FMCG 261112

FMCG
AUGUST
2012
For updated information, please visit www.ibef.org
FMCG
AUGUST
2012
Contents
Advantage India
Market overview and trends
Growth drivers
Success stories: Major players
Opportunities
Useful information
FMCG
AUGUST
2012
Advantage India
Growing demand
Attractive opportunities
Rising incomes and a growing

young population have been the
key growth drivers for the sector
Brand consciousness have also

aided demand
Rural demand is set to rise with

rising incomes and greater
awareness of brands
Advantage
India
2011
Market size:
USD30
billion
Industry witnessed heavy FDI inflows

as the sector accounted for 1.8 per
cent of the countrys total FDI
inflows over April 2000-Feburary
2012
Many players are pursuing inorganic
growth by acquiring regional players
Low penetration levels in

rural market offers room for
growth
There is a growing market

for premium products
Exports is another growth

segment
Market size:
USD74
billion
Policy support
Increasing investments
2018E
Automatic investment approval of up

to 100 per cent foreign equity in single
brand retail is allowed
Introduction of Goods and Service Tax

(GST) as a single unified tax system
from August 2012
Notes: Emami, Market size estimates from Technopak

2018E estimated figure for 2018
ADVANTAGE INDIA
FMCG
AUGUST
2012
Contents
Advantage India
Growth drivers
Opportunities
Useful information
FMCG
AUGUST
2012
The FMCG market has four main

segment
FMCG
Household care
Fabric wash, Household

cleaners
Personal care
Food & Beverages
Oral care, hair care,

skin care,
cosmetics/deodorants,
perfumes, feminine hygiene
and paper products
Health beverages,
staples/cereals, bakery
products, snacks,
chocolates, ice cream,
tea/coffee/soft drinks,
processed fruits and
vegetables, dairy products,
and branded flour
Health care
OTC products and ethicals
Source: HUL
Notes: OTC is over the counter products; ethicals are a range of pharma products
MARKET OVERVIEW AND TRENDS
FMCG
AUGUST
2012
Evolution of FMCG in India
FMCG is the fourth largest sector in the Indian economy
Indian FMCG industry (USD

billion)
9.0
34.8
(2011)
2010-11
Gross block of FMCG

industry (USD billion)
0.6
2.3
(2010)
Market size of chocolates

(USD million)
<100
625
(2011)
Market size of personal

care (USD billion)
<3
8.6
(2011)
HULs share in FMCG

market (%)
>50%
<30%
(2011)
2000
Source: IDFC, Business Today, Aranca Research

Notes: Gross block of FMCG is the total value of all the assets in the sector
FMCG
AUGUST
2012
Strong growth in the Indian FMCG

sector
The FMCG sector in India generated revenues worth

USD34.8 billion in 2011, a 15.2 per cent rise compared
to the previous year
The strong growth in 2011 should come as no surprise

given the impressive performance of the sector over
the years
Over 2006-11, the sectors revenues posted a CAGR of
17.3 per cent
Trends in FMCG revenues over the years (USD billion)

40
34.8
35
CAGR
17.3 %
30
24.2
25
20
30.2
21.3
15.7
17.8
2006
2007
15
10
5
0
2008
2009
2010
2011
Source: Dabur, AC Nielsen, Aranca Research
FMCG
AUGUST
2012
Food products and personal care together

make up two-thirds of the sectors revenues
Food products is the leading segment, accounting

for 43.0 per cent of the overall market
Personal care (22.0 per cent) and fabric care (12.0 per
cent) are the other leading segments
Market break-up by revenues (2009)
4% 2%
5%
4%
8%
43%
Food
products
Personal
care
Fabric care
Hair care
12%
Households
22%
OTC
products
Source: Dabur, Aranca Research
FMCG
AUGUST
2012
The urban market accounts for a major

chunk of revenues
The urban segment is the largest contributor to the

sector, accounting for over two-thirds of total revenue
Semi-urban and rural segments are growing at a

rapid pace; they currently account for 33.5 per cent of
revenues
Urban-rural revenue break-up (2011)
33.5%
Urban
FMCG products account for 53.0 per cent of total rural

spending
Rural
66.5%
FMCG
AUGUST
2012
The rural segment is fast catching up
The urban FMCG market in India has been growing at

a fairly steady and healthy rate over the years;
encouragingly, the growth in rural markets has been
more fast-paced
During FY11, more than 80 per cent of FMCG products
posted faster growth in rural markets as compared to
urban ones
Notable high growth sectors include salty snacks,
refined edible oil, healthcare products, iodised salt
,etc
Growth in urban and rural FMCG markets (FY11)

