AMAN PATHAK (20017)

ANMOL GUPTA (20028)

ANSHAJ GUPTA (20030)

HARSHJIT SINGH (20079)

TABLE OF
CONTENTS

Economic Analysis

Industry Analysis

Company Analysis

Ratio Analysis
THE STATE OF ECONOMY
India's GDP at current prices, unadjusted for
inflation, stands at INR 236.65 lac crores (US$ 2.96
trillion) in FY'22, as against INR 198.01 lac crore (US$
2.48 trillion) in the previous fiscal.

The Indian GDP registered a significant growth of

19.5% in Nominal Annual GDP. The real GDP
growth rate in FY2022 stands at 8.7%.

GDP growth has been propelled by a strong

growth momentum, reflecting a bounceback in
economic demand.

Capacity utilization in the manufacturing sector

rose in Q4 of FY'22, as against Q3, contributing to
the development and growth of overall economy.
 ABOUT THE FMCG INDUSTRY
FMCG is estimated to be the 4th largest sector
in India and one that generates employment for
250
more than 3 million people.

200 220 B$
The FMCG market grew at 16% in FY21 and
according to a CRISIL report is expected to
maintain double digit growth, i.e. 10-12% in FY22. 150

FMCG growth can be attributed to the growth 100 110 B$

in discretionary segments and a bounce back in
urban demand. Along with a price led growth, 50
the industry also observes positive momentum
in volume. 0
2020 2025
E-commerce is projected to contributed 11% of INDIAN FMCG MARKET SIZE
overall FMCG sales by 2030.
MARKET
SEGMENTATION
Food and Beverages
The FMCG market can be divided into 3 19%
broad categories

Household and Personal Care

50%

Healthcare
31%
 PORTER'S 5 FORCES

Rivalry in the industry Threats of new Power of customers

Many players are expanding entrants
Threats of substitutes Power of suppliers Rising incomes and a
into new geographies and
With the high presence of With investment FMCG companies are growing youth population
categories. The FMCG
multiple brands, it is easy approvals of up to 100 in a position to dictate have been key drivers,
industry has been a highly
for consumers to switch. per cent foreign equity prices through local brand consciousness has
fragmented industry as more
Strategic decisions like in single-brand retail sourcing from a also aided demand. Low
companies enter the market.
price point and quality fragmented group.
Also, the launch of private and 51 per cent in switching costs induces
play key roles in attracting Suppliers can exert
label brands by big retailers, multi-brand retail, the customers to shift to other
consumers. With narrow
which are competitively market is expected to pressure by raising products, creating more
product differentiation
priced with offers and be crowded. PLI prices, lowering demand for new products.
under many brands, it’s
discounts, will add to the quality or reducing
rather easy for a consumer scheme will also give a Focus on availability of
competition for weak brands product availability.
to switch to another brand boost to companies alternatives and marketing
 Allowed 100% FDI in food processing and single-brand and 51% in multi-brand retail.

P The sector witnessed FDI inflow of US$ 16.28 billion during April 2000-March 2020.
New Consumer Protection Bill is being drafted by The GoI to ensure affordable & timely
delivery of justice with a emphasis on extensive mechanism.

GST & Revenue - FMCG products now come under the 18% tax bracket previously in the 24 %

E GST on hygiene products was reduced to 12-18% and food products also to 0-5 %.
GST is expected to transform logistics in the FMCG sector as all major corporations are
remodelling their operations into larger logistics and warehousing.

People are largely opting for those products that are healthy, low on sugar and
S S cholesterol.
Dominance of youth population
Expanding medium income class group

Get access to data from sources like social media platforms, web, and mobile applications.

T Data analytics & Big Data explore preferences and behaviour to provide FMCG companies
with a deeper understanding of their purchase habits.
AI-powered solutions, like ML and Natural Language Processing are gaining popularity.

