The 10 Most Admired FMCG Companies in India

www.insightssuccess.in September 2018

10

The

MOST

ADMIRED

FMCG

Expert’s Insight The Rage of FMCG Sector in the Rural Market

Trendy talk Notable Trends in the Indian FMCG Industry

C O M P A N I E S I N I N D I A

MP Ramachandran Founder, Chairman & MD

JYOTHY LABORATORIES

A Venerated Firm Bestowing Excellent Lifestyle Products

Omnichannel Agent and Customer Engagement Solutions Simplify and personalize the customer experience, empower agents and achieve business success with one workspace for all channel interactions, application integrations, and CX reporting.

Editorial

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he FMCG industry has experienced salient modifications keeping in pace with the on-going momentum of the food industry. The drastic changes in eating patterns, fitness regimes and overall lifestyle have been the major driving factors that have transformed the FMCG industry in the recent times. The top business giants are taking the lead with emerging trends and trying hard to reach the top of the pyramid with leading FMCG producers.

Frozen Food is a trending concept in the recent times and a new added member in one’s shopping cart. Living in such modern times, everyone enjoys convenience which is reasonable and also cost-effective. Many-a-times the arduous workculture and time-shifts individuals’ face is exhausting, which makes it tiresome for them to cook a wholesome meal by the end of the day. Frozen food is a quick fix in such situations and a good option once in a while.

Acceleration of the Indian FMCG Companies

Freezing is one of the oldest methods of preserving foods and can keep food fresh and nutritious for a certain period of time. To be more precise good frozen storage usually requires temperature of -18 degree Celsius or lower, which can be packaged properly and be preserved for a longer duration of time. It is imperative to do a little research about what can be frozen and to which extent as some food items don’t freeze well. It is also necessary to know the different methods of freezing for different type of foods with few essential freezing tips.

The frozen food industry, which initially started with basic products is now offering a wide range of products from fruits, vegetables, meats to snacking and full meal options. In order to stay ahead in the longer run, the companies are pushing their boundaries and coming up with latest ideas and techniques to surpass the competition and become a brand name in the competitive market.

The growing number of FMCG companies and opportunities has marked an arrival of the new era in the FMCG Market. According to a survey conducted, it is observed that the retail market in Indian is estimated to reach US$ 1.1 trillion by 2020 with the modern trade expected to grow by maximum of 25 percent, which will the boost the revenues of the FMCG companies. With proper planning and R & D, companies can harvest a good source of revenue in the various FMCG categories like frozen and processed foods, beverages, dairy products and many others.

The market of FMCG is spread all over the country, it has even penetrated deep into the rural regions. The latest trends show, that the FMCG market has a huge potential in the rural market and will surprise the FMCG manufactures in the present as well as the upcoming times.

Looking at the growth of the FMCG companies in the last couple of years, it can be clearly stated that the outreach of the FMCG market has immensely expanded and continues to stretch with the help of unique ideas and techniques.

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Apurva Bhosal

Apurva Bhosale

Editor-in-Chief Pooja M. Bansal Senior Editor Shraddha Deshpande Managing Editor Rajarshi Chatterjee Executive Editor Apurva Bhosale Art & Design Director Amol Kamble Co-designer Savita Pandav Picture Editor Alex Noel Art Editor Asha Bange Visualiser Deepanjali Jena Business Development Manager Akansha Garewal Marketing Manager Dhruv Apte Business Development Executives Divya, Sarika ,Vaishnavi Research Analyst David Circulation Manager Vivek Bangade Database Management Prashant Chevale Technology Consultant Swapnil Patil sales@insightssuccess.com

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CONTENTS Cover Story

JYOTHY LABORATORIES: A Venerated Firm Bestowing Excellent Lifestyle Products

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16

Articles 26

Trendy talk

Notable Trends in the Indian FMCG Industry

36

Leader’s Viewpoint Changing Trends of FMCG in India

From Editor’s Desk

The Upswing in the Indian FMCG Sector

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Gen Next Food and Hospitality The Art of Cherishing Natural Goodness

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30

I Knowledge Factory Digital Marketing is all set to Capture FMCG Sector

Leader’s Viewpoint Changing Trends of FMCG in India

CXO Standpoint 22

Expert’s Insight The Rage of FMCG Sector in the Rural Market

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Leader’s Viewpoint Changing Trends of FMCG in India

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Expert’s View Factors Affecting the Growth of the Rural Markets

10FMCG THE

Most Admired

COMPANIES IN INDIA

Admired FMCG CompaniesOffering Innovative Lifestyle Products The FMCG companies have definitely come a long way over the years with its inherent advancements and prompt responses. Be it either creating innovative products and concepts or building competitive strategies, the FMCG market has escalated its game. It has come up with healthy product options to contribute for the changing lifestyles of people and also to nurture the goodness of eating organic produce.

We introduce some of the most innovative companies in the FMCG market and bring forth you “The 10 Most Admired FMCG Companies in India”. This edition briefs about the companies which have successfully generated new and advanced concepts to cater the needs of individuals. Serving the customers with utmost service offerings and having the core values of integrity, determination, we have shortlisted the FMCG companies for this edition.

On the Cover Story of this Edition we have showcased Jyothy Laboratories Limited: It is a leading company which offers top-notch products in an expedient manner to satisfy the targeted consumers.

Along with an excellent Cover Story, we have enlisted various other FMCG companies which are making a difference with their performance and creating a benchmark in the FMCG market. Starting with, Gen Next Foods and Hospitality: It produces a varied range of nutritionally designed snacking options. Wholesome Foods: It is a company that provides healthy, convenient, authentic food to foodies worldwide. I Knowledge Factory: It has been devising and delivering meaningful solutions across multiple industry verticals.

Amway India Enterprises: It is one of the world’s largest direct selling businesses providing quality enhanced products.

ITC Limited: ITC Brands are designed and customized to delight customer’s diverse tastes, needs and lifestyles. Gits Food Products: It is a legacy in the convenience packaged food segment which introduced the concept of Instant Mixes in India. KBRL: It is India’s first integrated rice company with a comprehensive product chain. Marico: It is one of India’s leading consumer products companies operating in the beauty and wellness space. Mother Dairy Fruit & Vegetable: It is the world's biggest dairy development program launched to make India a milk sufficient nation.

Additionally, the edition consists of exclusive Interview of Jagadeesh Babu and Manik Reddy, Co-founders at Biophere India Pharmaceuticals and CXO’s stated by foremost leaders conveying their insights on the industry. Also our expert editor narrates creative piece of write-ups entitled as “Notable Trends in the Indian FMCG Industry” and “The Upswing in the Indian FMCG Sector”.

So flip the pages to know more about the food fraternity.

Cover Story

MP Ramachandran Founder, Chairman & MD Jyothy Laboratories Limited

10FMCG THE

Most Admired

COMPANIES IN INDIA

JYOTHY LABORATORIES A Venerated Firm Bestowing Excellent Lifestyle Products

Intelligence and diligent leaders of the youth are the pillars to construct an economically liberated nation

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One such company with a mission to provide brands with superior quality, to touch and positively impact the daily lives of consumers is Jyothy Laboratories Ltd (JLL). The company is well-known for its products which are cost effective, conveniently packaged, extensively distributed and supported by strategic communication. It strives to reach untapped markets with its innovative approach to create products that caters the common man. The company proudly states that it has become household friendly.

Growing over the years, the company now has 6000 potential employees and thirty-two manufacturing units spread across India. Due to its sheer contribution and principled work ethics, the company has come a long way.

