PROJECT REPORT

(Submitted for the Degree of B.Com. Honours in ACCOUNTING & FINANCE

under the University of Calcutta)

Title of the Project

“SWOT ANALYSIS OF FMCG COMPANIES”

Submitted by

Name of the Candidate: SHREYA TULSYAN

Registration No. : 017-02211-1724-22

Name of the College : THE BHAWANIPUR EDUCATION

SOCIETY COLLEGE

UID :0101220793
CU Roll No: 221017-11-1001

Supervised by

Name of the Supervisor: PROF.DARSHANA TRIVEDI

Name of the College: The Bhawanipur Education Society

College

Month & Year of Submission

JUNE 2025

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 SUPERVISOR’S CERTIFICATE

This is to certify that SHREYA TULSYAN , a student of BCom. Honours in

Accounting & Finance of The Bhawanipur Education Society College, Kolkata under
the University of Calcutta has worked under my supervision and guidance for his Project
Work and prepared a Project Report with the title “SWOT ANALYSIS OF FMCG
COMPANIES "which he is submitting, in his genuine and original work to the best of my
knowledge.

NAME: PROF. DARSHANA TRIVEDI

DESIGNATION: LECTURER
NAME OF THE COLLEGE:
THE BHWANIPUR EDUCATION
SOCIETY COLLEGE

SIGNATURE:

Place: Kolkata

Date:

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 STUDENT’S DECLARATION

I hereby declare that the Project Work with the title “SWOT ANALYSIS OF FMCG COMPANIES”
submitted by me for the partial fulfilment of the degree of BCom. Honours in Accounting & Finance
under the University of Calcutta is my original work and has not been submitted earlier to any other
University/Institution for the fulfilment of the requirement for any course of study. I also declare that no
chapter of this manuscript in whole or in part has been incorporated in this report from any earlier work
done by others or by me. However, extracts of any literature which has been used for this report has
been duly acknowledged providing details of such literature in the references.

Name: Shreya Tulsyan

Address: Park Street ,Pin-700040,
Kolkata.
Registration No.-: 017-02211-1724-22

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 ACKNOWLEDGEMENT

First and foremost, I would like to thank my project supervisor PROF. DARSHANA
TRIVEDI for his valuable advice and guidance. He has inspired me greatly to work
towards this project. I have received earnest co- operation and assistance from number of
people towards completion of the project. I would like to thank my college, The
Bhawanipur Education Society College for providing me with the platform and the
opportunity to work on a project on the topic, “SWOT ANALYSIS OF FMCG
COMPANIES IN INDIA”. Besides, I would like to thank my family members and friends
for providing support, guidance and facilities to complete this project.

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 INDEX
Table of contents PAGE NO.

CHAPTER-1: INTRODUCTION 6-13

1.1 BACKGROUND
1.2 LITERATURE REVIEW
1.3 NEED&JUSTIFICATION
1.4 OBJECTIVE
1.5 RESEARCH METHODOLOGY
1.6 LIMITATIONS

CHAPTER-2: CONCEPTUAL FRAMEWORK 14-17

2.1 FMCG THE INDIAN JOURNEY
2.2 SWOT ANALYSIS FRAMEWORK
CHAPTER-3: SWOT ANALYSIS OF 5 MAJOR COMPANY 18-38
3.1 HUL
3.2 ITC
3.3 NESTLE
3.4 PARLE AGRO
3.5 BRITANNIA
CHAPTER-4: CONCLUSION & RECOMMENDATION 38-42
4.1 CONCLUSION ON SWOT: HUL
4.2 CONCLUSION ON SWOT: ITC
4.3 CONCLUSION ON SWOT: NESTLE
4.4 CONCLUSION ON SWOT: PARLE
4.5 CONCLUSION ON SWOT: BRITANNIA

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CHAPTER -1

1.INTRODUCTION

1.1 BACKGROUND
Fast Moving Consumer Goods (FMCG), in any case called Consumer. Packaged Goods (CPG) are
things that have a quick turnover and reasonably negligible exertion. Purchasers overall put less idea
into the purchase of FMCG than they achieve for various things. The Indian FMCG industry saw basic
changes through the 1990s. Various players had been facing difficulty issues by excellence of extended
contention from little and common players and from moderate development over its distinctive thing
arrangements. Consequently, by far most of the associations were constrained to re-try their thing,
advancing, scattering and customer organization techniques to brace their situation in the business
sector. By the turn of the 20th century, the substance of the Indian FMCG industry had changed
basically. With the advancement and development of the Indian economy, the Indian customer saw a
growing introduction to new family unit and outside things through particular media, for instance, TV
and the Internet. Beside this, social changes, for instance, increment in the number of nuclear families
and the creating number of working couples achieving extended spending power similarly added to the
increment in the Indian purchasers ‘near and dear use. The acknowledgment of the customer ‘s creating
care and the need to meet changing requirements and tendencies as a result of changing lifestyles
obliged the FMCG.

1.2 LITERATURE REVIEW:

Patil, Pramod. (2016) have done a study and summarized that the FMCG item contacts each part of
human life. These items are oftentimes consumed by all segments of the general public and a
considerable part of their pay is spent on these goods. Aside from this, the sector is one of the significant
patrons of the Indian economy. This sector has demonstrated a phenomenal development over recent
years, truth be told it has enrolled development during downturn period too. The future for FMCG sector

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is promising because of its intrinsic limit and great changes in the environment. This paper talks about
on outline of the sector, its basic investigation and future plan.

