Capstone Project

CAPSTONE PROJECT REPORT
ON
VALUATION OF FMCG SECTOR IN INDIA
SUBMITTED TO
DURGADEVI SARAF INSTITUTE OF MANAGEMENT

STUDIES
In partial fulfilment of the academic requirements for the
MMS Program
SUBMITTED BY
PRAKASH TULSIRAM SHARMA
ROLL NO: 20221035
BATCH: 2022 - 2024
FACULTY GUIDE
DR. SUMANA CHAUDHURI

CERTIFICATE
This is to certify that project titled “Valuation of FMCG Sector in India” is successfully
completed by Mr. Prakash Tulsiram Sharma during the IV Semester, in partial
fulfilment of the Master’s Degree in Management Studies recognized by the University
of Mumbai for the academic year 2022-24 through Durgadevi Saraf Institute of
Management Studies.
This project work is original and not submitted earlier for the award of any degree /
diploma or associateship of any other University / Institution.
Name: Prakash Tulsiram Sharma
Date: (Signature of the Guide)

STUDENT’S DECLARATION
This is to declare that the study presented by me to Durga Devi Saraf Institute of Management
Studies, in partial completion of the MMS program under the title “Valuation of FMCG
Sector in India” had been done under the guidance of Prof. Sumana Chaudhuri (Faculty
Mentor) during March- April 2024.
Place: Mumbai Signature of the Student: Prakash Tulsiram Sharma
Date: Roll No. 20221035

ACKNOWLEDGEMENT
The satisfaction and elation that accompany the successful completion of any task would be
incomplete without the mention of the people who have made it a possibility. It is my great
privilege to express my gratitude and respect to all those who have guided me and inspired
me during the course of the project work.
We are thankful to DURGADEVI SARAF INSTITUTE OF MANAGEMENT STUDIES for

having given us the opportunity to do this project. We are grateful to Dr. C. Babu and Dr.
Sarita Vichore for providing us the necessary facilities for the completion of my project.
First and foremost, I would express my sincere gratitude to Dr. Sumana Chaudhuri for
providing us information and knowledge in the subject research methodology.
Last but not the least; we would like to thank each and every individual for their help and
support that has largely contributed to the successful completion of the project.
TABLE OF CONTENTS
Sr. No Topic Pg. No
Executive Summary
1. Introduction: FMCG Sector
2. Review of literature
3. Objectives of the Study
4. Research Methodology
5 5.1 DCF Calculation of
5.2 DCF Calculation of
5.3 DCF Calculation of
6 6.1 Assumptions of DCF calculation of
6.2 Assumptions of DCF calculation of

6.3 Assumptions of DCF calculation of
7. Limitations to the study
8. Conclusion
Reference
EXECUTIVE SUMMARY
1. INTRODUCTION TO FMCG SECTOR
The FMCG sector in India expanded due to consumer-driven growth and higher product prices,
especially for essential goods. FMCG sector provides employment to around 3 million people
accounting for approximately 5% of the total factory employment in India. FMCG sales in the
country was expected to grow 7-9% by revenues in 2022-23. The key growth drivers for the
sector include favorable Government initiatives & policies, a growing rural market and youth
population, new branded products, and growth of e-commerce platforms. Resilience needs to be
the key factor in the manufacturing process, daily operations, retail and logistic channels,
consumer insights and communication that will help FMCG companies to withstand the test of
time and create more value for consumers in the long run. India’s fast-moving consumer goods
(FMCG) sector grew 7.5% by volumes in the April-June 2023 quarter, the highest in the last
eight quarters, led by a revival in rural India and higher growth in modern trade.
Fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector and has been
expanding at a healthy rate over the years because of rising disposable income, a rising youth
population, and rising brand awareness among consumers. With household and personal care
accounting for 50% of FMCG sales in India, the industry is an important contributor to India’s
GDP.
India is a country that no FMCG player can afford to ignore due to its middle-class population
which is larger than the total population of USA. The Indian FMCG market continues to rise as
more people start to move up the economic ladder and the benefits of economic progress become
accessible to the public. More crucially, with a median age of just 27, India's population is
becoming more consumerist due to rising ambitions.
Growing awareness, easier access and changing lifestyles have been the key growth drivers for
the sector. The urban segment (accounts for a revenue share of around 65%) is the largest
contributor to the overall revenue generated by the FMCG sector in India. However, in the last
few years, the FMCG market has grown at a faster pace in rural India compared to urban India.
Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50%
of the total rural spending.
INTRODUCTION TO Godrej Consumer Products Ltd (GCPL)
Godrej Consumer Products Ltd (GCPL) is a leader among Indias Fast Moving Consumer Goods
(FMCG) companies, with leading Household and Personal Care Products.The company`s
product range includes Soaps and Talc- It has created brands like Cinthol, Fair Glow, Evita, and
Vigil.Hair Care- Under this it has introduced various hair colour products such Colour Soft,
Anoop, Renew, Godrej Expert and Kesh Kala.Household and Fabric Care- In this segment it has
introduced products like Godrej Dish wash, Glossy and Ezee.The company has also acquired
Brian Boyce and Vicki Dryden Wyatt Keyline Brands namely Cuticura, Aapri, Erasmic, Inecto
and Nulon.
GCPL operates in the domestic and international markets in the 'personal and household care'
segment. Some of the categories are soaps, hair colourants, professional hair care products,
toiletries and liquid detergents. In 2012, it made an entry into fast-growing air freshener category
by launching a new fragrance product "aer" in the market.
GCPL operates several manufacturing facilities in India spread over seven locations and grouped
into four operating clusters at Malanpur (Madhya Pradesh), Guwahati (Assam), Baddi- Thana
(Himachal Pradesh), Baddi- Katha (Himachal Pradesh), Pondicherry, Chennai and Sikkim.[4]
Further, its manufacturing facilities located abroad in South Africa produce a range of personal
care products and hair colour products.
GCPL has a widespread distribution network across India. It makes sales in both urban and rural
markets, enabling it to benefit from the opportunities in both segments. It has a sales team of
over 250 staff spread across the country. It has a network of 33 C&F agents and as on 29
February 2008. It had 1,247 distributors, 142 super stockists and 3,175 sub stockists to support
the sales team in India. Its distributors and sub stockists cover around 650,000 retailers in India.
Vission:
• To be one of the most trusted and innovative Indian brands
• To foster an inspiring place to work
• To create a shared value through Godrej Good & Green
• To grow 10 times in the next 10 years
INTRODUCTION TO DABAR
Dabur Ltd is an Indian multinational consumer goods company, founded by S. K. Burman and
headquartered in Ghaziabad. It manufactures Ayurvedic medicine and natural consumer
products, and is one of the largest fast-moving consumer goods (FMCG) companies in India.
Dabur derives around 60% of its revenue from the consumer care business, 11% from the food
business and remaining from the international business unit.
The Company operate in key consumer products categories like Hair Care, Oral Care, Health
Care, Skin Care, Home Care and Foods
The Company operates through three Strategic Business Units, Consumer Care Division (CCD),
International Business Division (IBD) and Consumer Health Division (CHD). Their CCD
business is divided into four key portfolios: healthcare, personal care, home care and foods.
Their CHD business offers a range of healthcare products. Their IBD business includes brands,
such as Dabur Amla and Vatika. The company has 20 state-of-the-art manufacturing facilities
spread across the globe.
The company has a wide distribution network, covering 6 million retail outlets with a high
penetration in both urban and rural markets. Their products also have a huge presence in the
overseas markets and are available in over 120 countries across the globe
Vision:
Dedicated to the Health & Well-Being of every Household
Mission:
Contemporise Ayurveda and make it relevant for the new generation
INTRODUCTION TO MARICO
Marico Limited is an Indian multinational consumer goods company providing consumer

products and services in the areas of health, beauty and wellness. With its headquarters in
Mumbai, Marico is present in over 25 countries across Asia and Africa. It owns brands in
categories of hair care, skin care, edible oils, health foods, male grooming, and fabric care.
Marico's tagline says, "Marico - make a difference". The firm has always taken steps to minimize
negative environmental impacts while focusing on the common benefit of the people.
Marico touches the lives of one out of every three Indians, through its portfolio of brands, such
as Parachute, Saffola, Saffola FITTIFY Gourmet, Hair & Care, Parachute Advansed, Nihar
Naturals, Mediker, Veggie Clean, Kaya Youth, Coco Soul, Revive, Set Wet, Beardo and Livon.
Marico has eight factories in India, located at Puducherry, Perundurai, Jalgaon, Guwahati, Baddi,
Paonta Sahib and Sanand.
Every member of the Marico family has a vision of long-term growth and prosperity while also
attempting to have a positive impact on the entire business ecosystem. They collaborate to
improve the lives of all of their stakeholders, including consumers, investors, members, and
society at large.
The corporation has always taken steps to minimize negative environmental impacts while
focusing on the common benefit of the people. It inspires people to contribute to society in every
way they can. Marico claims that businesses and social organizations can improve their
economic and social values through creativity and innovation. Instead, it is one of the company's
core principles.
LITERATURE REVIEW
(Patil, 2016)
Dr. Pramod H. Patil's paper, "An Overview of Indian FMCG Sector" (2016), provides a big-
picture view of the Fast-Moving Consumer Goods (FMCG) industry in India.
The FMCG sector is a major contributor to the Indian economy, marked by its resilience (even
during economic downturns) and generation of employment opportunities.
The industry has witnessed significant growth, particularly in rural areas, which are a key focus
for future expansion.
The paper likely explores reasons behind this growth, such as rising disposable incomes,
increasing urbanization, and a growing population.
The competitive landscape of the FMCG sector, including established domestic players,
multinational corporations (MNCs), and the unorganized sector.
Challenges faced by the industry, such as complex tax structures and fluctuating raw material
prices.
(Aisha Banu, 2018)
Brand Valuation for the purpose of technical valuation results in balance sheet reporting, tax
planning, mergers and acquisitions and investor relations purpose. Though there are various
brand valuation techniques available, none can be applied in order to arrive at more accurate
value of brand. In light of this drawback, this research paper has been taken up to derive an
appropriate brand valuation technique or model suitable to Fast Moving Consumer Goods
Companies.
The researcher has gathered top ten companies from FMCG based on market capitalization.
Their four years annual reports are analyzed, using statistical techniques to substantiate the
model arrived at.
3. OBJECTIVE OF THE STUDY
• To analyse Indian FMCG sector and to know about their Valuation