A Persistent Leader Leading the Organization A diligent and determined entrepreneur MP Ramachandran, is the Founder, Chairman and Managing Director at Jyothy Laboratories. After completing his master’s degree in finance management from Mumbai University and having an experience of over a decade in accounts and finance department; he decided to establish JLL as a proprietary tiny industry in 1983. Initially he started with the commercial production of revolutionary fabric whitener by the brand name Ujala. Over the years the company has grown into a multi-brand and is greeted as one of the most trusted brands around the country.

JLL was Ramachandran’s dream project, which he started with a mere sum of only INR 5000. With the right blend of his dream, passion, research, and work ethic, he has successfully achieved great sales for each product. He introduced multiple products in various categories with distinctive functional advantages for consumers in the FMCG sector.

Helping him along the way was K.Ullas Kamath, Joint Managing Director who played a splendid role in the vision and growth of JLL. The team at JLL has a highly qualified group of professionals. Guiding and leading them all the way, Ramachandran has created a knowledgeable and a committed computable force for the progress of the organization. He embraces a hands-on management style and believes that employees are the powerful driving force.

Enriching Lifestyle Products JLL works with an approach to stand-out amongst all and outshine competition. It offers top-notch products in an expedient manner to satisfy the target consumers. The company has also attracted investments from private equity players which include Baring India Investment, CDC Financial services and CLSA, ICICI bank Canada, and UK which helped the organization to expand faster. JLL manufactures and distributes various brands across product categories as diverse as Fabric Care, Home Care, Utensil Care, and Personal Care.

The company acquired FMCG business of Henkel India Ltd, which had technologically advanced brands like Pril dish wash products, Henko Fabric wash products and other premium products such as Margo, Mr.White, Neem, Fa, Check and many more.

Due to its extensive work in the past few years, JLL has strengthened top brands like Ujala, Maxo, Exo, Henko, Pril, Margo, Mr.White, Neem, and many others.

JLL exports its products across the globe in various countries like Malaysia, Singapore, Dubai, Saudi Arabia, Kuwait, Qatar, Nepal, Bhutan, Myanmar, Mauritius, West Indies, Suriname, US, Japan, Taiwan, Fiji, Philippines, Republic of Belarus, and Srilanka. It has also established a subsidiary in Bangladesh known as - Jyothy Kallol Bangladesh Ltd in 2013.

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Our constant endeavor is to offer people with solutions rather than just the products

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n the fast paced life, household chores can be a tedious process. In order to help the mankind, FMCG companies are providing solution-oriented lifestyle products and bringing an ease to the daily work. Hence, the companies grind for the consumers requirements and deliver products that are beneficial and reasonably priced.

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We offer top-notch products in an expedient manner to satisfy the target consumers

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Winning Prestigious Honors JLL is dedicated to provide the highest quality of differentiated products and sets high performance targets to achieve it.

As such, it has won several prizes and has built a brand name in the market. The CMO and Director M R Jyothy was voted amongst the ‘50 Most Influential Women in India Media, Advertising and Marketing 2016'. In 2013 the company won the Emerging India Award organized by CNBC TV18 & ICICI Bank and Product of the Year 2013 Award for Exo Dish Shine Round in the Dish Wash/Utensil Cleaners category.

In the year 2014, JLL won the Indian Marketing Awards, India Star Packaging Award and ASAISTAR Packaging Award for the product Henko and also IDC Insights Award 2014 for Excellence in Transformation in Manufacturing Vertical.

One of the greatest memories to cherish for the company was when M. P. Ramchandran won the Lifetime Achievement Award on the occasion of 6th brand icon awards held in Thiruvananthapuram. He has also won the V.C Padmanabhan Memorial Award for business excellence leading to development of society & DHANAM LIFETIME ACHIEVEMENT AWARD 2017.

Serving the Purpose JLL’s purpose is to serve the communities with products which make their daily chores an easy task. This purpose till date remains intact and effective measures are taken place to work accordingly. The company’s constant endeavor is to offer people with solutions rather than just the products. In order to keep up with the purpose, the company has consciously ventured into product categories that provide simple but tangible benefits to consumers through a portfolio of value for money brands.

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With the right blend of his dream, passion, research, and work ethic, he has successfully achieved great sales for each product

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JLL deliberately considers their costumers feedback and insights as it is of utmost importance. The company works on the key acumens from costumers, market research and sustained in-house analytical processes. The company’s constant research and development helps it in offering innovative products while confirming a greater value for present brands.

Sharing his key motto Ramachandran said, “The fact that each brand from the Jyothy portfolio makes a positive difference to the lives of millions is our greatest inspiration – egging us to do more.”

Milestones Achieved in the Journey The company is been running since three decades and has achieved some milestones which are praiseworthy. In the year 1983, it signaled the start with the lauch of Ujala. The leading year, Jyothy Laboratories first marketing team was formed, which promoted Ujala in hometowns like Trissur and Malappuram of Kerala.

In 1997, the national roll out of Ujala was held and within the next two years, Ujala become a brand worth INR 100 crore. In the year 2000, the new millennium saw JLL

diversify into household insecticide and utensil care segments with the roll out of Maxo and Exo. The year 2003 was pleasant as Maxo won AAA brand Performance award and Ujala washing powder was launched in Kerala. Within the next year Maxo crossed INR 100 crore mark becoming a leading brand.

In 2005, Ujala Stiff and Shine was launched in Kerala.

Within the next two years, the company went public with its IPO (initial public offering). In the year 2008, the company shifted its registered office to its new building ‘UJALA HOUSE’ in Mumbai and also launched Ujala Stiff and Shine nationally in March.

In 2009, the national roll out of Exo was held in the phased manner. In 2011, JLL acquired controlling stake in Henkel India limited & subsequently it was merged with JLL. Present Times of the FMCG Sector The market is constantly swamped by chemical additive products, which may lead to harmful effects on human health and other living organism present on earth. As the lifestyle among communities has transformed, the people are growing their concern for natural and herbal products.

These products are on the swing, due to their popularity and also their beneficial features. Over the years, the demand scenario in the rural regions has changed and currently it's in a good condition than before. A boom is seen in certain RM prices, due to an increase in crude price and fall in rupee which is common to all.

A Broader Vision JLL is led by a corporate philosophy that represents the virtues and objectives that determine the way the company conducts their business. The company ensures that its brands, business operations and corporate policies transform the core philosophy of offering value for the money spent to experience its products. The company makes sure that its people, processes and products reflect the ideals of integrity, ethics and professionalism.

Exploring New Directions Ahead The company has achieved an enormous response over the years. It strives to incorporate strong innovations across its portfolio to deliver growth. It works on strengthening the sales distribution platform backed by IT network. In this upcoming period of time, the demand scenario is also heading in a positive direction.

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10FMCG THE

Most Admired

COMPANIES IN INDIA

Company Name

Management

Brief

Amway India Enterprises (P) Ltd amway.in

Anshu Budhraja CEO

Amway is one of the world’s largest direct selling businesses providing quality enhanced products.

Dipali J Mehta Chief Promotor and Technical Director

Gen Next Foods and Hospitality produces a varied range of nutritionally designed snacking options.

Gits Food Products Pvt Ltd gitsfood.com

Sahil Gilani Director

Gits Food is a legacy in the convenience packaged food segment which introduced the concept of Instant Mixes in India.

