in the last quarter. An estimated double-digit growth over the next few years shows that the good times are likely to continue.With the presence of 12.2% of the world population in the villages of India, the Indian rural fmcg market is something no one can overlook. Increased focus on farm sector will boost rural incomes, hence providing better growth prospects to the fmcg companies. Better infrastructure facilities will improve their supply chain. fmcg sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, fmcg companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income rise in 2008, boosting purchasing power in the countryside. However, the demand in urban areas would be the key growth driver over the long term. Also, increase in the urban population, along with increase in income levels and the availability of new categories, would help the urban areas maintain their position in terms of consumption.