• To study the major 3 key players in FMCG sector.
• To study the financial position of the selected companies in FMCG sector and analyse them to
recommend to investors.
4. RESEARCH METHODOLOGY
For this study secondary data is used. Secondary Data was collected by the researcher by visiting
different government websites and company websites. Secondary data refers to data that is
collected by someone other than the primary user. Common sources of secondary data for social
science include censuses, information collected by government departments, organizational
records and data that was originally collected for other research purposes.
Primary data, by contrast, are collected by the investigator conducting the research.
Secondary data analysis can save time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, can provide larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own. In addition, analysts of
social and economic change consider secondary data essential, since it is impossible to conduct a
new survey that can adequately capture past change and/or developments. However, secondary
data analysis can be less useful in marketing research, as data may be outdated or inaccurate.
Secondary data can be obtained from different sources:
• Information collected through censuses or government departments like housing, social
security, electoral statistics, tax records.
• Internet searches or libraries.
• Journal paper and magazines, financial statements, etc.
DCF Calculation of Godrej
Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
12 mths 12 mths 12 mths 12 mths 12 mths
INCOME
REVENUE FROM OPERATIONS 13,198.68 12,174.22 10,936.01 9,826.51 10,221.07
[GROSS]
Less: Excise/Sevice Tax/Other 0 0 0 0 0
Levies
REVENUE FROM OPERATIONS 13,198.68 12,174.22 10,936.01 9,826.51 10,221.07
[NET]
TOTAL OPERATING REVENUES 13,315.97 12,276.50 11,028.62 9,910.80 10,314.34
Other Income 168.41 89.71 67.07 112.3 108.76
TOTAL REVENUE 13,484.38 12,366.21 11,095.69 10,023.10 10,423.10
EXPENSES
Cost Of Materials Consumed 6,184.67 5,782.98 4,606.76 4,121.75 4,062.43
Purchase Of Stock-In Trade 305.18 353.65 365.01 313.08 337.36
Operating And Direct Expenses 0 0 0 0 0
Changes In Inventories Of FGWIP 212.94 -61.54 -42.35 -173.15 154.54
And Stock In Trade
Employee Benefit Expenses 1,111.48 1,104.14 1,123.34 1,018.82 1,068.41
Finance Costs 175.74 110.16 126.63 217.41 224.25
Depreciation And Amortisation 236.29 209.93 203.85 197.28 169.98
Expenses
Other Expenses 3,071.24 2,702.16 2,587.61 2,487.27 2,573.99
TOTAL EXPENSES 11,297.54 10,201.48 8,970.85 8,182.46 8,590.96
PROFIT/LOSS BEFORE 2,186.84 2,164.73 2,124.84 1,840.64 1,832.14
EXCEPTIONAL,
EXTRAORDINARY ITEMS AND
TAX
Exceptional Items -54.11 -9.75 -44.47 -81.05 252.56
PROFIT/LOSS BEFORE TAX 2,132.73 2,154.98 2,080.37 1,759.59 2,084.70
TAX EXPENSES-CONTINUED
OPERATIONS
Current Tax 396.25 397.31 408.14 378.66 417.9
Less: MAT Credit Entitlement 0 0 0 0 0
Deferred Tax 34.02 -25.44 -48.6 -114.84 -674.1
Other Direct Taxes 0 0 0 0 0
TOTAL TAX EXPENSES 430.27 371.87 359.54 263.82 -256.2
PROFIT/LOSS AFTER TAX AND 1,702.46 1,783.11 1,720.83 1,495.77 2,340.90
BEFORE EXTRAORDINARY
ITEMS
PROFIT/LOSS FROM 1,702.46 1,783.11 1,720.83 1,495.77 2,340.90
CONTINUING OPERATIONS
PROFIT/LOSS FOR THE 1,702.46 1,783.11 1,720.83 1,495.77 2,340.90
PERIOD
BALANCE SHEET OF GODREJ Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
CONSUMER PRODUCTS (in Rs.
Cr.)
12 mths 12 mths 12 mths 12 mths 12 mths
EQUITIES AND LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 102.27 102.26 102.25 102.23 102.22
TOTAL SHARE CAPITAL 102.27 102.26 102.25 102.23 102.22
Reserves and Surplus 13,691.96 11,453.67 9,336.65 7,796.13 7,164.70
TOTAL RESERVES AND 13,691.96 11,453.67 9,336.65 7,796.13 7,164.70
SURPLUS
TOTAL SHAREHOLDERS FUNDS 13,794.23 11,555.93 9,438.90 7,898.36 7,266.92
Minority Interest 0 0 0 0 0
NON-CURRENT LIABILITIES
Long Term Borrowings 189.12 380.85 480.11 2,145.04 2,604.78
Deferred Tax Liabilities [Net] 61.51 51.94 39.03 76.73 76.53
Other Long Term Liabilities 59.18 66.73 74.37 173.34 221.82
Long Term Provisions 103.42 107 114.72 116.98 108.25
TOTAL NON-CURRENT 413.23 606.52 708.23 2,512.09 3,011.38
LIABILITIES
CURRENT LIABILITIES
Short Term Borrowings 844.84 1,226.81 279.41 518.7 270.94
Trade Payables 1,823.17 2,163.06 2,159.64 2,480.49 2,539.88
Other Current Liabilities 548.14 505.53 1,624.24 1,491.41 1,030.11
Short Term Provisions 75.16 76.21 72.4 55.96 50.85
TOTAL CURRENT LIABILITIES 3,291.31 3,971.61 4,135.69 4,546.56 3,891.78
TOTAL CAPITAL AND LIABILITIES 17,498.77 16,134.06 14,282.82 14,957.01 14,170.08
ASSETS
NON-CURRENT ASSETS
Tangible Assets 1,534.07 1,373.36 1,301.35 1,256.92 1,192.29
Intangible Assets 2,577.34 2,469.15 2,473.57 2,635.16 2,559.94
Capital Work-In-Progress 41.61 114.75 52.97 55.67 50.9
FIXED ASSETS 4,156.83 3,958.95 3,832.35 3,949.12 3,804.29
Non-Current Investments 839.33 171.12 21.93 34.8 34.67
Deferred Tax Assets [Net] 702.75 731.51 676.79 646.79 549.32
Long Term Loans And Advances 0.03 0.03 21.78 22.63 18.77
Other Non-Current Assets 171.61 208.39 127.71 156.01 156.59
TOTAL NON-CURRENT ASSETS 11,692.80 10,446.79 9,810.41 10,148.67 9,481.67
CURRENT ASSETS
Current Investments 2,189.65 844.31 657.17 637.18 481.31
Inventories 1,537.15 2,129.85 1,716.25 1,703.12 1,558.59
Trade Receivables 1,245.28 1,116.32 1,004.50 1,157.25 1,292.90
Cash And Cash Equivalents 390.72 1,107.77 672.21 770.16 894.72
Short Term Loans And Advances 0.05 0.05 4.64 3.27 3.73
OtherCurrentAssets 443.12 488.97 417.64 537.36 457.16
TOTAL CURRENT ASSETS 5,805.97 5,687.27 4,472.41 4,808.34 4,688.41
TOTAL ASSETS 17,498.77 16,134.06 14,282.82 14,957.01 14,170.08
OTHER ADDITIONAL
INFORMATION
CONTINGENT LIABILITIES,
COMMITMENTS
Contingent Liabilities 943.1 950.96 1,106.01 1,089.97 911.53
BONUS DETAILS
Bonus Equity Share Capital 68.13 68.13 68.13 68.13 68.13
NON-CURRENT INVESTMENTS
Non-Current Investments Quoted 839.33 145.92 2.51 0 0
Market Value
Non-Current Investments Unquoted 0 25.2 0 0 0
Book Value
CURRENT INVESTMENTS
Current Investments Quoted Market 2,014.38 127.19 55.3 80.1 329.94
Value
Current Investments Unquoted Book 175.27 717.12 601.87 557.12 152.04
Value
FORECASTED INCOME
STATEMENT
2023 Particulars 2024 2025 2026 2027 2028

13,198.68 5.25% Net Sales 13891.61 14620.92 15388.52 16196.42 17046.72763
13,484.38 5.24% Total Revenue 14190.96 14934.57 15717.14 16540.72 17407.45094
6,184.67 46% Cost Of Materials Consumed 6508.747 6849.805 7208.735 7586.473 7984.003684
305.18 2% Purchase Of Stock-In Trade 321.1714 338.0008 355.7121 374.3514 393.9673813
1,111.48 8% Employee Benefit Expenses 1169.722 1231.015 1295.52 1363.405 1434.847844
236.29 Depreciation And
2% Amortisation Expenses 248.6716 261.702 275.4152 289.8469 305.0349057
EBIT 5942.65 6254.045 6581.757 6926.641 7289.597124
(-) interest 86 95 104 115 126
EBT 5856.65 6159.045 6477.757 6811.641 7163.597124
20% (-) tax 1181.556 1242.563 1306.862 1374.222 1445.227917
EAT (NET PROFIT) 4675 4916 5171 5437 5718

EAT(1-T) 4743.744 4992.316 5253.913 5529.218 5818.949196
6,489.85 cogs 6829.918 7187.806 7564.447 7960.824 8377.971065
PARTICULARS 2024 2025 2026 2027 2028

NOPAT = EBIT(1-T) 4743.7 4992.3 5253.9 5529.2 5818.9
(+) Non Cash Expense (only
depreciation) 248.7 261.7 275.4 289.8 305.0
(+)/(-) Change in WC 231.1 89.4 40.3 96.2 47.5
(-) Capex 218.2 229.7 241.7 254.4 267.8
FCFF 4543.1 4934.9 5247.3 5468.4 5808.7
DF @ 0.9 0.8 0.8 0.7 0.6
PV of FCFF 4145.7 4109.5 3987.4 3792.0 3675.7
Total Present Value of FCFF 19710.3
PV of Terminal value 108704.8
Enter prise value 128415.2

Total debt 1034.0
Equity value 127381.2
Outstanding common shares 102.3
Value per Share 1245.5
DCF Calculation of Dabur
INCOME STATEMENT OF DABUR LTD.

