Industry Analysis (3/10)
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FMCG Industry:

Fast-moving consumer goods (FMCG) is the 4th largest sector/industry of the Indian economy. High turnover consumer packed goods that are produced, distributed, marketed and consumed in a short span of time are categorized under this. Household and personal care products account for 50% of FMCG sales in India.

🌟 Cyclicity: FMCG is a Non-Cyclical company. (Performance of this industry is not
affected by economic turnarounds)

🌟 Value Chain
➡️ Inbound Logistics (Sourcing Raw materials, Warehousing/Storage)
➡️ Operations (Quality testing, Production, Packaging)
➡️ Outbound Logistics (Distribution, Order Handling, Delivery)
➡️ Sales & Marketing (Advertising, Promotion)

🌟 Revenue Drivers
➡️ Product Sales
➡️ Product Demand (If demand increases, the price can be increased as well)
➡️ Pricing and Distribution

🌟 Cost Drivers
➡️ Raw material and processing costs
➡️ Promotion and Advertisement costs

🌟 Growth Drivers
➡️ Urbanization (Easier access)
➡️ Lifestyle changes (Increasing demand)

🌟 Key Market Players
➡️ #ITC

The FMCG industry deals with products anything from biscuits, soaps to cigarettes. These products have a constant demand despite economic conditions, hence the sales and the margins achieved are relatively less fluctuating. FMCG stocks can be used as a safer bet or as hedging stocks.

What is your opinion on the FMCG sector?
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