70%
42%
60%
50%
40%
28%
24%
30%
20%
10%
0%
Urban
45%
40%
35%
27%
30%
25%
19% 21% 20%
11%
14% 16%
15%
11%
10%
5%
0%
Rural
UR Growth %
Source: AC Nielson, Aranca Research

Notes: UR-Urban Rural
10
FMCG
AUGUST
2012
Penetration levels vary; grocers remain

the main sales channel (1/2)
Hair oils, toothpastes and shampoos have significantly

high penetration in both urban and rural markets
Penetration levels of few top selling FMCG (2010)

Floor cleaner
Instant noodles, floor cleaners and hair dyes are

picking up in the rural areas due to increased
awareness
26%
4%
5%
2%
Hair dye
Instant noodles
3%
Mosquito repellent
19%
18%
Skin cream
18%
59%
32%
Hairoil
67% 80%
Shampoo
37%
Toothpaste
57%
77%
42%
0%
20%
40%
Urban
60%
80%
Rural
11
FMCG
AUGUST
2012
Penetration levels vary; grocers remain

the main sales channel (2/2)
A total of 7.8 million retail outlets sell FMCG in India
Grocers are the dominant retail format, accounting for

59.0 per cent
Sales channel breakdown (2010)
3% 6%
5%
Grocers
General stores
6%
8%
59%
Chemists
Paan plus
Food stores
13%
Modern trade
Others
12
FMCG
AUGUST
2012
Market share of companies in a few

FMCG categories
Market Leader
Others
Hair Oil
42%
15%
8%
5%
Shampoo
46%
24%
10%
6%
Oral care
50%
23%
13%
Skin care
59%
7%
7%
Fruit juice
52%
35%
6%
Source: Industry estimates
13
FMCG
AUGUST
2012
Notable trends in FMCG (1/2)

Consolidation
Product innovation
Brand consciousness
Expanding horizons
Backward integration
Focus on rural market

Expanding distribution
networks
Indian FMCG companies are consolidating their existing business portfolios
Several companies have started innovating or customising their existing product
portfolios for new consumer segments

Consumers are becoming more brand conscious and prefer lifestyle and
premium range products given their increasing disposable income

A number of companies are exploring the business potential of overseas
markets and several regional markets

Backward integration is becoming the preferred strategy for increasing profit
margins
Companies are now focusing on the rural market segment which is growing at
a rapid pace and contributes about 33 per cent to the total FMCG market
Companies are now focused on improving their distribution networks to expand
their reach in rural India

Source: Aranca Research
14
FMCG
AUGUST
2012
Notable trends in FMCG (2/2)

Third-party
manufacturing
Rising importance of
smaller-sized packs
Increased hiring from tier

II/III cities
This approach has helped FMCG companies focus on front-end marketing

Reservation of several items for SSI as well as additional tax incentives have
made third party manufacturing a popular route for many big players
Companies are increasingly introducing smaller stock keeping units at reduced
prices. This helps them to sustain margins, maintain volumes from priceconscious customers and expand their consumer base
Small towns are emerging as significant hiring zones. FMCG companies are
hiring field staff from areas such as Kalpa (Himachal Pradesh), Mangaliya
(Madhya Pradesh), Kota (Rajasthan), and Shirdi (Maharashtra) to sell diverse
products
FMCG companies entering Africa as it helps to be close to consumption markets
Focus on enhancing
presence in Africa
within Africa
Such foreign investments are encouraged by local governments, as they offer
incentives to enter the markets

Reducing carbon
footprint and ecofriendly products
FMCG players in India are increasingly focussing on reducing their carbon
footprint by creating eco-friendly products. They generate the required energy

from renewable sources and earn CER credits for the same
Notes: CER Certified Emission Reductions; SSI- Small Scale Industry
15
FMCG
AUGUST
2012
Contents
Advantage India
Growth drivers
Opportunities
Useful information
16
FMCG
AUGUST
2012
Growth drivers of the FMCG sector in