PARTICULARS 2023 2022 2021 2020 2019
INCOME
REVENUE FROM OPERATIONS [GROSS] 11,426.5 10,808.0 9,507.8 8,622.9 8,437.3
Less: Excise/Sevice Tax/Other Levies 0.0 0.0 15.1 19.0 18.1
REVENUE FROM OPERATIONS [NET] 11,426.5 10,808.0 9,492.8 8,603.9 8,419.2
TOTAL OPERATING REVENUES 11,529.9 10,888.7 9,546.6 8,684.6 8,515.0
Other Income 445.4 393.2 325.3 305.3 296.2
TOTAL REVENUE 11,975.3 11,281.8 9,871.9 8,989.9 8,811.2
EXPENSES
Cost Of Materials Consumed 5,307.0 4,766.1 3,998.6 3,731.7 3,475.4
Purchase Of Stock-In Trade 1,052.5 882.1 982.5 674.6 803.0
Operating And Direct Expenses 0.0 0.0 0.0 0.0 0.0
Changes In Inventories Of FGWIP And Stock In
Trade -90.8 -8.6 -207.2 -65.0 12.6
Employee Benefit Expenses 1,137.0 1,080.0 1,033.5 947.7 937.9
Finance Costs 78.2 38.6 30.8 49.5 59.6
Depreciation And Amortisation Expenses 311.0 252.9 240.1 220.5 176.9
Other Expenses 1,960.1 1,915.2 1,736.6 1,603.3 1,546.6
TOTAL EXPENSES 9,755.0 8,926.4 7,814.9 7,162.3 7,011.9
PROFIT/LOSS BEFORE EXCEPTIONAL,
EXTRAORDINARY ITEMS AND TAX 2,220.3 2,355.5 2,057.0 1,827.7 1,799.3
Exceptional Items 0.0 -85.0 0.0 -100.0 -75.3
PROFIT/LOSS BEFORE TAX 2,220.3 2,270.5 2,057.0 1,727.7 1,723.9
TAX EXPENSES-CONTINUED OPERATIONS
Current Tax 481.6 442.2 505.2 465.4 407.0
Less: MAT Credit Entitlement 0.0 0.0 0.0 0.0 0.0
Deferred Tax 35.7 84.2 -144.1 -185.7 -128.4
Other Direct Taxes 0.0 0.0 0.0 0.0 0.0
TOTAL TAX EXPENSES 517.4 526.4 361.1 279.7 278.6
PROFIT/LOSS AFTER TAX AND BEFORE
EXTRAORDINARY ITEMS 1,703.0 1,744.1 1,696.0 1,447.9 1,445.3
PROFIT/LOSS FROM CONTINUING
OPERATIONS 1,703.0 1,744.1 1,696.0 1,447.9 1,445.3
PROFIT/LOSS FOR THE PERIOD 1,703.0 1,744.1 1,696.0 1,447.9 1,445.3
PARTICULARS 2023 2022 2021 2020 2019
EQUITIES AND
LIABILITIES
SHAREHOLDER'S FUNDS
Equity Share Capital 177.18 176.79 176.74 176.71 176.63
TOTAL SHARE CAPITAL 177.18 176.79 176.74 176.71 176.63
Reserves and Surplus 8,737.00 8,056.30 7,486.79 6,429.04 5,455.05
TOTAL RESERVES AND
SURPLUS 8,737.00 8,056.30 7,486.79 6,429.04 5,455.05
TOTAL SHAREHOLDERS
FUNDS 8,973.26 8,381.30 7,663.53 6,605.75 5,631.68
Minority Interest 468.17 40.55 36.69 36.46 31.38
NON-CURRENT
LIABILITIES
Long Term Borrowings 298.84 250.36 134.13 162.89 26.05
Deferred Tax Liabilities [Net] 90.99 82.27 13.91 17.43 23.14
Other Long Term Liabilities 149.31 143.83 1.37 4.66 4.56
Long Term Provisions 64.37 63.68 63.31 62.94 59.52
TOTAL NON-CURRENT
LIABILITIES 603.51 540.14 212.72 247.92 113.27
CURRENT LIABILITIES
Short Term Borrowings 700.18 617.29 349.14 304.24 498.23
Trade Payables 2,186.61 2,017.95 1,915.26 1,482.15 1,455.43
Other Current Liabilities 508.63 501.3 481.95 511.95 576.41
Short Term Provisions 214.01 186 187.84 165.54 130.24
TOTAL CURRENT
LIABILITIES 3,609.43 3,322.54 2,934.19 2,463.88 2,660.31
TOTAL CAPITAL AND
LIABILITIES 13,654.37 12,284.53 10,847.13 9,354.01 8,436.64
ASSETS
NON-CURRENT ASSETS
Tangible Assets 2,284.67 2,017.02 1,862.20 1,872.53 1,600.07
Intangible Assets 888.73 39.73 44.71 44.18 32.92
Capital Work-In-Progress 175.13 167.5 147.3 146.57 63.76
FIXED ASSETS 3,348.53 2,224.25 2,054.21 2,063.28 1,696.75
Non-Current Investments 5,528.79 5,365.06 3,413.62 1,409.23 2,633.35
Deferred Tax Assets [Net] 2.09 0.67 17.95 22 0
Long Term Loans And
Advances 0 0 22.48 24.64 17.56
Other Non-Current Assets 120.75 126.56 226.92 618.63 166.68
TOTAL NON-CURRENT
ASSETS 9,405.41 7,967.69 6,071.19 4,473.75 4,850.41
CURRENT ASSETS
Current Investments 736.47 854.56 746.01 1,391.03 725.41
Inventories 2,024.20 1,911.37 1,734.28 1,379.57 1,300.53
Trade Receivables 848.75 646.15 561.58 813.89 833.56
Cash And Cash Equivalents 325.92 570.14 1,329.03 811.37 328.16
Short Term Loans And
Advances 0 0 14.46 13.07 11.04
OtherCurrentAssets 313.62 334.62 390.58 471.33 387.53
TOTAL CURRENT ASSETS 4,248.96 4,316.84 4,775.94 4,880.26 3,586.23
TOTAL ASSETS 13,654.37 12,284.53 10,847.13 9,354.01 8,436.64
FORECASTED INCOME
STATEMENT DABUR LTD.
2023 Particulars 2024 2025 2026 2027 2028

11427 6.29% Net Sales 12145.758 12909.73 13721.75 14584.85 15502.23
11975 6.32% Total Revenue 12731.82 13536.47 14391.98 15301.55 16268.61
5306 0.44309 Cost Of Materials Consumed 5641.3392 5997.872 6376.937 6779.96 7208.453
1502 0.125428 Purchase Of Stock-In Trade 1596.9264 1697.852 1805.156 1919.242 2040.538
1137 0.094948 Employee Benefit Expenses 1208.8584 1285.258 1366.487 1452.849 1544.669
Depreciation And
310 0.025887 Amortisation Expenses 329.592 350.4222 372.5689 396.1153 421.1497
EBIT 3955.104 4205.07 4470.83 4753.38 5053.8
(-) interest 86 95 104 115 126
EBT 3869.104 4110.067 4366.827 4638.383 4927.797
(-) tax 839.28666 891.5563 947.2528 1006.159 1068.938
0.22
EAT (NET PROFIT) 3030 3219 3420 3632 3859
FCFF FORECASTED (DABUR LTD)
Particulars 2024 2025 2026 2027 2028
EBIT (1-t) 3955.104 4205.067 4470.827 4753.383 5053.797
(1-0.22) = 0.78 0.78 0.78 0.78 0.78 0.78
NOPAT 3084.98 3279.95 3487.24 3707.64 3941.96

(+) Depreciation 329.592 350.4222 372.5689 396.1153 421.1497
3414.57 3630.37 3859.81 4103.75 4363.11
(+/-) Change in WC -158 235 -154 240 -149
(-) Capex diff -211 -224 -238 -253 -268
FCFF 3468 4089 3944 4597 4482
PV of FCFF (7.95%) 0.926 0.858 0.794 0.736 0.682

(PV FCFF) 3211 3509 3131 3383 3057
TOTAL PV OF FCFF (A) 16291
PV of Terminal value (B) 107443
Value (A+B) 123734

(-) DEBT (BASE YR) 298.84
equity 123435
equity no of shares 207
value per share/ intrinsic value 596.31
DCF Calculation of Marico
Assumptions while doing the DCF Calculations of Godrej Consumer Products
• Company will continue to grow at 5.25% growth rate.

• All the expenses will remain in the same proportion to the Revenue of operation
of the current year.
• Company would pay the same amount of tax as it has paid in the previous year.
• Company would maintain the percentage of Total assets to Total operating
revenue in the future years.
• Company’s working capital requirement would be based on the previous year’s
requirements.
(Inventory turnover: 3.54, Debtors turnover: 11.18, Creditors turnover: 3.26)
• Percentage of depreciation to Total operating revenue would remain same. (2%)
• WACC is assumed to be 9.58%, Ke= 12.14% kd= 7.3
• Growth Scenario assumed: 6%
• Total No. of shares: 102.3 Cr
Assumptions while doing the DCF Calculations of Dabur
• Company will continue to grow at 6.29% growth rate.

• All the expenses will remain in the same proportion to the Revenue of operation
of the current year.
• Company would pay the same amount of tax as it has paid in the previous year.
• Company would maintain the percentage of Total assets to Total operating
revenue in the future years.
• Company’s working capital requirement would be based on the previous year’s
requirements.
(Inventory turnover: 3.23, Debtors turnover: 16.25, Creditors turnover: 3.03)
• Percentage of depreciation to Total operating revenue would remain same. (2%)
• WACC is assumed to be 7.95%, Ke= 12.14% kd= 7.3
• Growth Scenario assumed: 6%
• Total No. of shares: 207 Cr
Assumptions while doing the DCF Calculations of Marico
7. LIMITATION OF THE STUDY
• Only 3 companies out of a very large Indian FMCG industry could be studied in
this process.
• The data used is secondary data.
Conclusion
References
Aisha Banu, D. L. (2018). A STUDY ON APPLICATION OF BRAND VALUATION TECHNIQUES

WITH.
Fredrick, M. (2004).
Liczmańska-Kopcewicz, K. (2019). Corporate Social Responsibility and Sustainable Development for
Creating Value for FMCG Sector Enterprises.
parshed, B. (2012).
Patil, D. P. (2016). An Overview of Indian FMCG Sector.
Prabhakaran, S. (2022). CORPORATE SOCIAL RESPONSIBILITY IN FMCG.
Singh, D. V. (2017). ROLE OF FMCG COMPANIES TOWARDS.
Vaaland, H. (2008).
https://www.moneycontrol.com/india/stockpricequote/personal-
care/godrejconsumerproducts/GCP
care/daburindia/DI
care/marico/M13
https://www.ibef.org/industry/fmcg
ON
EIC ANALYSIS OF FMCG SECTOR IN INDIA
SUBMITTED TO
DURGADEVI SARAF INSTITUTE OF MANAGEMENTSTUDIES
In partial fulfilment of the academic requirements for theMMS Program
SUBMITTED BY
ROLL NO: 20221035
BATCH: 2022 - 2024
FACULTY GUIDE

CERTIFICATE
This is to certify that project titled “EIC Analysis of FMCG Sector in India” is
successfullycompleted by Mr. Prakash Tulsiram Sharma during the IV Semester, in
partial fulfilment of the Master’s Degree in Management Studies recognized by the
University of Mumbai for the academic year 2022-24 through Durgadevi Saraf
Institute of Management Studies.

This is to declare that the study presented by me to Durga Devi Saraf Institute of
Management Studies, in partial completion of the MMS program under the title “EIC
Analysis of FMCG Sector in India” had been done under the guidance of Prof. Sumana
Chaudhuri (Faculty Mentor) during March- April 2024.

ACKNOWLEDGEMENT
The satisfaction and elation that accompany the successful completion of any task would
be incomplete without the mention of the people who have made it a possibility. It is my
great privilege to express my gratitude and respect to all those who have guided me and
inspired me during the course of the project work.

having given us the opportunity to do this project. We are grateful to Dr. C. Babu and
Dr.Sarita Vichore for providing us the necessary facilities for the completion of my
project.
Last but not the least; we would like to thank each and every individual for their help
andsupport that has largely contributed to the successful completion of the project.
TABLE OF CONTENTS
SR NO PARTICULARS PG NO
1. Introduction
2. Market Size
3. Ongoing Turn of Events
4. PESTLE Analysis
5. Government Initiatives
6. Challenges for FMCG Industry
7. Road Ahead
8. SWOT ANALYSIS – Godrej
9. SWOT ANALYSIS – Dabur
10. SWOT ANALYSIS – Marico
11. References
EXECUTIVE SUMMARY
This General Management project presents a comprehensive Economic, Industry, and Company
(EIC) analysis focusing on the Fast-Moving Consumer Goods (FMCG) industry in India. The
Economic analysis examines macroeconomic factors such as GDP growth, inflation rates, and
consumer spending patterns, providing insights into the overall economic landscape influencing
the FMCG sector. The industry analysis delves into the dynamics of the FMCG industry,
including market size, growth trends, competitive landscape, and regulatory environment,
identifying key opportunities and challenges. Additionally, the Company analysis scrutinizes
leading FMCG companies operating in India, assessing their market positioning & financial
performance. For analyzing the FMCG sector in India, some past research journals & articles are
been reviewed for more clear view. Analyzing the sector, for company analysis, method as
SWOT is used to know the strengths, weakness, opportunities & threats. By integrating insights
from the economic, industry, and company perspectives, this analysis offers valuable strategic
recommendations for stakeholders to navigate and capitalize on the evolving FMCG landscape in
India.
1.Introduction
The FMCG sector in India expanded due to consumer-driven growth and higher product prices,
especially for essential goods. FMCG sector provides employment to around 3 million people
accounting for approximately 5% of the total factory employment in India. FMCG sales in the
country was expected to grow 7-9% by revenues in 2022-23. The key growth drivers for the sector
include favourable Government initiatives & policies, a growing rural market and youth
population, new branded products, and growth of e-commerce platforms. Resilience needs to be
the key factor in the manufacturing process, daily operations, retail and logistic channels,
consumer insights and communication that will help FMCG companies to withstand the test of
time and create more value for consumers in the long run. India’s fast-moving consumer goods
(FMCG) sector grew 7.5% by volumes in the April-June 2023 quarter, the highest in the last eight
quarters, led by a revival in rural India and higher growth in modern trade.
India is a country that no FMCG (Fast-Moving Consumer Goods) player can ignore, thanks to its
large middle-class population, which is even bigger than the entire population of the USA. The
FMCG market in India is on the rise as more people move up the economic ladder, benefiting
from the country's economic progress. The population, with a median age of just 27, is becoming
more consumer-oriented due to growing ambitions, supported by government initiatives for
financial inclusion and social safety nets.
2.Market Size
FMCG market reached US$ 167 billion as of 2023. Total revenue of FMCG market is expected
to grow at a CAGR of 27.9% through 2021-27, reaching nearly US$ 615.87 billion. In 2022,
urban segment contributed 65% whereas rural India contributed more than 35% to the overall
annual FMCG sales. Good harvest, government spending expected to aid rural demand recovery
in FY24. The sector had grown 8.5% in revenues and 2.5% in volumes last fiscal year. In the
January-June period of 2022, the sector witnessed value growth of about 8.4% on account of
price hikes due to inflationary pressures. In Q2, 2022, the FMCG sector clocked a value growth
of 10.9% Y-o-Y higher than the 6% Y-o-Y value growth seen in Q1.
Indian food processing market size reached US$ 307.2 billion in 2022 and is expected to reach
US$ 547.3 billion by 2028, exhibiting a growth rate (CAGR) of 9.5% during 2023-2028.
The Union government approved a new PLI scheme for the food processing sector, with a budget
outlay of Rs. 109 billion (US$ 1.46 billion). Incentives under the scheme will be disbursed for
six years to 2026-27.
Digital advertising will grow to reach US$ 9.92 billion by 2023, with FMCG industry being the
biggest contributor at 42% share of the total digital spend.
3.Ongoing turns in Event
Indian food processing market size reached US$ 307.2 billion in 2022 and is expected to reach
US$ 547.3 billion by 2028, exhibiting a growth rate (CAGR) of 9.5% during 2023-2028.
Digital advertising will grow to reach US$ 9.92 billion by 2023, with the FMCG industry being
the biggest contributor at 42% share of the total digital spend.
Entrepreneurs interested in setting up the food-related FMCG industry can set up their
processing units in the government-designated agro-processing clusters, which helps cut down
the plant setup costs.
With the advent of online retail and e-commerce, FMCG businesses are able to market and sell
their products across the country without investing much in marketing activities.
Union Budget 2023-24 has allocated US$ 976 million for PLI schemes that aims to reduce
import costs, improve the cost competitiveness of domestically produced goods, increase
domestic capacity, and promote exports.
Union budget 2023-24 focuses on reviving rural demand by boosting disposable income,
allocation to farms and higher fund allocation on rural infrastructure, connectivity, and mobility
to create long-term jobs.
MAJOR SEGMENTS OF FMCG INDUSTRY
FMCGs can be divided into several different categories, including:

