12.12.2018 Views

The 10 Most Admired FMCG Companies in India

Insights Success introduce some of the most innovative companies in the FMCG market and bring forth you “The 10 MostAdmired FMCG Companies in India”. This edition briefs about the companies which have successfully generated new and advanced concepts to cater the needs of individuals. Serving the customers with utmost service offerings and having the core values of integrity, determination, we have shortlisted the FMCG companies for this edition.

Insights Success introduce some of the most innovative companies in the FMCG market and bring forth you “The 10 MostAdmired FMCG Companies in India”. This edition briefs about the companies which have successfully generated new and advanced concepts to cater the needs of individuals. Serving the customers with utmost service offerings and having the core values of integrity, determination, we have shortlisted the FMCG companies for this edition.

SHOW MORE
SHOW LESS

Create successful ePaper yourself

Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software.

www.<strong>in</strong>sightssuccess.<strong>in</strong><br />

September 2018<br />

<strong>10</strong><br />

MOST<br />

<strong>The</strong><br />

ADMIRED<br />

<strong>FMCG</strong><br />

C O M P A N I E S<br />

I N I N D I A<br />

Expert’s Insight<br />

<strong>The</strong> Rage of <strong>FMCG</strong><br />

Sector <strong>in</strong> the<br />

Rural Market<br />

Trendy talk<br />

Notable Trends <strong>in</strong> the<br />

<strong>India</strong>n <strong>FMCG</strong> Industry<br />

MP Ramachandran<br />

Founder, Chairman & MD<br />

JYOTHY LABORATORIES<br />

A Venerated Firm Bestow<strong>in</strong>g Excellent Lifestyle Products


Omnichannel Agent<br />

and Customer<br />

Engagement Solutions<br />

Simplify and personalize the customer experience,<br />

empower agents and achieve bus<strong>in</strong>ess success<br />

with one workspace for all channel <strong>in</strong>teractions,<br />

application <strong>in</strong>tegrations, and CX report<strong>in</strong>g.


Editorial<br />

he <strong>FMCG</strong> <strong>in</strong>dustry has experienced salient modifications keep<strong>in</strong>g <strong>in</strong> pace<br />

Twith the on-go<strong>in</strong>g momentum of the food <strong>in</strong>dustry. <strong>The</strong> drastic changes <strong>in</strong><br />

eat<strong>in</strong>g patterns, fitness regimes and overall lifestyle have been the major<br />

driv<strong>in</strong>g factors that have transformed the <strong>FMCG</strong> <strong>in</strong>dustry <strong>in</strong> the recent times. <strong>The</strong><br />

top bus<strong>in</strong>ess giants are tak<strong>in</strong>g the lead with emerg<strong>in</strong>g trends and try<strong>in</strong>g hard to<br />

reach the top of the pyramid with lead<strong>in</strong>g <strong>FMCG</strong> producers.<br />

Frozen Food is a trend<strong>in</strong>g concept <strong>in</strong> the recent times and a new added member <strong>in</strong><br />

one’s shopp<strong>in</strong>g cart. Liv<strong>in</strong>g <strong>in</strong> such modern times, everyone enjoys convenience<br />

which is reasonable and also cost-effective. Many-a-times the arduous workculture<br />

and time-shifts <strong>in</strong>dividuals’ face is exhaust<strong>in</strong>g, which makes it tiresome<br />

for them to cook a wholesome meal by the end of the day. Frozen food is a quick<br />

fix <strong>in</strong> such situations and a good option once <strong>in</strong> a while.<br />

Acceleration of<br />

the <strong>India</strong>n<br />

<strong>FMCG</strong><br />

<strong>Companies</strong><br />

Freez<strong>in</strong>g is one of the oldest methods of preserv<strong>in</strong>g foods and can keep food fresh<br />

and nutritious for a certa<strong>in</strong> period of time. To be more precise good frozen storage<br />

usually requires temperature of -18 degree Celsius or lower, which can be<br />

packaged properly and be preserved for a longer duration of time. It is imperative<br />

to do a little research about what can be frozen and to which extent as some food<br />

items don’t freeze well. It is also necessary to know the different methods of<br />

freez<strong>in</strong>g for different type of foods with few essential freez<strong>in</strong>g tips.<br />

<strong>The</strong> frozen food <strong>in</strong>dustry, which <strong>in</strong>itially started with basic products is now<br />

offer<strong>in</strong>g a wide range of products from fruits, vegetables, meats to snack<strong>in</strong>g and<br />

full meal options. In order to stay ahead <strong>in</strong> the longer run, the companies are<br />

push<strong>in</strong>g their boundaries and com<strong>in</strong>g up with latest ideas and techniques to<br />

surpass the competition and become a brand name <strong>in</strong> the competitive market.<br />

<strong>The</strong> grow<strong>in</strong>g number of <strong>FMCG</strong> companies and opportunities has marked an<br />

arrival of the new era <strong>in</strong> the <strong>FMCG</strong> Market. Accord<strong>in</strong>g to a survey conducted, it<br />

is observed that the retail market <strong>in</strong> <strong>India</strong>n is estimated to reach US$ 1.1 trillion<br />

by 2020 with the modern trade expected to grow by maximum of 25 percent,<br />

which will the boost the revenues of the <strong>FMCG</strong> companies. With proper plann<strong>in</strong>g<br />

and R & D, companies can harvest a good source of revenue <strong>in</strong> the various<br />

<strong>FMCG</strong> categories like frozen and processed foods, beverages, dairy products and<br />

many others.<br />

<strong>The</strong> market of <strong>FMCG</strong> is spread all over the country, it has even penetrated deep<br />

<strong>in</strong>to the rural regions. <strong>The</strong> latest trends show, that the <strong>FMCG</strong> market has a huge<br />

potential <strong>in</strong> the rural market and will surprise the <strong>FMCG</strong> manufactures <strong>in</strong> the<br />

present as well as the upcom<strong>in</strong>g times.<br />

Look<strong>in</strong>g at the growth of the <strong>FMCG</strong> companies <strong>in</strong> the last couple of years, it can<br />

be clearly stated that the outreach of the <strong>FMCG</strong> market has immensely expanded<br />

and cont<strong>in</strong>ues to stretch with the help of unique ideas and techniques.<br />

Apurva Bhosale<br />

Apurva Bhosale


Editor-<strong>in</strong>-Chief Pooja M. Bansal<br />

Senior Editor Shraddha Deshpande<br />

Manag<strong>in</strong>g Editor Rajarshi Chatterjee<br />

Executive Editor Apurva Bhosale<br />

Art & Design Director Amol Kamble<br />

Co-designer Savita Pandav<br />

Picture Editor Alex Noel<br />

Art Editor Asha Bange<br />

Visualiser Deepanjali Jena<br />

Bus<strong>in</strong>ess Development Manager Akansha Garewal<br />

Market<strong>in</strong>g Manager Dhruv Apte<br />

Bus<strong>in</strong>ess Development Executives<br />

Divya, Sarika ,Vaishnavi<br />

Research Analyst David<br />

Circulation Manager Vivek Bangade<br />

Database Management Prashant Chevale<br />

Technology Consultant Swapnil Patil<br />

sales@<strong>in</strong>sightssuccess.com<br />

September, 2018<br />

Corporate Ofces:<br />

Insights Success Media and Technology Pvt. Ltd.<br />

Off. No. 513 & 5<strong>10</strong>, 5th Flr., Ra<strong>in</strong>bow Plaza, Shivar Chowk,<br />

Pimple Saudagar, Pune, Maharashtra 41<strong>10</strong>17<br />

Phone - <strong>India</strong>: 020- 74<strong>10</strong>079881/ 82/ 83/ 84/ 85<br />

Email: <strong>in</strong>fo@<strong>in</strong>sightssuccess.<strong>in</strong><br />

For Subscription: www.<strong>in</strong>sightssuccess.<strong>in</strong><br />

Insights Success Media Tech LLC<br />

555 Metro Place North, Suite <strong>10</strong>0,<br />

Dubl<strong>in</strong>, OH 43017, United States<br />

Phone - (614)-602-1754<br />

Email: <strong>in</strong>fo@<strong>in</strong>sightssuccess.com<br />

For Subscription: www.<strong>in</strong>sightssuccess.com<br />

Follow us on : www.facebook.com/<strong>in</strong>sightssuccess/ https://twitter.com/<strong>in</strong>sightssuccess<br />

We are also available on :<br />

Cover Price : RS. 150/-<br />

Copyright © 2018 Insights Success, All rights reserved. <strong>The</strong> content and images used <strong>in</strong> this magaz<strong>in</strong>e should not be reproduced or<br />

transmitted <strong>in</strong> any form or by any means, electronic, mechanical, photocopy<strong>in</strong>g, record<strong>in</strong>g or otherwise, without prior permission from Insights Success.<br />

Repr<strong>in</strong>t rights rema<strong>in</strong> solely with Insights Success. Pr<strong>in</strong>ted and Published by Insights Success Media and Technology Pvt. Ltd.