India
Rise of rural
consumers
Increasing per
capita income of
urban and rural
population
Governments
pro-industry
policies
Growing
popularity of
organised retail
FDI support
Notes: FDI-Foreign Direct Investment
GROWTH DRIVERS
17
FMCG
AUGUST
2012
Higher incomes have aided growth in

both urban and rural markets
Per-capita income in the country rose at a CAGR of

11.5 per cent over 2001-11
Indias per capita income at current prices (USD)

2500
Strong income growth is set to continue in future as

well; IMF forecasts point to a CAGR of 8.2 per cent
over 2011-17 to USD2,225.9
An important consequence of rising incomes is
growing appetite for premium products, primarily in
the urban segment
30%
25%
2000
20%
1500
15%
1000
10%
5%
500
0%
-5%
2001
2003
2005
2007
2009 2011E 2013F 2015F 2017F
Per capita income, USD, LHS
Annual growth rate, RHS
Source: IMF, Aranca Research

Notes: CAGR-Compound Annual Growth Rate
GROWTH DRIVERS
18
FMCG
AUGUST
2012
Government initiatives for rural

development
The Indian government has been supporting the rural

population with higher MSPs, loan waivers, and
disbursements through the NREGA programme
Total funds released by government for NREGA (USD billion)

8.0
7.0
7.3
6.2
These measures have helped in reducing poverty in

rural India and have thus propped up rural
purchasing power
Notes: MSP is Minimum support price, NREGA is National

Rural Employment Guarantee Act
6.1
6.0
4.0
2.0
0.0
FY09
FY10
FY11
FY12
Source: NREGA, Aranca Research
GROWTH DRIVERS
19
FMCG
AUGUST
2012
Increasing awareness and easier access

is driving growth of modern retail
Growing awareness, easier access, and changing

lifestyles has meant growing consumer spending in
modern retail stores
Spending at modern retail stores in India shot up by 31

per cent in 2011 compared to the previous year
Modern retail spending is expected to shoot up to
USD5 billion in 2015 from USD1.8 billion in 2011
Contribution of private label in modern trade (2011)

Jams and jelly
13%
Packaged ghee
13%
Toilet cleansers
15%
Bread
17%
Phenyls
17%
Packaged atta
22%
Glass cleansers
23%
Tissue paper
23%
Floor cleanser
27%
Packaged rice
37%
0%
10%
20%
30%
40%
GROWTH DRIVERS
20
FMCG
AUGUST
2012
FDI inflows have also gone up over the

years
The sector has been witnessing strong FDI inflows

over the years; in fact, during FY01-12*, FMCG
accounted for 1.8 per cent of total inflows
Within FMCG, food processing was the largest

recipient; its share was 44.9 per cent
Cumulative FDI inflows * (USD million)
Retail trading
44.5
Tea,Coffee
100.3
Vegetable oil
276.6
* April 2000 Feb 2012

Soap, cosmetics
414.7
Paper, pulp
860.4
Food processing
1381.0
0
500
1000
1500
Source: DIPP, Aranca Research
GROWTH DRIVERS
21
FMCG
AUGUST
2012
Policy and regulatory framework

Goods and service tax
(GST)
Introduction of GST for the purpose of integrating multiple indirect taxes under
a unified tax system from August 2012

The rate of GST on services is likely to be 16 per cent and on goods is proposed
to be 20 per cent
The current excise duty is 12 per cent
Excise duty
Relaxation of license
rules
However, for consumers, it is expected that there will be more money to spend
on FMCG products as income tax exemptions limits have been hiked to

INR200,000
Industrial license is not required for almost all food and agro-processing
industries, barring certain items such as beer, potable alcohol and wines, cane
sugar, and hydrogenated animal fats and oils as well as items reserved for
exclusive manufacture in the small-scale sector
In October 2009, the government amended the Sugarcane Control Order, 1966,
Statutory Minimum Price
and replaced the Statutory Minimum Price (SMP) of sugarcane with Fair and
Remunerative Price (FRP) and the State-Advised Price (SAP)
India currently allows 100 per cent FDI in cash & carry segment as well as single-
FDI in organised retail
brand retail
India is also expected to allow 51 per cent FDI in multi-brand retail, which will
boost the nascent organised retail market in the country