Consumers pay attention to companies’ social activities and those that offer more

E responsible product choices

More and more FMCG companies offer compostable, recyclable, and reusable packaging.
Vegan ingredients are on the rise even in non-food items like cosmetics and cleaning

FMCG company, some of the critical laws which affect the business are Legal Metrology
L Act 2009, Environment Protection Act, 1986, Cable Television Regulatory Rules 1994, The
CPA 1986, RTI Act 2005, GST Act 2017
FACTORS
DRIVING
GROWTH Direct Sales to Consumers Population Growth
The profit associated with selling Population growth has been
directly to consumers is tempting
and will continue to be a major
brands to set up stand-alone online
stores and websites. A majority of
driving force for a very long
brands have capitalized on the trend by period of time. As the
delivering products to the doorstep of population increases, the
the consumers. Brands with separate demand for fast-moving
websites for customer sales had an 88% consumables increases
rise in y-o-y customer demand in 2021.

Digitalization Initiatives by the government

The incentives and FDI funds by the
FMCG companies are bringing govt have helped the sector establish
together suppliers, inventory a robust supply chain, strengthen
management, and distributor employment and capture high
management within one ecosystem visibility for FMCG brands. Along with
with the help of digital capabilities. that, the PLI scheme proposed in
Technologies like AI, Big Data, and November 2020 turned out to be
Predictive Analysis are being extremely beneficial for the sector to
increasingly used by FMCG companies boost manufacturing capacity and
to predict customer behaviour exports
 GOVERNMENT INITIATIVES
Under the PLI Scheme, US$ 1.42 billion allocated in FY22 to
assist Indian players in boosting their export potential.

GoI approved 100% FDI in single brand retail along with 51%
FDI in the multi-brand retail segment.

To stimulate demand, the GST levied on food and hygiene

products was slashed and is now down to 0-5% and 12-18%
respectively.

FMCG companies in India expect that the Government will

take measures and intervene in cooling input side inflation
because companies are incurring higher costs.

Infusion of capital into infrastructure development, digital

augmentation, and MSME promotion can create jobs and
increase the disposable income of people. The private
players hope to see a steady improvement in consumption
demand, translating into improved volumes in the coming
years.
BCG
BCG
 Vision
Sustain ITC's position as
Business Description one of India's most
valuable corporations
through world
FMCG diversified in Foods, performance, creating
Personal Care, Cigarettes and growing value for the

ITC
Cigars, Branded Apparel, Indian economy and the
Education & Stationery Company's stakeholders
Products, Incense Sticks and
Safety Matches; Hotels,
Key Highlights
Paperboards, and Packaging,
Agri-Business and Information
India's most valuable
Technology.
business corporations
with a Gross sales value
of ₹ 90,104 crores and a
Net Profit of ₹ 15,058
crores (as of 31.03.2022)
 ESG
Environmental Social Governance
1. Climate Resilience – 4 million Farmers Management must have
42% renewable sources Empowered by ITC e- the executive freedom to
38 buildings platinum rated Choupal till date drive the enterprise forward
without undue restraints
2. Water Security – 173+ million Person days of
Integrated Watershed employment generated This freedom of
Development Projects management should be
25000 water harvesting
94% employees are proud exercised within a
structures
to work at ITC framework of effective
3. Waste Management – . accountability
60000 MT dry waste 100% Managerial staff find
collected ITC’s training Programmes a. Strategic Supervision
99000+ MT waste collected exceeding their b. Strategic Management
during year expectations c. Executive Management
99% total waste either
reused or recycled 0.022 Injury rate
S Strength Weakness W

Effective Social Business Initiatives High Proportional of revenues from tobacco

Strong Brands in various businesses products
Inter & Intra Divisional Strategy An increase intax on tabacco

O Opportunity Threat T

Tap opportunities created in the rural Intensifying competition in FMCG

market businesses
Strategic acquisitions in order to Strict regulations and increasing
increase its portfolio of products taxation in the cigarette business
DCF
DCF
DDM
RELATIVE
RELATIVE
 COMPARISION
600

