FAST MOVING

CONSUMER GOODS
(FMCG)
For updated information, please visit www.ibef.org November 2020
Table of Contents

Executive Summary……………….….…….3

Advantage India…………………..….……..4

Market Overview …………….………..…....6

Strategies Adopted……………....………..12

Growth Drivers…….………………............16

Opportunities.....…………………………...24

Key Industry Organisations……….….......26

Useful Information……….……….......…...28
 EXECUTIVE SUMMARY

 Favourable demographics and rise in income level will boost the FMCG market in India (US$ billion)
FMCG market.
150 CAGR 23.15%
 The FMCG market in India is expected to grow at a CAGR of 23.15%
to reach US$ 103.70 billion by FY21 from US$ 68.38 billion in FY18. 100

 FMCG sector is the fourth largest sector in the Indian economy. 50 68.38 103.70

 FMCG sector is expected to grow at 5-6% in 2020. 0

FY18 FY21F
 Final consumption expenditure is set to increase at a CAGR of
25.44% during 2017-2021. It is expected to reach nearly US$ 3.60 Final consumption expenditure (US$ trillion)
trillion by 2020 from US$ 1.82 trillion in 2017.
4 CAGR
 Rise in rural consumption will drive the FMCG market. It contributes 25.44%
around 36% to the overall FMCG spending. 3 3.60
2
 The rural FMCG market in India is expected to grow to US$ 220.00
1 1.82
billion by 2025 from US$ 23.63 billion in FY18.
0
2017 2020F

Rural FMCG market in India (US$ billion)

250
200
150
100 220.00
50 23.63 100.00
0
2018(FY) 2020F 2025F
Notes: F- Forecast
Source: World Bank, Emami Reports, Dabur Reports, AC Nielsen, CRISIL, Nielsen Report, 2018

3 FMCG For updated information, please visit www.ibef.org

 FMCG

ADVANTAGE INDIA
 ADVANTAGE INDIA

 Low penetration levels in rural market offers

 Rising income and growing youth
room for growth.
population have been key growth drivers
of the sector. Brand consciousness has  Dabur stepping-up product launches to sell
also aided demand. only on E-commerce platforms.
 India’s contribution to global consumption  Disposable income in rural India has
is expected to more than double to 5.8% increased because of the direct cash transfer
by 2020. scheme.
 Rural India is witnessing increased  Exports is another growing segment.
demand for quality goods and services
 E-commerce segment is forecast to
driven by upgraded distribution channels
contribute 11% to the overall FMCG sales by
of FMCG companies.
2030.
ADVANTAGE
INDIA
 RP-Sanjiv Goenka Group to invest capital  Investment approval of up to 100% foreign
fund of US$ 14.74 million in FMCG startups. equity in single brand retail and 51 % in
multi-brand retail.
 Supa Star Foods Pvt Ltd, a packaged food
and beverage maker, has received its  Initiatives like Food Security Bill and direct
second investment from Roots Ventures, cash transfer subsidies reach about 40%
of households in India.
which will help the company grow its
distribution network and add more products.  The minimum capitalisation for foreign
FMCG companies to invest in India is US$
100 million.

Source: Emami, BCG and CII report, Nielsen

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 FMCG

MARKET
OVERVIEW
 EVOLUTION OF FMCG IN INDIA

 FMCG is the fourth largest sector in the Indian economy.

Current Forecast
 India’s household and personal care is the leading segment,
accounting for 50% of the overall market. Healthcare (31 %) and
food and beverages (F&B) (19%) comes next in terms of market
share.
 FMCG market is expected
 Growing awareness, easier access and changing lifestyles have  FMCG market reached US$
been the key growth drivers for the sector. reach US$ 103.70 billion by
52.75 billion in FY18.
the end of 2020.
 The number of online users in India is likely to cross 850 million by
2025.
 The rural FMCG market  The rural FMCG market is
 FMCG industry is expected to grow 5-6 % in 2020. reached US$ 23.63 billion in expected to grow to US$ 220
 Retail market in India is estimated to reach US$ 1.1 trillion by 2020, FY18. billion by 2025.
with modern trade expected to grow at 20-25% per annum, which
is likely to boost revenues of FMCG companies.  FMCG sales at India's  The online FMCG market is
 People are gracefully embracing Ayurveda products, which has organised retail stores rose forecast to reach US$ 45
resulted in Patanjali being ranked as the most trusted FMCG brand 22 % y-o-y in 2018. billion by the end of 2020.
in India.