I Knowledge Factory ikf.co.in

Ashish Dalia CEO and Owner

It has been devising and delivering meaningful solutions across multiple industry verticals.

ITC Limited itcportal.com

Sanjiv Puri Director

ITC Brands are designed and customized to delight customer’s diverse tastes, needs and lifestyles.

Jyothy Laboratories Ltd. jyothylaboratories.com

M R Jyothy CMO and Director

Jyothy Labratories Limited is a leading company which offers top-notch products in an expedient manner to satisfy the targeted consumers.

KRBL krblrice.com

Anil Kumar Mittal CMD

KRBL Ltd. is India’s first integrated rice company with a comprehensive product chain.

Marico marico.com

Saugata Gupta MD

Marico Limited is one of India’s leading consumer products companies operating in the beauty and wellness space.

Mother Dairy Fruit & Vegetable Pvt Ltd motherdairy.com

Ram Mohan Rao COO

Mother Dairy is the world’s biggest dairy development program launched to make India a milk sufficient nation.

Wholesome Foods wsfoods.in

Jeet Hirpara Managing Partner

Wholesome foods, is a company that provides healthy, convenient, authentic food to foodies worldwide.

Gen Next Foods and Hospitality Pvt. Ltd sprightlyfood.com

Interview with Insights Success

BIOPHORE A Prominent Firm Providing Innovative, Cost-efficient and Focused Expertise.

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he FMCG companies work on delivering the clients with quality enhanced products. With lifestyle changes the FMCG sector has transformed for the good. It has wide-ranging category varying from natural goodness to lifestyle essentials and many more. It has incorporated effective various measures as client-friendly approach, innovative mechanisms, creating awareness for the smooth sailing of the company. Integrating all these measures, the firms have gained a fruitful momentum in their overall project success.

In an interview with Insights Success, Jagadeesh Babu and Manik Reddy, Co-founders at Biophere India Pharmaceuticals Pvt Ltd gave some insightful answers highlighting the influences of his company, unique service offerings, founding ideals, current and future perceptions.

With a rich experience, Jagadeesh Babu, CEO of Biophere founded the company in the year 2007. He has completed his Ph.D. from BITS, Pilani and has successfully worked at national and international domain for several years. Introducing various innovations he still continues to focus on research with a vision to develop new pharmaceutical products to global markets.

1. Kindly brief us about the company.

Biophore India Pharmaceuticals Pvt Ltd (Biophore) was founded by Dr Jagadeesh Babu and Dr Manik Reddy, two eminent scientists with over 45 years of research experience between them, in the year 2007. The focus since inception was on innovation and research and 10 years down the line, the company is on the right path with an 80,000 sq. ft. state-of-the-art R&D center and a formulation facility in Hyderabad and two world class API manufacturing units, with a third under construction, in Vizag.

The API facilities cover complex APIs from gram levels to tonnage levels, with both facilities capable of producing more than 100 products with dedicated production lines for segments such as sterile and anti-cancer. Biophore currently owns more than 60 US DMFs covering niche segments such as

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Septmber 2018|

Dr.Manik Reddy CSO & Director Biophore

September 2018

Jagadeesh Rangise y CEO & MD Biophore

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contrast media, oncology, peptides etc with a healthy pipeline of under development APIs. The formulation facility is capable of manufacturing about 1 Billion units annually.

2. Please tell us about your Founder/CEO/ Director and his/her contribution towards the Company and the industry.

The two co-founders, Dr Jagadeesh Babu and Dr Manik Reddy, have been associated since 1998 from their BITS Pilani days, and went on to work together at Navinta, of which Dr Jagadeesh was the co-founder. All through these years, there was a determined plan to move back to India and utilize the abundant technical and manufacturing skills in the country. This was also backed by a strong motivation to be a pioneer in promoting Indian pharmaceutical talent. This led to the establishment of Biophore in Hyderabad with an aim to be a fully integrated and innovative pharmaceutical organization creating value to the patient.

3. Kindly talk about the unique services and products of your company?

Biophore’s offerings are broadly divided into three segments - API: We offer niche and complex APIs with high entry barriers to the finished dose manufacturers. These products are developed mainly for the US market and then leveraged globally - Dossiers: Apart from the APIs, we have also forward integrated and offer our customers value added products in the form of formulation dossiers, which help the customers by providing the necessary technology to develop their formulation - FDF: We complete the forward integration by offering the complete end product ready to reach the market in terms of finished dose formulations. Relevant regulatory, analytical and operational support is provided, where required, for all the above products/services 4. Kindly mention the awards and accolades received by the CEO / Director and the company? Also share with us the milestones achieved by the company over the last three decades.

• Consecutively Top 10 companies for filing DMF in the USA for the year 2014-16.

• Filed 75 DMFs with US, Canada and EU authorities • Filed 110 Patents in areas of novel polymorphs and process • Third most USDMFs filed worldwide in 2015

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• Recognized as one of the fastest growing pharma companies by Silicon Review® Magazine • Featured as a Cover Story in Insights Success business magazine.

• Featured in cover story of CEO magazine.

• Awarded Pharma Leader of the year 2017 by wellknown regional news channel Tv5.

• Awarded India’s Small Giant for the year 2018 by the Ministry of Micro, Small and Medium Enterprises (Government of India).

• Awarded as most promising Research & Development Pharmaceutical Company at International Healthcare awards 2018.

• Awarded-India Toady's Make in India in the Biotechnology category for 2018.

• Awarded as TOP 100 Small and Medium enterprise across all industry segments in India by Government of India (INDIA SME).

5. What are the major challenges the company has faced over the years in terms of rising cost, growth, and evolving new players in the industry?

Although we were able to effectively leverage the inhouse skill set to develop, scale up and manufacture the products, there were a couple of critical hurdles faced during the initial days – Marketing and Differentiation.

It was a challenge to promote our products to the customers, given that we were a company which was fresh off the blocks. However, with a focus on consistent quality, timely deliveries and efficient support, we were able to gain the trust of the customers as a reliable Indian partner to associate with. There was also a conscious effort to distinguish the company from competition by identifying niche products such as orphan drugs for rare diseases and also provide early launch advantage through innovative products and processes.

6. What are the opportunities for every employee to make a valuable and valued contribution in your company?

Biophore strongly believes that the greatest asset of the organization is the people capital. And this capital needs to be complemented by providing empowerment at every level in the company. There is a conscious effort by the management to provide this freedom to employees to take decisions and provide the relevant resources to implement them. This has created a sense of ownership within the employees and the results are seen in the way each and every employee operates.

Septmber 2018|

7. What are the current trends in the FMCG pharma industry and how do you foresee the future of the industry?

There is a growing trend in the pharmaceutical industry in terms of integration, either vertically or horizontally.

Companies will continue to reinforce their capabilities in adding more markets and products to their portfolio or moving along with value chain.

We have successfully taken our first step in forward integration, through the acquisition of the oral formulation facility in Hyderabad. Our next step in this direction is to invest in an injectable facility, which enables us to have a more complete offering in terms of portfolio. We have also made a strategic decision to focus more and diversify into global markets Apart from the above, we have elaborate plans to enter diversified segments such as biologics, nutraceuticals and diagnostics in the near future.

8. How FMCG pharma industry contributes in boosting the Indian Economy?

The pharmaceutical industry in India is one of the largest in the world in terms of exports and produces around 20-25% of the global generic drugs. It is also one of the largest producers of Active Pharmaceutical Ingredients (API) globally. The domestic consumption of pharmaceutical products, most of which is produced locally is the world's 3rd largest market in terms of volumes. All these facts point to the significant role that the pharma industry plays in the Indian scenario. Now with China implementing a crackdown on their local producers due to regulatory violations, India is poised to take a major share of the shortfall that will be created globally due to this.