400

200

0
Actual DCF DDM Relative
 Vision

Dedicated to the
health and well-being
Business Description of every household

Marico is one of India’s

leading consumer products
companies in the global Key Highlights
beauty and wellness space.
Marico operates seven
factories in India, located at
MARICO During FY 2021-22,
Marico recorded a
turnover of about INR 95
Puducherry, Perundurai,
billion (USD 1.3 billion)
Jalgaon, Guwahati, Baddi,
through its products sold
and Sanand.
in India and chosen
Headquartered in Mumbai,
markets in Asia and
it is present in over 25
Africa. Marico touches
countries across emerging
the lives of 1 out of every
markets of Asia and Africa.
3 Indians, through its
product portfolio.
 ESG
Environmental Social Governance
Marico has taken up the target of Touched the lives of over 4 Lakh Marico believes in sharing and
achieving net-zero emissions students through digital & explaining all the relevant
across global operations by 2040. workbook-led English literacy information about the
Marico follows a COMMIT Model courses Company’s policies and actions
in order to preserve the to all those to whom it has
environment, Under the Parachute responsibilities.
C – Conserve energy and Kalpavriksha initiative, Marico
reduce emissions aims to improve the productivity At Marico, the Board plays a
O – offsetting water of small-scale farmers. The supervisory role rather than an
consumption program has boosted executive role. Its role is to guide
M – managing sustainability productivity by 15% y-o-y in the the Management, provide
footprint of products last three years for the members constructive critique on the
M – mitigate environmental strategic business plans and
risks in operations A vocational skill empowerment operations of the company, and
I – integrate circularity into academy, specifically designed to advice on matters requiring
packaging create livelihood generation domain expertise.
T –transforming value chain opportunities for women and
sustainability youth, was launched in FY22
S Strength Weakness W

Strong strategy and focus on value-added Failures of a number of upcoming products

products like Saffola snacks has proved to be a costly
Differentiation from its competitors - affair
coming up with typical products like Saffola Way too many products in the portfolio,
in a crowded market hence, difficult to allocate resources to all of
them

O Opportunity Threat T

Marico has international experience with Impact on price control, market share and
successful operations in South East Asia brand relevance due to entry of new players
and Africa which may lead to geographic Stagnancy in rural markets due to high
expansion in future logistical costs and saturation in urban
Rapid Infrastructure development would region is a persistent challenge
prove to be a growth driver in India
DCF
DCF
DDM
RELATIVE
RELATIVE
 COMPARISION
600

400

200

0
Actual DCF DDM Relative
 Vision
Expanding global client
Business Description base via enhancement of
reputation in selected
A legacy player that rolls out business segments.
brands like Good Day, Tiger,

BRITANNIA
NutriChoice, Milk Bikis and Developing a stable client
Marie Gold which are base with significant
repeat business.

INDUSTRIES
household names in India.
Britannia’s product portfolio
includes Biscuits, Bread, Cakes, Key Highlights
Rusk, and Dairy products
including Cheese, Beverages, Britannia has a presence
Milk, and Yoghurt in 60+ countries with a
strong foothold in the
GCC countries and is 2nd
biggest biscuit player in
UAE. It has a turnover
exceeding INR 13,000 Cr
 ESG
OVERNANCE
Environmental Social Governance

Minimize carbon Collaboration with local Britannia maintains a 4

footprint: revamp supply bodies to recycle plastic pillar sustainability
chain to employ waste governance structure
renewable sources of Oversee the use of headed by the Chairman of
energy ingredients to prevent any the board, subordinated by
Increase fuel efficiency: harmful impact to the steering committee
retrofit current ovens, customers due to responsible for goal setting,
invest in new to improve consumption and strategy development.
baking process Information disclosure to Under the steering
Reduce vehicular customers through explicit committee, the working
pollution: planned product packaging group works to implement
sourcing and utilization of Work with suppliers to strategic initiatives and
vehicles to reduce maintain food quality and reviews the performance of
distance traveled by safety standards the implementation team
vehicles
S Strength Weakness W

Britannia launches new products Weak presence in the Americas, Europe

frequently, year after year Overdependence on the biscuits segment
Emphasis on the capacity expansion (new can hurt long-term interests
food parks)
International expansion through greenfield
expansion
Strong brand recall

O Opportunity Threat T

R&D investment into exploring renewable The growth of the company is tied to
energy options, putting the firm in a the overall state of economy
favourable position considering GoI's The company faces risks from
carbon neutrality stance commodity price volatility
Potential to capture a health-conscious Growing competition from new
customer base as it's a global food safety players as customers have more
standards-compliant firm options at their disposal
DCF
DCF
DDM
RELATIVE VALUATION
RELATIVE VALUATION
 COMPARISION
4,000