Alex, K et al. (2017) have done a study and concise that the advertising grew mostly in 20th century.
The development of innovation and examination acquired complexity publicizing in ongoing many
years. It has grown essentially after Second World War. After 1950, TV turned into the significant
mechanism of publicizing. Promoting business changed with the business environment. It is once in a
while a steady business. Fast Moving Consumer Goods (FMCG) are more popular and every now and
again bought by clients. These goods incorporate all Consumable goods (other than heartbeats and
grains) and consumers purchase at normal stretches in little amounts. SWOT Analysis applied to
measures the Advertising Strategy of FMCG Sector. Both Primary and Secondary wellsprings of
information were used for the investigation. Essential information was gathered by methods for
overseeing a poll to the clients and promoting chief. Auxiliary information had been gathered from
different distributions, periodicals, diaries, and so on Comfort examining procedure was utilized for the
review. Survey filled by the chose respondents. The example size chose is 200. The examination
presumed that the organizations are utilized the media as a method of advancement for the FMCG items
and intense rivalry is being looked by the organization in market, media organizers ought to be more
cautious in offering message to the clients.

S., Jeevananda. (2011) have examined that the retail business is probably the biggest business in
India. India is the third-most appealing retail market for worldwide retailers among the 30 biggest rising
markets, as per US consulting bunch AT Kearney’s report distributed in June 2010. The all-out retail
deals in India will develop from US$ 395.96 billions of every 2011 to US$ 785.12 billion by 2015, as
indicated by the BMI India Retail report for the second from last quarter of 2011. The marking of fast-
moving consumer goods has become an indispensable aspect of the lives of consumers. Consumers are
in a real sense faced with many brands consistently and are, thusly, spoilt for decision. The target of
leading the exploration was to dissect the degree to which Indian retail location chiefs' recognitions and
consumers’ discernments meet to advance brand value in regard of fast-moving consumer goods in retail
chain stores at Bangalore. This was done by distinguishing the fundamental factors like marking,
bundling, estimating, advancements and quality. The examination depended on the effect of these
factors on the view of consumers’ and Indian retail location directors. The examination uncovered that
the consumers and head supervisors accept that consumer buy rely upon marking and the nature of the

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items and all different factors have a least effect According to, (Pahl and Richter, 2009: 4-5) SWOT
Analysis is more than an exercise in making four lists. The really valuable part of SWOT Analysis is
determining what story the four lists talk about the organization's situation and thinking about what
actions are needed. In summary the basic assumption of a SWOT Analysis is that an organization must
align internal activities with external realities to be successful. The SWOT Analysis provides a
framework for analyzing strengths and weaknesses (internal) and opportunities and threats (external). It
helps to focus on minimizing weaknesses and taking the greatest possible advantage of opportunities
available.

According to a paper by Albert S. Humphrey who worked for Stanford Research Institute (SRI), a
research project was conducted by a research team in SRI from1960-1970. SWOT analysis came from
the research which was funded by the Fortune500 companies to find out what had gone wrong with
corporate planning and to create a new system for managing change. The project was led by Robert
Stewart, the research team also included Marion Dosher, Dr. Otis Benepe, Birger Lie, and Albert
Humphrey (Humphrey, 2005: 7). Literature review shows that there aren’t any academic references
to support the Albert Humphrey’s claim. Therefore, The SWOT’s emerging is usually associated with
the works of Philip Selznick, Alfred DuPont Chandler, Kenneth Andrews, Harry Igor Ansoff and
classroom discussions on business policy at Harvard Business School in the 1960’s. Heinz Weihrich,
Richard Dealtry, Thomas L. Wheelen and J.

David Hunger contributed to SWOT’s development SWOT analysis is the main instrument of “Design
School Model” which was proposed by Henry Mintzberg. Mintzberg, classified strategic management
into schools of thought; Prescriptive Schools-design school, planning school, positioning school-,
Descriptive Schools -entrepreneurial school, cognitive school, learning school, political school, cultural
school and environmental school-. Each school has its distinctive strategy formation process, only the
prescriptive schools have developed their own specific sets of strategic management instruments. The
design school model places primary emphasis on the appraisals of the external and internal situations,
the former uncovering threats and opportunities in the environment, the latter revealing strengths and
weaknesses of the organization (Kraus and Kauranen, 2009: 40; Sarbah and Otu-Nyarko,

2014: 232-235).

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1.3 NEED AND JUSTIFICATION:

INDUSTRY OVERVIEW OF FMGC SECTOR

Fast-moving consumer goods (FMCG) sector is an important contribution to the India’s GDP growth.
Currently FMCG industry is the 4th largest sector in the Indian economy with Household and Personal
Care Accounts for 50% of FMCG sales in India. The main growth driver for this sector is rising
awareness and change in lifestyle of consumers. The urban segment is the largest contributor to the
overall revenue generated by the FMCG sector in India (accounts for 55% revenue share) However, in
the last few years, the FMCG market has grown at a faster pace in rural India compared with urban India
Each household person spends majorly on FMCG products monthly. The volume of money that flows
against FMCG product in the economy is very high as the numbers of consumers of FMCG product are
huge in number and also there is large number of competitors in the market making it impossible to earn
abnormal profits. FMCG industries work heavily on distribution network. Because they want their
product to reach every nook and corner of the country or the world. If any new player who wishes to
enter the market has to spend heavily on distribution and promoting brands as there are many other set
players in the market. Many FMCG brands partner with e-commerce platforms such as Dunzo, Flipkart,
Grofers and Big Basket to deliver products at the doorstep of consumers during the COVID-19
pandemic. FMCG companies are looking to invest in energy efficient plants and lower cost in the long
term. Growing awareness, easier access and changing lifestyle are the key growth drivers for the
consumer market. The focus on agriculture, MSMEs, education, healthcare, infrastructure and tax rebate
under Union Budget 2019-20 was expected too directly impact the FMCG sector. Initiatives undertaken
to increase the disposable income in the hands of common man, especially from rural areas, will be
beneficial for the sector. Fast moving consumers goods (FMCG) form one of the largest industries
worldwide. From us morning showers with a shampoo to our oats and fruit breakfast, or office outings at
a local pub or snacks at a street vendor- our worlds spin around consumer goods.

