Consumer packaged goods (CPG), commonly referred to as fast-moving consumer goods (FMCG), are items that are sold immediately and for a low price. Food & Drinks (19%), Healthcare (31%), and Household & Personal Care (50%) make up the majority of this industry. The primary growth factors for the industry have been greater awareness, better access, and shifting lifestyles.
Contrasting with speciality items with lower inventory turnover and greater inventory carrying costs, fast-moving consumer products have a significant inventory turnover rate. Particularly in hypermarkets, big box stores, and warehouse club stores, many retailers solely stock FMCGs. Fast-moving goods are also stocked in small convenience stores, which fill their limited shelf space with more popular products. The Top 10 FMCG companies in India are mentioned below.
Did you know? Fast-moving consumer goods (FMCG) are the fourth-largest economic sector in India.
Top FMCG Companies in India
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Hindustan Unilever Limited
Hindustan Unilever is one of the biggest FMCG companies in India. Seven of its brands have yearly sales of over a thousand crore individually, and five of them each produce over two thousand crores. HUL is a staple in the lives of millions of people in India, offering over 40 brands across 12 different categories, including personal grooming, fabric care, skincare products, hair products, oral care, deodorants, cosmetics products, drinks, ice cream, frozen desserts, and water filters.
In most of the categories in which it competes, the company's brands dominate the top two positions regarding market share. Home care accounts for 34% of its revenue, followed by beauty and personal care (44% of revenue) and foods and beverages (19% of revenue). Along with having good fundamentals, an admirable business strategy, and a debt-free balance sheet, HUL also stands out in difficult times thanks to its broad distribution network, high brand equity, and wide range of items, many of which are necessities.
- Revenue: ₹52,446 Crores (Till 2022)
- Market Cap: ₹6,00,790 Crores (Till 2022)
- ROE: 18.09% (Till 2022)
ITC
ITC Limited, once a tobacco company, has transformed into a diversified group of companies with a significant presence in other fast-moving consumer goods (FMCGs), paperboards, printing and wrapping, agricultural goods, hotel chains, labelled processed foods, personal care items, branded apparel, stationery, safety matches, and agarbatti.
Additionally, it has expanded its line of branded packaged foods to include frozen food items, ghee, dairy products, and fine chocolates. It is anticipated that ITC will increase its involvement in the eastern market for spices due to its most recent acquisition of Sunrise Foods Pvt Ltd.
ITC Ltd. has prospered in the Indian markets for over 110 years, providing them with a great grasp of the Indian Consumer. The ITC is renowned for ensuring specific production and packaging quality. In India, they have numerous distribution channels. Through a number of retail stores, they have been able to enter even the most remote locations.
- Revenue: ₹60,668 Crores (Till 2022)
- Market Cap: ₹4,28,925 Crores (Till 2022)
- ROE: 24.40% (Till 2022)
Nestle India
In the Indian FMCG market, Nestle India is a dominant company with a strong market presence in the majority of its product categories. The business, which sells various goods under the Maggi brand, is a trendsetter in the food service industry. In terms of dairy and nourishment products (96% in infant cereals), drinks (Nescafe 51%), processed foods (Instant Pasta Maggi -69%), kitchen aids (Nestle everyday 44%), and confectionery (63%), Nestle dominates the market in 85% of its product categories.
Nestle reaps the rewards of its well-known brands and robust cash flow in these markets. The business dominates seven out of the eight areas and has managed to hold onto its market share across all of them despite the escalating competition.
- Revenue: ₹14,709 Crores (Till 2022)
- Market Cap: ₹1,94,116 Crores (Till 2022)
- ROE: 102.89% (Till 2022)
Britannia
With a 100-year history, Britannia Industries is among India's top FMCG companies. It has a market share of more than a third in value terms, and Britannia is one of the leaders in the Indian biscuit sector. All seven of the business's biscuit types, including glucose, Marie, cookies, crackers, cream, milk, and health, are well-represented in its portfolio. Additionally, it has well-known brands across its whole product line, such as Milk Bikis, Tiger, Marie, and Good Day.
An extensive distribution system in both rural and urban areas supports the market's strong position. Additionally, Britannia established a brand-new facility in Nepal that is currently running. Furthermore, the business has added lines for cakes and cookies in Ranjangaon in Pune.
- Revenue: ₹14,136 Crores. (Till year 2022)
- Market Cap: ₹91,291Croes (Till 2022)
- ROE: 59.60 % (Till 2022)
Godrej Consumer Products Ltd (GCPL)
Strong brands are part of GCPL's portfolio both in India and abroad. In India, GCPL is the second-largest company in the soaps category and currently maintains the market leadership position in the domestic insecticide and hair colour sectors.
In Indonesia, it is the market leader in every market sector it serves, including wet tissues, air fresheners, and domestic insecticides. It dominates the markets for ethnic hair colouring and dry hair extensions (hair braids) in Africa. Additionally, it is the second-largest marketer of toilet soap after HUL, holding a 10-12% market share in top names like Godrej No. 1 and Cinthol.