Source: Dabur Annual Report, Economic Times, Emami Annual Report, McKinsey Global Institute, CII, Boston Consulting Group Report, TRA's Brand Trust Report 2018

7 FMCG For updated information, please visit www.ibef.org

 THREE MAIN SEGMENTS OF FMCG

FMCG

Household and personal

F&B Healthcare
care

 It accounts for 19% of the  It accounts for 31% of

 It accounts for 50% of the
sector. the sector.
sector.
 This segment includes  This segment includes
 Includes oral care, hair
health beverages, OTC products and
care, skin care,
staples/cereals, bakery ethicals.
cosmetics/deodorants,
products, snacks,
perfumes, feminine
chocolates, ice cream,
hygiene and paper
tea/coffee/soft drinks,
products, fabric wash, and
processed fruits and
household cleaners.
vegetables, dairy
products, and branded
flour.

Note: OTC is over the counter products; ethicals are a range of pharma products, Share % as of FY18
Source: Economic Times

8 FMCG For updated information, please visit www.ibef.org

 STRONG GROWTH IN INDIAN FMCG SECTOR

 Revenue of FMCG sector reached Rs. 3.4 lakh crore (US$ 52.8
Trends in FMCG revenues over the years (US$ billion)
billion) in FY17 and are estimated to reach US$ 103.7 billion in
2020F. 120
 The Union Budget 2019-20 initiatives to increase consumer spending
among middle class is expected to boost consumer confidence and
improve demand generation for branded consumer products. 100

103.7
 FMCG sector will gain support for growth from Inland Waterways
Authority of India (IWAI) multi-modal transportation project of freight
village at Varanasi, which will bring together retailers, warehouse 80

83.3
operators and logistics service providers, and investment worth Rs.
1.7 billion (US$ 25.35 million).

68.4
 Nielsen India estimates the FMCG industry to grow at 5-6% in 2020 60
as against 13.8% in 2018.

52.8
49.0
40

20

0
2016 2017 2018E 2019E 2020F

Note: E-Estimate, F - Forecast, * - FY18

Source: Dabur, AC Nielsen, Euromonitor International, ICICI securities, Nielsen India

9 FMCG For updated information, please visit www.ibef.org

 URBAN MARKET ACCOUNTS FOR MAJOR CHUNK OF
REVENUES

 Accounting for a revenue share of around 55%, urban segment is the

Urban - Rural industry Breakup in FY19
largest contributor to the overall revenue generated by the FMCG
sector in India.

 Rural segment is growing at a rapid pace and accounted for a

revenue share of 45% in the overall revenues recorded by FMCG
sector in India. FMCG products account for 50% of total rural
spending.

 In the last few years, the FMCG market has grown at a faster pace in
rural India compared to urban India.

 Demand for quality goods and services is on an upward trajectory in 45%

rural areas on the back of improved distribution channels of
US$ 52.75 billion
manufacturing and FMCG companies. 55%
 FMCG urban segment witnessed growth rate of 8%, whereas, rural
segment grew at 5% in quarter ended September 2019.

Urban Rural

Source: BCG , KPMG- indiaretailing.com, Deloitte Report, Winning in India’s Retail Sector, CRISIL, State Bank of India, CRISIL report

10 FMCG For updated information, please visit www.ibef.org

 INCREASING ONLINE USERS BOOST ONLINE FMCG
SALES

 India’s increasing internet penetration and rising digital maturity Growth in Online Users to drive Online FMCG Market
along with developing infrastructure has helped boost online
transactions.