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FMCG MARKET SIZE

The Retail market in India is estimated to reach US $7 trillion by 2030 from US $1.1 billion in 2017,
with modern trade expected to grow at 20 percent - 25 percent per annum, which is likely to boost
revenues of FMCG companies. Revenues of FMCG sector reached Rs 6.5 lakh crore (US $75.65 billion)
in FY23 and are estimated to reach US $220.7 billion in 2030. The sector witnessed growth of 16.5
percent in value terms between July-September 2018; supported by moderate inflation, increase in
private consumption and rural income. Penetration level as well as per capital consumption in most
product categories like jams, toothpaste, skincare, hair wash etc. in India is low indicating the untapped
market potential. Burgeoning Indian population, particularly the middle class and the rural segments,
presents an opportunity to makers of branded products to convert consumers to branded products.
Growth is also likely to come from consumer 'upgrading' in the matured product categories. Changes in
lifestyle majorly drives the growth of the FMCG market. Moreover, increase in global population,
growth in awareness of FMCG products, frequent launches of new products, and effective advertisement
of the FMCG brands are the other factors that boost the growth of the global fast moving consumer
goods market. With 200 million people have shifted to processed and packaged food by 2010, India
needs around US$28 billions of investment in the food-processing industry. At present, urban India
accounts for 66% of total FMCG consumption, with rural India accounting for the remaining 34.

1.4 OBJECTIVE OF THE PROJECT:

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The present study has been framed to cover the following primary and secondary objectives:

1. To know about the Fast-Moving Consumer Goods (FMCG) industry in India.

2. To analyze the dimensional attributes of Indian FMCG Industry in the name of SWOT analysis.

1.5 RESEARCH METHODOLOGY:

PROBLEM STATEMENT:

SWOT analysis of FMCG (Fast Moving Consumer Goods) sector.

ASSUMPTIONS:

Certain assumptions of this study are given below:

1.All the data taken is secondary data.

2.Five major companies of FMCG industry in India have been taken and the SWOT analysis has been
done on the basis of those five companies only.

3.In some situations my personal judgement is involved.

BENIFITS:

SWOT analysis helps in:

1.Developing business goals and strategies for achieving them.

2.Addressing the weaknesses of the business.

3.Capitalizing on opportunities.

4.In identifying core competencies of the firm.

5.In building organization’s strengths.

6.In overcoming organization’s threats

RESEARCH DESIGN:
Research design is a framework of techniques and methods chosen by

researcher to carry out his research in a logical manner so that he can

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handle the predefined research problem. In this research, descriptive research design is used

as this research presents the collected data to show whether the company is fundamentally

strong or not.

SAMPLE DESIGN:

In this project five major FMCG companies selected to do the SWOT analysis and It

has been selected on the basis of their market capitalization.

Sample Size:

In this project top 5 FMCG companies are selected on the basis of their market capitalization.

DATA COLLECTION:

The data collected for the analysis is through secondary sources like companies’ annual report, various
websites etc.

1.6 LIMITATIOS OF THE STUDY:

1.The data collected is through the secondary sources hence their liability of the data is not 100% and I
have taken only past 5-year financial information.

2.Despite of repeated reading is a possibility of spelling error of otherwise which have been overlooked
have been.

3.All this report involves the human process of interpretation and analysis, so there is chance of human
error.

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CHAPTER –2

CONCEPTUAL FRAME WORK

2.1 FMCG: THE INDIAN JOURNEY

The FMCG sector in India is the fourth largest sector in the Indian economy. This sector includes global
businesses, well established distribution network and intense competition between organized and
unorganized players. As the sector is this big in India, the availability of raw material is easy and cheap
labor in India is like the cherry on the cake for Indian FMCG industry. But this sector did not evolve
overnight. It took many years to reach it to this position. As we know India is always been one of the
most populated countries thus giving huge customer base to FMCG companies. So, India is the best
place for FMCG companies to grow. Now let’s take a look to the history of FMCG sector. The period
from 1950' s to 1980' s did not see a lot of a development in this segment attributable to the low
purchasing power of Indians and the government pushing for small scale sector. HUL and Amul were
one of the main organizations that stuck around and advanced as market players. Amul metamorphosed
the dairy part in India. Built up in 1946, Amul brought white revolution in India and changed the
unorganized dairy sector to an organize done. They pioneered items like milk powder and baby food
from buffalo milk. The brand keeps on becoming stronger continuously and sells around 3960 tons of
milk items every year. And how can we forget everyone’s all-time favorite “Amul Girl”. Another major
company at that time was HUL which was then more focused on urban sector. But then there was one
more company emerged ‘NIRMA’ that focused on giving cheap products to the consumer. For e.g., surf
Excel at that time was costly product for most of the people and not everyone was ready to spend that
much amount on washing powder. So, NIRMA found this as an opportunity and started making cheap
washing powder which then became success.

Then there was the phase of Liberalization, which led to increase in choices of Indian consumers as
well as their demand. Liberalization also encouraged various MNCs to invest in one of the most
populated countries on Earth. With this living standard of Indian consumers was also rising and to cater
this MNCs started producing high end and good quality products. Their strategy became two- pronged

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over the last decade—One, invest in expanding the distribution reach far and wide across India to enable
market expansion. And two, upgrade existing consumers to value added premium products and increase
usage of existing product ranges.

So, following these strategies, most of the companies fought with each other to mark their presence in
rural segment of India. Those who succeeded capturing the share of rural market reaped more profits
than other companies. One of the biggest evolutions in the FMCG Indian sector was the introduction of
‘Sachet’. Due to its introduction in the market, now even poor people or lower-class people have access
to costly shampoos, detergents and hair oil. The sachets were also purchased by middle class people and
because of this now these things were easily portable now. This innovation helped FMCG companies
gain more customers form Tier 11 and Tier 111 cities. These trends have tremendously evolved this
sector. Second major change was the way these companies did advertising of their products. They
shifted from traditional marketing to digital and new ways of marketing.

The five major players in the sector are as follows:

1.Hindustan Unilever Limited (HUL)

2.ITC Limited

3.Nestle

4.Parle Agro

5.Britannia Industries Limited

2.2 SWOT ANALYSIS FRAME WORK

WHAT IS SWOT ANALYSIS?