CONTENTS<br />

Cover Story<br />

JYOTHY<br />

LABORATORIES:<br />

A Venerated Firm Bestow<strong>in</strong>g Excellent<br />

Lifestyle Products<br />

8<br />

16 Articles<br />

26<br />

Trendy talk<br />

Notable Trends <strong>in</strong> the<br />

<strong>India</strong>n <strong>FMCG</strong> Industry<br />

Leader’s Viewpo<strong>in</strong>t<br />

Chang<strong>in</strong>g Trends of<br />

<strong>FMCG</strong> <strong>in</strong> <strong>India</strong><br />

36<br />

From Editor’s<br />

Desk<br />

<strong>The</strong> Upsw<strong>in</strong>g <strong>in</strong> the<br />

<strong>India</strong>n <strong>FMCG</strong> Sector


20<br />

30 36<br />

Gen Next Food<br />

and Hospitality<br />

<strong>The</strong> Art of Cherish<strong>in</strong>g<br />

Natural Goodness<br />

I Knowledge<br />

Factory<br />

Digital Market<strong>in</strong>g is all set<br />

to Capture <strong>FMCG</strong> Sector<br />

CXO Standpo<strong>in</strong>t<br />

Leader’s<br />

Viewpo<strong>in</strong>t<br />

Chang<strong>in</strong>g Trends<br />

of <strong>FMCG</strong> <strong>in</strong> <strong>India</strong><br />

22<br />

32 42<br />

Expert’s Insight<br />

<strong>The</strong> Rage of <strong>FMCG</strong> Sector<br />

<strong>in</strong> the Rural Market<br />

Leader’s<br />

Viewpo<strong>in</strong>t<br />

Chang<strong>in</strong>g Trends of<br />

<strong>FMCG</strong> <strong>in</strong> <strong>India</strong><br />

Expert’s<br />

View<br />

Factors Affect<strong>in</strong>g<br />

the Growth<br />

of the Rural Markets


1<br />

COMPANIES IN INDIA<br />

THE<br />

0<br />

<strong>Most</strong> <strong>Admired</strong><br />

<strong>FMCG</strong><br />

<strong>Admired</strong> <strong>FMCG</strong> <strong>Companies</strong>-<br />

Offer<strong>in</strong>g Innovative Lifestyle Products<br />

<strong>The</strong> <strong>FMCG</strong> companies have def<strong>in</strong>itely come a long way over the years with its <strong>in</strong>herent advancements and prompt<br />

responses. Be it either creat<strong>in</strong>g <strong>in</strong>novative products and concepts or build<strong>in</strong>g competitive strategies, the <strong>FMCG</strong> market<br />

has escalated its game. It has come up with healthy product options to contribute for the chang<strong>in</strong>g lifestyles of people<br />

and also to nurture the goodness of eat<strong>in</strong>g organic produce.<br />

We <strong>in</strong>troduce some of the most <strong>in</strong>novative companies <strong>in</strong> the <strong>FMCG</strong> market and br<strong>in</strong>g forth you “<strong>The</strong> <strong>10</strong> <strong>Most</strong><br />

<strong>Admired</strong> <strong>FMCG</strong> <strong>Companies</strong> <strong>in</strong> <strong>India</strong>”. This edition briefs about the companies which have successfully generated<br />

new and advanced concepts to cater the needs of <strong>in</strong>dividuals. Serv<strong>in</strong>g the customers with utmost service offer<strong>in</strong>gs and<br />

hav<strong>in</strong>g the core values of <strong>in</strong>tegrity, determ<strong>in</strong>ation, we have shortlisted the <strong>FMCG</strong> companies for this edition.<br />

On the Cover Story of this Edition we have showcased Jyothy Laboratories Limited: It is a lead<strong>in</strong>g company which offers<br />

top-notch products <strong>in</strong> an expedient manner to satisfy the targeted consumers.<br />

Along with an excellent Cover Story, we have enlisted various other <strong>FMCG</strong> companies which are mak<strong>in</strong>g a difference with<br />

their performance and creat<strong>in</strong>g a benchmark <strong>in</strong> the <strong>FMCG</strong> market. Start<strong>in</strong>g with, Gen Next Foods and Hospitality: It<br />

produces a varied range of nutritionally designed snack<strong>in</strong>g options. Wholesome Foods: It is a company that provides<br />

healthy, convenient, authentic food to foodies worldwide. I Knowledge Factory: It has been devis<strong>in</strong>g and deliver<strong>in</strong>g<br />

mean<strong>in</strong>gful solutions across multiple <strong>in</strong>dustry verticals.<br />

Amway <strong>India</strong> Enterprises: It is one of the world’s largest direct sell<strong>in</strong>g bus<strong>in</strong>esses provid<strong>in</strong>g quality enhanced products.<br />

ITC Limited: ITC Brands are designed and customized to delight customer’s diverse tastes, needs and lifestyles. Gits<br />

Food Products: It is a legacy <strong>in</strong> the convenience packaged food segment which <strong>in</strong>troduced the concept of Instant Mixes <strong>in</strong><br />

<strong>India</strong>. KBRL: It is <strong>India</strong>’s first <strong>in</strong>tegrated rice company with a comprehensive product cha<strong>in</strong>. Marico: It is one of <strong>India</strong>’s<br />

lead<strong>in</strong>g consumer products companies operat<strong>in</strong>g <strong>in</strong> the beauty and wellness space. Mother Dairy Fruit & Vegetable: It is<br />

the world's biggest dairy development program launched to make <strong>India</strong> a milk sufficient nation.<br />

Additionally, the edition consists of exclusive Interview of Jagadeesh Babu and Manik Reddy, Co-founders at<br />

Biophere <strong>India</strong> Pharmaceuticals and CXO’s stated by foremost leaders convey<strong>in</strong>g their <strong>in</strong>sights on the <strong>in</strong>dustry. Also<br />

our expert editor narrates creative piece of write-ups entitled as “Notable Trends <strong>in</strong> the <strong>India</strong>n <strong>FMCG</strong> Industry” and<br />

“<strong>The</strong> Upsw<strong>in</strong>g <strong>in</strong> the <strong>India</strong>n <strong>FMCG</strong> Sector”.<br />

So flip the pages to know more about the food fraternity.


Cover Story<br />

MP Ramachandran<br />

Founder, Chairman & MD<br />

Jyothy Laboratories Limited


1<br />

COMPANIES IN INDIA<br />

THE<br />

0<br />

<strong>Most</strong> <strong>Admired</strong><br />

<strong>FMCG</strong><br />

JYOTHY<br />

LABORATORIES<br />

A Venerated Firm Bestow<strong>in</strong>g Excellent Lifestyle Products<br />

“<br />

Intelligence and diligent<br />

leaders of the youth are<br />

the pillars to construct an<br />

economically liberated nation<br />


n the fast paced life, household chores can be a tedious<br />

Iprocess. In order to help the mank<strong>in</strong>d, <strong>FMCG</strong><br />

companies are provid<strong>in</strong>g solution-oriented lifestyle<br />

products and br<strong>in</strong>g<strong>in</strong>g an ease to the daily work. Hence, the<br />

companies gr<strong>in</strong>d for the consumers requirements and<br />

deliver products that are beneficial and reasonably priced.<br />

One such company with a mission to provide brands with<br />

superior quality, to touch and positively impact the daily<br />

lives of consumers is Jyothy Laboratories Ltd (JLL). <strong>The</strong><br />

company is well-known for its products which are cost<br />

effective, conveniently packaged, extensively distributed<br />

and supported by strategic communication. It strives to<br />

reach untapped markets with its <strong>in</strong>novative approach to<br />

create products that caters the common man. <strong>The</strong> company<br />

proudly states that it has become household friendly.<br />

Grow<strong>in</strong>g over the years, the company now has 6000<br />

potential employees and thirty-two manufactur<strong>in</strong>g units<br />

spread across <strong>India</strong>. Due to its sheer contribution and<br />

pr<strong>in</strong>cipled work ethics, the company has come a long way.<br />

A Persistent Leader Lead<strong>in</strong>g the Organization<br />

A diligent and determ<strong>in</strong>ed entrepreneur MP<br />

Ramachandran, is the Founder, Chairman and<br />

Manag<strong>in</strong>g Director at Jyothy Laboratories. After<br />

complet<strong>in</strong>g his master’s degree <strong>in</strong> f<strong>in</strong>ance management<br />

from Mumbai University and hav<strong>in</strong>g an experience of over<br />

a decade <strong>in</strong> accounts and f<strong>in</strong>ance department; he decided to<br />

establish JLL as a proprietary t<strong>in</strong>y <strong>in</strong>dustry <strong>in</strong> 1983. Initially<br />

he started with the commercial production of revolutionary<br />

fabric whitener by the brand name Ujala. Over the years the<br />

company has grown <strong>in</strong>to a multi-brand and is greeted as one<br />

of the most trusted brands around the country.<br />

JLL was Ramachandran’s dream project, which he started<br />

with a mere sum of only INR 5000. With the right blend of<br />

his dream, passion, research, and work ethic, he has<br />

successfully achieved great sales for each product. He<br />

<strong>in</strong>troduced multiple products <strong>in</strong> various categories with<br />

dist<strong>in</strong>ctive functional advantages for consumers <strong>in</strong> the<br />