GROWTH DRIVERS
22
FMCG
AUGUST
2012
New Goods and Service Tax (GST) would

simplify tax structure
Supply chain structure
Pricing and profitability
Introduction of GST as a unified tax regime will
lead to a re-evaluation of procurement and

distribution arrangements
Elimination of tax cascading is expected to lower
input costs and improve profitability

Application of tax at all points of supply chain is
Removal of excise duty on products would result
likely to require adjustments to profit margins,

especially for distributors and retailers
in cash flow improvements
Goods and Service Tax

(GST)
Cash flow
Tax refunds on goods purchased for resale
System changes and transition management

Changes need to be made to accounting and IT
implies a significant reduction in the inventory

cost of distribution
Distributors are also expected to experience
cash flow from collection of GST in their sales,

before remitting it to the government at the end
of the tax-filing period
systems in order to record transactions in line

with GST requirements
Appropriate measures need to be taken to

ensure smooth transition to the GST regime
through employee training, compliance under
GST, customer education and inventory credit
tracking
GROWTH DRIVERS
23
FMCG
AUGUST
2012
Key M&A deals in the industry (1/2)

Target name (segment)
Acquirer name (segment)
Merger/Acquisition
Halite Personal Care India Private Limited (Personal Care )
Marico Ltd (Food and Personal Care)
Acquisition
Paras Pharma (Personal Care)
Marico Ltd (Food and Personal Care)
Acquisition
Namaste group (Personal Care)
Dabur (Food)
Acquisition
Cosmetica Nacional (Cosmetics)
Godrej Consumer Products Ltd
Acquisition
CC Health Care Products Pvt Ltd (Cosmetics)
Colgate-Palmolive India Ltd ( Cosmetics and

Toiletries)
Acquisition
Eastern Condiments Pvt Ltd (Food-Misc/Diversified)
McCormick & Co Inc (Food-Misc/Diversified)
Acquisition
Vietnam Spice Unit (Food and beverages)
Bafna Enterprises (Food and Beverages)
Acquisition
Noble Hygiene Pvt Ltd (Household and Personal Products)
Bennett Coleman & Co Ltd (Publishing)
Acquisition
Hobi Kozmetik, Turkey (Personal Care Products)
Dabur India (Personal Care)
Acquisition
Argencos, Argentina (Hair Care Products)
Godrej Consumer Products Ltd (Home and Personal

Care)
Acquisition
Lotte India Corp Ltd (Food)
Lotte Confectionery Co Ltd, South Korea (Food)
Acquisition
Source: Bloomberg, Aranca Research

Source: Company websites, Bloomberg, Aranca Research
GROWTH DRIVERS
24
FMCG
AUGUST
2012
Key M&A deals in the industry (2/2)

Target name (segment)
Acquirer name (segment)
Merger/Acquisition
Megasari, Indonesia (Soap and cleaning products )
GCPL (Home and personal care)
Acquisition
Issue Group, Argentina (Hair products)
Acquisition
Tura, Nigeria (Soap and cleaning products )
Acquisition
Tern Distilleries Pvt Ltd (beverages wine/spirits)
United Spirits Ltd (beverages)
Acquisition
Vale Do Ivai SA Acucar E Alcool (sugar and ethanol)
Shree Renuka Sugars Ltd (food)
Acquisition
Greenol Laboratories Pvt Ltd (tea)
Asian Tea & Exports Ltd (food tea)
Acquisition
Olyana Holding LLC (tea)
UK-based Borelli Tea Holdings Ltd, a wholly-owned

unit of Mcleod Russel India Ltd
Acquisition
Garden Namkeens Pvt Ltd (food misc.)
Cavinkare Pvt Ltd (food)
Acquisition
Bacardi Martini India Ltds 26 per cent shares from

Gemini Distillery Private Ltd (beverages)
Bacardi Martini BV, Netherlands (beverages)
Acquisition
Godrej Hygiene Care Pvt Ltd (home care)
Godrej Consumer Products Ltd

(home care)
Merger
Britannia New Zealand Foods Pvt Ltd (joint venture

partner Fonterra Cooperative Group Ltd) (food)
Britannia Industries Ltd (food)
Acquisition
Source: Bloomberg, Aranca Research
GROWTH DRIVERS
25
FMCG
AUGUST
2012
Contents
Advantage India
Growth drivers
Opportunities
Useful information
26
FMCG
AUGUST
2012
Emami one of the fastest growing

