Have you ever wondered about FMCG Companies in India? What are they? How they have become so important for our day to day activities? Let’s get deeper insights on the FMCG sector and also have a look at the Top 10 FMCG Companies in India, a list of leading players in the market.
FMCG Companies: Significance
Nearly everyone depends on FMCG companies for products that satisfy our basic needs. FMCG products are those that are made for rapid consumption and have a short shelf life which is produced in high volumes with low cost. They play a significant role in the Indian economy since they touch every part of people’s life. The companies that sell FMCG products always have a wide distribution network with high inventory turnover.
The Indian urban segment accounts for a revenue share of around 55% and as per the research it becomes the biggest contributor to the gross revenue which is generated by the FMCG sector. Although, in the past few years, this FMCG sector has grown at a rapid pace in rural India compared to urban India.
On the other hand, the internet has contributed on a grand scale, facilitating a cheaper and more convenient mode of increasing an FMCG company’s reach. As per the FMCG e-commerce report, it is estimated that 40% of all FMCG products consumption will be made online by 2020 in India. In the whole Indian economy, it is the fourth largest leading sector and creates employment for over three million people.
What is FMCG?
FMCG stands for “Fast-moving consumer goods”. The FMCG sector can be broadly split into two categories organized and unorganized. The organized FMCG brands comprise medium and large market players whose products are available throughout the country. Whereas the unorganized sector consists of small firms who sell products within a small geographic zone in the country.
Moreover, this industry includes varieties of products which can be divided into several different categories which are processed food, prepared meals, frozen foods and dry goods, baked goods, beverages, medicines, cosmetic and toiletries, cleaning products and office supplies. These goods are sold in large quantities, are priced low, are purchased frequently and consumed rapidly.
Top 10 FMCG Companies in India: Best List
Let’s catch a glimpse of the best FMCG companies operating across the nation through a broad distribution network to dispense their goods.
1. Hindustan Unilever Limited (HUL)
HUL is one of India’s largest FMCG companies, the subsidiary of Unilever, a British-Dutch company. It was established in the year 1933 and has headquarters in Mumbai. Hindustan Unilever is the leading supplier of foods and refreshment, beauty & personal care and home care products and has 190 offices in different countries.
Their products are available in over 8 million outlets across India. The company has more than 44 brands across 14 distinct categories and served over 2 billion happy consumers for 80 years. In March 2020, HUL signed an agreement with Glenmark Pharmaceuticals Limited to acquire its intimate brand which is named VWash.
2. ITC Limited
ITC Limited established in the year of 1910, headquartered in Kolkata, West Bengal. The company has thrived into a premium brand with a multi-business portfolio that includes fast-moving consumer goods, comparison foods, agri-business, paperboards and speciality papers, hospitality and information technology. They always guaranteed a certain standard in their packaging and production.
ITC Limited has an excellent distribution network and their products are sure to reach the most rural areas through retail shops in India. The company’s Gross sales value is Rs. 76097 Crore for the year ended 31st March 2020 and over 60 new product launches in 2019-20.
3. Nestlé India Limited
Nestlé India is the world’s leading food and beverage company, headquartered in Switzerland. After more than 150 years of association with the country, at present, it has a presence throughout India with 8 manufacturing facilities and 4 branch offices. Till date, they have launched more than two thousand brands ranging from global icon products to local favourite products which are present in around 187 countries across the globe. Nestle also ranks high among the companies with highest share price in India.
The main focus of the company is developing products which are useful to live a healthy life and improving the quality of life of the people. Nestlé sells a plethora of products including health care nutrition, breakfast cereals, milkshakes, beverages, instant foods, bottled water, etc. The company has been working hard in the area of social responsibility and helped over 15 million children to live a better life. For development, Nestle plans to invest Rs. 700 crore to open a new plant in Sanand for Maggi in 2020.
4. Britannia Industries Limited
Britannia Industries Limited is another prominent FMCG company in India with a heritage spanning over 100 years and it was established in the year of 1892 in Kolkata. Britannia’s product portfolio includes rusk, cakes, biscuits, bread and dairy products including milk, yoghurt, beverages and cheese. At present, their products are available in over five million retail outlets and more than 50% of Indian households are proud users of their range of food items.
The company ethics has been summarised in their slogan, “Eat Healthy. Think Better”. Britannia is also known as the Zero Trans Fat company because they have removed 85000 tons of Trans Fats from their products. They have an extensive distribution network 60 other countries.
5. Marico Limited
Marico was established in the year 1990 in Mumbai. The company has a golden past years of manufacturing daily products like skincare products, edible oil, hair care, fabric care, men’s grooming and health foods. Their products are used by one out of three Indians which makes it one of the best FMCGs in the industry.
Marico Limited is working hard to adhere to their tagline “Make a difference” by manufacturing quality products using innovative technology. Recently, it ranked at eighth position in the list of a great workplace of India. In the year ended March 31, 2020, the company’s Net sales were at Rs. 7,315 crore by selling its products in 25 countries around the globe.