 The online FMCG market is forecast to reach US$ 45 billion in 2020 US$ 45 billion
from US$ 20 billion in 2017, backed by growth in online users from
90 million in 2017 to 200 million in 2020E.

 By 2020, about 40% of FMCG consumption is estimated to be

digitally influenced.

 Around 72% Indian consumers are most likely to shop online locally
for premium products.

 The Indian online grocery market is estimated to exceed sales of 2020E 200 million
about Rs. 22,500 crore (US$ 3.19 billion) in 2020, a significant jump
of 76% over the previous year. a
2017 90 million

US$ 20 billion

Online Users Online FMCG Market

Note: E - Estimated
Source: Google and BCG report - September 2017 and February 2018

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 FMCG

STRATEGIES
ADOPTED
 STRATEGIES

 FMCG companies are trying to influence consumers with intelligent deals.

 Firms like ITC offers combo deals to the consumers. For example, in the case of soaps and cosmetics; 4 soap cases are
Promotions and
offered at the price of 3, selling the range of deodorants for men and women at a discounted price.
offers
 Amazon India is planning to invest significantly over the coming months for expanding its grocery and food business,
launching more products and categories and forming new partnerships with huge grocery and supermarket chains.

 The internet enables consumers to make their own research on the kind of products or commodities they want to
Research online purchase. 1 in 3 FMCG shoppers goes online 1st and then to the stores.
purchase offline
 About 43% of new car-buyers in cities select the model online and purchase it from dealer.

 In November 2020, Parle Agro launched a revolutionary new addition to its fruit plus fizz portfolio ‘B-Fizz’.

 In July 2020, Mother Dairy forayed into bread segment as part of its strategy to diversify business and announced its
target to more than double its revenue to Rs. 25,000 crore (US$ 3.55 million) in the next five years.
New product
launches  In June 2020, ITC launched Salvon Germ Protection wipes.

 In June 2020, Emami launched organic aloe vera gel under BoroPlus brand.

 In June 2020, Amul launched ginger and tulsi milk variants to boost immunity.

 In May 2020, Tata Consumer Products Limited (TCPL) acquired PepsiCo’s stake in NourishCo Beverages Limited.

 In March 2020, Hindustan Unilever Limited (HUL) signed an agreement with Glenmark Pharmaceuticals Ltd to acquire its
Expansion intimate hygiene brand VWash.

 In July 2020, ITC Ltd completed the acquisition of spice-manufacturer Sunrise Foods Private Ltd at an upfront cash deal
price of Rs. 2,150 crore (US$ 305.01 million).

Source: AC Nielsen, News Article

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 STRATEGIES

 Product Flanking: Introduction of different combinations of products at different prices, to cover as many market
segments as possible.
Customisation  Emami has decided to rework on its overseas strategy by planning manufacturing and acquisitions in overseas markets.
The company plans to re-work on its product portfolio by getting into new categories with higher buying preference and
revamp its distribution networks.

Green  FMCG companies are looking to invest in energy efficient plants to benefit the society and lower costs in the long term.
initiatives  Procter & Gamble (P&G) India has set up a Rs. 200 crore (US$ 28 million) environmental sustainability fund in the
to lower country to offer sustainable solutions, such as plastic-free packaging and environment-friendly logistics services, in
costs partnership with Indian businesses.
 HUL implemented a transformational programme called Connected 4 Growth (C4G) to help drive business growth by
increased speed to market, faster decision making, localised and swifter innovation.
Analytics  Patanjali uses Oracle and SAP for Enterprise Resource Planning (ERP). It will further standardise the application on
SAP. It plans to use machine learning for quality control and product enhancement and are also in talks with Net App for
big data solution.