9. Kindly share the Vision and Mission of your organization.

VISION STATEMENT Our aim is to place Biophore in the midst of most reliable knowledge-based firms in the API sector in the immediate near-future through customer-focused approach MISSION STATEMENT To be the most trusted R & D Company in the complex and niche pharmaceutical molecule segments and achieves superior Customer Satisfaction through • Continuous Innovation September 2018

• Providing an inclusive work culture that helps our employees excel and grow 10. What are your founding ideals that have driven the company so far?

Since inception, Biophore was driven with a passion to be a trusted partner in the pharmaceutical space for the global markets and a profound vision of making a real contribution towards invention of new drugs with continuous research and innovation for the future. We had identified a largely unmet need for a reliable partner who could deliver complex and rare products to the market in a timely manner and there has been an unwavering focus at all levels within the organization to bridge this gap. Innovation is another key driver behind the growth plan, with Biophore filing close to 100 patents in US, EU, China, Japan, Russia, Brazil, Korea, Australia, and Israel among others.

Equally important was the determination of the management to give back to the society which is evident in the elaborate CSR activities taken up by the organization. Biophore strongly believes that education is the basic need for all and will empower the society towards building a great nation. We actively support in providing educational needs and infrastructure in various institutions and NGOs (e.g.

Naandi foundation, Peddannapadu Educational Society, RV College of Engineering etc) through participation, financial assistance and scholarship to the deserving students. Through this initiative, Biophore has supported the academic needs of 2000 students so far, which is considered as one of the biggest achievements of the organization today. We have also adopted 3 villages with an objective to improve the overall living conditions of the population.

11. How does pharma innovation differ between India and other countries?

India is regarded as the pharmaceutical hub for the generic medicines which offers enormous economic advantage thus ensuring affordable healthcare to all.

While the other countries like the USA and Europe focus on innovation of new drugs across various therapeutic segments.

12. Kindly provide us with a quote which best describes your company.

“A trusted partner for niche generics”

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GEN NEXT FOOD AND HOSPITALITY The Art of Cherishing Natural Goodness

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iving in a modern world, people often experience new trends. One such industry sector experiencing constant shifts is the fast moving consumer goods (FMCG). The market is constantly flooded with products which promise the best of nutrition and an eye-catching label reading ‘100% Organic’, which at times are misleading and unsubstantiated.

One such company with a mission to improve the quality of life for the communities by serving high quality natural products is Sprightly, a brand under Gen Next Foods and Hospitality Pvt Ltd. Established in 2014, the company caters a varied range of nutrition packed snack options like seeds and nuts, chips, puffs, energy bars, cookies, and cereals to consumers. The company promotes awareness regarding healthy and hygienic products; as such products help prevent chronic diseases, accomplish ideal weight, maintain good energy level, and boost a positive-self. Due to its impetus work ethics, the company has achieved Skotch Order of the Merit Award for the year 2017-18.

The Leading Force Deepali Mehta is the Chief Promoter of Sprightly. A food technologist with an experience of over two decades in the food industry, she has worked for several reputed clients, which include Criticare Laboratories Pvt. Ltd, U.D.C.T (University Department of Chemical Technology), Shreemira Food Pvt. Ltd and many more. She has also been associated with the development, standardization and technical analysis of several nutritious beverages/powders based on soya milk, mouth fresheners, coated peanuts and cashew nuts, instant mixes, multigrain, and roasted food products and many more.

Recently, Deepali has successfully accomplished an overseas turnkey project of setting up butterscotch buttons used in ice cream and confectionery industry in Egypt. Her

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client-friendly approach and ethical sense of business has procured a huge client base. Her sheer contribution and hard work has helped many startup firms to launch wide variety of healthy snacking options. In a short period of 4 years the company is manufacturing products for major brands like Reliance, Godrej- Natures Basket, Talwalkars, Ayur Shakti, Yoga Institute, Snackabil, Evolve… to name a few.

Health-Packed Amenities “In metropolitan cities today, the quick paced lifestyle demands people to shift their dietary habits from healthier home cooked meals to junk food that often lack in necessary nutrients”, says Deepali. Such an imbalanced diet has become the major cause of diseases like diabetes, high blood pressure, obesity, and under nutrition.

Sprightly has addressed these issues and came up with healthy snacking options for all age groups. The company produces products made from 100 % natural ingredients without the use of artificial flavor, colors or chemical additives.

The company has ensured a guilt free in-between-meals snacking experience. Each product has a unique feature such as gluten free, sugar free, GMO and MSG free, calcium rich, omega 3 rich, high fibers, 100% vegan, cholesterol free, low carbs, trans-fat free and many more.

The snacks are classified into eight categories such as growing kids friendly, diabetic friendly, heart friendly, weight loss, balanced nutrition, pregnancy friendly, bundle of energy and hyper tension friendly.

Tackling the Challenges Efficiently Indian people are driven with a mindset that healthy snacking is all about dieting and cannot be tasty. In fact, it is often believed that “Health and snacks are at cross Septmber 2018|

THE

COMPANIES IN INDIA

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10FMCG Most Admired

Eat Tasty, Be Healthy

purposes with each other”. Hence, the basic challenge the company faces is to spread awareness that the healthy snacking can be both tasty and reasonable.

The R&D team at Sprightly has already developed more than forty mouthwatering healthy snacks, thus liberating all the myths related with it. It creates a valuable outlook that healthy snacking is not just maintaining a certain desirable weight or body shape, but it also caters to the intrinsic nutritional needs of every body type in an exclusive manner.

Since all Sprightly products are 100% natural, one of the major challenge the company faces is to ensure that color, texture, natural flavor and shelf life of its products are maintained as per specifications. The company uses high quality multi layered laminates which ensures the same and offers a guilt free tasty snacking experience to its consumers.

The Current Scenario of the FMCG Sector and Contribution of Food Industry The FMCG sector is an important contributor to India’s GDP and it is one of the largest sectors of the Indian economy, but unavailability of tasty & healthy snacking option at reasonable price has always been one of the biggest challenges for Indian packaged food industry.

Alarmed by a rise in lifestyle diseases, the FSSAI has launched the Eat Right Movement, and food companies around the country have pledged their support.

On July 10, the Eat Right Movement was launched to usher in a ‘new food culture’ by nudging businesses and consumers to cut down on salt, sugar and Trans fat in their food.

The Eat Right Movement aims to strike that balance. “It is the classic chicken-and-egg case. Consumers complain they do not have healthy options when they eat out or buy packaged food whereas the businesses say consumers do not want healthy options. So we thought how can we break this cycle? Businesses will have to take the first step and September 2018

Deepali Mehta Chief promoter & Technical Director consumers have to become more aware of what they eat”, says Pawan Agarwal, CEO, FSSAI. Thus, the governments across the globe have taken initiatives to implement taxes, campaigns, labeling and advertising reforms to help consumers make healthier food choices. “These steps are indicative of a larger trend for healthier food options and one that is coming just in time”.

Nourishing with Time Deepali shared the company’s vision “Sprightly aims to be a leader in healthy snacking & fast food outlets industry, by developing variety of healthy food products indigenously through extensive R&D to meet individual requirements of consumers across all age groups of hygienic balanced food products made from natural ingredients for both domestic & international markets”.