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6. Godrej Consumer Products Ltd.
The Godrej Group was founded in the year of 1897 and has set up its corporate office in Mumbai. It has deals in various sectors including real estate, consumer goods, appliances and agriculture.
Apart from India, the company is the second-largest player in Indonesia and expanding its footprints in Africa. Now they also make a plethora of consumer products which have been sources of sustainable development. The company has more than 1.1 billion customers throughout the world.
7. Procter and Gamble
The company commonly known as P&G was established in 1946 and currently serves over 650 million consumers across India. Basically, it is an American consumer goods company founded in 1837 and its corporate office is located in Cincinnati, USA. The company operates the manufacturing and distribution business in more than 25 countries across the globe.
In India, P&G serves 650 million consumers by supplying beauty and grooming products, household care products as well as health and well-being products. P&G is dedicated to justifiable growth in India, and presently it has five plants, over nice contractual manufacturing sites. Apart from this, the company has created more than 26,000 jobs directly and indirectly.
Amul company is the most prestigious Indian brand in the food and beverages consumer goods sector. It has been a pioneer in the field of the division of milk and milk products. It began its journey in the year of 1946 as a corporate dairy society in village Anand, Gujarat. The brand is managed by Gujarat Co-operative Milk Marketing Federation (GCMMF). They expanded their actions to other district unions, then state level and now administer to many countries in the world.
It is an extremely trustworthy brand in the dairy and consumer products in India. You might be familiar with their “Utterly butterly delicious Amul”, the attractive tagline for their dairy products. The company has a wide range of consumer food items including packaged fresh milk, dahi, ghee, butter, cheese, milk powder, chocolates, beverages etc. For the financial year 2019-20, Amul has a turnover of ₹ 38,542 crores and showing a growth of 17% over the previous year which is proof that it is worth to be on this list.
9. Colgate – Palmolive
It is an American company founded in 1806 and that operates worldwide in the consumer product segment. Colgate-Palmolive has several organizations across 200 countries and they are global leaders in household and personal care products. Colgate toothpaste is the most popular and successful product of the company. Basically, the company operates in oral hygiene, detergents and soap products.
Its corporate office is in New York, USA and the company’s core values of constant improvement, caring and global teamwork makes them a prestigious name not only in Indian FMCG but globally.
10. Parle Agro
Parle Agro is an Indian company established in 1984 in Mumbai, Maharashtra and its parent company is Parle which was launched in 1929. Later Parle was divided into three individual businesses, and the other two are Parle Bisleri and Parle Products. Parle Agro has become the leading beverage company in the nation with over 76 highly innovative production units for FMCG in India and also it is the fourth largest FMCG company in India.
The company has its several popular brands in the beverages and confectionery segment including Frooti, Bailey Soda, packaged drinking water, Appy Fizz etc. They have a turnover of 1 billion dollars and a net worth of 2500 crores.
Top 10 FMCG Companies in India Table
|S.No.||FMCG Company||Corporate Office||Market Cap (Rs. Cr)|
As on 23rd Nov’20
|1.||Hindustan Unilever Limited (HUL)||Mumbai, Maharashtra||500,490.73||17000+|
|2.||ITC Limited||Kolkata, West Bengal||234,780.10||29000+|
|3.||Nestlé India Limited||Vevey, Switzerland||171,536.57||328000+|
|4.||Britannia Industries Limited||Kolkata, West Bengal||85,528.72||2000+|
|5.||Marico Limited||Bandra, Maharashtra||48,834.97||1000+|
|6.||GodrejConsumer Products Ltd.||Mumbai, Maharashtra||72,438.04||25000+|
|7.||Procter and Gamble||Cincinnati, USA||34,645.34||1250000+|
|9.||Colgate – Palmolive||New York, USA||42,613.35||37000+|
|10.||Parle Agro||Mumbai, Maharashtra||2500+|
We are sure you might have used some of the products manufactured by these popular FMCG companies.
FMCG Companies in India: List to Add On
Here are some other names to add in the grand collection of leading FMCG Companies in India:
- Dabur India Ltd
- Hatsun Agro Product Ltd
- Varun Beverages Ltd
- GlaxoSmithKline Consumer Healthcare Ltd
- Patanjali Ayurved
FMCG Companies in India: The Bottom Line
FMCGs are considered a reliable source of revenue since they are fast-moving consumer products sold in large quantities. This high volume of sales counter balances the low-profit margins on individual sales as well, but they account for over half of all consumer spending.
As an investment purpose, generally the stocks of FMCG promise low-growth but are safe bets with regular dividends, stable returns and predictable margins.
Apart from this, to promote the FMCG sector in India, some major initiatives taken by the government. The goods and service tax on food and hygiene products have been reduced to 0-5% and 12-18% respectively. A new consumer protection bill is drafted and also the Indian government approved 100% FDI in the cash and carry segment.
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Now, that you are aware of the best FMCG companies, the next time you try any of their products, do think of this list. You indeed know a lot about these Top 10 FMCG Companies in India. Don’t you think so? Feel free to share your thoughts.