FMCG companies (1/2)
Net sales (USD million)
Salient features
Niche category player and innovator
350.0
Key brands are strong market leaders in their

respective categories
300.0
Portfolio includes Zandu, one of the strongest

Ayurvedic brands
Over 80 per cent of business comes from wellness
categories
The company's revenues has grown at a CAGR of
21.2 per cent over the last five years
302.8
CAGR 21.2 %
250.0
230.7
200.0
150.0
284.0
170.3
130.7
115.9
100.0
50.0
0.0
FY07
FY08
FY09
FY10
FY11
FY12
Source: Company reports, Aranca Research
SUCCESS STORIES: MAJOR PLAYERS
27
FMCG
AUGUST
2012
Emami one of the fastest growing

FMCG companies (2/2)
Awards and recognitions

Among Asia's 'Best Under A Billion' 2010 list of
companies compiled by Forbes magazine
Celebrity
promotion
Rural reach
Ranked 125th among BT (Business Today) Most

Valuable Companies of India in private Sector
Ranked 272nd among Fortune 500 Indias largest
corporations on profitability
Differentiated
value for
money
products
Leveraging
existing
distribution
network
Strategy to
drive revenue
Product
innovation
New
geographies
Brand
extension
28
FMCG
AUGUST
2012
Dabur riding on strong brand equity in

India (1/2)
Sales (USD million)
Salient features
1,200.0
Among top four FMCG companies in India
1,100.6
CAGR
20.4 %
1,000.0
856.2
10 brands with sales worth over USD20 million each

Wide distribution network covering 2.8 million retailers
across the country
17 world-class manufacturing plants catering to needs
of diverse markets
Over 30 per cent of revenues generated from
international markets
800.0
711.8
596.7
600.0
433.4
499.2
400.0
200.0
0.0
FY07
FY08
FY09
FY10
FY11
FY12
29
FMCG
AUGUST
2012
Dabur riding on strong brand equity in

India (2/2)
Awards and recognitions in 2011-12
Expand
Ranked 184 in Fortune India 500 list

Ranked 78 in Super-100 (Business India)
Ranked 45 among Most Trusted Brands in India (Brand Trust
Report, India Study, 2011)
Strategy
Dabur Uveda range of Ayurvedic skin care products listed

amongst the '30 New Beauty Finds' by India Today Woman
During FY12, Dabur ranked as the second-most Social Brand

of India
Innovate
Acquire
30
FMCG
AUGUST
2012
Contents
Advantage India
Growth drivers
Opportunities
Useful information
31
FMCG
AUGUST
2012
Growth opportunities in the Indian

FMCG industry
Leading players of consumer products have a strong distribution network in rural
Rural market
India; they also stand to gain from the contribution of technological advances such
as internet and e-commerce to better logistics
Rural FMCG market size is expected to touch USD100 billion by 2025
Innovative products
Premium products
Indian consumers are highly adaptable to new and innovative products. For
instance there has been an easy acceptance of mens fairness creams, flavoured
yoghurt, and cuppa mania noodles
With rise disposable incomes mid- and high-income consumers in urban areas have
shifted their purchase trend from essential to premium products

In response, firms have started enhancing their premium products portfolio
Indian and multinational FMCG players can leverage India as a strategic sourcing
Sourcing base
hub for cost-competitive product development and manufacturing to cater to

international markets
Low penetration levels offer room for growth across consumption categories
Penetration
Majors players are focusing on rural markets to increase their penetration in those
areas
Source: Assorted articles and reports; AC Nielson ,Aranca Research
OPPORTUNITIES
32
FMCG
AUGUST
2012
Contents
Advantage India
Growth drivers
Opportunities
Useful information
33
FMCG
AUGUST
2012
Industry Associations (1/3)