Processed foods: Cheese products, cereals, and boxed pasta; Prepared meals: Ready-to-eat
meals; Beverages: Bottled water, energy drinks, and juices, Baked goods: Cookies, croissants,
and bagels, Fresh foods, frozen foods, and dry goods: Fruits, vegetables, frozen peas andcarrots,
and raisins and nuts; Medicines: Aspirin, pain relievers, and other medication that can be
purchased without a prescription; Cleaning products: Baking soda, oven cleaner, and window
and glass cleaner ;Cosmetics and toiletries: Hair care products, concealers, toothpaste, and soap
Pestel Analysis
India's Fast-Moving Consumer Goods (FMCG) sector is a cornerstone of the nation's economy,
characterized by rapid growth and intense competition. To navigate this dynamic landscape
effectively, companies require a thorough understanding of the macro-environmental factors
impacting their operations. This PESTEL analysis provides a comprehensive overview of the key
political, economic, social, technological, environmental, and legal considerations shaping the
Indian FMCG industry.
Political Factors:
Government Policy: Policy decisions concerning taxation, foreign direct investment (FDI) in
retail, and food safety regulations directly influence the FMCG sector. Changes in tax structures
can alter pricing strategies, while relaxed FDI norms in retail can significantly reshape
distribution channels.
Political Stability: A stable political environment fosters long-term business planning for FMCG
companies. Conversely, political unrest or policy volatility can disrupt supply chains and erode
consumer confidence.
Economic Factors:
Economic Growth: A robust Indian economy translates to rising disposable incomes, fueling
demand for FMCG products, particularly premium and convenience items.
Inflation: Inflationary pressures can erode consumer purchasing power, compelling FMCG
companies to raise prices, potentially impacting sales volume.
Interest Rates: High-interest rates can increase borrowing costs for FMCG companies, hindering
expansion plans and impacting profitability.
Social Factors:
Urbanization: India's burgeoning urban population, with their fast-paced lifestyles, drives a
demand for convenient, ready-to-eat, and packaged food products.
Shifting Demographics: A young and brand-conscious Indian population is more receptive to
trying new products, necessitating adaptable marketing strategies from FMCG companies.
Growing Health Consciousness: Consumers are increasingly health-conscious, prompting a surge
in demand for organic, natural, and fortified FMCG products.
Technological Factors:
Digitalization: The rise of e-commerce platforms and online grocery shopping necessitates that
FMCG companies adapt their distribution strategies to cater to evolving consumer buying habits.
Technological Advancements: Innovations in packaging, logistics, and supply chain
management can significantly enhance efficiency and cost reduction for FMCG companies.
AI and Data Analytics: Artificial intelligence holds immense potential for targeted marketing,
demand forecasting, and product development within the FMCG sector.
Environmental Factors:
Sustainability Concerns: Heightened environmental awareness translates to consumer

preferences for eco-friendly FMCG products with sustainable packaging.
Climate Change: Climate change can disrupt agricultural production and the availability of raw
materials, impacting both the cost structure and operations of FMCG companies.
Water Scarcity: Water scarcity poses a challenge for the production of certain FMCG products,
necessitating water conservation efforts and potentially impacting production volumes.
Legal Factors:
Food Safety Regulations: Stringent food safety regulations ensure product quality and consumer
protection but also require FMCG companies to adhere to complex compliance standards.
Labor Laws: Labor laws significantly impact workforce management and overall production
costs for FMCG companies.
Intellectual Property (IP) Laws: Robust IP protection is crucial for FMCG companies to
safeguard innovations and brand identity in a competitive marketplace
Government Initiatives
Some of the major initiatives taken by the Government to promote the FMCG sector in India are
as follows:
The Union Budget 2023–2024 offers incentives for advances in food infrastructure research &
development, and innovation, which is extremely encouraging for the FMCG sector’s modest growth.
The Union government approved a new PLI scheme for the food processing sector, with a budget outlay
of Rs. 109 billion (US$ 1.46 billion). Incentives under the scheme will be disbursed for six years to 2026-
27.
The government's initiative to promote millets for its health benefits would increase the consumption and
production of the millets in the nation. To support this, the government declared that the Indian Institute
of Millet Research in Hyderabad will become a worldwide centre of excellence for the exchange of best
practices, knowledge, and innovations.
In 2022, Government announced that the food processing industry has invested Rs. 4,900 crore (US$ 593
million) so far under the PLI scheme, which was approved in March 2021, with a budget outlay of Rs.
10,900 crore (US$ 1.3 billion), likely to increase sales and exports of food products. A total of 182
applications have been approved under the PLI scheme for the food processing industry. This includes 30
applications for millets-based products under the PLI scheme (8 large entities and 22 SMEs)
In 2022, a total of 112 food processing projects were completed and operationalized, leveraging the
private investment of Rs. 706.04 crore (US$ 85.4 million) and generating direct and indirect employment
for 25,293 people.
To boost the food processing sector, the Centre has permitted under the Income Tax Act a deduction of
100% of profit for five years and 25% of profit in the next five years in case of new agro-processing
industries set up to package and preserve fruits and vegetables.
Excise Duty of 16% on dairy machinery has been fully waived off and excise duty on meat, poultry and
fish products has been reduced from 16% to 8%.
An amount of Rs. 1,000 crore (US$ 120.7 million) is being set up initially in NITI Aayog for SETU for
setting up of incubation centres and enhance skill development to facilitate the startup ecosystem in the
country while improving the ease of doing business.
The governments’ incentives and the FDI funds have helped the FMCG sector strengthen employment,
establish a more robust supply chain, and capture high visibility for FMCG brands across established
retail markets.
Union Budget 2023-24 has allocated US$ 976 million for PLI schemes that aims to reduce import costs,
improve the cost competitiveness of domestically produced goods, increase domestic capacity, and
promote exports.
As per the Union Budget 2022-23: Rs. 1,725 crore (US$ 222.19 million) has been allocated to the
Department of Consumer Affairs Rs. 215,960 crore (US$ 27.82 billion) has been allocated to the
Department of Food and Public Distribution.
In 2021-22, the government approved Production Linked Incentive Scheme for Food Processing Industry
(PLISFPI) with an outlay of Rs. 10,900 crore (US$ 1.4 billion) to help Indian brands of food products in
the international markets.
The government’s production-linked incentive (PLI) scheme gives companies a major opportunity to
boost exports with an outlay of US$ 1.42 billion.
In November 2021, Flipkart signed an MoU with the Ministry of Rural Development of the Government
of India (MoRD) for their ambitious Deendayal Antyodaya Yojana – National Rural Livelihood Mission
(DAY-NRLM) programme to empower local businesses and self-help groups (SHGs) by bringing them
into the e-commerce fold. Companies are counting on recent budget announcements like the direct
transfer of 2.37 lakh crore (US$ 30.93 billion) in minimum support payment (MSP) to wheat and paddy
farmers and the integration of 150,000 post offices into the core banking system to expand their reach in
rural India.
The Government of India has approved 100% FDI in the cash and carry segment and in single-brand
retail along with 51% FDI in multi-brand retail.
The Government has drafted a new Consumer Protection Bill with special emphasis on setting up an
extensive mechanism to ensure simple, speedy, accessible, affordable, and timely delivery of justice to
consumers.
The Goods and Services Tax (GST) is beneficial for the FMCG industry as many of the FMCG products
such as soap, toothpaste and hair oil now come under the 18% tax bracket against the previous rate of 23-
24%. Also, GST on food products and hygiene products has been reduced to 0-5% and 12-18%
respectively. GST is expected to transform logistics in the FMCG sector into a modern and efficient
model as all major corporations are remodelling their operations into larger logistics and warehousing.
Challenges for FMCG Industry
The Indian FMCG industry, a powerhouse of consumer goods, is not without its complexities. Here are
some key challenges that demand strategic attention:
Cost Pressures: Fluctuating raw material prices due to geopolitical events, climate variability, and global
supply chain disruptions pose a significant challenge for FMCG companies. They must employ
sophisticated cost management strategies, explore alternative sourcing options, and potentially implement
dynamic pricing models to maintain profitability.
Shifting Consumer Demands: The Indian consumer is evolving rapidly. Health consciousness,
environmental concerns, and value-based purchasing are on the rise. FMCG companies need to innovate
and adapt their product portfolios to cater to these evolving preferences. This may involve incorporating
organic ingredients, developing sustainable packaging solutions, and demonstrating ethical sourcing
practices.
A Competitive Market: The Indian FMCG landscape is fiercely competitive, with both established
domestic players and international giants vying for market share. Companies must differentiate
themselves through continuous product improvement, data-driven marketing strategies, and optimized
pricing structures to maintain a competitive edge.
Optimizing Distribution Networks: India's vast geography and diverse population necessitate a complex
and geographically dispersed distribution network. Efficiently managing this network to ensure timely
product delivery across regions while minimizing costs remains a persistent challenge. Leveraging
technology for route optimization and logistics management can be instrumental in overcoming this
hurdle.
Digital Transformation Imperative: The burgeoning e-commerce sector demands a paradigm shift in
FMCG sales strategies. Building a robust online presence, employing data analytics to understand
consumer behavior online, and adapting supply chains for omnichannel fulfillment are crucial for success
in the digital age.
Sustainability in Focus: Environmental concerns regarding plastic waste and water usage are prompting
increased consumer scrutiny. FMCG companies must prioritize sustainable practices throughout their
value chain, from production processes to packaging materials. Implementing eco-friendly solutions not
only benefits the environment but also resonates with the evolving consumer sentiment.
Road Ahead
Rural consumption has increased, led by a combination of increasing income and higher aspiration levels.
There is an increased demand for branded products in rural India. On the other hand, with the share of the
unorganised market in the FMCG sector falling, the organised sector growth is expected to rise with an
increased level of brand consciousness, augmented by the growth in modern retail.
Another major factor propelling the demand for food services in India is the growing youth population,
primarily in urban regions. India has a large base of young consumers who form most of the workforce,
and due to time constraints, barely get time for cooking. Online portals are expected to play a key role for
companies trying to enter the hinterlands.
The Internet has contributed in a big way, facilitating a cheaper and more convenient mode to increase a
company’s reach. The number of internet users in India is likely to reach 1 billion by 2025. It is estimated
that 40% of all FMCG consumption in India will be made online by 2020.
E-commerce share of total FMCG sales is expected to increase by 11% by 2030. It is estimated that India
will gain US$ 15 billion a year by implementing GST. GST and demonetisation are expected to drive
demand, both in the rural and urban areas and economic growth in a structured manner in the long term
and improved the performance of companies within the sector.
Company Analysis
Godrej Consumer Products
Godrej Consumer Products Limited (GCPL) is an Indian Multinational consumer goods