<strong>FMCG</strong> sector.<br />

Help<strong>in</strong>g him along the way was K.Ullas Kamath, Jo<strong>in</strong>t<br />

Manag<strong>in</strong>g Director who played a splendid role <strong>in</strong> the vision<br />

and growth of JLL. <strong>The</strong> team at JLL has a highly qualified<br />

group of professionals. Guid<strong>in</strong>g and lead<strong>in</strong>g them all the<br />

way, Ramachandran has created a knowledgeable and a<br />

committed computable force for the progress of the<br />

organization. He embraces a hands-on management style<br />

and believes that employees are the powerful driv<strong>in</strong>g force.<br />

Enrich<strong>in</strong>g Lifestyle Products<br />

JLL works with an approach to stand-out amongst all and<br />

outsh<strong>in</strong>e competition. It offers top-notch products <strong>in</strong> an<br />

expedient manner to satisfy the target consumers. <strong>The</strong><br />

company has also attracted <strong>in</strong>vestments from private equity<br />

players which <strong>in</strong>clude Bar<strong>in</strong>g <strong>India</strong> Investment, CDC<br />

F<strong>in</strong>ancial services and CLSA, ICICI bank Canada, and UK<br />

which helped the organization to expand faster. JLL<br />

manufactures and distributes various brands across product<br />

categories as diverse as Fabric Care, Home Care, Utensil<br />

Care, and Personal Care.<br />

<strong>The</strong> company acquired <strong>FMCG</strong> bus<strong>in</strong>ess of Henkel <strong>India</strong><br />

Ltd, which had technologically advanced brands like Pril<br />

dish wash products, Henko Fabric wash products and other<br />

premium products such as Margo, Mr.White, Neem, Fa,<br />

Check and many more.<br />

Due to its extensive work <strong>in</strong> the past few years, JLL has<br />

strengthened top brands like Ujala, Maxo, Exo, Henko, Pril,<br />

Margo, Mr.White, Neem, and many others.<br />

JLL exports its products across the globe <strong>in</strong> various countries<br />

like Malaysia, S<strong>in</strong>gapore, Dubai, Saudi Arabia, Kuwait,<br />

Qatar, Nepal, Bhutan, Myanmar, Mauritius, West Indies,<br />

Sur<strong>in</strong>ame, US, Japan, Taiwan, Fiji, Philipp<strong>in</strong>es, Republic of<br />

Belarus, and Srilanka. It has also established a subsidiary <strong>in</strong><br />

Bangladesh known as - Jyothy Kallol Bangladesh Ltd <strong>in</strong> 2013.<br />

“<br />

Our constant<br />

endeavor<br />

is to offer<br />

people with<br />

solutions rather<br />

than just<br />

the products<br />


“<br />

We offer top-notch<br />

products <strong>in</strong> an<br />

expedient manner<br />

to satisfy the<br />

target consumers<br />

“<br />

W<strong>in</strong>n<strong>in</strong>g Prestigious Honors<br />

JLL is dedicated to provide the highest quality of<br />

differentiated products and sets high performance targets to<br />

achieve it.<br />

As such, it has won several prizes and has built a brand<br />

name <strong>in</strong> the market. <strong>The</strong> CMO and Director M R Jyothy<br />

was voted amongst the ‘50 <strong>Most</strong> Influential Women <strong>in</strong> <strong>India</strong><br />

Media, Advertis<strong>in</strong>g and Market<strong>in</strong>g 2016'. In 2013 the<br />

company won the Emerg<strong>in</strong>g <strong>India</strong> Award organized by<br />

CNBC TV18 & ICICI Bank and Product of the Year 2013<br />

Award for Exo Dish Sh<strong>in</strong>e Round <strong>in</strong> the Dish Wash/Utensil<br />

Cleaners category.<br />

In the year 2014, JLL won the <strong>India</strong>n Market<strong>in</strong>g Awards,<br />

<strong>India</strong> Star Packag<strong>in</strong>g Award and ASAISTAR Packag<strong>in</strong>g<br />

Award for the product Henko and also IDC Insights Award<br />

2014 for Excellence <strong>in</strong> Transformation <strong>in</strong> Manufactur<strong>in</strong>g<br />

Vertical.<br />

One of the greatest memories to cherish for the company<br />

was when M. P. Ramchandran won the Lifetime<br />

th<br />

Achievement Award on the occasion of 6 brand icon<br />

awards held <strong>in</strong> Thiruvananthapuram. He has also won the<br />

V.C Padmanabhan Memorial Award for bus<strong>in</strong>ess excellence<br />

lead<strong>in</strong>g to development of society & DHANAM<br />

LIFETIME ACHIEVEMENT AWARD 2017.<br />

Serv<strong>in</strong>g the Purpose<br />

JLL’s purpose is to serve the communities with products<br />

which make their daily chores an easy task. This purpose<br />

till date rema<strong>in</strong>s <strong>in</strong>tact and effective measures are taken<br />

place to work accord<strong>in</strong>gly. <strong>The</strong> company’s constant<br />

endeavor is to offer people with solutions rather than just<br />

the products. In order to keep up with the purpose, the<br />

company has consciously ventured <strong>in</strong>to product categories<br />

that provide simple but tangible benefits to consumers<br />

through a portfolio of value for money brands.


“<br />

With the right<br />

blend of his dream,<br />

passion, research,<br />

and work ethic, he<br />

has successfully<br />

achieved great<br />

sales for each product<br />

JLL deliberately considers their costumers feedback and<br />

<strong>in</strong>sights as it is of utmost importance. <strong>The</strong> company works<br />

on the key acumens from costumers, market research and<br />

susta<strong>in</strong>ed <strong>in</strong>-house analytical processes. <strong>The</strong> company’s<br />

constant research and development helps it <strong>in</strong> offer<strong>in</strong>g<br />

<strong>in</strong>novative products while confirm<strong>in</strong>g a greater value for<br />

present brands.<br />

Shar<strong>in</strong>g his key motto Ramachandran said, “<strong>The</strong> fact that<br />

each brand from the Jyothy portfolio makes a positive<br />

difference to the lives of millions is our greatest <strong>in</strong>spiration<br />

– egg<strong>in</strong>g us to do more.”<br />

Milestones Achieved <strong>in</strong> the Journey<br />

“<br />

<strong>The</strong> company is been runn<strong>in</strong>g s<strong>in</strong>ce three decades and has<br />

achieved some milestones which are praiseworthy. In the<br />

year 1983, it signaled the start with the lauch of Ujala. <strong>The</strong><br />

lead<strong>in</strong>g year, Jyothy Laboratories first market<strong>in</strong>g team was<br />

formed, which promoted Ujala <strong>in</strong> hometowns like Trissur<br />

and Malappuram of Kerala.<br />

In 1997, the national roll out of Ujala was held and with<strong>in</strong><br />

the next two years, Ujala become a brand worth INR <strong>10</strong>0<br />

crore. In the year 2000, the new millennium saw JLL<br />

diversify <strong>in</strong>to household <strong>in</strong>secticide and utensil care<br />

segments with the roll out of Maxo and Exo. <strong>The</strong> year 2003<br />

was pleasant as Maxo won AAA brand Performance award<br />

and Ujala wash<strong>in</strong>g powder was launched <strong>in</strong> Kerala. With<strong>in</strong><br />

the next year Maxo crossed INR <strong>10</strong>0 crore mark becom<strong>in</strong>g<br />

a lead<strong>in</strong>g brand.<br />

In 2005, Ujala Stiff and Sh<strong>in</strong>e was launched <strong>in</strong> Kerala.<br />

With<strong>in</strong> the next two years, the company went public with its<br />

IPO (<strong>in</strong>itial public offer<strong>in</strong>g). In the year 2008, the company<br />

shifted its registered office to its new build<strong>in</strong>g ‘UJALA<br />

HOUSE’ <strong>in</strong> Mumbai and also launched Ujala Stiff and<br />

Sh<strong>in</strong>e nationally <strong>in</strong> March.<br />

In 2009, the national roll out of Exo was held <strong>in</strong> the phased<br />

manner. In 2011, JLL acquired controll<strong>in</strong>g stake <strong>in</strong> Henkel<br />

