With a population estimated at 1.32 billion, India ranks among topmost markets for FMCG (Fast Moving Consumer Goods). Several financial experts and market analysts claim India holds the first rank in Asia for FMCG since the array of products is much wider than available in certain other countries.
Further, India’s FMCG sector can be broadly divided into two categories- Organized and Unorganized. The organized FMCG sector consists of medium and large players whose products are available across India. Unorganized sector is made of small firms who sell their products within a small geographic zone or region in the country.
Key Indicators for India’s FMCG Sector
According to a report released by India Brand Equity Foundation (IBEF), FMCG is the fourth largest sector of the Indian economy.
There are three main segments in the sector – food and beverages which accounts for 19 percent of the sector, healthcare for 31 percent and household and personal care which accounts for the remaining 50 percent.
The FMCG sector has grown from US$ 31.6 billion in 2011 to US$ 49 billion in 2016. The sector is further expected to grow at a Compound Annual Growth Rate (CAGR) of 20.6 percent to reach US$ 103.7 billion by 2020. IBEF is a trust established by the Department of Commerce at India’s Ministry of Commerce and Industry.
Growth Drivers for India’s FMCG Companies
This growth in India’s FMCG market is mostly propelled by large companies that are operating in the sector for decades.
While some of these are subsidiaries of large foreign companies, an increasing number of large and homegrown FMCG manufactures now rule the market.
List of Top 10 FMCG Companies that are Purely Indian Ventures.
Their products are available across the nation as well as exported to foreign countries.
1. Patanjali Ayurved Ltd
Patanjali Ayurved Ltd is India’s youngest yet fastest growing FMCG manufacturer.
The firm was co-founded by famous Yoga guru Baba Ramdev and Acharya Balkrishna. Patanjali Ayurved Ltd is India’s only large privately held FMCG companies.
Patanjali mainly manufactures ayurvedic Products. It manufactures a wide range of FMCG including table salt, sugar, food grains, cereals and pulses, spices, soaps and toiletries, beauty, hair and skincare products, ready-to-eat snacks, health drinks, religious requirements and other grocery items. In fact, Patanjali is one of the top Grocery websites in India.
According to financial reports, Patanjali Ayurved recorded a turnover of Rs.10.5 billion during the fiscal year 2016-2017 and is expected to near the Rs.20 billion mark during 2017-2018.
2. ITC Ltd
Established as Imperial Tobacco Co in 1910 in Kolkata, the company was renamed Indian Tobacco Co Ltd in 1970 and as ITC Ltd in 1974. Today, ITC ranks among topmost Indian FMCG company.
Its range of products includes cigars and cigarettes, biscuits, food grains, breakfast cereals, soaps and cosmetics, readymade high fashion garments, beauty, skincare and personal care products, stationery, religious requirements and matchboxes.
3. Wipro Consumer Care & Lighting Group
India’s Wipro Consumer Care & Lighting Group (WCCLG) ranks among the top FMCG companies of the world. It has operation in over 40 countries.
WCCLG has production plants in India and seven foreign countries.
Wipro’s range of FMC goods includes bathing and washing soaps, domestic and institutional lighting and office furniture, cosmetics, skincare and beauty products, hair care solutions and health supplements, among others.
WLCCG has also acquired major foreign brands such as Uza, Yardley and LD Waxsons. The company also produces high-end skincare products for women and men.
4. Godrej Consumer Products Ltd
Godrej Consumer Products Ltd was founded some 120 years ago, as a manufacturer of steel cupboards and safes. Today, the company boasts of having some 1.2 billion customers worldwide for its FMC goods.
GCPL’s FMCG range includes soaps, cosmetics, skin care and household requirements such as domestic insecticides, tissues, home and car deodorants and cleansers.
The company also has manufacturing bases abroad. It has a large presence in Africa and Far East. Godrej Nature’s Basket is a popular online store for health and organic foods.
5. Tata Group
Also one of the oldest Indian business conglomerates, Tata Group has a wide FMCG range and it is one of the most trusted FMCG company in India.
These include tea and coffee, salt, exotic mineral water, pulses, leather products and footwear, high-fashion readymade garments, health supplements, stationery and gift items, watches and lots more.
The company runs its own chain of retail stores under brand name Westside offering its own products, those made especially for Tata as well as from various reputed brands. Additionally, the group runs online and brick-and-mortar stores under the Croma brand.
6. Aditya Birla Group Ltd
India’s largest business house, Aditya Birla Group is yet one more major FMGC manufacturer, whose products are popular in India and abroad.
Aditya Birla Group’s brands include VOW, Kitchen’s Promise, Feasters, Prarthana, More Choice, More Daily, More Life, Bluearth, Karinee, Kruff, Incheels, TRU, Chatter Kids and Yo.