Indian Dairy Association
Secretary (Establishment)
Indian Dairy Association, Sector-IV, New Delhi 110022
Phone: 91-11-26170781, 26165355, 26179780; Fax: 91-11-26174719
E-mail: ida@nde.vsnl.net.in
Website: www.indairyasso.org
All India Bread Manufacturers Association
PHD House, 4/2, Siri Institutional Area, August Kranti Marg, New
Delhi 110016
Phone: 91-11-26515137; Fax: 91-11-26855450
E-mail: aibma@rediffmail.com; mallika@phdcci.in
Website: www.aibma.com
All India Food Preservers Association
206, Aurobindo Place Market Complex
Hauz Khas, New Delhi 110016
Phone: 91-11-26510860, 26518848; Fax: 91-11-26510860
Website: www.aifpa.net
USEFUL INFORMATION
34
FMCG
AUGUST
2012

Federation of Biscuit Manufacturers of India
PHD House, 4/2, Siri Institutional Area, August Kranti Marg, New
Delhi 110016
Phone: 91-11-26515137; Fax: 91-11-26855450
E-mail: fbmi@rediffmail.com; mallika@phdcci.in
Website: www.biscuitfederation.com
Indian Soap & Toiletries Manufacturers Association

Raheja Centre, 6th Floor, Room No 614, Backbay Reclamation,
Mumbai 400021
Phone: 91-22-2824115; Fax: 91-22-22853649
E-mail: istma@bom3.vsnl.net.in
Indian Soft Drinks Manufacturers' Association
702, Ansal Bhawan, 16 KG Marg, New Delhi 110001
Phone: 91-11-46470200; Fax: 91-11-23327747
USEFUL INFORMATION
35
FMCG
AUGUST
2012

The Solvent Extractors' Association of India
142, Jolly Maker Chambers, No 2, 14th Floor, 225, Nariman Point,
Mumbai 400021
Tel : 91-22-22021475, 22822979; Fax: 91-22-22021692
E-mail: solvent@mtnl.net.in
Website: www.seaofindia.com
Vanaspati Manufacturers Association of India

903, Akashdeep Building, 26-A, Barakhamba Road,
New Delhi 110001
Phone: 91-11-23312640; Fax: 91-11-23315698
USEFUL INFORMATION
36
FMCG
AUGUST
2012
Glossary
FDI: Foreign Direct Investment
MSP: Minimum Selling Price
NREGA: National Rural Employment Guarantee Act
FY: Indian financial year (April to March)
So FY09 implies April 2008 to March 2009
SEZ: Special Economic Zone
MoU: Memorandum of Understanding
USD: US Dollar
Conversion rate used: USD 1= INR 48
Wherever applicable, numbers have been rounded off to the nearest whole number
USEFUL INFORMATION
37
FMCG
AUGUST
2012
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This presentation is for information purposes only. While
due care has been taken during the compilation of this
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content is not to be construed in any manner whatsoever
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DISCLAIMER
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FMCG 261112

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FMCG

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Rising incomes and a growing

Brand consciousness have also

Rural demand is set to rise with

Industry witnessed heavy FDI inflows

Low penetration levels in

There is a growing market

Exports is another growth

Automatic investment approval of up

Introduction of Goods and Service Tax

Notes: Emami, Market size estimates from Technopak

For updated information, please visit www.ibef.org

For updated information, please visit www.ibef.org

The FMCG market has four main

Fabric wash, Household

Food & Beverages

Oral care, hair care,

OTC products and ethicals

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Evolution of FMCG in India

FMCG is the fourth largest sector in the Indian economy

Indian FMCG industry (USD

Gross block of FMCG

Market size of chocolates

Market size of personal

HULs share in FMCG

Source: IDFC, Business Today, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Strong growth in the Indian FMCG

The FMCG sector in India generated revenues worth

The strong growth in 2011 should come as no surprise

Trends in FMCG revenues over the years (USD billion)

Source: Dabur, AC Nielsen, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Food products and personal care together

Food products is the leading segment, accounting

Market break-up by revenues (2009)

Source: Dabur, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

The urban market accounts for a major

The urban segment is the largest contributor to the

Semi-urban and rural segments are growing at a

Urban-rural revenue break-up (2011)

FMCG products account for 53.0 per cent of total rural

Source: Dabur, AC Nielsen, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

The rural segment is fast catching up

The urban FMCG market in India has been growing at

Growth in urban and rural FMCG markets (FY11)

Source: AC Nielson, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Penetration levels vary; grocers remain

Hair oils, toothpastes and shampoos have significantly

Penetration levels of few top selling FMCG (2010)

Instant noodles, floor cleaners and hair dyes are