<strong>India</strong> limited & subsequently it was merged with JLL.<br />

Present Times of the <strong>FMCG</strong> Sector<br />

<strong>The</strong> market is constantly swamped by chemical additive<br />

products, which may lead to harmful effects on human<br />

health and other liv<strong>in</strong>g organism present on earth. As the<br />

lifestyle among communities has transformed, the people<br />

are grow<strong>in</strong>g their concern for natural and herbal products.<br />

<strong>The</strong>se products are on the sw<strong>in</strong>g, due to their popularity and<br />

also their beneficial features. Over the years, the demand<br />

scenario <strong>in</strong> the rural regions has changed and currently it's<br />

<strong>in</strong> a good condition than before. A boom is seen <strong>in</strong> certa<strong>in</strong><br />

RM prices, due to an <strong>in</strong>crease <strong>in</strong> crude price and fall <strong>in</strong><br />

rupee which is common to all.<br />

A Broader Vision<br />

JLL is led by a corporate philosophy that represents the<br />

virtues and objectives that determ<strong>in</strong>e the way the company<br />

conducts their bus<strong>in</strong>ess. <strong>The</strong> company ensures that its<br />

brands, bus<strong>in</strong>ess operations and corporate policies<br />

transform the core philosophy of offer<strong>in</strong>g value for the<br />

money spent to experience its products. <strong>The</strong> company<br />

makes sure that its people, processes and products reflect<br />

the ideals of <strong>in</strong>tegrity, ethics and professionalism.<br />

Explor<strong>in</strong>g New Directions Ahead<br />

<strong>The</strong> company has achieved an enormous response over the<br />

years. It strives to <strong>in</strong>corporate strong <strong>in</strong>novations across its<br />

portfolio to deliver growth. It works on strengthen<strong>in</strong>g the<br />

sales distribution platform backed by IT network. In this<br />

upcom<strong>in</strong>g period of time, the demand scenario is also<br />

head<strong>in</strong>g <strong>in</strong> a positive direction.


Read it First<br />

Subscribe today<br />

Yes I would like to subscribe to Insights Success Magaz<strong>in</strong>e.<br />

Global Subscription<br />

Name :<br />

Address :<br />

Date :<br />

Telephone :<br />

Email :<br />

City : State : Zip :<br />

Country :<br />

Cheque should be drawn <strong>in</strong> favour of : INSIGHTS SUCCESS MEDIA AND TECH PVT. LTD.<br />

CORPORATE OFFICE<br />

Insights Success Media and Technology Pvt. Ltd.<br />

Off No. 513 & 5<strong>10</strong>, 5th Flr, Ra<strong>in</strong>bow Plaza, Shivar Chowk,<br />

Pimple Saudagar, Pune, Maharashtra 41<strong>10</strong>17.<br />

Phone - <strong>India</strong>: 020- 74<strong>10</strong>079881/ 82/ 83/ 84/ 85<br />

USA: 302-319-9947<br />

Email: <strong>in</strong>fo@<strong>in</strong>sightssuccess.<strong>in</strong><br />

For Subcription: www.<strong>in</strong>sightssuccess.<strong>in</strong>


1<br />

COMPANIES IN INDIA<br />

THE<br />

0<br />

<strong>Most</strong> <strong>Admired</strong><br />

<strong>FMCG</strong><br />

Company Name<br />

Management<br />

Brief<br />

Amway <strong>India</strong><br />

Enterprises (P) Ltd<br />

amway.<strong>in</strong><br />

Anshu Budhraja<br />

CEO<br />

Amway is one of the world’s largest direct sell<strong>in</strong>g<br />

bus<strong>in</strong>esses provid<strong>in</strong>g quality enhanced products.<br />

Gen Next Foods and<br />

Hospitality Pvt. Ltd<br />

sprightlyfood.com<br />

Dipali J Mehta<br />

Chief Promotor and<br />

Technical Director<br />

Gen Next Foods and Hospitality produces a varied range of<br />

nutritionally designed snack<strong>in</strong>g options.<br />

Gits Food Products<br />

Pvt Ltd<br />

gitsfood.com<br />

Sahil Gilani<br />

Director<br />

Gits Food is a legacy <strong>in</strong> the convenience packaged food<br />

segment which <strong>in</strong>troduced the concept of Instant Mixes <strong>in</strong> <strong>India</strong>.<br />

I Knowledge Factory<br />

ikf.co.<strong>in</strong><br />

Ashish Dalia<br />

CEO and Owner<br />

It has been devis<strong>in</strong>g and deliver<strong>in</strong>g mean<strong>in</strong>gful solutions<br />

across multiple <strong>in</strong>dustry verticals.<br />

ITC Limited<br />

itcportal.com<br />

Sanjiv Puri<br />

Director<br />

ITC Brands are designed and customized to delight customer’s<br />

diverse tastes, needs and lifestyles.<br />

Jyothy Laboratories Ltd.<br />

jyothylaboratories.com<br />

M R Jyothy<br />

CMO and Director<br />

Jyothy Labratories Limited is a lead<strong>in</strong>g company which offers<br />

top-notch products <strong>in</strong> an expedient manner to satisfy the<br />

targeted consumers.<br />

KRBL<br />

krblrice.com<br />

Anil Kumar Mittal<br />

CMD<br />

KRBL Ltd. is <strong>India</strong>’s first <strong>in</strong>tegrated rice company with a<br />

comprehensive product cha<strong>in</strong>.<br />

Marico<br />

marico.com<br />

Saugata Gupta<br />

MD<br />

Marico Limited is one of <strong>India</strong>’s lead<strong>in</strong>g consumer products<br />

companies operat<strong>in</strong>g <strong>in</strong> the beauty and wellness space.<br />

Mother Dairy Fruit &<br />

Vegetable Pvt Ltd<br />

motherdairy.com<br />

Ram Mohan Rao<br />

COO<br />

Mother Dairy is the world’s biggest dairy development program<br />

launched to make <strong>India</strong> a milk sufficient nation.<br />

Wholesome Foods<br />

wsfoods.<strong>in</strong><br />

Jeet Hirpara<br />

Manag<strong>in</strong>g Partner<br />

Wholesome foods, is a company that provides healthy,<br />

convenient, authentic food to foodies worldwide.


Interview with Insights Success<br />

BIOPHORE<br />

A Prom<strong>in</strong>ent Firm Provid<strong>in</strong>g Innovative, Cost-efficient and<br />

Focused Expertise.<br />

he <strong>FMCG</strong> companies work on deliver<strong>in</strong>g the clients with quality enhanced products. With lifestyle<br />

Tchanges the <strong>FMCG</strong> sector has transformed for the good. It has wide-rang<strong>in</strong>g category vary<strong>in</strong>g<br />

from natural goodness to lifestyle essentials and many more. It has <strong>in</strong>corporated effective various<br />

measures as client-friendly approach, <strong>in</strong>novative mechanisms, creat<strong>in</strong>g awareness for the smooth sail<strong>in</strong>g<br />

of the company. Integrat<strong>in</strong>g all these measures, the firms have ga<strong>in</strong>ed a fruitful momentum <strong>in</strong> their overall<br />

project success.<br />

In an <strong>in</strong>terview with Insights Success, Jagadeesh Babu and Manik Reddy, Co-founders at Biophere<br />

<strong>India</strong> Pharmaceuticals Pvt Ltd gave some <strong>in</strong>sightful answers highlight<strong>in</strong>g the <strong>in</strong>fluences of his<br />

company, unique service offer<strong>in</strong>gs, found<strong>in</strong>g ideals, current and future perceptions.<br />

With a rich experience, Jagadeesh Babu, CEO of Biophere founded the company <strong>in</strong> the year 2007. He has<br />

completed his Ph.D. from BITS, Pilani and has successfully worked at national and <strong>in</strong>ternational doma<strong>in</strong><br />

for several years. Introduc<strong>in</strong>g various <strong>in</strong>novations he still cont<strong>in</strong>ues to focus on research with a vision to<br />

develop new pharmaceutical products to global markets.<br />

1. K<strong>in</strong>dly brief us about the company.<br />

Biophore <strong>India</strong> Pharmaceuticals Pvt Ltd (Biophore) was founded by Dr Jagadeesh Babu and Dr<br />

Manik Reddy, two em<strong>in</strong>ent scientists with over 45 years of research experience between them, <strong>in</strong> the<br />

year 2007. <strong>The</strong> focus s<strong>in</strong>ce <strong>in</strong>ception was on <strong>in</strong>novation and research and <strong>10</strong> years down the l<strong>in</strong>e, the<br />

company is on the right path with an 80,000 sq. ft. state-of-the-art R&D center and a formulation<br />

facility <strong>in</strong> Hyderabad and two world class API manufactur<strong>in</strong>g units, with a third under construction, <strong>in</strong><br />