SWOT analysis (or SWOT matrix) is a strategic planning technique used to help a person or
organization identify strengths, weaknesses, opportunities, and threats related to business competition or
project planning. It is intended to specify the objectives of the business venture or project and identify
the internal and external factors that are favorable and unfavorable to achieving those objectives. Users
of a SWOT analysis often ask and answer questions to generate meaningful information for each
category to make the tool useful and identify their competitive advantage. SWOT has been described as
the tried-and-true tool of strategic analysis. Strengths and weakness are frequently internally-related,

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while opportunities and threats commonly focus on the external environment. The name is an acronym
for the four parameters the technique examines:

Strengths: characteristics of the business or project that give it an advantage over others.

Weaknesses: characteristics of the business that place the business or project at a disadvantage relative
to others.

Opportunities: elements in the environment that the business or project could exploit to its advantage.

Threats: elements in the environment that could cause trouble for the business or project.

ADVANTAGES OF SWOT ANALYSIS:

SWOT Analysis is instrumental in strategy formulation and selection. It is a strong tool, but it involves a
great subjective element. It is best when used as a guide, and not as a prescription. Successful businesses
build on their strengths, correct their weakness and protect against internal weaknesses and external
threats. They also keep a watch on their overall business environment and recognize and exploit new
opportunities faster than its competitors

SWOT Analysis helps in strategic planning in following manner:

a. It is a source of information for strategic planning.

b. Builds organization’s strengths.

c. Reverse its weaknesses.

d. Maximize its response to opportunities.

e. overcome organization’s threats.

f. It helps in identifying core competencies of the firm.

g. It helps in setting of objectives for strategic planning.

h. It helps in knowing past, present and future so that by using past and current data, future plans can be
chalked out.

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SWOT Analysis provide information that helps in synchronizing the firm’s resources and capabilities
with the competitive environment in which the firm operates.

LIMITATIONS OF SWOT ANALYSIS:

SWOT Analysis is not free from its limitations. It may cause organizations to view circumstances as
very simple because of which the organizations might overlook certain key strategic contact which may
occur. Moreover, categorizing aspects as strengths, weaknesses, opportunities and threats might be very
subjective as there is great degree of uncertainty in market. SWOT Analysis does stress upon the
significance of these four aspects, but it does not tell how an organization can identify these aspects for
itself. There are certain limitations of SWOT Analysis which are not in control of management. These
include-

a. Price increase;

b. Inputs/raw materials;

c. Government legislation;

d. Economic environment;

e. Searching a new market for the product which is not having overseas market due to import
restrictions; etc.

Internal limitations may include-

a. Insufficient research and development facilities;

b. Faulty products due to poor quality control;

c. Poor industrial relations;

d. Lack of skilled and efficient labor etc.

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CHAPTER – 3

SWOT ANALYSIS OF FIVE MAJOR FMCG COMPANIES AND

INTERPRETATION:

1. HINDUSTAN UNILEVER LTD.

COMPANIE’S PROFILE

TYPE: PUBLIC

FOUNDED:1933

HEADQUARTERS: MUMBAI, INDIA

KEY PEOPLE: SANJIV MEHTA (MD), ROHIT JAWA (CEO)

PRODUCTS: TEA, SOAP, DETERGENTS ETC.

PARENT COMPANY: UNILEVER

WEBSITE: WWW.HUL.COM

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SWOT ANALYSIS OF HINDUSTAN UNILEVER LTD.:

STRENGTHS IN SWOT ANALYSIS OF HUL:

1) BRAND VISIBLITY: From soap to mineral water HUL is shaping the life of 1.3 billion people
daily. Being is consumer goods market with its 20 consumer categories such as soap, tea, detergents,
shampoo etc. & each having large assortments, helped HUL is occupying the large shelf space of
grocery / departmental stores which itself explains the acceptance/ demand of their products in the
market.

2) MARKET LEADER IN CONSUMER GOODS: According to NIELSEN data 2 out of three Indian
customers use HUL products. HUL used selective targeting strategy to emerge as a market leader in the
Indian market.

3) Innovative FMCG Company: Hindustan Unilever Research center (HURC), Mumbai & Unilever
Research India, Bangalore, both research facilities were bought together in a single site in Bangalore in
2006.Employees in this facility continuously working & developing innovation in products &
manufacturing processes which is helping the HUL to set it as front-runner in the consumer goods
market.

4) Extensive & integrated distribution system: HUL’s brands are now household name which is only
possible due to its 4-tier distribution system namely

 a) Direct Coverage through common stockiest within a town of population under 50000 people.
 b) Indirect coverage: Villages closer to larger urban markets have been targeted.
 c) Streamline: Leveraging the rural wholesale market to reach markets inaccessible by road.
 d) Project SHATKI AMMA: It targeted the very small villages (2000 population) & tapped into
pre-existing women’s SHG (self-help groups). Markets have been segmented based on their
accessibility & business potential.

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5) High Brand awareness: By signing popular celebrities for the advertisements of their products HUL
has created positive word of mouth over the ages which helped them in social acceptance of their
products intelligently targeted & meant for different income groups.

6) Product line: It offers product categories namely oral care, personal care, household surface, fabric
care and pet nutrition etc. having deep assortments across the product categories.

7) Financial position: Having more than 80 years of experience in the consumer goods market &
backed by Unilever who owns 67% controlling share in HUL, it is financially strong.

8) Market share: Through high penetration in the market, HUL had managed to hold their high market
share in different product categories.

9) Share of Wallet: Whether one buys surf /wheel /Rin detergent it will go to HUL’s pockets. HUL
strategy to offer different products for different income groups (selective targeting) has been successful
in having share of wallet of a consumer.

Weaknesses in the SWOT analysis of Hindustan Unilever (HUL)

1) Decreasing Market share: Competitors focusing on a particular product & eating up HUL’s share,
like Ghadi&Nirma detergent eating up HUL’s wheel detergent market share.