- Revenue: ₹12,276 Crores. (Till 2022)
- Market Cap: ₹85,287 Crores (Till 2022)
- ROE: 15.43% (Till 2022)
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Dabur
Dabur is the largest and most influential organic health care and ayurvedic firm in the world, with 135 years of illustrious history.
Three Strategic Business Units, namely the Consumer Care Business, the Foods Business, and the International Business, make up the business. Health care, home care, and personal care are all included in the consumer care business.
About 60% of Dabur's revenue comes from its consumer products division, 11% from its food division, and the remaining 40% from its international division. Dabur has a significant consumer following worldwide and has developed a distinctive product line based on all-natural components. Hair oils, lotions, gels, hair products, dental care, and skin care products all have sizable market shares.
- Revenue: ₹10,888 Crores (Till 2022)
- Market Cap: ₹97,278 Crores. (Till 2022)
- ROE: 20.75 % (Till 2022)
Marico Limited
A worldwide consumer goods firm based in India, Marico Limited offers products and services to consumers in the fields of well-being, cosmetics, and healthcare. Marico, which has its headquarters in Mumbai, Maharashtra, India, operates in more than 25 nations in Asia and Africa.
One in three Indians' lives is impacted by the business's product portfolio, including Parachute, Saffola, Hair & Care, Parachute Advanced, and many more. The business is the owner of brands in the haircare products, skincare products, vegetable oil, natural foods, men's care, and textile industries.
- Revenue: ₹9,512 Crores (Till 2022)
- Market Cap: ₹67,233 Crores. (Till 2022)
- ROE: 36.58% (Till 2022)
Varun Beverages
The Indian company called Varun Beverages Limited manufactures, bottles, and distributes beverages. Outside the United States, it is the second-largest supplier of PepsiCo products around the globe.
The company sells Tropicana fruit juice brands, Gatorade sports drinks, Quaker Oats dairy products, and Aquafina brand bottles of water in addition to PepsiCo's carbonated soft drink brands, such as Pepsi, 7 Up, Mountain Dew, and Mirinda. Varun Beverages is PepsiCo's bottler across India. Additionally, the business sells its goods in Zimbabwe, Zambia, Morocco, Mozambique, Nepal, and Sri Lanka.
- Revenue: ₹9,410 Crores (Till 2021)
- Market Cap: ₹68,352 Crores. (Till 2022)
- ROE: 17.01 % (Till 2022)
Tata Consumer Products
Tata Consumer Products is a fast-growing business of the Tata Group, with its headquarters in Kolkata, West Bengal, India. It is a significant producer of coffee as well as the second-largest producer and exporter of tea in the world.
A member of the Tata Group, Tata Consumer Products Limited was initially named Tata Global Beverages Limited (TGBL). In February 2020, Tata Chemicals Ltd.'s consumer products division and Tata Global Beverages Ltd. amalgamated to establish Tata Consumer Products. With most of its income coming from its international operations, the company presently works in the food and beverage sector and makes roughly 56% of its sales in India.
- Revenue: ₹124,25 Crores. (Till 2022)
- Market Value: ₹70,883 Crores. (Till 2022)
- ROE- 8.81% (Till 2022)
Amul
Gujarat is home to the Indian dairy cooperative society Amul. The Gujarat Co-operative Milk Marketing Federation Ltd. (GCMMF), which 3.6 million milk suppliers currently hold in Gujarat, and the apex organisation of 13 District Milk Unions, which works in 13,000 villages throughout Gujarat, run Amul, a cooperative that was founded in 1946.
The company's major product lines include organic milk, toast spread, paneer, yoghurt, cheese, and powdered milk. Additionally, it offers drinks and chocolates. Approximately 700,000 retailers, 5,000 wholesalers, and 50 sales offices make up the company's extensive distribution network.
Amul has successfully established a reputable name for itself in the dairy industry.
Revenue: ₹610 Crores. (Till 2022)
Market Value: ₹53,000 Crore. (Till 2022)
ROE- 13.50% (Till 2022)
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Conclusion
Fast-moving consumer goods (FMCGs) are inexpensive commodities that sell quickly. Because they are difficult to alter and profoundly impact every aspect of a person's life, FMCGs are crucial to the economy. The main driving forces behind this sector's rise have been rising awareness, shifting lifestyles, and simpler accessibility.
The Top 10 FMCG companies in India generate the majority of their overall income from the urban market. Due to the rising number of FMCG startups in India, the FMCG market has expanded more quickly in rural India than in urban India. These publicly traded FMCG companies in India are also expanding quickly in the semi-urban and rural markets. By stretching out to every corner and crevice of the nation and establishing each FMCG as an essential component of the economy, the FMCGs have maintained customer satisfaction in this fiercely competitive climate.
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