Vizag.<br />

<strong>The</strong> API facilities cover complex APIs from gram levels to tonnage levels, with both facilities capable<br />

of produc<strong>in</strong>g more than <strong>10</strong>0 products with dedicated production l<strong>in</strong>es for segments such as sterile and<br />

anti-cancer. Biophore currently owns more than 60 US DMFs cover<strong>in</strong>g niche segments such as<br />

16<br />

Septmber 2018|


Dr.Manik Reddy<br />

CSO & Director<br />

Biophore<br />

Jagadeesh Rangise y<br />

CEO & MD<br />

Biophore<br />

September 2018 17


contrast media, oncology, peptides etc with a healthy<br />

pipel<strong>in</strong>e of under development APIs. <strong>The</strong> formulation<br />

facility is capable of manufactur<strong>in</strong>g about 1 Billion units<br />

annually.<br />

2. Please tell us about your Founder/CEO/ Director<br />

and his/her contribution towards the Company and<br />

the <strong>in</strong>dustry.<br />

<strong>The</strong> two co-founders, Dr Jagadeesh Babu and Dr Manik<br />

Reddy, have been associated s<strong>in</strong>ce 1998 from their BITS<br />

Pilani days, and went on to work together at Nav<strong>in</strong>ta, of<br />

which Dr Jagadeesh was the co-founder. All through<br />

these years, there was a determ<strong>in</strong>ed plan to move back<br />

to <strong>India</strong> and utilize the abundant technical and<br />

manufactur<strong>in</strong>g skills <strong>in</strong> the country. This was also<br />

backed by a strong motivation to be a pioneer <strong>in</strong><br />

promot<strong>in</strong>g <strong>India</strong>n pharmaceutical talent. This led to the<br />

establishment of Biophore <strong>in</strong> Hyderabad with an aim to<br />

be a fully <strong>in</strong>tegrated and <strong>in</strong>novative pharmaceutical<br />

organization creat<strong>in</strong>g value to the patient.<br />

3. K<strong>in</strong>dly talk about the unique services and products<br />

of your company?<br />

Biophore’s offer<strong>in</strong>gs are broadly divided <strong>in</strong>to three<br />

segments<br />

- API: We offer niche and complex APIs with high entry<br />

barriers to the f<strong>in</strong>ished dose manufacturers. <strong>The</strong>se<br />

products are developed ma<strong>in</strong>ly for the US market and<br />

then leveraged globally<br />

- Dossiers: Apart from the APIs, we have also forward<br />

<strong>in</strong>tegrated and offer our customers value added products<br />

<strong>in</strong> the form of formulation dossiers, which help the<br />

customers by provid<strong>in</strong>g the necessary technology to<br />

develop their formulation<br />

- FDF: We complete the forward <strong>in</strong>tegration by offer<strong>in</strong>g<br />

the complete end product ready to reach the market <strong>in</strong><br />

terms of f<strong>in</strong>ished dose formulations. Relevant<br />

regulatory, analytical and operational support is<br />

provided, where required, for all the above<br />

products/services<br />

4. K<strong>in</strong>dly mention the awards and accolades received<br />

by the CEO / Director and the company? Also share<br />

with us the milestones achieved by the company over<br />

the last three decades.<br />

• Consecutively Top <strong>10</strong> companies for fil<strong>in</strong>g DMF <strong>in</strong> the<br />

USA for the year 2014-16.<br />

• Filed 75 DMFs with US, Canada and EU authorities<br />

• Filed 1<strong>10</strong> Patents <strong>in</strong> areas of novel polymorphs and<br />

process<br />

• Third most USDMFs filed worldwide <strong>in</strong> 2015<br />

• Recognized as one of the fastest grow<strong>in</strong>g pharma<br />

companies by Silicon Review® Magaz<strong>in</strong>e<br />

• Featured as a Cover Story <strong>in</strong> Insights Success bus<strong>in</strong>ess<br />

magaz<strong>in</strong>e.<br />

• Featured <strong>in</strong> cover story of CEO magaz<strong>in</strong>e.<br />

• Awarded Pharma Leader of the year 2017 by wellknown<br />

regional news channel Tv5.<br />

• Awarded <strong>India</strong>’s Small Giant for the year 2018 by the<br />

M<strong>in</strong>istry of Micro, Small and Medium Enterprises<br />

(Government of <strong>India</strong>).<br />

• Awarded as most promis<strong>in</strong>g Research & Development<br />

Pharmaceutical Company at International Healthcare<br />

awards 2018.<br />

• Awarded-<strong>India</strong> Toady's Make <strong>in</strong> <strong>India</strong> <strong>in</strong> the<br />

Biotechnology category for 2018.<br />

• Awarded as TOP <strong>10</strong>0 Small and Medium enterprise<br />

across all <strong>in</strong>dustry segments <strong>in</strong> <strong>India</strong> by Government of<br />

<strong>India</strong> (INDIA SME).<br />

5. What are the major challenges the company has<br />

faced over the years <strong>in</strong> terms of ris<strong>in</strong>g cost, growth,<br />

and evolv<strong>in</strong>g new players <strong>in</strong> the <strong>in</strong>dustry?<br />

Although we were able to effectively leverage the <strong>in</strong>house<br />

skill set to develop, scale up and manufacture the<br />

products, there were a couple of critical hurdles faced<br />

dur<strong>in</strong>g the <strong>in</strong>itial days – Market<strong>in</strong>g and Differentiation.<br />

It was a challenge to promote our products to the<br />

customers, given that we were a company which was<br />

fresh off the blocks. However, with a focus on consistent<br />

quality, timely deliveries and efficient support, we were<br />

able to ga<strong>in</strong> the trust of the customers as a reliable<br />

<strong>India</strong>n partner to associate with. <strong>The</strong>re was also a<br />

conscious effort to dist<strong>in</strong>guish the company from<br />

competition by identify<strong>in</strong>g niche products such as<br />

orphan drugs for rare diseases and also provide early<br />

launch advantage through <strong>in</strong>novative products and<br />

processes.<br />

6. What are the opportunities for every employee to<br />

make a valuable and valued contribution <strong>in</strong> your<br />

company?<br />

Biophore strongly believes that the greatest asset of the<br />

organization is the people capital. And this capital<br />

needs to be complemented by provid<strong>in</strong>g empowerment<br />

at every level <strong>in</strong> the company. <strong>The</strong>re is a conscious<br />

effort by the management to provide this freedom to<br />

employees to take decisions and provide the relevant<br />

resources to implement them. This has created a sense<br />

of ownership with<strong>in</strong> the employees and the results are<br />

seen <strong>in</strong> the way each and every employee operates.<br />

18<br />

Septmber 2018|


7. What are the current trends <strong>in</strong> the <strong>FMCG</strong> pharma<br />

<strong>in</strong>dustry and how do you foresee the future of the<br />

<strong>in</strong>dustry?<br />

<strong>The</strong>re is a grow<strong>in</strong>g trend <strong>in</strong> the pharmaceutical <strong>in</strong>dustry<br />

<strong>in</strong> terms of <strong>in</strong>tegration, either vertically or horizontally.<br />

<strong>Companies</strong> will cont<strong>in</strong>ue to re<strong>in</strong>force their capabilities<br />

<strong>in</strong> add<strong>in</strong>g more markets and products to their portfolio<br />

or mov<strong>in</strong>g along with value cha<strong>in</strong>.<br />

We have successfully taken our first step <strong>in</strong> forward<br />

<strong>in</strong>tegration, through the acquisition of the oral<br />

formulation facility <strong>in</strong> Hyderabad. Our next step <strong>in</strong> this<br />

direction is to <strong>in</strong>vest <strong>in</strong> an <strong>in</strong>jectable facility, which<br />

enables us to have a more complete offer<strong>in</strong>g <strong>in</strong> terms of<br />

portfolio. We have also made a strategic decision to<br />

focus more and diversify <strong>in</strong>to global markets<br />

Apart from the above, we have elaborate plans to enter<br />

diversified segments such as biologics, nutraceuticals<br />

and diagnostics <strong>in</strong> the near future.<br />

8. How <strong>FMCG</strong> pharma <strong>in</strong>dustry contributes <strong>in</strong><br />

boost<strong>in</strong>g the <strong>India</strong>n Economy?<br />

<strong>The</strong> pharmaceutical <strong>in</strong>dustry <strong>in</strong> <strong>India</strong> is one of the<br />

largest <strong>in</strong> the world <strong>in</strong> terms of exports and produces<br />

around 20-25% of the global generic drugs. It is also<br />

one of the largest producers of Active Pharmaceutical<br />

Ingredients (API) globally. <strong>The</strong> domestic consumption<br />

of pharmaceutical products, most of which is produced<br />

locally is the world's 3rd largest market <strong>in</strong> terms of<br />

volumes. All these facts po<strong>in</strong>t to the significant role that<br />