 In November 2020, Hindustan Unilever (HUL) launched a new brand in the naturals segment—Nature Protect —that will
include over half a dozen products in the hygiene segment, as part of its strategy to launch plant-based products in the
backdrop of the COVID-19 outbreak.

 On August 07, 2020, Jubilant FoodWorks Ltd, which operates Domino's Pizza and Dunkin' Donuts outlets in India,
Product/ category announced its entry in the FMCG (fast-moving consumer goods) segment with a range of ready-to-cook sauces, gravies
expansion and pastes.

 In July 2020, Mother Dairy forayed into bread segment as part of its strategy to diversify business and announced its
target to more than double its revenue to Rs. 25,000 crore (US$ 3.55 million) in the next five years.

Source: News Articles

14 FMCG For updated information, please visit www.ibef.org

 STRATEGIES

 On November 4, 2020, Amway India announced plans to invest Rs. 150 crore (US$ 20.16 million) to improve
manufacturing automation and home delivery and enhance its digital capabilities.

 In October 2020, the Government of Karnataka proposed to develop Hubballi-Dharwad as the FMCG cluster. The
development has been proposed in three phases, with each phase comprising an investment of Rs. 2,500 crore (US$
341 million) from 50 FMCG companies (an average investment of US$ 6.8 million each). According to Large and Medium
Industries Minister of Karnataka Mr. Jagadish Shettar, the cluster is expected to generate annual turnover of over Rs.
25,000 crore (US$ 3.4 billion).

 PepsiCo India announced to double its business from the snacks segments in October 2020. The company has
Investments increased investment in its new greenfield snacks plant in Uttar Pradesh from Rs. 500 crore (US$ 68 million) to about Rs.
814 crore (US$ 111 million)—generating 1,500 direct/indirect jobs and enabling a local sourcing ecosystem.

 In October 2020, Britannia has signed a Memorandum of Understanding (MoU) with the Tamil Nadu government, stating
increase of investment in the state from Rs. 300 crore (US$ 41 million) to Rs. 550 crore (US$ 75 million) over a period of
seven years.

 In October 2020, Nestle India announced plan to infuse Rs. 2,600 crore (US$ 348.82 million) into its eight manufacturing
plants for enhancing production capabilities over the next four years.

 In October 2020, Procter & Gamble (P&G) announced a Rs. 400 crore (US$ 53.96 million) fund to build capacity for its
existing and new suppliers in India.

 FMCG companies are launching products online before making them available in traditional retail stores with e-
Only Online Sales commerce sales recording 56% growth in the first quarter of 2020 and 38% increase in June 2020.
Launch  For instance, on August 07, 2020, Dabur launched an entire range of ayurvedic baby care range only on the e-commerce
platform.

Source: News Articles

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 FMCG

GROWTH DRIVERS
 GROWTH DRIVERS FOR INDIA’S FMCG SECTOR

 Organised sector is expected to grow as  Low penetration levels of branded products

the share of unorganised FMCG market in categories like instant foods indicating a
has seen a fall with increased level of scope for volume growth.
brand consciousness.  Investment in this sector attracts investors
 Growth in modern retail will augment the as FMCG products have demand throughout
growth of organised FMCG sector. the year.

 Post GST and demonetisation, modern  Increase in food parks to 17, food
trade share grew to 10% of the overall processing capacity to 1.41 million and food
FMCG revenue as of August 2018. labs to 42.
 ITC to invest Rs. 700 crore (US$ 100
million) in food parks in Madhya Pradesh.

GROWTH DRIVERS

 Availability of products has become way  Rural consumption has increased, led by a
easier as internet and different channels of combination of increase in income and
higher aspiration levels. There is an
sales has made the accessibility of desired
increased demand for branded products in
product to customers more convenient at
rural India.
required time and place.
 Huge untapped rural market.
 Online grocery stores and online retail
stores like Grofers, Flipkart, and Amazon
are making FMCG products more readily
available.