company based in Mumbai, India. GCPL's products include soap, hair colourants, toiletries and
liquid detergents. Its brands include 'Cinthol', 'Godrej Fair Glow', 'Godrej No.1' and 'Godrej
Shikakai' in soaps, 'Godrej Powder Hair Dye', 'Renew', 'ColourSoft' in hair colourants and 'Ezee'
liquid detergent. GCPL operates several manufacturing facilities in India spread over seven
locations and grouped into four operating clusters at Malanpur (Madhya Pradesh), Guwahati
(Assam), Baddi- Thana (Himachal Pradesh), Baddi- Katha (Himachal Pradesh), Pondicherry,
Chennai and Sikkim.
Market Cap of the company is ₹ 1,22,712.87 Cr.
Competition
• In the soaps category, GCPL brands compete with Lux and Lifebuoy (Hindustan Unilever
Limited).
• In the hair colours category, its products compete for market share with Black Rose, Super
Vasmol and L’Oreal.
• Competitors in shaving cream category are Gillette, Palmolive and Old Spice.
• GCPL's talcum powder brands, compete with Pond's (HUL) and Denim.
• In the liquid detergent category, GCPL brands Ezee and Genteel, compete with Safewash
(Wipro) and Surf Excel (HUL).
SWOT ANALYSIS OF DABUR
Strength
• Product Profile: GCPL is a popular FMCG business with a large variety of goods. Godrej
goods are used by over 600 million people every day. The brand range of the business means
that it serves several different customers.
• Company has been maintaining healthy ROCE of 24.68% over the past 3 years.
• Company is virtually debt free.
• Company has a healthy Interest coverage ratio of 609.99.
• The Company has been maintaining an effective average operating margins of 24.59% in the
last 5 years.
• Foreign Footprint: GCPL has a strong foreign footprint. GCPL is on the hunt for foreign
markets to boost its sales sources. Foreign sales accounted for around 47.5% of GCPL’s
overall revenue.
• Distribution Network: GCPL has a strong distribution network of 142 Stockist, 3175 sub
stockists and 33 C&F Agents. Company has a coverage of 6.5 Lakh retailers in India. Sales
Team of Godrej Consumer Products Limited is about 250 employees across the country.
• Good ROI: GCPL is relatively successful at the execution of new products and it generates
good profits through its existing business and established products. Company is generating
good Return on its investments.
• Good Training for its Employees: High level personal skills can be acquired through training
and development programmes. GCPL Inc is providing continuous training and development
of its employees resulting in an enthusiastic and motivated team.
• Research and Development: GCPL has a separate Research and Development Department.
GCPL is investing a lot of money on Research and Development of New Products.
Weaknesses
• Increasing Product Cost: One of the major problems faced by GCPL as a brand is the
increase in the cost of transport, labour and other distribution and operating costs of the brand
over the years. That naturally affects the pricing of the product.
• Less Earning due to Competition: A lot of competition means more and more price discounts
and therefore lower margins result in price struggles. This is an overall problem in the market
for Consumer products.
• Rural Market Penetration: The rural penetration of GCPL is much less due to the lack of
awareness of the importance of consumer products in rural areas and also to the
comparatively higher price of products compared to rural products.
• Spend New Technology: GCPL needs to spend more money on technology to increase
efficiency across the globe. Investing into technologies right now is not a wise decision for
the company.
Opportunities
• Increasing Global Presence: GCPL joined the worldwide marketplace. GCPL can tap global
markets of developed and developing countries to increase its presence and generate more
revenue.
• Acquisition: GCPL is accelerating its growth by acquiring global and local companies. This
helps the company’s business penetration.
• Increasing Spending Power: With a rise in buying power and improving lifestyles, the
personal care sector is projected to develop. There would be positive effect on personal care
industry due to rise in demand of personal care goods.
• Social Media Marketing: Social Media Marketing and Online Marketing is creating good
opportunities for the company.
Threats
• Consumer piracy: Brand security is impaired by the existence of counterfeit goods. In the
Indian market, spurious goods impact a large portion of revenue.
• Intense Competition: Competition is so high that brands defend their core strength and attack
weaknesses of competitors. GCPL is also facing intense competition from other brands.
• Changing Prices: Changing Prices by competitors can be a major threat to the company.
• Government Rules and Regulations: Government rules and regulations can be major threat
and can directly or indirectly affect the business of GCPL.
• Raw Material Prices: Rising raw material prices can threaten GCPL profitability.
• Imported Products: Increases in minimum wages and prices of imported products in China
could spell serious threat for GCPL.
• Macro-Economic Factors: Because of the volatile world financial markets, GCPL is exposed
to volatile international macro-economic indicators
Dabur
Dabur Ltd is an Indian multinational consumer goods company, founded by S. K. Burman and
headquartered in Ghaziabad. It manufactures Ayurvedic medicine and natural consumer
products, and is one of the largest fast-moving consumer goods (FMCG) companies in India.
Dabur derives around 60% of its revenue from the consumer care business, 11% from the food
business and remaining from the international business unit.
Market Cap of the company is 88,708.28 Cr.
SWOT ANALYSIS OF DABUR
Strengths
• Real Fruit: The juice’s unique selling proposition is that there are no additives, and that it is
made of organic fruit that is then combined with an equivalent amount of water. There are no
sugars or spices included in Actual Game, and no preservatives or additives of any type.
• Better understanding of the Indian market: In comparison to global brands such as Pepsi,
Coca-Cola or Tropicana, Dabur is an Indian business with a deeper understanding of Indian
tastes. They introduced Indian fruits such as Mosambi and Guava that are favourites among
local audiences.
• Company has been maintaining healthy ROE of 25.81% over the past 3 years
• Distribution and Reach: In almost every state, Dabur has a large number of dealers, backed
by a strong distribution network that ensures that its goods are readily accessible to a large
number of consumers in a timely way.
• Cost structure: The low-cost structure of Dabur allows it to manufacture at a low cost and to
sell its goods at a low price, making it affordable to its customers.
• Dealer Community: Dabur has a good partnership with its dealers which not only supplies
them but also focuses on promoting the products and training of the company
Weaknesses
• Image: Dabur has always been associated with the pharmaceutical and medical industries,
making it difficult for them to take up the picture of a business selling fruit juice compared to
their rivals such as Tropicana or Coca-Cola, who had established their presence on the juice
market.
• Indian customs: The Indian customs are very different from the Western world where fruit
juice is drunk during breakfast. Fruit juice here is something given to tourists, or rarely
drank. That reduced purchase frequency.
• Packaging: Real Fruit Juices have no chemicals or preservatives and thus the business has
had to invest extensively in evaluating packaging technology to maintain the freshness and
consistency of their beverages. The short shelf life often poses problems in the management
of distribution networks.
• Cost: Real Fruit Juice is expensive compared to aerated beverages such as Pepsi or Coca-
Cola, and thus may not be preferred by all consumers. Another problem here is that such
drinks aren’t viewed as choices for value for money.
• Ayurvedic medicine needs time to heal compared to treatment with allopathy
• Workforce diversification: Dabur ‘s workforce is concentrated mainly with white employees,
with small numbers of staff from other ethnic backgrounds. Lack of diversification makes
transition at the workplace challenging for workers from various ethnic backgrounds, leading
to a loss of talent.
Opportunities
• High market potential for packaged drinks in India: the packaged drinks industry has a
market size of about 100 crores of INR and is projected to rise at about 18 percent per year.
For an Indian business like Dabur this is a big opportunity.
• Favourable climate in India: Domestic businesses have a lot to gain in terms of government
funding with the government promoting “Make in India” In addition, the food processing
industry is given several concessions.
• Dabur is the largest Ayurvedic medicine in the world and its export volumes are constantly in
demand in the foreign market
• Growing earning power for women has made them independent and made them more health-
conscious and attractive – a segment in which Dabur also seeks to capitalize on its products
• Improper and unhealthy eating habits due to modernization forced people to take
supplementary Ayurvedic medicines such as Chavanaprash, Hajmola and Life Style
medicines
• Internet: The number of internet users around the world has been growing. That means
there’s an opportunity to broaden their online presence; using the internet to connect with
their customers.
• Social networking: The number of social media users worldwide has grown. The three social
media platforms ; Facebook , Twitter, and Instagram have recorded the highest number of
monthly active user rises. Dabur may use social media to advertise its goods, communicate
with clients and gather feedback.
Threats
• Low entry barriers: There are minimal to no entry barriers in the fruit drinks market and there
is competition in all forms and shapes. Even small to medium-sized enterprises are setting up
local production units which make fruit juices.
• Competition: Minute Maid, Onjus, Coca-Cola, Pepsi, Mirinda, Slice, Maaza, Frooti, and
Tropicana are among Dabur Real’s main competitors.
• Companies Producing Ayurvedic Medicines and Allopathic medicines are the major threats
to Dabur.
• Since traditional practice of ayurvedic medicine is obtained, there are many untrained
professions that take up the profession
• Many Ayurvedic medicines contain more lead and ferric material, which can often lead to
reverse side effects when taken for a longer period of time.
Marico
Marico Limited is an Indian multinational consumer goods company providing consumer