the pharma <strong>in</strong>dustry plays <strong>in</strong> the <strong>India</strong>n scenario. Now<br />

with Ch<strong>in</strong>a implement<strong>in</strong>g a crackdown on their local<br />

producers due to regulatory violations, <strong>India</strong> is poised<br />

to take a major share of the shortfall that will be created<br />

globally due to this.<br />

9. K<strong>in</strong>dly share the Vision and Mission of your<br />

organization.<br />

VISION STATEMENT<br />

Our aim is to place Biophore <strong>in</strong> the midst of most<br />

reliable knowledge-based firms <strong>in</strong> the API sector <strong>in</strong> the<br />

immediate near-future through customer-focused<br />

approach<br />

MISSION STATEMENT<br />

To be the most trusted R & D Company <strong>in</strong> the<br />

complex and niche pharmaceutical molecule segments<br />

and achieves superior Customer Satisfaction through<br />

• Cont<strong>in</strong>uous Innovation<br />

• Provid<strong>in</strong>g an <strong>in</strong>clusive work culture that helps our<br />

employees excel and grow<br />

<strong>10</strong>. What are your found<strong>in</strong>g ideals that have driven the<br />

company so far?<br />

S<strong>in</strong>ce <strong>in</strong>ception, Biophore was driven with a passion<br />

to be a trusted partner <strong>in</strong> the pharmaceutical space for<br />

the global markets and a profound vision of mak<strong>in</strong>g a<br />

real contribution towards <strong>in</strong>vention of new drugs with<br />

cont<strong>in</strong>uous research and <strong>in</strong>novation for the future. We<br />

had identified a largely unmet need for a reliable<br />

partner who could deliver complex and rare products<br />

to the market <strong>in</strong> a timely manner and there has been<br />

an unwaver<strong>in</strong>g focus at all levels with<strong>in</strong> the<br />

organization to bridge this gap. Innovation is another<br />

key driver beh<strong>in</strong>d the growth plan, with Biophore<br />

fil<strong>in</strong>g close to <strong>10</strong>0 patents <strong>in</strong> US, EU, Ch<strong>in</strong>a, Japan,<br />

Russia, Brazil, Korea, Australia, and Israel among<br />

others.<br />

Equally important was the determ<strong>in</strong>ation of the<br />

management to give back to the society which is<br />

evident <strong>in</strong> the elaborate CSR activities taken up by the<br />

organization. Biophore strongly believes that<br />

education is the basic need for all and will empower<br />

the society towards build<strong>in</strong>g a great nation. We<br />

actively support <strong>in</strong> provid<strong>in</strong>g educational needs and<br />

<strong>in</strong>frastructure <strong>in</strong> various <strong>in</strong>stitutions and NGOs (e.g.<br />

Naandi foundation, Peddannapadu Educational<br />

Society, RV College of Eng<strong>in</strong>eer<strong>in</strong>g etc) through<br />

participation, f<strong>in</strong>ancial assistance and scholarship to<br />

the deserv<strong>in</strong>g students. Through this <strong>in</strong>itiative,<br />

Biophore has supported the academic needs of 2000<br />

students so far, which is considered as one of the<br />

biggest achievements of the organization today. We<br />

have also adopted 3 villages with an objective to<br />

improve the overall liv<strong>in</strong>g conditions of the<br />

population.<br />

11. How does pharma <strong>in</strong>novation differ between <strong>India</strong><br />

and other countries?<br />

<strong>India</strong> is regarded as the pharmaceutical hub for the<br />

generic medic<strong>in</strong>es which offers enormous economic<br />

advantage thus ensur<strong>in</strong>g affordable healthcare to all.<br />

While the other countries like the USA and Europe<br />

focus on <strong>in</strong>novation of new drugs across various<br />

therapeutic segments.<br />

12. K<strong>in</strong>dly provide us with a quote which best<br />

describes your company.<br />

“A trusted partner for niche generics”<br />

September 2018 19


GEN NEXT FOOD<br />

AND HOSPITALITY<br />

<strong>The</strong> Art of Cherish<strong>in</strong>g Natural Goodness<br />

Liv<strong>in</strong>g <strong>in</strong> a modern world, people often experience<br />

new trends. One such <strong>in</strong>dustry sector experienc<strong>in</strong>g<br />

constant shifts is the fast mov<strong>in</strong>g consumer goods<br />

(<strong>FMCG</strong>). <strong>The</strong> market is constantly flooded with products<br />

which promise the best of nutrition and an eye-catch<strong>in</strong>g<br />

label read<strong>in</strong>g ‘<strong>10</strong>0% Organic’, which at times are<br />

mislead<strong>in</strong>g and unsubstantiated.<br />

One such company with a mission to improve the quality of<br />

life for the communities by serv<strong>in</strong>g high quality natural<br />

products is Sprightly, a brand under Gen Next Foods and<br />

Hospitality Pvt Ltd. Established <strong>in</strong> 2014, the company<br />

caters a varied range of nutrition packed snack options like<br />

seeds and nuts, chips, puffs, energy bars, cookies, and<br />

cereals to consumers. <strong>The</strong> company promotes awareness<br />

regard<strong>in</strong>g healthy and hygienic products; as such products<br />

help prevent chronic diseases, accomplish ideal weight,<br />

ma<strong>in</strong>ta<strong>in</strong> good energy level, and boost a positive-self. Due<br />

to its impetus work ethics, the company has achieved<br />

Skotch Order of the Merit Award for the year 2017-18.<br />

<strong>The</strong> Lead<strong>in</strong>g Force<br />

Deepali Mehta is the Chief Promoter of Sprightly. A food<br />

technologist with an experience of over two decades <strong>in</strong> the<br />

food <strong>in</strong>dustry, she has worked for several reputed clients,<br />

which <strong>in</strong>clude Criticare Laboratories Pvt. Ltd, U.D.C.T<br />

(University Department of Chemical Technology),<br />

Shreemira Food Pvt. Ltd and many more. She has also been<br />

associated with the development, standardization and<br />

technical analysis of several nutritious beverages/powders<br />

based on soya milk, mouth fresheners, coated peanuts and<br />

cashew nuts, <strong>in</strong>stant mixes, multigra<strong>in</strong>, and roasted food<br />

products and many more.<br />

Recently, Deepali has successfully accomplished an<br />

overseas turnkey project of sett<strong>in</strong>g up butterscotch buttons<br />

used <strong>in</strong> ice cream and confectionery <strong>in</strong>dustry <strong>in</strong> Egypt. Her<br />

client-friendly approach and ethical sense of bus<strong>in</strong>ess has<br />

procured a huge client base. Her sheer contribution and<br />

hard work has helped many startup firms to launch wide<br />

variety of healthy snack<strong>in</strong>g options. In a short period of 4<br />

years the company is manufactur<strong>in</strong>g products for major<br />

brands like Reliance, Godrej- Natures Basket, Talwalkars,<br />

Ayur Shakti, Yoga Institute, Snackabil, Evolve… to name a<br />

few.<br />

Health-Packed Amenities<br />

“In metropolitan cities today, the quick paced lifestyle<br />

demands people to shift their dietary habits from healthier<br />

home cooked meals to junk food that often lack <strong>in</strong> necessary<br />

nutrients”, says Deepali. Such an imbalanced diet has<br />

become the major cause of diseases like diabetes, high<br />

blood pressure, obesity, and under nutrition.<br />

Sprightly has addressed these issues and came up with<br />

healthy snack<strong>in</strong>g options for all age groups. <strong>The</strong> company<br />

produces products made from <strong>10</strong>0 % natural <strong>in</strong>gredients<br />

without the use of artificial flavor, colors or chemical<br />

additives.<br />

<strong>The</strong> company has ensured a guilt free <strong>in</strong>-between-meals<br />

snack<strong>in</strong>g experience. Each product has a unique feature<br />

such as gluten free, sugar free, GMO and MSG free,<br />

calcium rich, omega 3 rich, high fibers, <strong>10</strong>0% vegan,<br />

cholesterol free, low carbs, trans-fat free and many more.<br />

<strong>The</strong> snacks are classified <strong>in</strong>to eight categories such as<br />

grow<strong>in</strong>g kids friendly, diabetic friendly, heart friendly,<br />

weight loss, balanced nutrition, pregnancy friendly, bundle<br />

of energy and hyper tension friendly.<br />

Tackl<strong>in</strong>g the Challenges Efficiently<br />

<strong>India</strong>n people are driven with a m<strong>in</strong>dset that healthy<br />

snack<strong>in</strong>g is all about diet<strong>in</strong>g and cannot be tasty. In fact, it<br />

