Indian FMCG Industry Summary: Consumer Made Goods

2.1 INDUSTRY PROFILE

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG) are products that have a quick turnover and relatively low cost. Consumers generally put less thought into the purchase of FMCG than they do for other products. The Indian FMCG industry witnessed significant changes through the 1990s. Many players had been facing severe problems on account of increased competition from small and regional players and from slow growth across its various product categories. As a result, most of the companies were forced to revamp their product, marketing, distribution and customer service strategies to strengthen their position in the market.

By the turn of the 20th century, the face of the Indian FMCG

The FMCG sector, which is growing at the rate of 9% is the fourth largest sector in the Indian Economy and is worth Rs.93000 cr. The main contributor, making up 32% of the sector, is the South Indian region. It is predicted that in the year 2010, the FMCG sector will be worth Rs.143000 cr. The sector being one of the biggest sectors of the Indian Economy provides up to 4 million jobs. (Source: HCCBPL, Monthly Circular)

A BRIEF INSIGHT - BEVERAGE INDUSTRY IN INDIA.

In India, beverages form an important part of the lives of people. It is an industry, in which the players constantly innovate, in order to come up with better products to gain more consumers and satisfy the existing consumers

The beverage industry is vast and there various ways of segmenting it, so as to cater the right product to the right person

. The different ways of segmenting it are as follows:

 Alcoholic, non-alcoholic and sports

Joseph Hawkins has invented a machine and obtained the first recorded patent for manufacturing bottles carbonated with in 1809.

Today millions and millions of bottles are consumed every day all over the world.with the changing trends and habits ,social and cultural differences among different countries are fast disappearing .soft drink culture has come up enormously throughout the world.in almost all of the countries, soft drinks were consumed despite the varying factors like age ,income, profession, climate etc. this has lead to the enormous increase in soft drink market.

They had being number of significant and far reaching changes in the globe.the disintegration of the USSR has been the most crucial one for the business of the world.as a result,there has been rethinking on the part of several governments to open their economy for international business. Accordingly, several of them have been pursuing market oriented economic policies. All the countries had to enter this line in time with the global