products and services in the areas of health, beauty and wellness. With its headquarters in
Mumbai, Marico is present in over 25 countries across Asia and Africa. It owns brands in
categories of hair care, skin care, edible oils, health foods, male grooming, and fabric care.
As of 2019–2020, the company generated a turnover of ₹7,315 crores. Marico has 8 factories in
India located at Puducherry, Perundurai, Kanjikode, Jalgaon, Paldhi, Dehradun, Baddi and
Paonta Sahib.
Market Cap of the company is 66,588.01 Cr.
The organisation holds a number of household brands such as Parachute, Parachute Advanced,
Saffola, Hair & Care, Nihar, Nihar Naturals, Livon, Set Wet, Mediker and Revive. In the
international market, Marico is represented by brands like Parachute, HairCode, Fiancée, Caivil,
Hercules, Black Chic, Code 10, Ingwe, X-Men and Thuan Phat.
• Male grooming – Set Wet, Beardo, Parachute Advansed Men Aftershower Hair Cream
• Hair Care – Parachute, Parachute Advansed, Nihar Naturals, Nihar Naturals Uttam, Hair &
Care Fruit Oils, Mediker, Livon
• Edible Oils – Saffola
• Skin Care – Parachute Advansed Body Lotion
• Fabric Care – Revive
• Healthy Foods – Saffola Masala Oats & Saffola Fittify
SWOT ANALYSIS OF MARICO
Strengths:
• Brand Powerhouse: Marico has cultivated a formidable brand portfolio in India. Powerhouses
like Parachute coconut oil, Saffola edible oils, and Nihar hair care products enjoy immense
brand loyalty and recognition, translating to a significant competitive edge. This strong brand
equity fosters trust and facilitates premium pricing in some categories.
• Innovation with a Healthy Focus: Marico isn't afraid to push boundaries. The company has a
commendable track record of introducing innovative products, particularly in the health-
conscious food and hair care segments. This focus on wellness aligns perfectly with the
evolving preferences of Indian consumers, driving sustained growth.
• Reaching Every Nook and Cranny: Marico boasts a well-oiled distribution network that
ensures its products are readily available across the vast and diverse geographical landscape
of India. This extensive reach, encompassing both urban and rural markets, is a significant
strength, allowing Marico to tap into the immense potential of the growing rural consumer
base.
• Financial Strength and Efficiency: Marico maintains a healthy financial position, with strong
profitability margins and a keen focus on operational efficiency. This financial prudence
allows the company to invest in strategic initiatives, navigate challenging economic
environments, and weather unexpected market fluctuations.
• Rural Market Inroads: Unlike some FMCG players who struggle to penetrate rural India,
Marico has successfully established itself in these markets. This not only expands the
customer base but also positions Marico to benefit from the rising disposable incomes and
growing demand for FMCG products in rural areas.
Weaknesses:
• Limited Product Basket: While Marico enjoys brand recognition, its product portfolio leans
heavily towards hair care and edible oils. This concentration could pose a risk if consumer
preferences shift dramatically or new disruptive technologies emerge. Diversification into
new categories with high-growth potential can mitigate this risk.
• Scars of Past Launches: Marico has encountered some product launch failures in the past.
These missteps can not only lead to financial losses but also potentially tarnish the brand
image and erode consumer trust. A more rigorous product development and testing process
can help minimize the risk of future failures.
• Limited Global Footprint: Compared to FMCG giants, Marico has a less prominent
international presence. This restricts its overall growth potential and limits its ability to tap
into new markets and revenue streams. Strategic expansion into high-growth international
markets can propel Marico to the next level.
Opportunities:
• Riding the Wellness Wave: The growing consumer focus on health and wellness presents a
golden opportunity for Marico. By leveraging its innovation capabilities, the company can
expand its offerings in healthy food and personal care segments, catering to the increasing
demand for organic, natural, and functional products.
• E-commerce Boom: The burgeoning e-commerce sector offers a new platform for Marico to
reach a wider audience, particularly younger demographics and tech-savvy consumers.
Establishing a robust online presence and crafting effective e-commerce strategies will be
crucial for capitalizing on this opportunity.
• Mergers and Acquisitions: Strategic acquisitions can be a springboard for Marico to enter
entirely new product categories or expand its geographic reach. Carefully chosen acquisitions
can provide instant access to new markets, technologies, and customer bases, accelerating
Marico's growth trajectory.
• Sustainable Stride: Consumers are becoming increasingly environmentally conscious. By
adopting sustainable practices throughout its operations, from sourcing to packaging, Marico
can not only benefit the environment but also resonate with this growing segment, potentially
gaining a competitive edge.
Threats:
• Cutthroat Competition: The Indian FMCG market is a battlefield. Established players and
new entrants are constantly innovating and vying for market share. Marico needs to stay
ahead of the curve by continuously innovating, strengthening its brand messaging, and
offering unique value propositions to consumers.
• Volatile Raw Material Prices: The cost of raw materials for Marico's products can be subject
to fluctuations due to various factors. Effective supplier management, implementing cost-
saving measures, and exploring alternative sourcing options can help Marico mitigate the
impact of volatile raw material prices on its profitability.
• Economic Downturns: Economic slowdowns can lead to reduced consumer spending,
especially in discretionary categories like FMCG products. Marico needs to be prepared to
navigate economic downturns by potentially offering more budget-friendly product lines or
promotional campaigns to retain customers during challenging times.
• Regulatory Shifts: Changes in government regulations regarding food safety, advertising, or
environmental practices can pose challenges for Marico. Staying updated on regulatory
changes and ensuring compliance will be crucial for the company's continued success.
REFERENCES
https://www.ibef.org/industry/fmcg
https://projects4mba.com/?s
https://www.moneycontrol.com/
ON
CSR PRACTICES OF DABUR IN INDIA
SUBMITTED TO
DURGADEVI SARAF INSTITUTE OF MANAGEMENTSTUDIES
In partial fulfilment of the academic requirements for theMMS Program
SUBMITTED BY
ROLL NO: 20221035
BATCH: 2022 - 2024
FACULTY GUIDE

CERTIFICATE
This is to certify that project titled “CSR PRACTICES OF DABUR IN INDIA” is

successfullycompleted by Mr. Prakash Tulsiram Sharma during the IV Semester, in
partial fulfilment of the Master’s Degree in Management Studies recognized by the
University of Mumbai for the academic year 2022-24 through Durgadevi Saraf
Institute of Management Studies.

This is to declare that the study presented by me to Durga Devi Saraf Institute of
Management Studies, in partial completion of the MMS program under the title “CSR
PRACTICES OF DABUR IN INDIA” had been done under the guidance of Prof. Sumana
Chaudhuri (Faculty Mentor) during March- April 2024.

ACKNOWLEDGEMENT
The satisfaction and elation that accompany the successful completion of any task would
be incomplete without the mention of the people who have made it a possibility. It is my
great privilege to express my gratitude and respect to all those who have guided me and
inspired me during the course of the project work.

having given us the opportunity to do this project. We are grateful to Dr. C. Babu and
Dr.Sarita Vichore for providing us the necessary facilities for the completion of my
project.
Last but not the least; we would like to thank each and every individual for their help
andsupport that has largely contributed to the successful completion of the project.
CHAPTER 1. INTRODUCTION
1. What is CSR?
Corporate social responsibility (CSR) is described by the World Business Council for
Sustainable Development (WBCSD) as "the continuous company commitment to contribute to
economic development while improving the quality of life of the employees and their families as
well as of the community and society as a whole." "Corporate social responsibility is a
management concept wherein firms incorporate social and environmental concerns in their
business operations and relationships with their stakeholders," according to the United Nations
Industrial Development Organization (UNIDO). A company's approach for balancing its
responsibilities to social, environmental, and economic imperatives while also fulfilling
stakeholder and shareholder expectations is generally referred to as CSR, according to the
"Triple-Bottom-Line Approach."
2. CSR in India
CSR became more prominent in India with the 2013 Companies Act. The Companies (Corporate
Social Responsibility Policy) Rules, 2014, or "hence CSR Rules," and other notifications related
to them were all notified by the Ministry of Corporate Affairs, Government of India, making
compliance with the rules pertaining to corporate social responsibility mandatory (with effect
from April 1, 2014), for those corporations that meet the requirements outlined in Subsection 1
of Section 135. A corporate social responsibility committee of the board, or CSR Committee,
shall be established by enterprises with a net value of at least 500 billion rupees, a turnover of at
least 1000 billion rupees, or a net profit of at least 5 billion rupees during any financial year, as
of April 1, 2014, in accordance with the aforementioned clause. The aforementioned law states
that the CSR standards must be followed by every firm that satisfies the requirements for net
worth, turnover, or net profit. The section's usage of the word "companies" has a broad scope
that include foreign firms having project or branch offices in India.
3. What a company covered under CSR needs to do?
Once a corporation is subject to the CSR's rules and regulations, it must follow them. The
organisations covered by Subsection 1 of Section 135 are required to take the following actions:
I. Section 135(1) clearly states that the corporations must establish a CSR Committee. The CSR
Committee should consist of three or more directors, at least one of whom shall be an
independent director. The report from the Board must list the members of the CSR Committee.
IV. Each of these businesses must spend at least 2% of the average net revenue from the three
fiscal years before during each fiscal year in accordance with their corporate social responsibility
policy. The rules of Section 198 of the 2013 Companies Act have been made plain to apply to
the computation of average net profits. Moreover, the addition to Rule 3(1) of the CSR Rules
stipulates that a foreign business subject to the Act's obligations must compile a balance
statement and profit and loss account in accordance with Clause (a) of Subsection
(1) of Section 381 of the Companies Act, 2013.
4. CSR Activities:
The following acts may be covered by the firm in its CSR policy, in accordance with Schedule
VII of the 2013 Companies Act: I. Putting an end to extreme hunger and poverty; II. Promoting
education; III. Assisting in gender equality and women's empowerment; IV. Reducing infant
mortality and enhancing maternal health; V. Fighting HIV, AIDS, malaria, and other diseases;
VI. Ensuring environmental sustainability; VII. Creating jobs and boosting vocational skills;
VIII. Social business initiatives; Contributions to the Scheduled Castes and Scheduled Tribes,
other underprivileged classes, minorities, and women's welfare, as well as funds for
socioeconomic development and relief, may be made to the Prime Minister's National Relief
Fund or any other fund established by the federal or state governments. X. Such other matters as
may be prescribed.
5. CSR Reporting
Rule 8 of the CSR Rules mandates that businesses that will be subject to them beginning on or
after April 1, 2014, provide an annual report on CSR that includes the following data in its
board's report:
a succinct description of the company's CSR policy, an explanation of any proposed projects or
programmes, and a web address for the policy, projects, or programmes; the CSR Committee's
composition; the business's average net profit over the past three fiscal years; a declaration of
accountability from the CSR Committee attesting to the conformity of the company's CSR goals
and policy with the execution and monitoring of the CSR policy. Details on CSR Spending
Throughout the Financial Year; If the Business Has Failed To Spend The 2%
Of The Average Net Profit Of The Previous Three Financial Years, Reasons Therefor. Required
CSR Expenditure (2% Of The Amount Of The Net Profit For The Past Three Financial Years).
In order to properly disclose the details of the corporate social responsibility policy in the board
report and on the business website, the annexure to the CSR Guidelines must be complied with.
ADVANTAGES OF CORPORATE SOCIAL RESPONSIBILITY
With the growing global popularity of CSR nurturing, it is reasonable to assume that businesses
have seen significant potential in this area. If you aren't already aware, the following are some
significant benefits of CSR:
1) Improves the image of a business
CSR projects enhance a company's reputation. Putting CSR policies into practise will improve
your company's reputation. The neat appearance of your business will make customers much
delighted to use your products or services. Under its Area Participation Program, Xerox was able
to dispel a socially conscious perception of the company by actively involving its employees in
local development initiatives.
2) Aids draw in as well as preserve potential workers
Companies' serious CSR actions are more recognised to customers. This makes it much easier
for your business to draw in potential applicants who are seeking for employment possibilities.
Also, employees are more likely to stick with the organisation for a much longer amount of time
when your company starts to establish a great reputation through big CSR projects. Millennials
like organisations where they may work in a flexible setting and where they will feel proud to be
a part of the team. The company's beliefs and ideals help the employees to grow a certain sense
of self-pride.
3) Draws in new financiers
A corporation's position in the market determines whether it will attract new investments or not.
Without a doubt, CSR initiatives may help your company's reputation. And once your company
starts to get enough notice, a lot of investors start to show interest in it. The government, other
companies, and even venture capitalists may offer you investments. Be prepared to accept them.
4) An all-new means to advertise your brand name
Every promotion is excellent PR; it is usually claimed. Your company's level of exposure
quickly rises when you start a CSR programme. Such publicity might technically be considered
advertisement. To guarantee that your service or goods are in accordance with the CSR activities
you are engaged in, all you need to do is check.
5) It enhances value and also earnings
Reusing rubbish is one example of an energy-efficiency practise that may save operational
expenses while also helping the environment. If that continues, there is little question that an
organization's obligation to the media, financial analysts, company owners, and domestic
cultures will grow. The company's reputation among its owners is eventually enhanced by their
use of the same strategy and procedures in their share option plans. This would surely result in
the formation of a positive feedback loop, raising the value of the company's shares while
limiting access to credit.
CHAPTER 2: LITERATURE REVIEW
(Fredrick, 2004)
financial services secretary Based on a poll of 1500 company executives present at the 2004
World Economic Forum in Bevos, he discussed the idea of CSR in his speech. In contrast to 24%
of executives who claimed that shareholder interests were more crucial to firms than CSR, 5% of
leaders said that CSR was crucial for business success. Yet, for this leader, CSR and corporate
governance are complementary.
(parshed, 2012)
The CSR is the face of business, according to the article. According to Bibhu, corporate
organisations now utilise CSR as a tool to satisfy their profit-seeking desires. The report also
revealed that while firms are investing in a variety of areas, including child labour, ground water,
food, education, and employment, no one is aware of the basic needs of the world's poor.
According to the article, while financial success for businesses is a given, corporate social
responsibility (CSR) goes above and beyond what businesses are required to do by law.
(Vaaland, 2008)
research paper that uses a case study methodology. The goal of the article was to deal with CSR
critical occurrences and use this knowledge to enforce CSR efforts. According to the study's
findings, CSR should be handled by dealing with unforeseen events, permanently closing the
performance gap between stakeholder expectations and firm performance, and ultimately,
preserving social relationships through interactions between actors, resources, and activities.
(Liczmańska-Kopcewicz, 2019)
The survey was conducted on a sample of 165 FMCG (fast-moving consumer goods) sector
enterprises. The results indicate the existence of a positive correlation between the variables
analysed in the surveyed enterprises. Entrepreneurs guided by sustainable development pursue
economic and non-economic values and have a more comprehensive set of appropriate measures
necessary to create value in a sustainable enterprise, which consists of achieving economic,
ecological, and social goals.
(Prabhakaran, 2022)
This research paper aims to examine the CSR practices of FMCG companies in India and their
impact on society and the environment. FMCG products are those that are sold quickly at
relatively low prices and are consumed on a daily or regular basis. Examples of FMCG products
include packaged food, personal care products, household cleaning products, and beverages. The
industry has experienced rapid growth over the past few decades, driven by factors such as rising
incomes, urbanization, and changing consumer preferences. CSR refers to the voluntary actions
that companies take to address social, environmental, and economic issues in their operations
and in the communities where they operate. The concept of CSR is gaining importance in India,
with companies increasingly recognizing the need to contribute to society and the environment
beyond their core business activities. The paper talks about the CSR practices in the FMCG
industry in India that have a positive impact on society and the environment, and are viewed as
important by stakeholders
(Singh, 2017)
This paper is to provide an overview on the initiatives taken and being taken by Indian FMCG
companies and their impact on the society. All the data related to CSR of FMCG companies is
collected from the official sites of all those companies and also by Wikipedia. This study
provides us with an initial result that, though it is a new field of knowledge, still many
companies are engaged in CSR activities with special focus on women empowerment and green
& clean environment.
CHAPTER 3: OBJECTIVE OF THE STUDY
• To comprehend the idea behind CSR.
• To comprehend the motivations behind a company's support of a charitable cause.
• To know what the business expects from the CSR process.

