Overview of FMCG Market in India
The overall FMCG market in India is expected to grow at a CAGR of 13.6 percent to touch USD 108.3 billion during 2010-2020.
The FMCG market in India has grown at a CAGR of 12.4 percent to USD 54.3 million. The growth was majorly contributed by the inflating income levels, changing lifestyle, rising disposable income, rapid urbanization, the emergence of the e-commerce and modern retail sectors of the country.
Major market segments in the Indian FMCG sector are food & beverages, household & personal care and healthcare.
Household & personal accounting for 50 percent of the overall market, followed by healthcare (32 percent) and food & beverage (18 percent).
Market Players in India
- Abu Dhabi-based Lulu Group plans to invest USD 370.6 million in a fruit and vegetable processing unit, an integrated meat processing unit, and a modern shopping mall in Hyderabad, Telangana
- Walmart India plans to add 50 more cash-and-carry stores in India by 2020
- Pepsi will set up one more unit in Maharashtra to make mango and pomegranate juices, and also an orange-based citrus juice. The investment is estimated at around USD 75.08 million
- Direct selling firm Amway has set up its first manufacturing facility in India at an investment of USD 82.61 Million, in Tamil Nadu. India is only the fourth country in the world where it has invested in a plant
Government Measures – Ease of doing business in India
- 100 percent FDI is allowed in food processing and single-brand retail and 51 percent in multi-brand retail
- Implementation of the Goods and Services Tax (GST), which aims to replace a multitude of indirect taxes with a single GST rate, is expected to benefit the sector enormously by reducing the overall incidence of taxation
- The Government announced setting up of special fund of USD 300.47 Million in the financial year 2014-15 in NABARD for extending affordable credit to designated food parks and the individual processing units in the designated food parks at concessional rates. The fund has been continued in 2015-16
About Sannam S4
In this edition of our newsletter, we have given an overview of the Indian market, recent investments made in the sector, opportunities and future prospects and government measures to ease of doing business in India.
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