Sprightly contributes for a better society, a cleaner environment, and healthier lifestyle. The company believes that innovation is imperative for success.

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THE RAGE OF

FMCG

SECTOR IN THE

Rural Market

F

MCG corporations in Asian country have continuously enjoyed a massive potential market thanks to the massive population of the country. The improved economic state of affairs of each the agricultural and concrete shoppers has helped FMCG corporations to additional expand their market to the hinterlands of the country.

Rural market in Asian country in recent years have nonheritable significance in countries like China and Asian country, because the overall growth of the economy has resulted into substantial increase within the getting power of the agricultural communities. On account of the revolution in Asian country, the agricultural areas are intense an oversized amount of business and concrete factory-made merchandise. During this context, a special promoting strategy, namely, rural promoting has taken form. Rural Asian country, largely termed as “high opportunity” market, is not any longer simply a chance, however is currently yielding results. The conception of rural promoting in Asian country economy has continuously via associate degree potent role within the lives of individuals. In India, departure out many metropolitan cities, all the districts and industrial townships are connected with rural markets.

The distinction between rural and concrete shoppers continuously exists in Asian country. Indian rural client is giant with illiteracy and poorness. Illiteracy ends up in associate degree inability to spot whole variations and browse the fundamental text on packages. Poorness and dependence on vagaries of monsoon result into a low and

22

Dnyaneshwar Yevale Owner DK Paper Cup Industries

About the Author:

DK Paper Cup Industries produces high quality paper cups and paper bowls in different size. Dnyaneshwar Yevale is the Owner of DK Paper Cup Industries. He has been successful in running the business since 2005. He attended NMVP College of Engineering in Pune and is an authorized manufacturer of paper cups and paper straw.

In conversation with him, he shared his insights regarding the challenges faced in the rural marketing by FMCG sector

Septmber 2018|

Expert’s Insight unpredictable purchasing power. Furthermore merchandise are sold lose, giving high competition to branded sealed merchandise. Since rural shoppers are economically, socially and psychologically completely different from the urban counter components.

Challenges in Rural Marketing Faced by FMCG Sectors: The peculiarities of the agricultural markets and rural shoppers cause challenges to the marketers in reaching them effectively. Whereas creating out a case for opportunities that are quickly developing in rural markets, one shouldn't underestimate the many discouraging issues in coming up with for growth. There are an oversized variety of little villages that don’t seem to be simply accessible thanks to all weather roads. Rural shoppers are so much less unvaried than urban shoppers. Most issues of rural promoting are mentioned below: Transportation Problems: Transportation infrastructure is kind of poor in rural Asian country. Nearly eighty percentages of villages within the country don't seem to be connected by well created roads.

Transportation Facilities: Because of poor transportation facilities, farmers and marketers notice it tough to succeed in markets.

Warehousing: Within the rural areas, there are not any facilities for public likewise as personal deposit. Marketers face downside of storage of their product.

Packaging: It’s the primary necessary step of product process. If the packaging value is high, it’ll increase the full value of merchandise. It’s prompt that the marketers ought to use cheaper materials in packaging for the agricultural markets.

Media Problems: Media have countless issues in rural areas. TV could be a smart medium to speak message to the agricultural folks. However because of non-availability of power, likewise as TV sets, majority of the agricultural population cannot get the advantages of assorted media.

Seasonal Marketing: The most downside of rural promoting is seasonal demand in rural areas, as a result of seventy fifth of rural financial gain is additionally seasonal. as an example, the demand for commodity are going to be high throughout the peak crop harvest home amount, as a

September 2018

result of this can be the time at that the agricultural folks have substantial high income. Rural promoting depends upon the demand of rural folks and demand depends upon financial gain and shopper behavior.

Low Per Capita Income: Per capita financial gain is lower in rural areas compared to those in urban areas. Again, the distribution of rural financial gain is extremely skew, since the land holding pattern that is basic quality, itself is skew.

So the agricultural population presents an extremely heterogeneous unfolds within the villages.

Low Level of Skill Rate: The skill rate is low in rural areas compared to urban areas. This once more ends up in the matter of communication for promotion purpose. Print medium becomes ineffective associate degreed to an extent digressive in rural areas since its reach is poor.

Distribution: A good distribution system needs villagelevel tradesman, Taluka- level distributor or most well-liked dealer, distributor or stockiest at district level and companyowned depot or consignment distribution at state level. The presence of too several tiers within the distribution system will increase the price of distribution.

Career in Rural Market: Whereas rural promoting offers a difficult career, a rural sales person ought to need bound qualifications and specialized talent to contend with rural shoppers.

Cultural Factors: Culture could be a system of shared values, beliefs and perceptions that influence the behavior of shoppers. There are completely different teams supported faith, caste, occupation, income, age, education and politics and every cluster exerts influence on the behavior of individuals in villages. There are many difficulties coping with the hassle to completely explore rural markets. The conception of rural markets in Asian country continues to be in evolving form, and therefore the sector poses a range of challenges. Distribution prices and non-availability of shops are major issues baby-faced by the marketers. The distinctive consumption patterns, tastes, and wishes of the agricultural shoppers ought to be analyzed at the merchandise starting stage so they match the requirements of the agricultural folks. Therefore, marketers got to perceive the social dynamics and perspective variations inside every village though across the country it follows a homogenous pattern.

23

Notable Trends in the Indian

FMCG Industry

26

Septmber 2018|

Expert’s Insight Trendy talk

T

he Indian and Multinational FMCG players are leveraging India as a strategic sourcing hub for cost-effective product development and manufacturing to accommodate the international markets.

With the rise in the disposable income consumers in recent times have shifted their purchasing from essential to premium products. In response to this, the firms have started enhancing its premium portfolio.

According to a survey conducted, the FMCG sector will reach new heights of USD 103.7 billion by 2020. This value clearly states that, there is a lot of scope in the FMCG sector for well-known as well as emerging businesses and brands.

In the next ten years, the revenue of the FMCG (Fast Moving Consumer Goods) market is set to grow at a higher rate. Trends are a great way, which showcase the current happenings and also give an outlook about the future times.

They also have a longer shelf life and are driven by social, cultural and political factors. This describes the marketing strategies for the FMCG companies to learn about it in every possible way. Keeping pace with the trends allows the core team to study, understand and improvise the strategies for profitable outcomes.

Health and Wellness There is growing awareness amongst the consumers regarding their wellbeing. The global and local FMCG companies are investing majorly in the health and wellness sector, as majority of people today are into fitness and aim to live and experience a healthy lifestyle. The proverb Health is Wealth, truly defines the health of an individual, as it is the most integral aspect to lead a longer and disease-free life.

Health and wellness is a trend, which is shaping the consumer preferences. The leading global and Indian food and beverage companies are embracing this trend and focusing on creating new emerging products in the health care domain.

The market is constantly flooded with products which promise the best of health and an eye-catching label reading ‘100% Organic’, which at times are misleading and undefined. In order for companies to make an impact, they have to offer healthy and organic options on a platter which are best suited for the consumer’s convenience.

September 2018

27

The Customized Approach

Eating the Local Goodness

In recent times, the consumers have become brand conscious as they prefer a high quality lifestyle and premium range products. Consumers briefly want to know what’s in store for them and primarily focus on the benefits and advantages of every product. This, in turn has made the FMCG companies to emphasize on innovating its existing product portfolio and developing new ones.