2) Large number of brands in different product categories: Sometimes having broad brand portfolio
can lead to confused positioning. Price positioning in some categories allows for low price competition
like AMUL captured Kwality’s market share.

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Opportunities in the SWOT analysis of Hindustan Unilever (HUL)

1) Expanding market: By penetrating more in the rural markets through its project Shakti AMMA and
transition of unorganized business to organized one will lead to further expansion of the consumer goods
market.

2) Awareness in usage rate of consumer goods: People getting more aware and conscious about the
usage may be through advertising /word of mouth /doctor prescription, is resulting in increase in usage
rate of these products.

3) Increasing Income levels: Due to stable political scenario, improved literacy rate & controlled
inflation, disposable income of the people is increasing thereby resulting into upsurge in demand &
changing their lifestyle.

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Threats in the SWOT analysis of Hindustan Unilever (HUL)

1) Competition in the market: With increasing number of local & national players it’s becoming very
hard for the companies to differentiate themselves from others. There is also threat from counterfeit
products destroying its brand image in the market.

2) Price of commodities: Increasing price of commodities will result in further increase in the price.
Further increase in price will result in decrease in sales, margins &brand switching.

3) Buyer's power: With highly diversified consumer goods market where there are lots of brands
claiming different sorts of benefits, it’s very difficult for consumers to stick to a particular brand &
hence results into brand switching where consumer got power to select a brand based on several factors
like availability, reference group recommendation, preference & price.

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 2. ITC LIMITED
COMPANIE’S PROFILE

TYPE: PUBLIC

FOUNDED: 24 AUGUST, 1910

HEADQARTERS: VIRGINIA HOUSE, KOLKATA, INDIA

KEY PEOPLE: SANJIV PURI (CHAIRMAN & MD)

PRODUCTS: Consumer goods, Apparel, Education, Hotels and Resorts, Paperboards & Specialty
papers, Packaging, Agribusiness, Information technology, Cigarettes

WEBSITE: WWW.ITCPORTAL.COM

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Swot analysis of ITC Limited:

Strengths in swot analysis of ITC Ltd.:

 ITC’s cigarette sector contributes a significant proportion of its sales to the FMCG.
 Increasing Revenue of ITC Limited in the year by year is its main strength. In the year 2024, its
revenue was ₹85,035 crore.
 Operating Income is 3.2 billion US Dollars in 2024.
 Net Income is Rs. 22,824 Crores in 2024.
 Number of Employees 32,279
 Portfolio of Companies: under its name, ITC has 6 large and diverse businesses that boost its
total revenue and allow ITC to innovate and pursue other business opportunities.
 Powerful brand: ITC is a large brand house with most of its products leading the segments in
which it works.
 ITC owns some of the most famous cigarette brands, such as the Gold Flake and Classic. It also
owns Sunfeast, one of India’s highest-selling biscuits. Similarly, the Fresh Ata, the Yippee!
Engage, John Players, and Bingo are all among the industry leaders in their respective groups.
 ITC’s hotel and property businesses are also doing well. With a portfolio like this, ITC has
become one of India’s most dominant conglomerates and is revered all over the world.
 Efficient Social Business Initiatives: The ITC has developed a three-pronged strategy that
focuses on building national economic, social, and environmental resources.
 ITC has introduced initiatives such as E-Choupal, Choupal Pradarshan Khet (CPK) that support
grass-roots people, i.e., farmers. Such initiatives have also enabled ITC to boost their brand
reputation as a conventional tobacco producer.
 Inter and Intra-Divisional Synergy: ITC has effectively used the strengths of core companies to
push into newer products or categories. ITC has leveraged the powerful distribution network of
cigarette brands to build a market for its FMCG product
 In addition, ITC has leveraged the experience of food and bakery items from its hotel company
to become part of the Packaged Food group.
 ITC has a large and competent management team. Clear brand image, outstanding promotional
goods Diversified range of products and services, including FMCG, hotel chains, paper &
packaging, and agribusiness.

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  Over 6500 E-Choupal CSR programs and sustainability projects improve the brand identity of
ITC to more than 4 million farmers.
 ITC has reduced personnel to more than 25.000 employees' good services for research and
development.

Weaknesses in the SWOT Analysis of ITC Limited – ITC SWOT Analysis

 High Proportion of Tobacco Product Revenues: ITC has made continuous efforts to separate the
FMCG sector from over-dependence on tobacco products and has been successful in doing so to
some degree. Nonetheless, tobacco products remain the biggest source of revenue contributing
more than 60 percent to FMCG’s overall revenue.
 Tobacco Products Association has an impact on the brand: ITC has made a great deal of effort to
enhance its corporate image, but the fact that ITC has many tobacco products in its portfolio has
an impact on its corporate image. The increase in the Tobacco Tax has an effect on revenue: due
to the rise in the tax on tobacco products, rates and, subsequently, profits are affected.
 ITC is still dependent on its tobacco sales, and people have cheaper alternatives and other
brands.
 The hotel industry has not been able to build an enormous market share.

Opportunities in the SWOT Analysis of ITC Limited – ITC SWOT Analysis

 Acquisitions: ITC will continue to make strategic acquisitions, as it has done in the past, by
purchasing Savlon from Johnson & Johnson and B Natural from Balan Natural Foods. Keeping
in mind that the product fits into the current distribution network, ITC will try to increase its
product range and broaden its non-tobacco FMCG business and thus improve its revenue base.
 Growth in purchasing power and changing lifestyles: ITC can tap into rising buying power and
changing customers’ lifestyles in India. It will help to raise sales for all of its companies.
 Growing Personal Hygiene as well as Food Processing Industry in India: ITC should use its
distribution channel in the Personal Hygiene and Food Processing Industry to capitalize on the
growth of categories and thus increase revenue.
 Tap opportunities created in the rural sector: the rising rural sector in India and other developing
nations are generating enormous opportunities to boost the company’s bottom line.
 Mergers and acquisitions are planned to reinforce the brand.

