FMCG Companies in India
What is the Relevance of FMCG Companies?
All our lives depend on FMCG (Fast Moving Consumer Goods) products that satisfy our basic needs. FMCG products are those that have a short shelf life that is produced in high volumes with low cost and are made for rapid consumption and these are provided by FMCG Companies.
This industry includes household items, over-the-counter medicines, food, personal care items, and stationery and consumer electronics, etc. The fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector and has created employment for more than three million people.
we take a look at the top 5 FMCG companies in India that are responsible for keeping over 1.3 billion Indians on their feet every day.
Top 5 FMCG’s companies in India in 2021
1. Hindustan Unilever Limited (HUL)
Source: TradeBrains
Market cap: Rs 5,43,560.03 Cr / PE : 74.16
HUL is one of India’s oldest FMCG companies. It is a subsidiary of Unilever, a British-dutch company. The company was established in 1933 and has headquarters in Mumbai. HUL has served over 2 billion customers for over 87 years.
HUL has over 35 brands across 20 categories such as soaps, detergent, skincare, cosmetics, tea, toothpaste. The brand includes famous names like Surf, Excel, Dove, Lux, Lifebuoy, Clinic Plus, Wheel, Sunsilk, Knorr, Axe, etc.
2. ITC Limited
Source: TradeBrains
Market Cap: Rs 2,74,588.57 Cr/ PE : 21.07
the Indian Consumer. The ITC is known to guarantee a certain standard in production and packaging. They have broad distribution channels in India. This has allowed them to penetrate into even the most rural areas through several retail shops.
Their products include Bingo, Sunfeast, Aashirvaad, Fiama Di Wills, Vivel, Savlon soaps and hand wash, Papercraft, and Classmate. ITC sells 81% of the tobacco products in Asia including brands like Wills Navy Cut, Gold Flake Kings, Silk Cut, India Kings, Bristol, Gold Flake Super Star, Gold Flake Premium Lights, Classic Menthol, etc.
3. Nestlé India
Source: TradeBrains
Market Cap: Rs 1,58,549.38 Cr / PE : 76.14
Nestle is a transnational food and beverage company headquartered in Switzerland. Globally the company has been around for more than 150 years. In India, Nestle dates back to 1912 when it began operating as Nestle Anglo-Swiss Condensed Milk Company. They cater to the nutritional and wellness requirements of Indian consumers. In 2016, they were rated 33 in Forbes list of largest public companies.
Nestle sells a plethora of products including beverages, bottled water, milkshakes, breakfast cereals, instant foods, performance, and health care nutrition, etc. A few of the 2000 brands they currently own are Nescafe, Maggi, Milky Bar, Kit Kat, Bar One, Milkmaid, Nestea, etc.
4. Britannia Industries
Source: TradeBrains
Market cap: Rs 83,488.56 Cr / PE : 46.7
Britannia Industries is one of the oldest food-producing companies in the country. It was established in 1892 in Kolkata with an initial investment of merely Rs. 295. Their products are available in more than 5 million retail outlets. More than 50% of Indian households are proud users of their range of food items. The FMCG is known as the first Zero Trans Fat Business in the country. They have an extensive distribution network in India and 60 other countries.
Their products include Good Day, Tiger, Milk Bikis, Bourbon, Marie Gold, Cake, Cheese, Milk, and Yogurt. The company is the largest brand in the organized bread market.
5. Marico
Sorce: TradeBrains
Marketcap: Rs 51,008.02 Cr / PE : 46.88
Marico was established in 1990 in Mumbai. It began as a brand for coconut and refined edible oil and later expanded into various kinds of consumer goods. It is currently operating in 25 countries in the emerging markets of Asia and Africa. They maintain their innovation in manufacturing and packaging to preserve the tagline “Make a difference”.
Marico’s household brand includes Parachute, Saffola, Nihar, Livon, Set Wet, Mediker. Its global products include Parachute, Haircode, Caivil, Black Chic, Isoplus, Code 10, and X-men.
Financial Comparison – Top 5 FMCG companies in India
| Particulars | HUL | ITC | NESTLE | BRITANNIA | MARICO |
|---|---|---|---|---|---|
| MCAP | 543560.03 | 274588.57 | 158549.38 | 83488.56 | 51008.02 |
| PE | 74.16 | 21.07 | 76.14 | 46.7 | 46.88 |
| Price / BV | 11.66 | 4.77 | 55.32 | 33.6 | 12.5 |
| YIELD | 1.08 | 4.55 | 1.22 | 1.01 | 1.71 |
| ROE | 86.11 | 25.66 | 70.27 | 35.94 | 28.95 |
| ROCE | 117.25 | 31.55 | 98.16 | 41.47 | 35.69 |
| CRATIO | 1.31 | 4.02 | 1.78 | 1.45 | 2.32 |
| Price / Sales | 11.87 | 5.61 | 13.35 | 7.53 | 8.15 |
| Debt To Equity | 0 | 0 | 0.03 | 0.28 | 0.03 |
Closing Thoughts
With the ever-growing needs and constantly improving standards of living the FMCG’s play an even larger role. In order to fulfill these requirements, there are several other FMCG’s too that compete for a significant spot in this market. They include Colgate Palmolive, Parle Agro, P&G, The Godrej Group, Amul, Patanjali, Dabur, etc.