Note: GST: Goods and Services Tax

Source: Dabur, Nielsen

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 HIGHER INCOMES AID GROWTH IN URBAN AND
RURAL MARKETS

 Incomes have risen at a brisk pace in India and will continue rising GDP per capita at current prices (US$)
given the country’s strong economic growth prospects.

 India’s GDP per capita at current prices is expected to increase from 3,500
US$ 1,761.63 in 2016 to US$ 3,277.28 in 2024.

3,277.28
 An important consequence of rising incomes is growing appetite for 3,000

3,023.39
premium products, primarily in the urban segment.

2,791.31
 As the proportion of ‘working age population’ in total population 2,500

2,578.11
increases, per capita income and GDP are expected to surge.

2,378.67
2,198.59
2,000

2,036.20
2,014.01
1,761.63
1,500

1,000

500

2021F

2022F

2023F

2024F
2016

2017

2018

2019

2020
Note: F- Forecasted
Source: IMF World Economic Outlook Database April 2019

18 FMCG For updated information, please visit www.ibef.org

 POLICY AND REGULATORY FRAMEWORK

Union Budget  The Government of India provided a full tax rebate on income up to Rs. 5 lakh (US$ 6,930) to boost disposable
2019-20 income in the hands of common people.

 GST lies between 0-18% on services and 0-28% on goods.

 Major consumer product manufacturing companies like PepsiCo, Dabur, and HUL are aligning their supply chain,
IT infrastructure and warehousing systems ahead of unified GST regime to facilitate seamless interstate
movement of goods.
 Prices of commodities in the FMCG sector, like soaps, shampoo, detergents, biscuits, savory snacks etc.
decreased after the implementation of GST, leading to a 3-8% decrease in prices of goods at modern retail stores.
Goods and Service Tax
GST is expected to transform logistics in the FMCG sector into a modern and efficient model as all major
(GST) corporations are remodeling their operations into larger logistics and warehousing.
 Warehousing cost for FMCG companies is estimated to fall by 25-30% backed by the implementation of the GST.
The number of warehouses will decrease from 45-50 to 25-30 and the size of warehouses will become larger.
 Goods and Services Tax (GST) is beneficial for the FMCG industry as a lot of FMCG products like soap,
toothpaste and hair oil now come under 18 % tax bracket against the previous 23-24% rate. Also, rates on food
products and hygiene products have been reduced to 0-5% and 12-18%, respectively.

 FSB will reduce prices of food grains for below poverty line (BPL) households, allowing them to spend resources
on other goods and services, including FMCG products.
Food Security Bill (FSB)
 This is expected to trigger higher consumption spends, particularly in rural India, which is an important market for
most FMCG companies.

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 POLICY AND REGULATORY FRAMEWORK

 The Government approved 51% FDI in multi-brand retail in 2006, which will boost the nascent organised retail
FDI in organised retail market in the country.
 It also allowed 100% FDI in the cash and carry segment and in single-brand retail.

 Government has initiated Self Employment and Talent Utilisation (SETU) scheme to boost young entrepreneurs.
SETU scheme
Government has invested US$ 163.73 million for this scheme.

 Industrial license is not required for almost all food and agro-processing industries, barring certain items such as
Relaxation of license
beer, potable alcohol and wines, cane sugar and hydrogenated animal fats and oils as well as items reserved for
rules
exclusive manufacture in the small-scale sector.

Source: SBI

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 NEW GOODS AND SERVICE TAX (GST) WOULD
SIMPLIFY TAX STRUCTURE

 Introduction of GST as a unified tax  Elimination of tax cascading is expected

regime will lead to re-evaluation of to lower input costs and improve
procurement and distribution profitability.
arrangements.
 Application of tax at all points of supply
 Removal of excise duty on products chain is likely to require adjustments to
would result in cash flow improvements. profit margins, especially for distributors
 The rate of GST lies between 0-18% on and retailers.
services and 0-28% on goods.