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  Increased people’s buying power, thus rising competition. More exposure to hotel chains to
increase market share.

Threats in the SWOT Analysis of ITC Limited – ITC SWOT Analysis

 Intensifying rivalry in FMCG companies: ITC is facing intense competition in its FMCG market
from major MNCs such as HUL and P&G and Indian FMCGs such as Patanjali and Dabur. It
limits the market share of the ITC.
 Regulations and Increased Taxation in Cigarette Business: The Tobacco and Cigarette Industry
in India continues to be regulated by strict government regulations and the tax system. This poses
a threat to the highly profitable ITC Cigarette company.
 Increasing health awareness: there has been an increase in health awareness, which has resulted
in a decrease in the demand for tobacco products in India. Anti-smoking programs throughout
the country also have an effect on cigarette sales.
 Intense and increasing competition among other FMCG companies and hotel chains.
 FDI in the retail sector, thereby allowing for international brands.

3.NESTLE

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 COMPANIE’S PROFILE

TYPE: PUBLIC

FOUNDED:1866

HEADQUARTERS: VIVEY, VAUD, SWITZERLAND

KEY PEOPLE: PAUL BULCKE(CHAIRMAN), LAURENT FREIXE(CEO)

PRODUCTS: BABY FOOD, COFFEE, DAIRY PRODECTS ETC.

WEBSITE: WWW.NESTLE.COM

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SWOT ANALYSIS OF NESTLE:

STRENGTHS OF NESTLE:

Nestle’s continuous presence over the years is attributable to numerous internal factors. These factors
form the strengths of the Nestle group, and here I will be taking you through what are the strengths of
Nestle briefly:

 Global Presence: Nestle’s active presence in 187 countries is advantageous to its undivided
growth. The presence in some countries is over 150 years, establishing the brand in the local
environment. This means that their product is available to the people in these many countries,
and it creates a long-lasting impact on people as well.
 Increasing Cash flows: Nestle cash flows increased by 10.9% to CHF 16.5 billion in 2024.
This means that the group’s finances are healthy and they can invest more money and can
expand quickly.
 Strong Supply Chain operations: The nestle group encourages innovations at the local levels,
incorporates technology and is increasing the traceability of the sources of the raw materials of
its products. This enables the group to achieve substantial operational efficiencies.
 Fast Innovation: Application of science across all platforms and innovating through
collaboration with the local players allows Nestle to innovate faster and according to local
demands. For example, in 2019, Nestle could achieve shortened timelines of science into

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 technology on average by 30% and saw additional 50 fast-tracked projects which will launch
within 6 to 12 months.
 Digital Transformation: Nestle’s investment in digital transformation across fields like
marketing, social media, e-commerce, manufacturing and supply chain has helped them become
data-driven. This enables them to personalize their consumer’s needs and achieve higher
satisfaction. In 2019 Nestle has transformed 70 ecosystems by the help of artificial intelligence
and personalized 20% of their consumer’s contacts.

WEAKNESSES OF NESTLE:

Nestle core competencies lie in its strengths, but the global giant also faces numerous internal
weaknesses. Here, we can easily understand what are the weaknesses of Nestle:

 Problems in product marketing: Nestle has time and again faced a massive backlash from
people across the globe for not correctly positioning and marketing their products. One classic
example is the marketing of breastfeeding baby formula to people in poorer nations. Uneducated
mothers were using the product with contaminated water, causing high cases of sickness from
the same.
 Organizational Structure:Nestle’s current organizational structure is divided based on its
product portfolio and not based on its geographical operations. This creates vast power distance
when it comes to decision making and prevents agility in operations. In expanding its operations,
this always proves to be a major hurdle.
 High dependence on advertising: Nestle is majorly dependent on advertising to promote its
products; it increases the marketing costs and consequently, a high risk associated with the
returns. With disruptions coming up, this strategy will not sustain Nestle in the long run.

OPPORTUNITIES OF NESTLE:

The dynamic environment is now more connected than ever. It provides numerous opportunities for the
group to thrive and grow. I have listed some of them for your understanding:

 Increasing Transparency: The present consumer holds more information than ever. With the
growing presence on the internet, it will be favorable to increase transparency. Increasing

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 transparency would mean that consumer knows where the raw materials are sourced from, when
they are sourced and who sourced them. The consumer feels more connected and is trusting the
brand more.
 Sustainability: Integration and operating sustainably will help the group to reduce costs,
increase efficiency and utilize labor properly. Local integration and production will make
operations lean, which will reduce long term expenses.
 Increasing disposable Income: Increase in the average household income in Asia, Oceania and
Sub-Saharan regions is an excellent opportunity for Nestle to expand its operations. Introduction
of new or existing products can be taken up to increase its product portfolio and hence, increased
presence and profits.
 Diversifying its product portfolios: Nestle has a great opportunity in introducing products into
sectors other than food and beverages. Merging through strategic alliances can help Nestle to
diversify and tap into markets other than food and beverages. For example, the technology
industry is slated to grow at a rate of 5% CAGR in 2026.

THREATS OF NESTLE:

The dynamic environment is now more connected than ever. It provides numerous opportunities for the
group to thrive and grow. I have listed some of them for your understanding:

 Increasing Transparency: The present consumer holds more information than ever. With the
growing presence on the internet, it will be favorable to increase transparency. Increasing
transparency would mean that consumer knows where the raw materials are sourced from, when
they are sourced and who sourced them. The consumer feels more connected and is trusting the
brand more.
 Sustainability: Integration and operating sustainably will help the group to reduce costs,
increase efficiency and utilize labor properly. Local integration and production will make
operations lean, which will reduce long term expenses.