CHAPTER 4: RESEARCH METHODOLOGY
For this study secondary data is used. Secondary Data was collected by the researcher by visiting
different government websites and company websites. Secondary data refers to data that is
collected by someone other than the primary user. Common sources of secondary data for social
science include censuses, information collected by government departments, organizational
records and data that was originally collected for other research purposes.
Primary data, by contrast, are collected by the investigator conducting the research.
Secondary data analysis can save time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, can provide larger and higher-quality databases that
would be unfeasible for any individual researcher to collect on their own. In addition, analysts of
social and economic change consider secondary data essential, since it is impossible to conduct a
new survey that can adequately capture past change and/or developments. However, secondary
data analysis can be less useful in marketing research, as data may be outdated or inaccurate.
Secondary data can be obtained from different sources:
• Information collected through censuses or government departments like housing, social
security, electoral statistics, tax records.
• Internet searches or libraries.
• Journal paper and magazines, financial statements, etc.
CSR Practices by Dabur
Eradicating Hunger, Poverty and Malnutrition

Swasthya Aur Suraksha:
An integrated project aimed at promoting Health, Nutrition and Well-Being amongst the
underprivileged sections of the society, with a focus on overall development of the girl child.
Under this project, Dabur runs a series of awareness and a capacity building programmes in rural
schools and villages. The programmes have been specially crafted to give the girl child the right
chances to nurture her talent and skills, and helping them excel in different areas of life.
The project rests on four key pillars:
• Safe and Nutritious Food: We organise Safe & Nutritious Food (SNF) campaigns across
schools to build awareness amongst the kids about a balanced diet.
• Promoting Kitchen Garden: We provide the kids access to nutritional food products and
green vegetables. Under this project, we have been distributing seeds of fruit plants and
vegetables to the school kids and helping them grow these plants in their kitchen garden to
ensure that they have easy access to these fruits and vegetables. This also helps supplement
their household income as the families sell their excess produce in the market.
• Promoting Health & Well-Being: Special health camps, oral hygiene camps and awareness
camps on menstrual hygiene organised across schools and villages.
• Self-Defence Training: Special training offered to girls in villages, to promote life skill for
self-protection and self-development among the girls.
Promoting Preventive Healthcare
As an organization, Dabur is sworn to its motto of being ‘dedicated to the Health and Well-Being
of every household’. With our community development initiatives too, we have been working
towards promoting health and preventing diseases through a series of interventions, including
action to address social determinants and health inequity
Some of the key Promoting Preventive Healthcare projects undertaken by Dabur are:
• 700 Se 7 Kadam (Sanitation programme)

Dabur had initiated its sanitation programme under the '700 Se 7 Kadam' project a few years
back. Under this project, aimed at protecting the dignity of women in rural India, we have helped
provide them access to clean sanitation facilities within their households. As an extension of this
programme, we have also constructed toilet blocks in rural schools to help students, particularly
girl students. Toilets blocks have been constructed in around 80 schools across the six states of
Jammu & Kashmir, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Rajasthan and Assam.
Having reached the saturation level with household toilet construction, this programme now
focusses on maintenance of existing household toilets and conducting awareness and training
programmes on Health and Hygiene, besides distribution of hygiene kits in households. In 2020-
21, Sanitation Kits were distributed among 1,111 families in two villages of Uttar Pradesh. We
also organised awareness sessions in schools and communities on the occasion of International
Hand Wash Day.
3,882 Household toilets constructed till date
57 target villages achieved Open Defecation Free status
• Ayurvedic Health Camps

As a leading Ayurvedic medicines and products maker in India, Dabur organises multi-
disciplinary Health Camps across the country, offering the poor and needy access to good quality
health care and subsidised medicines.
With COVID restrictions in place for hosting large gatherings through most part of the year, the
number of Health Camps organised in 2020-21 witnessed a dip. During the year, Dabur
organised over 300 Health Camps where Ayurvedic doctors offered free consultation to over
50,000 individuals. Lady doctors are also present at these camps to reach out to a large number
of women in the selected intervention areas. Medicines were also provided at subsidized rates.
Special Swarna Parashan Health Camps were also held across multiple cities on the occasion of
Sharad Purnima. In this unique all-night Health Camps, which ran from 9 pm to 5 am, the
medicines are kept exposed to moon rays all through the night and consumed in the early
morning with Vedic chanting.
Dabur also runs a Wellness Centre in the walled city area of Delhi offering health check-ups and
subsidised medicines to public. The Ayurvedic practitioners at this centre also offered online
consultations and tele-consultations to patients free of cost.
308 General Health Camps organised in 2020-21
50,000 Patients examined at Health Camps
2,885 patient consultations offered at Dabur Wellness Centre
• Oral Hygiene Camps

Tooth decay or cavities is a common problem that people across age groups face today. The
problem is more prevalent among children, particularly from lower income families as they do
not receive timely treatment for tooth decay. Such untreated cavities can lead to multiple
problems, including difficulty in concentrating on learning and absence from school, affecting
their quality of life.
Dabur has been working with Society for Oral and Dental Care (SODC) to organize dental
hygiene camps in schools across the country. At these camps, experienced dentists are engaged
to raise awareness about oral hygiene and educate kids about best oral care practices. Free Oral
Health Check-Ups are also conducted by dentists and toothpaste samples distributed amongst the
students to inculcate the habit of brushing their teeth daily.
12 states covered under Oral Hygiene projects
5.25 lakh students benefited from the initiative
Ensuring Environment Sustainability
Nature and biodiversity make life possible. As a leading manufacturer of consumer products
based on Nature, Dabur understands that healthy ecosystems cannot just help drive our economy
but also help us cope with the impacts of climate change. This forms the backbone of our
community-led Environment Sustainability initiatives.
• Enhancing Farmer Income through Herb Cultivation

Our biodiversity initiatives involve working with farmers, tribal and forest-based communities
across India and Nepal in preserving ecosystems, halting the accelerated loss of biodiversity and
promoting sustainable cultivation of rare medicinal herbs. We engage marginal farmers,
providing them visible economic opportunities while helping conserve natural resources in the
wide-ranging ecosystems. This initiative has helped create an alternate source of income for the
community.
grew and distributed 4,29,730 saplings of herbs. Today, we have satellite nurseries situated
across India, from the Himalayan valleys to the coastal region in Tamil Nadu.
8,975 Farmers covered under Biodiversity initiatives in India
5,247 Acres of land under cultivation of herbs and medicinal plants in India
3,159 Households in Nepal engaged in cultivation of herbs
692 Acres of land under cultivation of herbs and medicinal plants in Nepal
• Water Conservation & Management
Project Desert Bloom

Recognising the growing importance of community-level programmes for Water Conservation
and Management, Dabur has been running a water conservation programme in Rajasthan,
covering Alwar and Tonk districts. The programme has been developed with active community
participation to improve the sustainable livelihood of the poorest and excluded communities in
the area by strengthening their access to water and technology as well as management capacities.
This project uses cost-effective, eco-friendly community-based technologies like water

harvesting, water conservation, recharging of tube wells and plantation to give rural communities
in Rajasthan get access to water all through the year for their personal consumption and
irrigation needs.
In 2020-21, we extended our community-focussed Water Conservation and Management

programme to Baddi in Himachal Pradesh with the renovation of a 15 Lakh Litre village pond.
1,270 Families directly benefited from the Water Conservation projects
10 Feet rise in Water Table in Newai area of Tonk district.
• Promoting Solar Energy
As part of our sustainable community development agenda, Dabur has been working towards
promoting renewable energy as the technology of choice to drive away darkness from scores of
villages. Under its Promotion of Social Energy project, Dabur has installed Solar Street Lights
across villages in Uttar Pradesh, Rajasthan and Assam, in addition to providing Solar Household
Lamps in Uttar Pradesh. This project also helps spreads awareness about solar technology,
besides involving the next generation in taking decisive and concrete steps towards creating a
greener future. This initiative has also helped reduce crime rates in these villages. In 2020-21, we
erected 100 Solar Street Lights in villages in Uttar Pradesh.
713 Solar Household Lamps distributed till date
3,365 households have benefitted from the initiative
• Plantation Drive
The project seeks to build awareness within the community about environment and encourage
them to plant and nurture plants that provide nutritious fruits and vegetables for their own
consumption. Christened Ghar ki Bagiya, this programme offers dual benefits to community
members by providing them nutritious fruits and vegetables for their daily consumption while
also generating addition income for their households. We also distribute seeds of fruit plants and
vegetable among students in villages and encourage them to grow these in their home kitchen
gardens. This initiative has not only helped improve the nutrition levels in target communities
but has gone a long way in enhancing the green cover in the villages.
Over 600 families in 20 villages in Uttar Pradesh, 200 families from 9 villages of Baddi
(Himachal Pradesh), 400 families from 10 villages in Pantnagar (Uttarakhand) and 300 families
from 4 villages of Tezpur (Assam) have benefited from our Ghar ki Bagiya programme in 2020-
21 and are now consuming vegetables as part of their daily diet. We also distributed Poplar and
Eucalyptus saplings to target farmers in 2 villages of Pantnagar.
521 kids in Ghaziabad received vegetable seeds
1,000 saplings planted in villages in Uttar Pradesh
Promotion of Education
At Dabur, we believe that education is both the means to a better life and a key to ensure overall
development of the society. Our Education programmes form a key pillar of our development
agenda. We have been working towards identifying and removing barriers to education for those
most in need by creating a better learning environment for children in the hinterland. Our
Education programme operates on 3 pillars:
• Helping underprivileged children, women gain literacy