Goods and
Service Tax
(GST)
 Tax refunds on goods purchased for  Changes need to be made to
resale implies a significant reduction in accounting and IT systems in order to
the inventory cost of distribution. record transactions in line with GST
requirements and appropriate measures
 Distributors are also expected to
need to be taken to ensure smooth
experience cash flow from collection of
transition to the GST.
GST in their sales before remitting it to
the Government at the end of the tax-  It is estimated that India will gain US$
filing period. 15 billion a year by implementing GST.

Source: GST India

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 BOOSTS IN FDI INFLOWS AND INVESTMENTS

 100% FDI is allowed in food processing and single-brand retail and Cumulative FDI inflow share – April 2000 to June 2020 (US$
51% in multi-brand retail. million)

 This would bolster employment and supply chains and provide high 0.95%
visibility for FMCG brands in organised retail markets, bolstering
Food processing
consumer spending and encouraging more product launches. 5.92%
 The sector witnessed healthy FDI inflow of US$ 16.54 billion from 8.78%
Retail Trading
April 2000 to March 2020.

 Investment intentions related to FMCG sector arising from paper 9.79% Soap, Cosmetic &
pulp, sugar, fermentation, food processing, vegetable oils and Toilet preperations
vanaspati, soaps, cosmetics and toiletries industries worth Rs.
Paper Pulp
19,846 crore (US$ 2.84 billion) was implemented until December
61.40%
2019. 13.17%
Vegetable Oils
 In November 2020, Flipkart announced the launch of its first grocery
fulfilment centre in Lucknow that will create over 500 direct jobs. The
facility will support grocery products delivery to Lucknow, Kanpur and Tea, Coffee
Allahabad.

 In June 2020, Convergent Finance LLP, the Mumbai based private

equity fund, invested Rs. 107 crore (US$ 14.1 million) in Jyoti
International Foods, an end-to-end supply chain solutions provider in
Indian food services industry.

 In June 2020, Milkbasket, a grocery delivery platform, raised US$ 5.5

million as part of its ongoing series B round led by Inflection Point
Ventures.

Source: DPIIT, Media articles

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 KEY M&A DEALS IN THE INDUSTRY

Merger/
Target name Acquirer Name Year
Acquisition
Eastern Condiment Orkla Acquisition (68%) 2020

Beardo Marico Acquisition (100%) 2020

Sunrise Food Private Limited ITC Ltd Acquisition 2020

Canway Corporation (South Africa) Wipro Consumer Care and Lighting Acquisition 2019
Acquisition (33.42%
Delectable Technologies ITC Ltd 2019
stake)
Everstone Capital and Pan India Food Solutions Pvt Ltd Haldiram Prabhuji (Haldiram group) Acquisition 2019

Splash Corporation, Philippines Wipro Consumer Care and Lighting Acquisition 2019

GlaxoSmithKline Consumer Healthcare (GSKCH India) Hindustan Unilever Limited (HUL) Acquisition 2018

Avadh Snacks Pvt Ltd Prataap Snacks Ltd Acquisition 2018

Acquisition (14%
Bombay Shaving Company Colgate Palmolive 2018
stake)
Acquisition (26%
Brillare Science Emami 2018
stake)
Beardo Marico Acquisition (45%) 2018

Future Consumer Limited Future Capital Investment Private Limited Acquisition 2017
D&A Cosmetics Proprietary Ltd and Atlanta Body and
Dabur India Acquisition 2017
Health Products Proprietary Ltd
Acquisition
Helios Lifestyle Pvt Ltd Emami Ltd 2017
(30% stake)
Source: Bloomberg, Economic Times, Business Standard, News Article

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 FMCG

OPPORTUNITIES
 GROWTH OPPORTUNITIES IN THE INDIAN FMCG
INDUSTRY

 Leading players of consumer products have a strong distribution network in rural India. They also stand to gain from the
Rural market contribution of technological advances like internet and e-commerce to better logistics.
 Rural FMCG market size is expected to touch US$ 220 billion by 2025.