is often believed that “Health and snacks are at cross<br />

20<br />

Septmber 2018|


<strong>10</strong> <strong>Most</strong> <strong>Admired</strong><br />

<strong>FMCG</strong><br />

COMPANIES IN INDIA<br />

‘“ ‘<br />

purposes with each other”. Hence, the basic challenge the<br />

company faces is to spread awareness that the healthy<br />

snack<strong>in</strong>g can be both tasty and reasonable.<br />

THE<br />

<strong>The</strong> R&D team at Sprightly has already developed more<br />

than forty mouthwater<strong>in</strong>g healthy snacks, thus liberat<strong>in</strong>g all<br />

the myths related with it. It creates a valuable outlook that<br />

healthy snack<strong>in</strong>g is not just ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g a certa<strong>in</strong> desirable<br />

weight or body shape, but it also caters to the <strong>in</strong>tr<strong>in</strong>sic<br />

nutritional needs of every body type <strong>in</strong> an exclusive<br />

manner.<br />

Eat Tasty, Be Healthy<br />

‘<br />

‘“<br />

S<strong>in</strong>ce all Sprightly products are <strong>10</strong>0% natural, one of the<br />

major challenge the company faces is to ensure that color,<br />

texture, natural flavor and shelf life of its products are<br />

ma<strong>in</strong>ta<strong>in</strong>ed as per specifications. <strong>The</strong> company uses high<br />

quality multi layered lam<strong>in</strong>ates which ensures the same and<br />

offers a guilt free tasty snack<strong>in</strong>g experience to its<br />

consumers.<br />

<strong>The</strong> Current Scenario of the <strong>FMCG</strong> Sector and<br />

Contribution of Food Industry<br />

<strong>The</strong> <strong>FMCG</strong> sector is an important contributor to <strong>India</strong>’s<br />

GDP and it is one of the largest sectors of the <strong>India</strong>n<br />

economy, but unavailability of tasty & healthy snack<strong>in</strong>g<br />

option at reasonable price has always been one of the<br />

biggest challenges for <strong>India</strong>n packaged food <strong>in</strong>dustry.<br />

Alarmed by a rise <strong>in</strong> lifestyle diseases, the FSSAI has<br />

launched the Eat Right Movement, and food companies<br />

around the country have pledged their support.<br />

On July <strong>10</strong>, the Eat Right Movement was launched to usher<br />

<strong>in</strong> a ‘new food culture’ by nudg<strong>in</strong>g bus<strong>in</strong>esses and<br />

consumers to cut down on salt, sugar and Trans fat <strong>in</strong> their<br />

food.<br />

<strong>The</strong> Eat Right Movement aims to strike that balance. “It is<br />

the classic chicken-and-egg case. Consumers compla<strong>in</strong> they<br />

do not have healthy options when they eat out or buy<br />

packaged food whereas the bus<strong>in</strong>esses say consumers do<br />

not want healthy options. So we thought how can we break<br />

this cycle? Bus<strong>in</strong>esses will have to take the first step and<br />

Deepali Mehta<br />

Chief promoter &<br />

Technical Director<br />

consumers have to become more aware of what they eat”,<br />

says Pawan Agarwal, CEO, FSSAI.<br />

Thus, the governments across the globe have taken<br />

<strong>in</strong>itiatives to implement taxes, campaigns, label<strong>in</strong>g and<br />

advertis<strong>in</strong>g reforms to help consumers make healthier food<br />

choices. “<strong>The</strong>se steps are <strong>in</strong>dicative of a larger trend for<br />

healthier food options and one that is com<strong>in</strong>g just <strong>in</strong> time”.<br />

Nourish<strong>in</strong>g with Time<br />

Deepali shared the company’s vision “Sprightly aims to be<br />

a leader <strong>in</strong> healthy snack<strong>in</strong>g & fast food outlets <strong>in</strong>dustry, by<br />

develop<strong>in</strong>g variety of healthy food products <strong>in</strong>digenously<br />

through extensive R&D to meet <strong>in</strong>dividual requirements of<br />

consumers across all age groups of hygienic balanced food<br />

products made from natural <strong>in</strong>gredients for both domestic<br />

& <strong>in</strong>ternational markets”.<br />

Sprightly contributes for a better society, a cleaner<br />

environment, and healthier lifestyle. <strong>The</strong> company believes<br />

that <strong>in</strong>novation is imperative for success.<br />

September 2018 21


THE RAGE OF<br />

<strong>FMCG</strong><br />

SECTOR IN THE<br />

Rural Market<br />

MCG corporations <strong>in</strong> Asian country have<br />

Fcont<strong>in</strong>uously enjoyed a massive potential market<br />

thanks to the massive population of the country. <strong>The</strong><br />

improved economic state of affairs of each the agricultural<br />

and concrete shoppers has helped <strong>FMCG</strong> corporations to<br />

additional expand their market to the h<strong>in</strong>terlands of the<br />

country.<br />

Rural market <strong>in</strong> Asian country <strong>in</strong> recent years have nonheritable<br />

significance <strong>in</strong> countries like Ch<strong>in</strong>a and Asian<br />

country, because the overall growth of the economy has<br />

resulted <strong>in</strong>to substantial <strong>in</strong>crease with<strong>in</strong> the gett<strong>in</strong>g power<br />

of the agricultural communities. On account of the<br />

revolution <strong>in</strong> Asian country, the agricultural areas are<br />

<strong>in</strong>tense an oversized amount of bus<strong>in</strong>ess and concrete<br />

factory-made merchandise. Dur<strong>in</strong>g this context, a special<br />

promot<strong>in</strong>g strategy, namely, rural promot<strong>in</strong>g has taken<br />

form. Rural Asian country, largely termed as “high<br />

opportunity” market, is not any longer simply a chance,<br />

however is currently yield<strong>in</strong>g results. <strong>The</strong> conception of<br />

rural promot<strong>in</strong>g <strong>in</strong> Asian country economy has cont<strong>in</strong>uously<br />

via associate degree potent role with<strong>in</strong> the lives of<br />

<strong>in</strong>dividuals. In <strong>India</strong>, departure out many metropolitan<br />

cities, all the districts and <strong>in</strong>dustrial townships are<br />

connected with rural markets.<br />

<strong>The</strong> dist<strong>in</strong>ction between rural and concrete shoppers<br />

cont<strong>in</strong>uously exists <strong>in</strong> Asian country. <strong>India</strong>n rural client is<br />

giant with illiteracy and poorness. Illiteracy ends up <strong>in</strong><br />

associate degree <strong>in</strong>ability to spot whole variations and<br />

browse the fundamental text on packages. Poorness and<br />

dependence on vagaries of monsoon result <strong>in</strong>to a low and<br />

Dnyaneshwar Yevale<br />

Owner<br />

DK Paper Cup Industries<br />

About the Author:<br />

DK Paper Cup Industries<br />

produces high quality paper<br />

cups and paper bowls <strong>in</strong><br />

different size. Dnyaneshwar<br />

Yevale is the Owner of DK<br />

Paper Cup Industries. He has<br />

been successful <strong>in</strong> runn<strong>in</strong>g the<br />

bus<strong>in</strong>ess s<strong>in</strong>ce 2005. He<br />

attended NMVP College of<br />

Eng<strong>in</strong>eer<strong>in</strong>g <strong>in</strong> Pune and is an<br />

authorized manufacturer of<br />

paper cups and paper straw.<br />

In conversation with him, he<br />

shared his <strong>in</strong>sights regard<strong>in</strong>g<br />

the challenges faced <strong>in</strong> the<br />

rural market<strong>in</strong>g by <strong>FMCG</strong><br />

sector<br />

22<br />

Septmber 2018|


Expert’s Insight<br />

unpredictable purchas<strong>in</strong>g power. Furthermore merchandise<br />

are sold lose, giv<strong>in</strong>g high competition to branded sealed<br />

merchandise. S<strong>in</strong>ce rural shoppers are economically,<br />

socially and psychologically completely different from the<br />

urban counter components.<br />

Challenges <strong>in</strong> Rural Market<strong>in</strong>g Faced by <strong>FMCG</strong> Sectors:<br />