The range includes ready-to-eat food, beverages, tea, staples, cereals, instant mixes, papad, pickles, apparel, footwear, household cleaning essentials, personal care and devotional products. The company also owns Idea Cellular, a popular mobile services provider in India.
7. Dabur India Ltd
Dabur was founded as a small Ayurvedic medicines retailer in 1884 to provide cheap herbal medicines to economically disadvantaged people of Bengal.
Over the last 125 years, Dabur India Ltd has emerged as a leading FMCG company with revenues of over Rs 76.8 billion.
Dabur India Ltd’s FMCG range includes food products, nutritional supplements, skincare, beauty and hair care solutions, household deodorants, soaps and other cosmetics, mosquito repellant crème and lotions, juices, spices and pure honey. The company also offers a wide range of Ayurvedic medicines.
8. SriSri Tattva
Over the last couple of years, SriSri Tattva has emerged as India’s largest producer and retailer of organic and herbal FMC goods.
SriSri Tattva is an offshoot of Art Of Living Foundation founded by world famous Yoga teacher and spiritual leader, Sri Sri Ravishankar. It is India’s first FMCG company to be owned by a spiritually-based foundation.
SriSri Tattva’s range includes cooking oil and ghee, bathing soaps, detergents, dishwashing liquids and hand wash, skincare, beauty and hair care solutions, organic and herbal beverages, health and nutritional supplements, biscuits, food grains and other common grocery items.
These are also available online and have a large customer base abroad.
9. TTK Group
Founded in 1928 by Tiruvellore Thattai Krishnamachari, a lawyer by profession, TTK Group of Chennai ranks as one of the topmost players of India’s FMCG market.
TTK Group has two major divisions- TTK Healthcare and TTK Prestige. Of these, TTK Healthcare manufactures a variety of Fast Moving Consumer Goods for the neonate and baby care, personal wellness, beauty and skincare, pet care and ready-to-cook foods.
Additionally, the company also manufactures herbal medicines and nutritional supplements. The best-known brand of TTK Group, however, remains the Prestige range of pressure cookers, mixers and blenders and non-stick cookware.
10. KKR Group
Launched from Ernakulam, Kerala, India’s homegrown FMCG major KKR Group began as a small rice milling company in 1976. Over four decades later, KKR Group is renowned worldwide for its food products brand, ‘Nirapara’.
Its wide range of products includes various kinds of rice from Kerala, rice flour, wheat products, spice powders, vegetarian and non-vegetarian pickles as well as packaged ready-to-eat foods, frozen delicacies and snacks from cuisines of Kerala, other south Indian states, continental and the Far East.
Nirapara’s range also includes chutneys and ready-to-cook mixes for traditional south Indian sweets. KKR also makes regular and multi-grain flours. The company has a large presence in the Middle East.
Additionally, it is making forays into herbal skincare, hair and beauty products as well as soap, cosmetics and household requirements.
NOTE: This list does not signify ranking or financial indicators of any company. All FMCG manufacturers listed above are indigenous. The list does not include foreign FMCG companies that have a large presence in India.
More Indian FMCG Companies
The above list includes only companies that are indigenous and have wide FMCG offering. However, there are some other large Indian FMCG manufacturers that specialize in one or two sectors only. These include:
· Britannia Industries Ltd: Biscuits, cookies, bread, cake, cheese and butter.
· Parle Agro Ltd: Biscuits, cookies, bottled drinking water, packaged juice and soft drinks.
· Gujarat Cooperative Milk Marketing Federation, better known as Amul: Butter, cheese, milk and other dairy products as well as ice cream.
· Marico Ltd: Renowned for its Parachute brand coconut oil and enriched variants, skin care and hair care products.
· Himalaya Healthcare: Globally renowned company from India that manufactures herbal cosmetics, skincare and beauty products, herbal health supplements, soaps, shampoo and hair oil.
Outlook for India’s FMCG Companies
According to India Brand Equity Foundation, the country’s rural market accounts for over 60 percent of revenues earned by FMCG sector, contributing whopping US$ 29.4 billion in the financial year 2016-2017. IBEF projects, India’s FMCG sector will grow to US$220 billion by 2025.
FMCG Companies are looking to invest in energy efficient plants to benefit the society and lower costs in the long term. Growing awareness, easier access, and changing lifestyles are the key growth drivers for the consumer market.
The government of India’s policies and regulatory frameworks such as Goods and Services Tax (GST) and demonetization are expected to drive demand, both in the rural and urban areas, and economic growth in a structured manner in the long term and improve the performance of companies within the sector,” says the IBEF report.