 Indian consumers are highly adaptable to new and innovative products. For instance, there has been an easy
Innovative
acceptance of men’s fairness creams and bread grooming products, flavoured yoghurt, cuppa mania noodles, gel based
products facial bleach, drinking yogurt, sugar free chyawanprash.

 With the rise in disposable income, mid- and high-income consumers in urban areas have shifted their purchase trend
from essential to premium products.
 Premium brands are manufacturing smaller packs of premium products. Example: Dove soap is available in 50g
Premium products
packaging.
 Nestle is looking to expand its portfolio in premium durables cereals, pet care, coffee, and skin health accessing the
potential in India.

 Indian and multinational FMCG players can leverage India as a strategic sourcing hub for cost-competitive product
Sourcing base
development and manufacturing to cater to international markets.

 Low penetration levels offer room for growth across consumption categories.
Penetration
 Major players are focusing on rural markets to increase their penetration in those areas.

 It is estimated that 40% of all FMCG purchases in India will be online by 2020, thereby making it a US$ 5-6 billion
Online FMCG
business opportunity.

Source: Assorted articles and reports, AC Nielsen, Boston Consulting Group (BCG) and Google report September 2017

25 FMCG For updated information, please visit www.ibef.org

 FMCG

KEY INDUSTRY
ORGANISATIONS
 KEY INDUSTRY ORGANISATIONS

Visakhapatnam
Indian Dairy port traffic (million tonnes)
Association All India Bread Manufacturers’ Association

Secretary (Establishment) PHD House, 4/2, Siri Institutional Area, August Kranti
Indian Dairy Association, Sector-IV, New Delhi -110022 Marg, New Delhi -110016
Phone: 91-11-26170781, 26165355, 26179780 Phone: 91-11-26515137; Fax: 91-11-26855450
Fax: 91 11 26174719 E-mail: [email protected]; [email protected]
E-mail: [email protected] Website: www.aibma.com
Website: www.indairyasso.org

All India Food Preservers’ Association Indian Soap and Toiletries Manufacturers’ Association

206, Aurobindo Place Market Complex Raheja Centre, 6th Floor, Room No 614, Backbay
Hauz Khas, New Delhi -110016 Reclamation, Mumbai - 400021
Phone: 91-11-26510860, 26518848; Fax: 91-11- Phone: 91-22-2824115; Fax: 91-22-22853649
26510860 E-mail: [email protected]
Website: www.aifpa.net

27 FMCG For updated information, please visit www.ibef.org

 FMCG

USEFUL
INFORMATION
 GLOSSARY

 FDI: Foreign Direct Investment

 MSP: Minimum Selling Price

 NREGA: National Rural Employment Guarantee Act

 FY: Indian Financial Year (April to March); So, FY09 implies April 2008 to March 2009

 SEZ: Special Economic Zone

 MoU: Memorandum of Understanding

 Wherever applicable, numbers have been rounded off to the nearest whole number

29 FMCG For updated information, please visit www.ibef.org

 EXCHANGE RATES

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Rs. Equivalent of one US$ Year Rs. Equivalent of one US$

2004-05 44.95 2005 44.11

2005-06 44.28 2006 45.33
2006-07 45.29 2007 41.29
2007-08 40.24 2008 43.42
2008-09 45.91
2009 48.35
2009-10 47.42
2010 45.74
2010-11 45.58
2011 46.67
2011-12 47.95
2012 53.49
2012-13 54.45
2013 58.63
2013-14 60.50
2014 61.03
2014-15 61.15
2015 64.15
2015-16 65.46
2016-17 67.09 2016 67.21

2017-18 64.45 2017 65.12

2018-19 69.89 2018 68.36

2019-20 70.49 2019 69.89

Source: Reserve Bank of India, Average for the year

30 FMCG For updated information, please visit www.ibef.org

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31 FMCG For updated information, please visit www.ibef.org