 Increasing disposable Income: Increase in the average household income in Asia, Oceania and
Sub-Saharan regions is an excellent opportunity for Nestle to expand its operations. Introduction
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 of new or existing products can be taken up to increase its product portfolio and hence, increased
presence and profits.
 Diversifying its product portfolios: Nestle has a great opportunity in introducing products into
sectors other than food and beverages. Merging through strategic alliances can help Nestle to
diversify and tap into markets other than food and beverages. For example, the technology
industry is slated to grow at a rate of 5% CAGR in 2027

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 4. PARLE AGRO.
COMPANIE’S PROFILE

TYPE: PRIVATE

FOUNDED:1984

HEADQUARTERS: MUMBAI, INDIA

KEY PEOPLE: Prakash Jayantilal Chauhan (Chairman & MD),

Schauna Chauhan (CEO), Alisha Chauhan (Director), Nadia Chauhan (Director)

PRODUCTS: FROOTI, APPY, PARLE-G ETC.

WEBSITE: WWW.PARLEAGRO.COM

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SWOT ANALYSIS OF PARLE AGRO:

STRENGTHS OF PARLE AGRO:

Strengths are internal factors of a company that empowers it and contributes to its growth.

 Supply Chain – Parle has a large supply chain. Parle products can be seen in every regional area
of India. Without any doubt, Parle is the most widely distributed Indian biscuit brand. this is the
strongest advantage for Parle-G because it is the largest sold biscuit brand in the largest market
for Biscuits.
 Strong Presence in Rural Markets – In 2018, Parle was ranked 78th in all Indian Brands. It is
the most trustable brand in the eyes of people.
 Affordable Prices – Parle has 5 rupees packets also. Poor people find it affordable to add it to
their breakfast. It even has the small 2 rupees packaging.

Weaknesses of Parle
Weaknesses are factors pulling back the success of a company. Let’s look at some of the weaknesses of
Parle.

 Dependent on the Parle-G Brand for its Revenue– Parle-G is the single revenue generator
premium biscuit range on parle limited. Its other snacks and Candies don’t have such likeability
among its Consumers.
 Same Taste and Products – Similar Products produced by the companies like Glucose Biscuits,
Mango Bite, Candies. Nothing new products are being launched by the company for a very long
time. Even the taste of exiting products is getting deteriorated day by day.
 Many Competitors in the Segment – There are many Domestic brands to compete with the
parle brands. The supply chain of parle is affected by regional products. And new Bakery
products the major competition of the parle.

Opportunities of Parle
Opportunities are external factors that can contribute to the growth of the company if identified and
grabbed at the right time.

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  Launching New Products in Health Sectors– Parle is spreading its wings and launching
innovative products in health sectors. Parle has a share in pharmaceutical companies. And
collaborating with hospitals and famous doctors.
 Export Potential – Parle G is exported to SAARC countries & to US, UK, and Europe as well
as to parts of Africa. Thus, the export segment of the brand is very strong too.
 Rise in Purchasing Power of Consumers– Parle is a company that tends to maintain quality
while keeping the price low. And increasing purchasing power of customers leads to a high
supply of products.

Threats of Parle
Some of the threats for Parle are.
 Bakery Products – Bakeries are regionally located and are a major commission to every snack
and biscuit company. Due to the low prices and reduction of taxes, it’s aiming towards the be the
part of every kitchen.
 Substitutionary Products – Parle-G biscuits are majorly used as the morning snack in every
typical Indian family. But with the increase in the demand for other snacks like Toast,
Sandwiches, Rusk, the demand for parle biscuits eventually decreased.
 Increasing Raw Material Prices – Raw Materials are a basic subsidiary of any product. Like
Wheat, Sugar, some other ingredients are increasing in demand and prices keep on fluctuating
and because of those prices of the products also increase.

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 5.BRITANNIA INDUSTRIES LTD.
COMPANIE’S PROFILE

TYPE: PUBLIC

FOUNDED:1992

HEADQUARTERS: KOLKATA, WEST BENGAL, INDIA

KEY PEOPLE: NUSLI WADIA(CHAIRMAN), VARUN BERRY

(MANAGING DIRECTOR)

PRODUCTS: BAKERY PRODUCTS, DAIRY PRODUCTS ETC.

PARENT COMPANY: WADIA GROUP

WEBSITE: WWW.BRITANNIA.CO.IN

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SWOT ANALYSIS OF BRITANNIA INDUSTRIES:

STRENGTHS OF BRITANNIA INDUSTRIES:

An organization’s capabilities of acquiring more market share, getting more and more customers, and
maximizing profits are noted as its strengths. Following are Britannia’s strengths:

 Brand portfolio: Britannia is the only company in India that offers bakery products for all
income groups which helps them to acquire larger sectors of consumers. Britannia covers up to
30% of the market share in the biscuit production of India.
 Excessive brand recall: As the brand deals with a variety of products like biscuits, dairy
products, cakes rusk etc they have high shelf visibility. Also due to aggressive marketing and
advertising, resulted in the brand establishment.
 Benefiting Indian markets for the last 120 years: it is one of the most trusted brands in India.
An intrepid baker made a bunch of yummy golden brown biscuits123 years ago in Calcutta.
These biscuits were specially baked for officers of the British Raj who were used to the standard
of English tea time snacking. over a few decades, this company served a large range of Indian

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 houses with biscuits, dairy products etc. and also some nutritious food. Today it is one of the
leading companies in India with3.5 million retail outlets

 Penetration into the market and distribution: The company has large market network
coverage with large SKU’s and making it available through its vast distribution system, Britannia
has entered almost every remote corner of this world.
 Market leader in the bakery sector: BIL is a major competitor in the Indian Food market
gaining leadership in the bakery and holding 30% of the market share. It manufactures both tasty
and healthy varieties in biscuit, bread, cake, rusk and dairy products.

