Computers and Technology
Submitted By swapnilmast
Foreign Investment In The FMCG Sector
"There was a time, not long ago
FMCG was on the go,
Other sectors were mere midgets,
Growth was in the double digits.
Alas, all of that's in the past!
The growth today is not so fast.
There are reasons, that's for sure.
Nowadays sales tax is more
And durables are selling better,
The weather surely could be wetter.
My job is just to set the stage
Describe the current sorry age.
Adi, of course, will paint the scene
And tell us why the times are lean." Mr. Nadir Godrej
The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion.
It has a strong MNC presence and is characterized by a well-established distribution network, intense competition between the organized and unorganized segments and low operational cost.
Availability of key raw materials, cheaper labor costs and presence across the entire value chain gives India a competitive advantage.
The FMCG market is set to treble from US$ 11.6 billion in 2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair wash etc. Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2012, India needs around US$ 28 billion of investment in the food-processing industry.…...