It is always said that eat what grows close to you. Every country has different climatic conditions and the food that grows in one’s country is best suited for them. People are often intimidated by products that look fancy and are flown down from some country in the world. But, what they don’t realize is it can have adverse effects on their health. So, it is always better to stick to your roots and eat the local produce.

Also, customization and personalization is the way forward for FMCG companies. With a customized service approach, the FMCG companies add a personalized touch to a consumer’s product. This adds a bonus point on the company’s name and makes the existing consumers to look forward for future collaborations. It also attracts new consumers to experience the customization process. This customization strategy comes with a cost, but also has immense benefits as it offers the FMCG companies an insight into their consumer’s behavior.

Online Marketing Leads the Way The millennial and Gen Z consumers are growing in numbers and so are their unique sets of demands. A recent survey states that they are more interested to know the experiences to share it on various social media platforms.

Living in a digital world, online marketing is definitely a way to reach out to the audience. As everyone today is influenced by social media, it definitely gives an overview to understand or know any specification about products. In order to expand, the FMCG companies should emphasize on experience sharing to attract consumer attention.

28

The FMCG companies have also realized this and are increasingly appealing to consumers by launching products with regional flavors, ingredients, recipes and more. The big brands as well as SMEs are connecting with consumers by using regional flavors and ingredients that meet the regional and home country pride.

A Comprehensive Vision The FMCG sector is full of opportunities and challenges.

Uniqueness in services and executions are the primary reins which can drive companies through complexities of the market and roll out unmatched customer experience.

Besides, consumers today are getting more attentive than ever before and are looking ahead in a broader perspective.

Establishing a stable social platform and sustaining in the longer run can empower the enterprises to trek beyond the traditional horizons of FMCG market. This impact of the FMCG companies is considerably growing in India and also with the consumer behavior evolving at a fast pace, the companies will surely keep up with the marketing trends in 2018.

Septmber 2018|

I KNOWLEDGE FACTORY Digital Marketing is all set to Capture FMCG Sector

I

Knowledge Factory has been devising and delivering meaningful solutions across multiple industry verticals.

It has a rich experience for over a decade and has built a strong client base and also has a committed team of highly skilled professionals. It has maintained industry standards and delivered benchmark projects with transparent and innovative campaign execution. It is a one stop platform for Digital Branding, Social Media Marketing, Website Design and Development.

Digital marketing is no longer a buzzword but a watchword that marketers all over the world swear by. When it comes to oine mass marketing, FMCG is, without a shadow of doubt, the only sector that holds all the cards but has it been able to keep a pace with the new wave of digital marketing?

The marketing realm isn't just about B2B or B2C but is gearing towards H2H (human to human).

The Resourceful Leader Ashish Dalia is the Owner and CEO of I Knowledge Factory (IKF). His determined self and passion has nurtured the company to become a leading name in the digital marketing services in Pune and beyond. Ashish has been successfully living and breathing the whole and soul of the organization for the last eighteen years. He has served more than 850 clients locally and globally, across various verticals such as healthcare, manufacturing, education, real estate, retail, FMCG, as well as government organizations.

He strongly believes that it’s time for the FMCG players to adopt the spirit of the 21st century and become online enthusiasts.

An Overview of the FMCG Industry Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) is low-priced products that are sold

30

quickly across the table. These include non-durable goods such as packaged foods, beverages, toiletries, over-thecounter drugs, and other consumables.

FMCG sector is the most innovative sector when it comes to marketing, branding, positioning, and customer engagement. Brands like Patanjali, Hindustan Unilever Limited, Nestle, Coke, PepsiCo, and Britannia are a few giants that are upping the ante of the FMCG industry with their products as well as in terms of countering competition with their branding and positioning.

Going the Digital Way The target audiences of these products generally tend to get carried away by the latest emerging trends in the market. In this day and age, where the digital media is growing by leaps and bounds, there is obviously pressure for brands to connect with their consumers. Naturally, this comes with both challenges and opportunities for brands as they need to keep themselves acquainted with their consumer’s needs and behaviour by making an appealing statement with new packaging, sentiment analysis, or CSR activities.

Consumers these days spend more digital time via mobile, tabs and even computers. More and more data is getting populated on the internet with innovation.

Digital has killed the gap between big player and small brands and presented a great opportunity for brands to show as well as make their innovation more accessible to their consumers by means of relevant platforms. I Knowledge Factory have seen in the past how campaigns like #Helpachildreach5, Lifebuoy se haath dhoye kya, #FuelForTheRealFit, Daag acche hote hai, #ShareTheLoad and many more has impacted and touched the lives of consumers as well as impelled them to positively respond to their social messaging.

Septmber 2018|

10FMCG

‘“‘

COMPANIES IN INDIA

We Craft, Care, and Amplify innovative ideas in Digital Marketing

‘“‘

THE

Most Admired

This also tells us about a very crucial change that has been shaping the digital scene - digital marketing isn’ only about social media but is also predicated on social selling, social listening, social conversations, and social sentiments.

Salient Pointers to Leverage Digital Opportunities Based on years of observations and experience of working in the digital space, Ashish shared some insight nuggets with the FMCG brands for leveraging digital opportunities.

At the end of the day, it doesn’t matter whether you are a start-up or an established player, your success depends on how memorable and effective your communication strategy is: • Align all your digital platforms and sync them with each other • Integrate your online and offline strategies • Always remember - it’s not about selling but informing educating • Go beyond physical distribution or sales channels • If your brand is small and midsize get along with marketplaces like (need inputs here) • Digital is about innovating and how do you differentiate your communication compared to your competition.

• Digital had layed a platform for brands to connect with their consumers via various social message, campaign, participation & competitions The Growth of FMCG on the Digital Footprint The consumers are spending more time online across platforms and apps as the nation is growing digital day by day. The emergence of modern trade has become the talk of the town and companies are working to build their own digital platform to attract a bigger audience.

|September 2018

Ashish Dalia Owner & CEO

The internet is advantageous in reducing the cost of purchases by giving supply-chain partners quick access to relevant information required. The consumers are most likely to favour or reject a product based on online recommendations and reviews. The evolving consumers are buying experiences over online platforms as there is a seamless delivery of content across various platforms at no additional cost.

As there lies no hindrance of geographical boundaries of stock and inventories, the ability to monitor real-time consumer responses online is an increasing percentage. The digital space has bridged the shopping gap between rural and urban areas.

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Sameer Shah Owner Sameer Distributors

CHANGING TRENDS OF

FMCG 32

IN INDIA Septmber 2018|

Leader’s Viewpoint

S

ameer Shah is the Owner of Sameer Distributors.

His sheer contribution and dedicated-self has been successful in running the business since 1999. He attended the Chintamanrao College of Commerce in Sangli and is an authorized wholesaler in consumer products for various companies which supply goods to retailers. In conversation with him, he shared his insights on the trends of the FMCG sector.

FMCG alludes to customer non tough products required for successive or day by day utilize. Regularly, a purchaser purchases these products in any event once every month.

The division covers a wide extent of items, for example, cleansers, latrine cleansers, toothpaste, shampoos, creams, powders, sustenance items, candy parlors, drinks, and cigarettes. The FMCG segment has been the foundation of the Indian economy. However, the division has been in presence for a significant long time, it started to come to fruition just amid the last fifty-odd years. To date, the Indian FMCG industry keeps on anguish from a definitional difficulty. Indeed, the industry is yet to take shape as far as definition and market estimate, among others. The part contacts each part of human life, from looks to cleanliness to sense of taste. Maybe, characterizing an industry whose extension is so huge isn’t simple. FMCG in India has a solid and aggressive MNC nearness over the whole esteem chain. The white collar class and the country fragments of the Indian populace are the most encouraging business sector for FMCG, and give mark creators the chance to change over them to marked items. The vast majority of the item classes like jams, toothpaste, healthy skin, shampoos, and so forth, in India, have low per capita utilization and in addition low infiltration level, however the potential for development is enormous.

