Top 5 FMCG Companies in India – FMCG (fast moving consumer goods) are the products we consume on daily basis. No doubt that the products sell quickly and are usually low-cost. We also refer to these products as consumer packaged goods (CPG). Typically, the products include daily-use non-durable goods such as beverages, toiletries, over the counter drugs, packaged food, dry goods and numerous other consumables.
FMCG are characterized by their high turnover. On the other hand, there are specialty goods that are costlier and have lower sales. We find many retailers especially hypermarkets etc sell only FMCGs. Convenience stores also find it profitable to sell only CPG goods because of their limited shelf space which they use to offer only the higher turnover consumables.
Typical Properties of FMCG
First, we discuss the characteristics of FMCG from the viewpoint of the consumers. It is important to understand the interface of the customers with the products and that of marketer’s with customers.
Main Features of Customer’s view Point
- Repeated purchases
- Low cost
- Faster consumption
- Needs low engagement
- Short shelf life
Main Characteristics of Marketer’s view Point
- Large volume of sales
- Low margins
- Wide distribution networks
- High inventory turnover
List of Top Five FMCG Companies in India
FMCG is one of the most important sectors in India because of its wide reach and people-centric organization. It is the fourth largest sector in India providing employment to a large number of people. Listing of FMCG companies here is done on the basis year-on-year sales.
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Hindustan Unilever Limited
Hindustan Unilever Limited is the largest FMCG Company in India with its history going back more than 80 years. Its presence in India has been so commonplace that you will hardly find any India who has not used one of its products.
With its overwhelming brand presence, the company offers its products in home care, beauty and personal care, foods and refreshments and many more. HUL brands have penetrated into every nook and cranny of the country.
It is a company with no debt with robust capacity to generate cash from its core business. Cash flow is improving for the last two years. Annual net profits are also increasing for the last two years. And, FIIs/FPIs have also increased their holding in the company. For investors, there are some warning signs as well. Mutual Funds have decreased their holding in the company. ROCE is declining for the last two years due to inefficient use of cash. The momentum has weakened as the price of HUL stock is trading below its short term, medium term and long term averages.
The Financial Data Provided Here is From Sep 2021
Revenue: Rs 47,028 Cr
Market Cap: 569,270 Cr
Dividend/Share (Rs): 31
EBIT: Rs 2996 Cr
Net Profit: Rs 2185 Cr
ROE (MAR 2021): 16.77% ROCE (MAR 2021): 19.01%
Promoter holding: 61.9 %
Debt to equity: 0.00
The company has got more than 40 brands in various categories including skin care, hair care, color cosmetics, oral care, deodorants, beverages, ice cream, fabric wash, household care, purifiers, personal wash, packaged foods and frozen desserts.
The brand portfolio of the company includes top brands like Vaseline, Clinic Plus, Sunsilk, Indulekha, Lakmé, Pepsodent, Kissan, Surf Excel, Rin, BRU, Kwality Wall’s, Knorr ,Wheel, Sunlight, Vim, Pureit, Lux, Lifebuoy, Dove, Fair & Lovely, Pond’s, Closeup, Axe and Brooke Bond.
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ITC Limited
ITC (Imperial Tobacco Company) started its operations in 1910. The company is a diversified conglomerate doing business in various verticals including FMCG offering products like cigarettes and cigars, branded apparel, education & stationery products, incense sticks and safety matches, foods and personal care; Information technology, agri-business, hotels packaging and paperboards. ITC is one of the top FMCG companies in India.
Revenue: Rs 49272 Cr
Market Cap: Rs 279,145
ROE: 21.8 %
Dividend/Share (Rs): 4.75
Promoter holding: 0.00 %
Debt to equity: 0.00
Price to book value: 5.47
Earnings per share (EPS): 10.7
After HUL, it is the 2nd largest FMCG Company in India. As the ownership of the company became Indian, the name of the company was changed to India Tobacco Company Limited in 1970. Later the name was changed to I.T. C. Limited in 1974. In a symbolic gesture showing ITC’s multi-vertical businesses the full stops in the Company’s name were removed on September 18, 2001.
Nestle India Ltd
Nestle has become synonymous with food and beverages across the globe. No doubt, it is the largest FMCG Company in the world offering food and beverages. The company has huge product portfolio with over 200 brands and is present in almost every country on the globe.
In India, the company has been doing business for more than 100 years. Nestle has its distribution network spread across India. The company has got 8 manufacturing facilities and 4 branch offices in the country. Nestle is the 3rd largest FMCG Company in India.
Revenue: 13,350 Cr
Market Cap: 182,122 Cr.
ROE: 103.12
Net Profit: 2082 Cr
Promoter holding: 62.76 %
Debt to equity: 0.02
Price to book value: 34.93
The first manufacturing facility started its operations in Moga( Punjab) in 1961 followed by setting up its 2nd facility at Choladi (Tamil Nadu), in 1967.In 1989, Nestle started its 3rd manufacturing unit in Nanjangud (Karnataka) followed by the 4th one in Samalkha (Haryana) in 1992.
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Then, the FMCG major opened its 5th unit in Ponda in 1995 and 6th facility in Bicholim in 1997; both are in the state of Goa. It inaugurated its 7th manufacturing facility in Pantnagar (Uttarakhand) in 2006. And, the company set up its 8th unit in 2012 at at Tahliwal (Himachal Pradesh).
Nestle is headquartered in Gurugram, Haryana with 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata to coordinate marketing activities in different parts of the country.
Godrej Consumer Products Ltd
Godrej Consumer Products is one of the oldest business enterprises in India with a glorious history of 122 years. The company enjoys global presence across in various businesses. It is the 4th largest FMCG Company in India.
The FMCG major is looking to aggressively expand its base of business globally particularly in three emerging markets—Asia, Africa and Latin Africa. Focus of the company is mainly on three categories—home care, personal and hair care.
Revenue: 11,028 Cr
Market Cap: 99,364 Cr.
ROE: 18.33 %
ROCE: 25.26%
Promoter holding: 63.24 %
Debt to equity: 0.08
Price to book value: 11.72
It is ranked as the largest provider of household insecticides and hair care players in the emerging markets. It is already the leader in India and Indonesia in household insecticides and is aggressively expanding into Africa.
It is ranked number two in toiletries in India. And, the company is the leading player in air fresheners in the India and Indonesian markets. The company has established its edge in wet tissues in the Indonesian market.
Britannia Industries Ltd
Britannia Industries is the one of the oldest FMCG Companies in India with hollowed history of over 100 years. The company has got the most trusted foods brands including Marie Gold, Good Day, Tiger, NutriChoice, and Milk Bikis.
The company has diversified food products portfolio that includes cakes, biscuits, rusk and bread. It also offers dairy products including milk, yoghurt, beverages and cheese.
Revenue: 13,136 Cr
Net Profit: Rs 1,849 Cr
Market Cap: 87,979.55 Cr
ROE: 52.53
Dividend Yield: 4.31
Promoter holding: 50.55 %
Debt to equity: 0.59
Price to book value: 26.33 Britannia is a well-known brand with generations of Indians using its products. The company is still going strong showing robust growth decade after decade. The products of the company are popular all across the country. The FMCG major has presence in every part of the country.