Comparative study of selected Public Limited Companies in the FMCG sector with special reference to financial performance

Abstract

The Fast-Moving Consumer Goods sector, most popularly known as FMCG sector is one newlineof the most important sector in terms of its contribution to national income, employment, newlineinvestment and foreign exchange earnings. Indian FMCG sector has registered steady newlinegrowth over a period of time. FMCG sector mainly consist of consumer non-durable newlineproducts like, personal care, household care, food and beverages, cosmetics, toiletries, newlinepackaged foods etc. FMCG sector is also known as Consumer Packaged Goods (CPG). newlineThis sector is characterized by high turnover of goods which are low cost and sold newlinequickly.FMCG sector in India is both, organized and unorganized. Moreover intense newlinecompetition is key feature of this sector. Besides competition, this industry is also marked newlineby a robust distribution network coupled with increasing influx of multinational newlinecompanies across the entire value chain.The FMCG industry is volume driven and is newlinecharacterized by low margins. The products are branded and backed by marketing, heavy newlineadvertising, slick packaging and strong distribution networks. The FMCG segment can be newlineclassified under the premium segment and popular segment. The premium segment caters newlinemostly to the higher/upper middle class which is not as price sensitive apart from being newlinebrand conscious. The price sensitive popular or mass segment consists of consumer newlinebelonging mainly to the semi urban or rural areas that are not particularly brand newlineconscious. Products sold in the popular segment have considerably lower prices than their newlinepremium counterparts.Three main segments of FMCG sector include (1) household and newlinepersonal care (2) healthcare, and (3) food and beverages. Household and personal care newlineinclude hair care, oral care, skin care, cosmetics and deodorants, perfumes, feminine newlinehygiene, household cleaning products, fabric wash, paper products etc. Health care newlinesegment include over the counter products and ethicals. newline