Consumer Packaged Goods

Consumer Packaged Goods (CPG) are often referred to as Fast Moving Consumer Goods in Asia. The industry was valued at $37 billion in 2013. The sector is expected to grow 14.7% annually to reach $110.4 billion by 2020. This sector employs 3 million workers. Retail sales are delivered through a network of 8.8 million stores; most of these are single-location family-owned stores.

India’s CPG sector is divided into the following categories:

The industry is driven by the growth of the Indian population, particularly among the middle class and in rural areas. This presents an opportunity for foreign CPG companies to convert new consumers to their branded products. Another reason for this industry’s growth is consumers’ upgrading to premium or better differentiated products in the matured product categories. Due to widespread presence of American media, the population is increasingly curious about the outside world while still being rooted in Indian culture and traditions. This results in increased demand for western-style convenience goods.

In 2014, Nielsen, the global research company, ranked Indian consumers at the top of the Consumer Confidence Index. When buying products, households prefer well-known brands while considering aspects such as price and value for their money. Entrants to the Indian CPG industry are often more successful if they can offer a range of tiered brands with appropriate price and value considerations.

Top domestic CPG companies and their popular products include:

  • Hindustan Unilever Ltd.Sunsilk shampoo, Brooke Bond teas, and Fair & Lovely skin cream; largest number of CPG sales in India. This company is a subsidiary of Anglo-Dutch giant Unilever
  • Godrej Consumer ProductsGood Knight and Hit insecticide and AER air freshener
  • DaburVatika hair care, avurvedic personal care, and organic food products
  • Nirma – soaps and detergents

Top foreign CPG companies in India and their popular products include:

  • Nestle – milk products and instant noodles
  • Procter & GambleGillette shaving cream and Tide detergent
  • Colgate-Palmolive – toothpaste and Charmis moisturizer

Key Segments

The CPG sector has three key segments, each with its own hosts of products that have relatively quick turnover and low costs:

• Household Care
• Personal Care
• Food & Beverage

Our Services

Amritt’s go-to-market service for India helps with developing and executing roadmaps to expand your presence and include

Feasibility: We assess the opportunities, risk and challenges in India, conduct financial analysis, help you choose product portfolios for India. We qualify local partners, condut market visits, perform margin analysis and more

Business Planning: Working with your team, we help prepare a business plan addressing launch sequences, sales volumes, and revenue and cost projections

Pre-Entry: We guide you in recruiting the leadership team in India or selecting your internal candidates who may wish to work as expatriates, in helping select local accountants, attorney, auditors and others necessary partners

Launch: Help as needed with follow up and management of the network in India. Communication between Western and Indian executives
All along, we help you to avoid cross-cultural gaffes in dealing with the complex and varied Indian consumers, executives and companies.

  • Learn about major India business news
  • Stay ahead on emerging economy trends
  • Choose newsletter closest to your interest

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