2. Weaknesses of Britannia

A company can never be overall perfect in all areas, it does have some weak areas where there is a need
to put some extra effort. Britannia’s major flaws are:

 Overdependence on biscuit business: 75% of the revenue of Britannia comes from the biscuit
business. Although they hold a larger share in the market in terms of biscuits, they are over-
dependent on that sector which may affect the company in the longer run.
 Indistinguishable products: As many companies produce similar products like Britannia for
example bourbon biscuit is manufactured by both Parle and Brittania and many local brands, it
creates confusion in the minds of the customer which results in in in the loss of the company.
 No overseas presence: Brittania has its existence only in Oman and Dubai apart from India that
too from subsidiaries so the overall export of the commodity is very low.
 Dairy business struggles: Dairy products add only 5% to the total revenue of the company.

3. Opportunities for Britannia

Opportunities are the area where the company needs to focus and improve their result, sales and also
profit.

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  Upcoming Dairy products: With the emerging organoleptic features in the dairy sector,
improving the dairy products can help the company to gain its market share and also position
itself into the dairy market.
 Demanding healthier products and changing lifestyle: Increasing income, internet
accessibility, education and changing lifestyle are carving more demand for healthy food
products.
 Enter into foreign markets: Penetrating the foreign markets and expanding over there can help
the company to recognize itself globally.
 E-commerce: There has been an increase in the eCommerce industry’s sales. This has led to
many people now making purchases online. Britannia can generate revenue by opening online
stores and operating through them.

4. Threats for Britannia

Threats are external that can cause hindrance to the company s growth. Here are some of Britannia’s
threats:

 Increasing competition: Due to increasing numbers of brands (local brands such as Anmol,
Priya gold etc.) the company is not able to differentiate its products from other brands. This can
spoil the brand image of the company in the market.
 Increasing Price of the raw materials: Increase in the price of the raw material will eventually
increase the price of the product. Further, it will lead to a decline in the profit margin and
reduced consumption as well.
 Buyer’s power increasing: Due to the variety of brands in the market that claim different
Benefits to the consumer, it is becoming difficult for the consumers to stick to a particular brand.
Thus, there is a brand switching by the consumer and they are getting the power to select the
brand based on its preference, price etc.

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Chapter 4

Conclusion & Recommendation:

4.1 CONCLUSION & RECOMMENDATION ON SWOT ANALYSIS OF

HINDUSTAN UNILEVER:

CONCLUSION:

Unilever has been in the business of consumer fulfillment for many decades and hence, we are confident
that it can tide over the present gloomy conditions in the FMCG segment. Having said that, we conclude
the article with a cautionary note of not taking the threat from the Asian FMCG majors lightly as they
understand the continent better and at the same time are mastering the intricacies of the global
marketplace.

RECOMMENDATION:

This SWOT analysis of Unilever highlights a number of internal and external strategic factors that
managers must include in strategy development. In this regard, a recommendation is to diversify
Unilever’s business through acquisition of related firms not in the consumer goods industry. Also,
Unilever needs to consider product innovation as an opportunity to boost business performance. It is
recommended that the company must use its strengths, such as economies of scale, for product
innovation to address competition and the threat of imitation.

4.2 CONCLUSION & RECOMMENDATION ON SWOT ANALYSIS OF ITC:

CONCLUSION:

ITC has touched the lives of consumers across India, whether it is in the food and beverages space
through over 275+ strong brands or in various social initiatives helping improve the quality of life.

ITC’s well-known household brands have been developed in markets with high growth potential. There
are problems, let alone to conquer these markets but also to establish a foothold. On the one hand, it is
questionable whether ITC will be able to keep up with the rapid growth of its competitors in these
markets using its conventional marketing strategies because they have already established strong
positions in such markets. I think I can be fairly positive about the future of ITC Limited.

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RECOMMENDATION:

My recommendation for ITC is that it should be more focused towards maintaining its image as a multi-
product & diversified company rather than become famous as a single product focused company
because it can lead to an adverse effect on its brand value.

4.3 CONCLUSION & RECOMMENDATION ON SWOT ANALYSIS OF

NESTLE:

Conclusion:

Nestle group’s ever-growing product portfolio and its global presence are attributed to their focus on its
core strengths and its alignment with the opportunities available. At the same time, Nestle’s focus on
threats and has to work on its weaknesses to tackle every change in the environment.

Recommendation:

My recommendation for NESTLE is that the company should not rely heavily on adverting and also
work on other marketing strategies & maintain superior quality of products as compared to its
competitors. Nestle should also work on its organizational structure which improves agility in
operations.

4.4 CONCLUSION & RECOMMENDATION ON SWOT ANALYSIS OF PARLE

AGRO:

Conclusion:

Parle- the oldest company is the most successful company in India. The products, services, and tastes are
giving pleasure to the people for decades. All this has become possible due the better quality, affordable
prices and moreover, due the large supply chain. This has led to parle being the most trusted brand by
the people in India.

Recommendations:

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After looking at the weaknesses of the company, we can say that company should change its products
variations and should introduce something new to the customers. Then only it can cope up with the new
competition in the market.

4.5 CONCLUSION & RECOMMENDATION ON SWOT ANALYSIS OF

BRITANNIA INDUSTRIES LTD:

Conclusion:

Britannia is well-known and has a large worldwide footprint. Britannia’s SWOT analysis revealed that
the organization is trustworthy and has great brand recognition. But the primary issue is that it is facing
rising market competition.

Recommendation:

First of all, Britannia industries ltd. should work on and improve its research & development department
as it is necessary to capitalize on the changing needs with changing lifestyle of the people. The company
should look to step in overseas market along with betterment of the quality of its products & better
product differentiation.

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 Bibliography:

Various online sites have been consulted while making of this project which are as follows:

1. www.hul.com
2. www.itcportal.com
3. www.nestle.com
4. www.parleagro.com
5. www.britannia.com
6. www.ncbibookshelf.gov.in
7. www.wikipedia.com

Many other books have also been consulted, which are as follows:

1. FMCG distribution: challenges & workable solutions by “Manal Haddad”

2. Indian FMCG industry- A Primer by “Nitin Mehrotra”
3. The Giant FMCG Companies in India by “Varun Kesavan”
4. The Secret Jewels of FMCG by “Munaf Khatib”

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