Our volunteers and development professionals work towards sensitising people living in urban
and semi-urban slums on the need for education and encouraging them to enrol their children to
formal schools. Our non-formal education centres, called Gyan Deep Kendras, provide basic
education to out-of-school underprivileged kids between 6 and 14 years of age. On completing
the basic education at our centres, these kids are linked to formal schools. We also operate
Remedial Education Centres, called Gyan Arjan Kendras, to address many of the unique
challenges weaker students face, besides running Adult Literacy Centres to provide basic literacy
to unlettered rural women.
• Improve overall Learning Environment in rural schools

We have also been investing in improving the infrastructure in schools to uplift their learning
experience under the programme, called Adarsh Paathshala. The development work includes:
Construction of separate Toilet Blocks for Boys & Girls, and even Teachers.
Construction and Repair of overall existing infrastructure i.e. school buildings, boundary walls,
class rooms, floors, kitchens, play grounds etc.
Complete whitewash of the school building as well as painting of all doors & windows.
Ensuring uninterrupted supply of good quality potable water within the school premise.
Separate Drinking Water & Hand Wash Stations where students can drink water and clean their
hands before and after having their Mid-Day meal.
Distribution of Fans, Almirahs, Dustbins, Desk-benches etc.
Building as Learning Aid (BaLA) Paintings on classroom and school walls to raise interest in
children by the means of entertainment and visual appeal.
• Build skills that foster employability and inclusive economic growth

We understand that education drives social mobility, helping more people play a part in society
and enter into the job market so they can build better lives for themselves and their families.
Dabur has been working to help rural youth build skills that foster employability and inclusive
economic growth. We have been operating Computer Literacy Centres in rural India, along with
NIIT Foundation. A community library was also set up in a village in Hapur district of Uttar
Pradesh to help local youth get access to quality education material and prepare for competitive
exams.
17 schools revamped in 5 states in 2020-21
4,250 Students gained access to better overall educational environment
70 Students studying at our Remedial Education Centres
27 students are enrolled at Computer Literacy Centre in UP
Women Empowerment
Youth, particularly girls, in villages across India faces serious problems of unemployment and
underemployment. Limited access to employment opportunities and skills have long played a
spoiler for these young girls, forcing them to take up daily wage work in the informal sector with
inadequate social safety nets and poor living conditions.
At Dabur, we believe that Skill Development is a powerful agent of social transformation.

Providing vocational training, we feel, will not only bridge the gap between skilled and unskilled
labour but also help the rural youth with better employment and self-employment opportunities.
Dabur's vocational training programmes, devised after detailed discussions with the community
members and keeping in mind their specific needs and sensitivities, focus on developing soft
skills that can help girls in these villages set up small businesses and become local entrepreneurs.
• Vocational Skills Training

We run Skill Development Centres in rural pockets of Uttar Pradesh, Uttaranchal, Himachal
Pradesh, Rajasthan and Assam to create a pool of self-reliant young girls. These skills help them
find employment in the fast-emerging services sectors or even emerge as social entrepreneurs in
their respective villages. Under this programme, we offer training on a variety of income-
generating vocational skills like:
Cutting-Tailoring
Beauty Care
Handicraft making
In addition, we also provide entrepreneurship development and financial education to
disadvantaged rural women, helping them develop the skills they need to build a business and
manage money. Dabur has helped women form Self-Help Group (SHGs) and Joint Liability
Groups (JLGs), and raise funds for running small businesses. The success of this initiative can be
gauged by the fact that there has hardly been any default in repayment of bank loans. This
initiative has gone a long way in raising the self-esteem of women in the hinterland.
151 rural girls pursuing Vocational Training at 7 Skill Development Centres
162 SHGs operational in Uttar Pradesh, Uttarakhand
• Livelihood Programmes
Dabur has identified development of rural livelihoods as a focus area for its rural development
programmes. Sustainable interventions are designed keeping in mind the specific needs of the
poorest of the poor from the community basis need assessment surveys and local and regional
needs. This project includes promoting agro-based livelihood programmes, developing piggery
and goat-rearing to create robust livelihood opportunities to help rural households earn more and
lead healthier lives.
We have been working with small farmers and rural communities in Uttar Pradesh and Assam in
building capacities and capabilities to help create alternate avenues of livelihood. The projects
work in sync with government development programmes and facilitate linkages to public
services and schemes for the project beneficiaries.
In 2020-21, we trained women SHG members in four villages of Tezpur (Assam) on scientific
management of pigs and goats, supporting them in setting up piggery and goat-rearing
businesses. We also organized three-day training programme in a village in Pantnagar
(Uttarakhand) on Mushroom farming for local SHGs and farmer groups, besides establishing a
demonstration unit for mushroom cultivation and medicinal plants in Uttar Pradesh.
10 Women SHGs selected for Piggery
3 Women SHGs provided training on Goat Rearing
Promotion of Sports
Sport has emerged as an important component of socio-economic development of a country.

Active participation in sports is known to have a multiplier effect, from improving community
health and productivity to imbibing discipline in character and enhancing social cohesion. This
also has the spillover effect of kids choosing sports as a career and winning competitions at
various levels.
At Dabur, we feel that mere inclusion of sports in school curriculum is not enough for improving
the condition of games and sports in the country. There is a need to evangelize sports to the
society so that people appreciate its values in improving the quality of life and change their
outlook towards sports other than cricket.
• Football Training Camps

Under a special initiative rolled out for the youth (both boys and girls) in Assam, we have been
working towards identifying sporting talent in the field of football from the grassroot and giving
them an opportunity to enter the mainstream world of sports. Our Football Training Camp in
Tezpur offers boys and girls training in football, a sport of choice in the region. A national level
trainer has been hired to conduct the programme.We are now planning to expand the scope of
this programme by setting up a Boxing Training Centre in the region in the new fiscal.
Some of our trainees at the camp have been selected by Ansula United Football Club to be part
of the team to play at the Indo Nepal Championship Football Tournament in Nepal. Our trainees
were also selected in the under-18 trial organised by Rajasthan FC and Palamos CF, while two
other kids were selected to represent the district football team.
86 Kids (56 boys and 30 girls) offered Football Training
CHAPTER 6: CONCLUSION
Dabur's approach to CSR transcends mere financial contributions. They've woven social
responsibility into the very fabric of their operations, strategically targeting areas critical to
India's development. Healthcare, education, women's empowerment, and environmental
sustainability form the pillars of their CSR focus.
Dabur's initiatives go beyond generic pronouncements. Projects like SUNDESH exemplify their
commitment to sustainable practices. This program not only ensures a steady supply of medicinal
plants for their products but also empowers local farmers through sustainable cultivation
techniques. Similarly, Swasthya Chetna Abhiyan tackles a critical public health concern – flu
prevention – by raising awareness and promoting preventive measures, particularly in rural areas.
Furthermore, Dabur recognizes the importance of gender equality. Their "Brave & Beautiful"
program empowers female cancer survivors by equipping them with vocational skills and
employment opportunities. This not only fosters self-reliance but also sends a powerful message
of social inclusion.
By strategically aligning their CSR efforts with their core values and business goals, Dabur
creates a win-win situation. Their social initiatives contribute to a healthier, more empowered
society, while simultaneously fostering brand loyalty and a positive reputation. This focus on
shared prosperity ensures the long-term sustainability of both Dabur and the communities it
serves.
In essence, Dabur's CSR approach embodies a move away from traditional philanthropy. They're
actively shaping a future where social responsibility and business success are not mutually
exclusive, but rather, two sides of the same coin
REFERENCES
https://ticker.finology.in/
https://www.dabur.com/csr-at-dabur
https://ejoykart.com/blog/fmcg-companys-csr-ranking/

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CAPSTONE PROJECT REPORT

VALUATION OF FMCG SECTOR IN INDIA

DURGADEVI SARAF INSTITUTE OF MANAGEMENT

In partial fulfilment of the academic requirements for the

ROLL NO: 20221035

BATCH: 2022 - 2024

DR. SUMANA CHAUDHURI

Name: Prakash Tulsiram Sharma

Date: (Signature of the Guide)

Place: Mumbai Signature of the Student: Prakash Tulsiram Sharma

Date: Roll No. 20221035

We are thankful to DURGADEVI SARAF INSTITUTE OF MANAGEMENT STUDIES for

Sr. No Topic Pg. No

1. Introduction: FMCG Sector

3. Objectives of the Study

5 5.1 DCF Calculation of

5.2 DCF Calculation of

5.3 DCF Calculation of

6 6.1 Assumptions of DCF calculation of

6.2 Assumptions of DCF calculation of

7. Limitations to the study

Marico Limited is an Indian multinational consumer goods company providing consumer

(Aisha Banu, 2018)

• To analyse Indian FMCG sector and to know about their Valuation

2023 Particulars 2024 2025 2026 2027 2028

EAT (NET PROFIT) 4675 4916 5171 5437 5718

PARTICULARS 2024 2025 2026 2027 2028

PV of Terminal value 108704.8

Enter prise value 128415.2

INCOME STATEMENT OF DABUR LTD.

2023 Particulars 2024 2025 2026 2027 2028

NOPAT 3084.98 3279.95 3487.24 3707.64 3941.96

FCFF 3468 4089 3944 4597 4482

PV of FCFF (7.95%) 0.926 0.858 0.794 0.736 0.682

Value (A+B) 123734

• Company will continue to grow at 5.25% growth rate.

• Company will continue to grow at 6.29% growth rate.

Aisha Banu, D. L. (2018). A STUDY ON APPLICATION OF BRAND VALUATION TECHNIQUES

EIC ANALYSIS OF FMCG SECTOR IN INDIA

DURGADEVI SARAF INSTITUTE OF MANAGEMENTSTUDIES

In partial fulfilment of the academic requirements for theMMS Program

PRAKASH TULSIRAM SHARMA

ROLL NO: 20221035

BATCH: 2022 - 2024

DR. SUMANA CHAUDHURI

Name: Prakash Tulsiram Sharma

Date: (Signature of the Guide)

Place: Mumbai Signature of the Student: Prakash Tulsiram Sharma

Date: Roll No. 20221035

We are thankful to DURGADEVI SARAF INSTITUTE OF MANAGEMENT STUDIES for

3. Ongoing Turn of Events

6. Challenges for FMCG Industry

8. SWOT ANALYSIS – Godrej

9. SWOT ANALYSIS – Dabur

10. SWOT ANALYSIS – Marico

FMCGs can be divided into several different categories, including:

Sustainability Concerns: Heightened environmental awareness translates to consumer

Godrej Consumer Products

Godrej Consumer Products Limited (GCPL) is an Indian Multinational consumer goods