3,000

2,000

1,000

0
Actual DCF DDM Relative
Business Description Vision
Dabur India is a Natural Health
Dedicated to the health
Care Company with a portfolio of
and well-being of every
over 250 Herbal/Ayurvedic
household
products. Known as the
'Custodian of Ayurveda'. Dabur's

DABUR
FMCG portfolio today includes 8
Power Brands with distinct
brand identities Dabur
Chyawanprash, Dabur Honey,
Dabur PudinHara, Dabur Lal Tail, Key Highlights
and Dabur Honitus in the
Healthcare space; Dabur Amla Fourth largest FMCG
and Dabur Red Paste in the company in India and
Personal Care category; and Réal the world's largest
in the Food & Beverages Ayurvedic and Natural
category. Health with gross sales of
Rs. 11,281.84 Cr and net
profit of Rs 1832.84Cr
 ESG
About Initiatives

Corona support initatives

Dabur India's CSR Policy is inspired by Funds provided to technology incubators
the words of its founder Dr S K Burman in academic institutions which are
who said: "What is that life worth which approved by the central government
cannot bring comfort to others". While Promotion of Education especially among
pursuing our business strategy of children, women, elderly and the
introducing products that give our differently abled
consumers Health & Well-Being, Dabur Promoting Health care including
operates in a manner that not just Preventive Health care through awareness
continues to generate an attractive programmes, health check-ups, provision
return for shareholders, but also of medicine & treatment facilities
minimizes our impact on the Ensuring Environmental Sustainability and
environment and helps in replenishing ecological balance through Plantation
the planet; while lending a helping hand drives in schools, villages, our
to the community. manufacturing units & offices/business
premises and other areas in general
S Strength Weakness W

A large number of variants catering to High cost of packaging and hence a

the needs of all the customers from higher price of products
various demographic segments Many unbranded and duplicate products
A better understanding of the market being sold under the name of Dabur
World's largest aurvedic medicine High level of competition
provider

O Opportunity Threat T

With the govt. Supporting "Make in Stiff competition from big MNCs
India" domestic companies have a lot Low barriers to entry in the fruit Drink
to gain in terms of government sector paves way for small and
support medium-sized business to set up local
Ayurveda as a field is receiving production centers giving competition
attention from all around the globe in small areas
DCF
DCF
DDM
RELATIVE
RELATIVE
 COMPARISION
600

400

200

0
Actual DCF DDM Relative
Business Description
A total beverage company,
offering over 500 brands in more Vision
than 200 countries. In addition
to the company’s Coca-Cola
Our vision is to craft the

COCA
brands, their portfolio includes
brands and choice of
some of the world’s most
drinks that people love, to
valuable beverage brands, such

COLA
refresh them in body &
as AdeS soy-based beverages,
spirit. And done in ways
Ayataka green tea, Dasani that create a more
waters, Del Valle juices and sustainable business and
nectars, Fanta, Georgia coffee, better shared future that
Gold Peak teas and coffees, makes a difference in
Honest Tea, innocent smoothies people’s lives,
and juices, Minute Maid juices, communities and our
Powerade sports drinks, Simply planet.
juices, smartwater, Sprite.
 ESG
Sustainability Corporate
Governance Governance ESG Initiative
The responsibility of ESG The strong corporate Water Leadership: 13.5M+
undertaken by the Executive governance structure of CCI people provided access to
Committee, headed by the CEO, plays a vital role in achieving safe drinking water,
and the Sustainability Steering strategic goals. CCI conducts sanitation and hygiene since
Committee (SSC). The Climate
all its operations within the 2010.
Protection & Energy
Management and the
framework of established World without Waste: To
Environment & Water regulations in operating help solve the global
Management working groups countries and the Corporate packaging waste crisis.
support the SSC. The Corporate Governance Principles as Launched in 2018, an
Affairs function is responsible outlined by Turkey’s Capital ambitious sustainable
for the disclosure, reporting and Markets Board. packaging initiative called
communication of sustainability World Without Waste.
targets and performance results Climate: Increasing our
ambition to reduce our own
carbon footprint
S Strength Weakness W

International presence in over 200 Relatively weak in snacks sector as

countries compared to its prime competito, PepsiCo
Maintains a high brand recognition High sugar content in many of its product
among masses Stiff competition from regional players,
Robust supply chain translating into thin margins
strong brand advertising

