Management Discussion & Analysis of FMCG SECTOR
With 8% annual GDP growth, foreign exchange reserves of close to USD 165 billion, Foreign Direct Investment near USD 8 billion & an over 20% surge in exports, the Indian economy is clearly on a strong growth path.
While the FMCG sector with an estimated market size of around Rs.450 billion is mirroring this performance, per capita consumption across the FMCG spectrum in Indian remains amongst the lowest in the world.
This reflects the significant potential the sector enjoys. As disposable incomes increase & standards of living improve we can expect rapidly increasing levels of spend on various FMCG products.
Gradual changes are already visible with strong rural & urban growth & an end to down trading which considerably hampered market growth earlier. The implementation of VAT has also been very positive for the sector. It has enabled to increase the levels of compliance, transparency & reduced tax evasion.
During the year under the review your Company has endeavoured to do all these while maintaining its strong sector outperforming growth performance. In addition to introducing new product variants & significantly enhancing its supply chain efficiencies GCPL has also taken its first major step towards establishing a global presence with the acquisition of Keyline Brands Ltd., one of the admired FMCG companies in the United Kingdom.
With 8% annual GDP growth, foreign exchange reserves of close to USD 165 billion, Foreign Direct Investment near USD 8 billion & an over 20% surge in exports, the Indian economy is clearly on a strong growth path.
While the FMCG sector with an estimated market size of around Rs.450 billion is mirroring this performance, per capita consumption across the FMCG spectrum in Indian remains amongst the lowest in the world.
This reflects the significant potential the sector enjoys. As disposable incomes increase & standards of living improve we can expect rapidly increasing levels of spend on various FMCG products.
Gradual changes are already visible with strong rural & urban growth & an end to down trading which considerably hampered market growth earlier. The implementation of VAT has also been very positive for the sector. It has enabled to increase the levels of compliance, transparency & reduced tax evasion.
During the year under the review your Company has endeavoured to do all these while maintaining its strong sector outperforming growth performance. In addition to introducing new product variants & significantly enhancing its supply chain efficiencies GCPL has also taken its first major step towards establishing a global presence with the acquisition of Keyline Brands Ltd., one of the admired FMCG companies in the United Kingdom.