TRENDS Global Concentration Major worldwide buyer item organizations, (for example, Unilever, P&G, Colgate, Nestle, Heinz) have a lot of the worldwide market. These organizations have been built up for quite a while and have a grasp of solid brands with restrictive innovation. The vast majority of these organizations are money rich and very much oversaw. Their brands produce solid money streams and enable them to reinvest in fortifying their image value further, with proceeded advancements/promotions. (Harvard Business Review, Sept-Oct, 2004) They likewise have the money related clout to get little nearby brands to fortify their |September 2018

situation in the class. These organizations likewise make extensive interest in R&D to hone and keep up their edge in the business.

Growth is in the Third World The vast majority of the worldwide majors have their starting points in Europe or USA. They locate their home markets immersed and are counts on the third world for future development. These organizations are setting up shop and are forcefully extending their base in these nations.

They additionally pay special mind to chances to obtain neighborhood brands to push begin or merge their situation in these business sectors.

Value for Money Amid the last 4-5 years, especially after diminished buyer spending amid the worldwide subsidence, the new trendy expression is an incentive for cash. FMCG organizations all around have set out upon real re-organizing/cost cutting activities as the business has turned out to be wildly aggressive. Additionally, a few developments in bundling media have occurred.

Adapting to Local Conditions Over the most recent couple of years, procedure of adjusting to nearby conditions has quickened. MNCs are adjusting their items, process and advertising correspondence to the nearby conditions. They adjust the assembling procedure to boost utilization of neighborhood crude materials and suit their items to the taste and necessities of nearby shoppers. This procedure has been required by the basic to be financially savvy and be focused versus solid nearby players.

Packaging The job of bundling has expanded essentially lately, mostly because of change in bundling innovation. Customarily, bundling was relied upon to fill the need of assurance and economy. At that point, bundling was relied upon to satisfy the target of accommodation. (Kotler Philip, 2003)Today, bundling is utilized as a compelling instrument for advancement. In addition, new bundling innovation has empowered most FMCG organizations to altogether lessen their bundling costs.

Rural Distribution Expanded spotlight on country conveyance has expanded co-ordinations spend for the main organizations.

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WHOLESOME FOODS Celebrating the Goodness of Traditions

I

n this fast paced world, the most important asset an individual can gift itself is consuming nutritious meals and leading a healthy life. One such company with a vision to provide healthy, convenient, authentic food to foodies worldwide is Wholesome Foods. In order to fulfill its vision, it started with settings up a manufacturing plant which sells frozen fruits, vegetables and ready to eat products. This is designed as per the latest food safety norms of the USA, the UK and Japan. The company believes that clients are their biggest assets and hence it works with a client-centric approach. It looks at every customer’s requirements and caters customized solutions accordingly.

Wholesome foods offer its customers with highest quality products in a cost-effective manner. The company’s foundation is based on virtues, commitment, experience and knowledge for its customers, partners and investors. It is driven by founding ideals like quality, accountability, commitment, innovation, integrity, and ethics.

A Resourceful Leader A determined personality, Jeet Hirpara is the Managing Partner at Wholesome foods. Initially, during his education in the USA and the UK, he realized that it was imperative to have a nutritious meal every day. Sharing his experiences of abroad, he recalls “During our college days, we used to have a mass cooking session on the weekends and freeze it so we wouldn’t have to worry about foods on the weekdays”. Hence, he decided to implement his idea of providing healthy and tasty food options to the customers.

After returning to India, he noticed the same trend was

36

coming to picture here too in India. With the changing lifestyle, there has been an increase in the number of nuclear families. Jeet understood, it could be convenient option for such families to have a wholesome meal which tastes like a home-cooked meal.

With his sheer hard-work, he conceptualized, executed and implemented this facility.

He has been instrumental in designing the factory as per the latest technology and food safety standards. He is also working on the sales and marketing efforts of the company with having spearheading the sales team during international and domestic exhibitions such as Anuga Germany, Foodex Japan, Sial Middle East, Indus Foods and the World Food India during the last year.

An Excellent Service Provider Wholesome foods offers a range of frozen fruits, vegetables, paste and ready to eat items. A scientific approach is used to prepare the products and increase shelf life without using any preservatives. The frozen vegetables are grown in selected farms, washed, peeled, cut and blanched (semi-cooked) so it is as easy as opening a pack of vegetables and start cooking your favorite recipe without the hassles of preparation. The company's frozen ready to cook items take convenience to the next step as these meals, snacks, and desserts; just need to be heated for a few minutes to enjoy a wholesome meal prepared in the most hygienic conditions.

Wholesome foods believe in staying true to its taste by keeping the authenticity of the product intact. As the

Septmber 2018|

10FMCG

‘“‘

COMPANIES IN INDIA

‘“‘

THE

Most Admired

Our goal is to provide easy access to authentic and traditional food solutions to millions of people across the world

company includes cuisines like North Indian and South Indian it ensures to incorporate effective measures to stand by its original flavor. The company has both B2B and B2C verticals in the company. In case of dissatisfaction of the customer in the B2C vertical, the customer can return the product and get a full refund without any questions asked.

While in the B2B business, the company guarantees timely delivery with various packing options as per convenience.

Tackling Challenges Effectively It is imperative to change with present times and technology. As salient modifications take place every now and then, it is mandatory to stay up-to-date with the food industry and emerging businesses. “As we are in food business, there is a huge variation in cost due to seasonality and the huge dependence on monsoon in India” says Jeet.

Wholesome foods analyze historic data and try to procure the raw materials at the right time.

The frozen food industry is at its nascent stage and the number of companies is also less, but as the demand is also limited creating a fierce competition. In order to mitigate risks and enhance growth, the company invests in R&D. Celebrating a Friendly Work Environment “We are a family run business and try to keep the same atmosphere for all employees.”

Wholesome foods celebrate a healthy and respectful working atmosphere to experience a principle work ethical environment. It believes in treating everyone with respect and maintaining a personal relationship with each employee. This creates a feeling of ownership among the employees which helps them to succeed at their maximum potential.

The company conducts monthly review meetings of each division where at least one partner is present. These meetings are conducted for employees to share their |September 2018

Jeet Hirpara Managing Partner

valuable suggestions and also give feedback accordingly.

The company takes in consideration and tries to evaluate these suggestions and implement the necessary changes.

Future Endeavors of the FMCG industry FMCG industry in India is going through a tremendous change. The Indian government is focusing to increase farm income and the MSP prices with relatively good monsoon will aid in the FMCG sector. With GST stabilizing since a year of its launch, the prices of FMCG have seen a revision on the lower side which is further adding to growth. Overall the outlook of the industry is positive and is expanding its outreach. FMCG sector will play a huge role in GDP and employment, indicating a progressive sign for India’s future.