O Opportunity Threat T

Capitalize on its diversified product Lawsuits in a multitude of countries

portfolio: push its hitherto (anti-trust, climate change issues)
underperforming product to cater to Growing reluctance to buy sugary
rising demand for healthier alternatives drinks among target customers
Utilize its financial resources to acquire
strategic players that might help the firm
to sustain its performance
DCF
DCF
DDM
RELATIVE
RELATIVE
 COMPARISION
75

50

25

0
Actual DCF DDM Relative
Business Description Values
P&G was founded over 180 years Integrity
ago as a soap and candle Leadership
company. Today, they are the Ownership

PROCTER
world’s largest consumer goods Passion for Winning
company and home to iconic, Trust
trusted brands, including
Always, Charmin, Braun, Fairy,
Febreze, Gillette, Head & &
GAMBLE
Shoulders, Oral B, Pantene,
Pampers, Tide, and Vicks. Key Highlights

Net sales of $76.1 billion

and net profit of $ 14.3
billion.
Operating cash flow is $
18.4 billion as per 2021
 ESG
OVERNANCE
Environmental Social Governance
Energy - PG has reduced They have a healthy gender Insider Trading Policy prohibits
emissions by 56% through ratio with women engaging in any pledging,
using renewable energy. comprising 40% of the short sales, or hedging
Water - Reduced water use workforce. investments
by 25% per unit since 2010;
Has a 26% of multicultural CEO, senior executives, and
Reused 3.1 billion liters of
recycled water
workforce with people from Directors are required to
Waste Management - various ethnicities and hold shares at multiples of
Between 2010 -2020, races. their salaries
reduced packaging per Executive who has not met
consumer use by over 12%; requirements of the ESOP
Goals no later than 2030: is subject to the Share
100% Recyclable or Reusable Holding Requirement for
Packaging any net shares resulting
50% reduction in virgin
from stock option exercises
petroleum plastic resin in
or settlement of PSUs or
our packaging
RSUs
S Strength Weakness W

The owned brands have good image in the Loss due to closing of brands
market Organizational structure can lead to slow
Continuous innovation and new product decision making
launches with top quality R&D team A low organic growth rate
Multinational and Multi products line The need for regular changes has become a
presence necessity due to stiff competiton
Successful distribution channel

O Opportunity Threat T
Capturing of rural market where availability
Intense competition from HUL
and price play a major role
Localized and unbranded competition
Through launch of new products and
in support of GoI
better marketing tactics, can boost growth
Greater purchase power of consumers
M&A with local competitions can improve
supply chain
DCF
DCF
DDM
RELATIVE
RELATIVE
 COMPARISION
400

300

200

100

0
Actual DCF DDM Relative
 Vision

Committed to getting better

Business Description every day in everything, as
individuals and as teams.
A leading global consumer Continuously working to
products company focused on innovate and improve

COLGATE
products, services, and
Oral Care, Personal Care, Home
processes, we will become
Care and Pet Nutrition.
the best

PALMOLIVE
Colgate teams are developing,
producing, distributing and
selling health and hygiene Key Highlights
products and pet nutrition
offerings essential to society No.1 in terms of Market
through its vast portfolio Share in Toothpaste
Worldwide
$17.4 Billion Worldwide
Net Sales
$3.0 Billion Cash
Returned to Shareholders
 ESG
Environmental Social Governance
Colgate is working with its Building a culture of Global Teamwork: All Colgate
partners and operations to inclusivity, and creating people are part of a global
eliminate waste, decrease meaningful opportunities for team, only by sharing ideas,
plastic usage, save water, and people to succeed technologies and talents, the
conserve natural resources company can achieve and
Colgate Bright Smiles, Bright sustain profitable growth
As of December 31, 2021, the Futures, the flagship oral
company has 26 TRUE Zero health education and Continuous Improvement:
Waste certifications in 16 wellbeing initiative has Colgate is committed to get
countries on five continents, reached over 1.4B children and better every day in all that they
more than any other company their families do, as individuals and as teams.
They drive a continuous
Launched Colgate Keep, first- It instituted mandatory learning culture and transform
of-its-kind manual toothbrush allyship and unconscious bias their learning strategy
resulting in 80% less plastic training for all salaried and
waste compared to similarly clerical employees at Colgate,
sized Colgate toothbrushes. with 100% compliance
S Strength Weakness W

