Industry Analysis Nestle
Industry Analysis Nestle
Industry Analysis Nestle
FMCG SECTOR
Presented by,
Sachin R
Preetham Surendra
Suhashini S G
Amulya V
Yaswanth Sai Ram
Aravind
History and Growth
Potential of FMCG
One of the fastest growing sector in early 1980’s till
now.
20
0
2015
2016
2017
2018
2019
Healthy
Spending
FDI
pattern
inflows
Growth
Drivers Increasing
per capita
Rise of rural
income of
consumers
urban
population
Growing
Changing
popularity
Profile and
of
Mind Set of
organized
Consumer
retail
FMCG Segments
Contribution in %
Food and Personal
Beverages Care 16
13
51
20
60,000
52,035
50,000
40,000 34,487
30,000
20,000
11,216
8,684 8,533
10,000
0
ITC HUL Nestle Britannia Parle Agro
Revenue in Crore
Good Food, Good Life
Nestle Profile
Prepared
Beverages Segments dishes and
of Nestle cooking aids
Chocolate,
confectionary
and biscuits
Nestle India is best play on
fast growing packaged food
space
9%
• Milk products and 17% 28%
Opportunities
• Strategic Alliance
Threats
• Can focus more on R&D • Tough competition
• Penetration to rural markets • Price of Commodities
Porter’s Five Forces Analysis
Cont...
Porter’s Five Forces Analysis
Cont...
Porter’s Five Forces Analysis
Cont...
Porter’s Five Forces Analysis
Cont...
Porter’s Five Forces Analysis
Threats of Substitutes-High
Substitutes are easily available and there is no
switching cost
So what’s next?
Investment
Nestle India share for long term investment to
increase to 28517 INR from 15000 INR in 5years
How does FMCG future
look like?
Market cap to reach $1.1 trillion. By 2020
ANY
QUESTIONS?