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38

Septmber 2018|

From Editor’s Desk

THE UPSWING

INDIAN FMCG SECTOR IN THE

I

n this fast-paced world, industries are constantly striving to cater the needs of mankind. In today’s global marketplace, the information associated with a product is fast becoming a critical link in the supply chain. Especially in fast moving consumer goods (FMCGs) industry, there is more fierce competition and more unstable requirement. Most plants use manufacturing resource planning system to manage the process of production. The various industries play a pivotal role in contributing and enhancing the economy. The FMCG (Fast Moving Consumer Goods) is the fourth largest sector of the Indian economy. As individuals experience a set of measures like growing awareness, easier access, and changing scenarios, which assists in boosting the growth of this sector. These changes have been seen due to the liberalization, urbanization and increase in the disposable incomes and modifications in the lifestyle of the people. The FMCG products have a small shelf life at considerably low cost and it doesn’t consume a high financial investment to purchase. It is popularly known as consumer packed goods and includes consumables which individuals buy at a regular interval for day-to-day chores.

Key Factors of the Indian FMCG Sector • As the modern trade is gaining importance day-by-day, it is a big ticket item that is expected to grow at 20% year-on-year and is credibly to boost revenues for FMCG players.

• The household and personal care is one of the primary segments accounting for 50% of the overall market and the Food and Beverage at 19% market share.

|September 2018

39

• With the increasing adoption of sales technologies and growing mobility usage, the FMCG distribution system has become more transparent, organized and convenient.

• By 2020, the Indian FMCG market is expected to grow at a CAGR of nearly 21%.

• A rise is expected in rural consumption is all set to drive the FMCG market. It is estimated to grow at a CAGR of 14.6% by the year 2025.

The Rural Areas Set to Rise Over the years the FMCG sector has rapidly progressed and continues to expand its outreach. The rural areas have immensely impacted the sector and are estimated to be a major driver and continue to increase in the regions. As compared to the urban areas, the rural areas have experienced a higher rise in the sector. The companies' recognized this as a golden chance and has rushed to capitalize on this, it granted excellent services like direct distribution and utmost infrastructure. With such a great response, the companies are creating specific products, which are prominently targeted for the rural market.

The Government of India has taken effective measures to support the rural population with facilities such as higher minimum support (MSPs), loan waivers, and disbursements through the National Rural Employment Guarantee Act (NREGA) program. All these measures has helped in reducing poverty in rural India and lifted the rural purchasing rate.

An Overview of the Rural Market Consumer Behavior The urban market accounts for almost 60% revenue share and the semi-urban and rural segments are the high potential markets that is growing faster day-by-day and is recently accounts for 40% revenue share. One of the interesting facts to note is that FMCG products accounts for 50% of total rural regions spend in India. Mobile comes very handy to the user and hence it has evolved as one of the most important devices over the years. The mobile internet users in rural areas are experiencing a growth of nearly 26%. The mobile handset penetration in rural India is much higher than TV. Seeing the statistics, the FMCG brands can use the mobile medium creatively to expand its outreach.

Strategies Embraced by FMCG Companies In order to succeed in a competitive market developing key strategies is a must. Some of the most likely strategies experienced by the FMCG brands include offering of the customized products owing to different target audiences. It provides distinct customer preferences like women based products or kids based products. The FMCG players hugely spend on product innovation and promotion so as to surpass competition and to stay ahead in the race.

As people today are living in a digital world, it is important for FMCG companies are focusing on building their online presence. As the online research enables customers to make informed purchasing decisions and gives them the required details at a click. The FMCG sector is climbing the ladder of success steadily, in order to rise and maintain the pace of investing in new sales technologies such as SFA (Sales Force Automation). Some of these SFA solutions are number of increased internet users across the country, emerging competition, advent of modern trade and need for a well-defined retail distribution system. This has prompted leading FMCG players to integrate these solutions in the sales system.

This indeed will create an advanced, strong and seamless business environment for organizations.

The Road Ahead Having extensively discussed the FMCG landscape, it is clearly evident that it is on upsurge today growing at a rapid pace. To maintain this scenario, the FMCG companies need to focus on R & D and innovations in terms of growth.

Consistency is the key in any business, companies that continue to do well would be the ones to promote using customer insights to create new product category or next generation of products.

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Septmber 2018|

Affecting

FACTORS

THE GROWTH OF THE

RURAL MARKETS V

i-john Group has established itself as a leading brand of personal care, cosmetics and perfumes in India. It has now spread its wings in the global market to be recognized as a prominent international name.

India is a dynamic Country where growth will come from all Sections of Society be it Urban India or Rural India. On one side the E-Commerce and Modern Trade are growing very-very fast in Cities and Towns and on the Contrary Rural India is showing the growth even faster.

In the Rural Markets Growth of FMCG Products depends upon three major factors:1. Infrastructure available to Reach the Villages 2. Education 3. Consumer Awareness Rural India is untapped potential for the Marketers in FMCG Sector. Youth in Villages is also aspiring towards moving for Towns and Cities and adopt what is being used in these areas. The Roads are a vital reason for the Growth of FMCG sector in Rural India. People are getting more Educated and therefore the Consumer Awareness in increasing.

42

Infrastructure The Growth of FMCG products largely depends upon the reach to Rural Sectors. And Reach depends upon the Infrastructure available to rural India. Even today many of the Rural Markets are unexplored due of the lack of Infrastructure. This is the reason why we have not been able to explore the Rural Markets till and also it is the Biggest opportunity available for the FMCG sector for their further growth.

The infrastructure development is happening fast in India.

Roads are being constructed all across India. Villages of India are getting closure to towns and Cities. Previously the Consumer was dependent upon the Retailer in the Villages, whatever he used to get from the Catchment wholesale markets, same was available for the consumers. He knew that consumer is going to buy whatever he wants to sell else consumer had no other Choice. So he always used to sell what gives him more proďŹ t. Result was organised FMCG products were not reaching Rural India. But with the Roads getting better, he has the threat that if he doesn't sell what consumer needs, someone else will replace him. Therefore improvement in Roads has resulted in the FMCG Products to grow and same will continue to happen in the years to come.

Septmber 2018|

Expert’s View

About the Author Vimal Pande, CEO of Vi-john has an extensive experience of working over three decades in the FMCG Industry.

The professional journey of Vimal started as a front line salesman but over the succeeding years his principled work ethics and sheer contribution has achieved him the position of CEO with Vi-john group of companies. He is very passionate about his work and enjoys what he does. In conversation with him, he shared his insights on the various aspects on the FMCG Sector.

Vimal Pande CEO

Vi-john

The above said reasons are the reasons of Growth due to increase in the width of distribution. But how the demand in the Villages will increase remains unanswered.

retailer for the products he needs. Marketers will eventually make the consumer more and more aware. The marketers are going to find new and new ways to communicate with rural consumers and make them aware.

Education Education is also one of the biggest reasons which will attract growth in Rural India. Earlier the needs of consumer were to Food, Clothing & Shelter. He didn't need much and so the scope for growth was limited. But the educated youth knows what he should buy and not merely depend upon what a rural Retailer sells.

Awareness Education is going increase the awareness among the consumer. The consumer who has always been dependent on the retailer will now become demanding from the

|September 2018

The demand of FMCG products in India is bound to increase as the rural consumer is getting the awareness faster than before about the products. Gone are the days when the consumer was satisfied because his needs were fulfilled with what is available in the villages. Now the Consumer is getting aware and his aspirations to Go for Brands rather than commodities is also going up.

“It is the combination of education, awareness and Infrastructure that will bring the growth of FMCG products in Rural India for many more years to come. It is the untapped Opportunity for all the marketers to explore and avail the opportunity available.”

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