Strong brand value and stretching of product Operating in a saturated market with very
line increases sales and helps in targeting little scope for growth
new segments Commoditized brand name impacting
Efficient supply chain management & robust brand recognition and other product lines
Distribution network High operational costs decrease profits
Over 200 years of operations in many
Limited brands under various product
countries helping in developing a strong
categories
financial position

O Opportunity Threat T

Palmolive can follow product line filling and Stiff competition from many local & national
stretching strategies to increase their sales players
Huge opportunities on expanding its Increasing raw material prices
business further by venturing into mergers Local distributors are a threat as the
and acquisitions competitors gives them more margins
People should be made aware of the
feasible usage rate for colgate products
DCF
DCF
DDM
RELATIVE
 COMPARISION
125

100

75

50

25

0
Actual DCF DDM Relative
 Vision

Emphasis on growth and

efficiency
Business Description
Commitment to
A leading brand with global delivering the right
brands like Oreo, belVita, results for all stakeholders

MONDELEZ
Cadbury Dairy Milk, Trident
gum, etc under its belt. The
firm is in the business of
manufacturing and selling INTERNATIONAL Key Highlights
products like gum & candy and
various cheese & grocery and Serving in over 150
powdered beverage products countries, Mondelez has
in certain markets. acquired the #1 position
in the biscuits segment
and the firm registered a
turnover upwards of
$28B in 2021
 ESG
OVERNANCE
Environmental Social Governance

Vis-a-vis 2018, Mondelez Actively seeking to build The Board of Directors

aims to cut CO2 an inclusive, equitable, oversee and review the
emissions and absolute and diverse workforce. ESG strategy
water usage by 10% in Safety of products' Mondelez ensures
2025. procurement to ensure compliance with
Emphasis on reducing consumer well-being. international norms and
food wastage on account Promoting human rights laws of the countries in
of distribution. across the business in which it's operating.
Involved in consistent geographies and Proactive two-way
packaging innovation: empowering communication is
aim to have 100% underprivileged promoted with all
recyclable packaging by communities stakeholders concerned
2025.
S Strength Weakness W

Maintains a global presence with a Bulk of revenues coming from one product
diversified range of products segment of biscuits
Have an omnichannel sales channels to A lion's share of revenue comes from
cater to customer demand Europe leading to an overdependence on a
Emphasis on cost structure optimization by particular geography
reducing number of suppliers, limiting the
number of product lines, etc.

O Opportunity Threat T

Potential to reap benefits of a diversified sales Risk to operations from cybersecurity

channel and robust e-commerce threats and data leakage
infrastructure. Fortune of firm exposed to macroeconomic
The introduction of healthy snack offerings on trends & to currency fluctuations
account of identification of a change in High concentration of sweet products in
customer behavior puts firm in a portfolio leading to prospect of health
commanding position in global FMCG market agencies scrutiny
DCF
DCF
DDM
RELATIVE VALUATION
RELATIVE VALUATION
 COMPARISION
125

100

75

50

25

0
Actual DCF DDM Relative
INTERPRETATION
LIQUIDITY RATIO
RATIO ANALYSIS
CURRENT RATIO
RATIO ANALYSIS
QUICK RATIO
TURNOVER RATIO
 RATIO ANALYSIS
INVENTORY TURNOVER RATIO
RATIO ANALYSIS
ASSET TURNOVER RATIO
RATIO ANALYSIS
RECEIVABLES RATIO
RATIO ANALYSIS
PAYABLES RATIO
 RATIO ANALYSIS
CAPITAL EMPLOYED TURNOVER RATIO
PROFIT MARGIN
RATIO ANALYSIS
GROSS PROFIT MARGIN
RATIO ANALYSIS
OPERATING MARGIN
RATIO ANALYSIS
NET PROFIT MARGIN
 RATIO ANALYSIS
RETURN ON INVESTED CAPITAL
SOLVENCY RATIO
RATIO ANALYSIS
DEBT TO ASSET
RATIO ANALYSIS
DEBT TO EQUITY
 RATIO ANALYSIS
INTEREST COVERAGE RATIO
RATIO ANALYSIS
DUPONT
THANK
YOU