Indian Fmcg Case Study
Tax holidays In Utterance, HP, Assam and J&K Invite heavy Investments – RSN+ of gross block addition Organized players better off unrecognized players with tax relief’s Pricing benefit for unrecognized players reduced with favorable tax for organized players – Biscuits, noodles, cigarettes, etc Implementation of VAT and now movement to GIST Young population (below age of 30 years) comprises 59 per cent population currently, and the composition Is Likely to remain similar over the next decade. This augurs well for the industry as the young have greater willingness to spend more.
Other growth rivers include Modern Trade, technology investments, and low operational costs.
Diverse consumer preferences Increasing competition Rising logistics, procurement costs Ability to win rural consumers Slowdown In rural demand High Inflation Removal of Import restrictions resulting In replacement of domestic brands Increasing clutter – advent of price wars Untapped rural markets – New growth frontier With more than 33% of Indian consumer base present in rural markets, it will be a key growth driver for domestic business.
Lifestyle & Premium products Fast evolving lifestyles, rapid arbitration ND Increasing disposable Incomes there exists an opportunity for high-end products. Rolling Income levels I. E Increase In purchasing power of consumers Large domestic market- a population of over 1 billion Higher consumer goods spending Innovation Indian consumers being highly receptive to new products demonstrates an opportunity to offer new products targeting specific segments.
Geographical Expansion Fast growing emerging markets as well as culturally compatible markets offer a dimension to further growth Hindustan Milliner Limited (HULL) is Indian’s largest consumer goods company based in Iambi, Maharajah’s. It is owned by the British-Dutch company Milliner which controls 52% majority stake in HALL.
Its products include foods, beverages, cleaning agents and personal care products. HULL is the market leader in Indian consumer products with presence In over 20 consumer categories such as soaps, tea, detergents and shampoos amongst others with over 700 million Indian consumers using its products.