<strong>The</strong> peculiarities of the agricultural markets and rural<br />

shoppers cause challenges to the marketers <strong>in</strong> reach<strong>in</strong>g<br />

them effectively. Whereas creat<strong>in</strong>g out a case for<br />

opportunities that are quickly develop<strong>in</strong>g <strong>in</strong> rural markets,<br />

one shouldn't underestimate the many discourag<strong>in</strong>g issues<br />

<strong>in</strong> com<strong>in</strong>g up with for growth. <strong>The</strong>re are an oversized<br />

variety of little villages that don’t seem to be simply<br />

accessible thanks to all weather roads. Rural shoppers are<br />

so much less unvaried than urban shoppers. <strong>Most</strong> issues of<br />

rural promot<strong>in</strong>g are mentioned below:<br />

Transportation Problems: Transportation <strong>in</strong>frastructure is<br />

k<strong>in</strong>d of poor <strong>in</strong> rural Asian country. Nearly eighty<br />

percentages of villages with<strong>in</strong> the country don't seem to be<br />

connected by well created roads.<br />

Transportation Facilities: Because of poor transportation<br />

facilities, farmers and marketers notice it tough to succeed<br />

<strong>in</strong> markets.<br />

Warehous<strong>in</strong>g: With<strong>in</strong> the rural areas, there are not any<br />

facilities for public likewise as personal deposit. Marketers<br />

face downside of storage of their product.<br />

Packag<strong>in</strong>g: It’s the primary necessary step of product<br />

process. If the packag<strong>in</strong>g value is high, it’ll <strong>in</strong>crease the full<br />

value of merchandise. It’s prompt that the marketers ought<br />

to use cheaper materials <strong>in</strong> packag<strong>in</strong>g for the agricultural<br />

markets.<br />

Media Problems: Media have countless issues <strong>in</strong> rural<br />

areas. TV could be a smart medium to speak message to the<br />

agricultural folks. However because of non-availability of<br />

power, likewise as TV sets, majority of the agricultural<br />

population cannot get the advantages of assorted media.<br />

Seasonal Market<strong>in</strong>g: <strong>The</strong> most downside of rural<br />

promot<strong>in</strong>g is seasonal demand <strong>in</strong> rural areas, as a result of<br />

seventy fifth of rural f<strong>in</strong>ancial ga<strong>in</strong> is additionally seasonal.<br />

as an example, the demand for commodity are go<strong>in</strong>g to be<br />

high throughout the peak crop harvest home amount, as a<br />

result of this can be the time at that the agricultural folks<br />

have substantial high <strong>in</strong>come. Rural promot<strong>in</strong>g depends<br />

upon the demand of rural folks and demand depends upon<br />

f<strong>in</strong>ancial ga<strong>in</strong> and shopper behavior.<br />

Low Per Capita Income: Per capita f<strong>in</strong>ancial ga<strong>in</strong> is lower<br />

<strong>in</strong> rural areas compared to those <strong>in</strong> urban areas. Aga<strong>in</strong>, the<br />

distribution of rural f<strong>in</strong>ancial ga<strong>in</strong> is extremely skew, s<strong>in</strong>ce<br />

the land hold<strong>in</strong>g pattern that is basic quality, itself is skew.<br />

So the agricultural population presents an extremely<br />

heterogeneous unfolds with<strong>in</strong> the villages.<br />

Low Level of Skill Rate: <strong>The</strong> skill rate is low <strong>in</strong> rural areas<br />

compared to urban areas. This once more ends up <strong>in</strong> the<br />

matter of communication for promotion purpose. Pr<strong>in</strong>t<br />

medium becomes <strong>in</strong>effective associate degreed to an extent<br />

digressive <strong>in</strong> rural areas s<strong>in</strong>ce its reach is poor.<br />

Distribution: A good distribution system needs villagelevel<br />

tradesman, Taluka- level distributor or most well-liked<br />

dealer, distributor or stockiest at district level and companyowned<br />

depot or consignment distribution at state level. <strong>The</strong><br />

presence of too several tiers with<strong>in</strong> the distribution system<br />

will <strong>in</strong>crease the price of distribution.<br />

Career <strong>in</strong> Rural Market: Whereas rural promot<strong>in</strong>g offers a<br />

difficult career, a rural sales person ought to need bound<br />

qualifications and specialized talent to contend with rural<br />

shoppers.<br />

Cultural Factors: Culture could be a system of shared<br />

values, beliefs and perceptions that <strong>in</strong>fluence the behavior<br />

of shoppers. <strong>The</strong>re are completely different teams supported<br />

faith, caste, occupation, <strong>in</strong>come, age, education and politics<br />

and every cluster exerts <strong>in</strong>fluence on the behavior of<br />

<strong>in</strong>dividuals <strong>in</strong> villages. <strong>The</strong>re are many difficulties cop<strong>in</strong>g<br />

with the hassle to completely explore rural markets. <strong>The</strong><br />

conception of rural markets <strong>in</strong> Asian country cont<strong>in</strong>ues to<br />

be <strong>in</strong> evolv<strong>in</strong>g form, and therefore the sector poses a range<br />

of challenges. Distribution prices and non-availability of<br />

shops are major issues baby-faced by the marketers. <strong>The</strong><br />

dist<strong>in</strong>ctive consumption patterns, tastes, and wishes of the<br />

agricultural shoppers ought to be analyzed at the<br />

merchandise start<strong>in</strong>g stage so they match the requirements<br />

of the agricultural folks. <strong>The</strong>refore, marketers got to<br />

perceive the social dynamics and perspective variations<br />

<strong>in</strong>side every village though across the country it follows a<br />

homogenous pattern.<br />

September 2018 23


Notable Trends <strong>in</strong> the <strong>India</strong>n<br />

<strong>FMCG</strong> Industry<br />

26<br />

Septmber 2018|


Expert’s Insight<br />

<strong>The</strong> <strong>India</strong>n and Mult<strong>in</strong>ational <strong>FMCG</strong> players are<br />

leverag<strong>in</strong>g <strong>India</strong> as a strategic sourc<strong>in</strong>g hub for<br />

cost-effective product development and<br />

manufactur<strong>in</strong>g to accommodate the <strong>in</strong>ternational markets.<br />

With the rise <strong>in</strong> the disposable <strong>in</strong>come consumers <strong>in</strong> recent<br />

times have shifted their purchas<strong>in</strong>g from essential to<br />

premium products. In response to this, the firms have<br />

started enhanc<strong>in</strong>g its premium portfolio.<br />

Accord<strong>in</strong>g to a survey conducted, the <strong>FMCG</strong> sector will<br />

reach new heights of USD <strong>10</strong>3.7 billion by 2020. This value<br />

clearly states that, there is a lot of scope <strong>in</strong> the <strong>FMCG</strong><br />

sector for well-known as well as emerg<strong>in</strong>g bus<strong>in</strong>esses and<br />

brands.<br />

In the next ten years, the revenue of the <strong>FMCG</strong> (Fast<br />

Mov<strong>in</strong>g Consumer Goods) market is set to grow at a higher<br />

rate. Trends are a great way, which showcase the current<br />

happen<strong>in</strong>gs and also give an outlook about the future times.<br />

<strong>The</strong>y also have a longer shelf life and are driven by social,<br />

cultural and political factors. This describes the market<strong>in</strong>g<br />

strategies for the <strong>FMCG</strong> companies to learn about it <strong>in</strong><br />

every possible way. Keep<strong>in</strong>g pace with the trends allows the<br />

core team to study, understand and improvise the strategies<br />

for profitable outcomes.<br />

Health and Wellness<br />

Trendy talk<br />

<strong>The</strong>re is grow<strong>in</strong>g awareness amongst the consumers<br />

regard<strong>in</strong>g their wellbe<strong>in</strong>g. <strong>The</strong> global and local <strong>FMCG</strong><br />

companies are <strong>in</strong>vest<strong>in</strong>g majorly <strong>in</strong> the health and wellness<br />

sector, as majority of people today are <strong>in</strong>to fitness and aim<br />

to live and experience a healthy lifestyle. <strong>The</strong> proverb<br />

Health is Wealth, truly def<strong>in</strong>es the health of an <strong>in</strong>dividual,<br />

as it is the most <strong>in</strong>tegral aspect to lead a longer and<br />

disease-free life.<br />

Health and wellness is a trend, which is shap<strong>in</strong>g the<br />

consumer preferences. <strong>The</strong> lead<strong>in</strong>g global and <strong>India</strong>n food<br />

and beverage companies are embrac<strong>in</strong>g this trend and<br />

focus<strong>in</strong>g on creat<strong>in</strong>g new emerg<strong>in</strong>g products <strong>in</strong> the health<br />

care doma<strong>in</strong>.<br />

<strong>The</strong> market is constantly flooded with products which<br />

promise the best of health and an eye-catch<strong>in</strong>g label read<strong>in</strong>g<br />

‘<strong>10</strong>0% Organic’, which at times are mislead<strong>in</strong>g and<br />

undef<strong>in</strong>ed. In order for companies to make an impact, they<br />

have to offer healthy and organic options on a platter which<br />

are best suited for the consumer’s convenience.<br />

September 2018 27


<strong>The</strong> Customized Approach<br />

In recent times, the consumers have become brand<br />

conscious as they prefer a high quality lifestyle and<br />

premium range products. Consumers briefly want to know<br />

what’s <strong>in</strong> store for them and primarily focus on the benefits<br />

and advantages of every product. This, <strong>in</strong> turn has made the<br />

<strong>FMCG</strong> companies to emphasize on <strong>in</strong>novat<strong>in</strong>g its exist<strong>in</strong>g<br />

product portfolio and develop<strong>in</strong>g new ones.<br />

Also, customization and personalization is the way forward<br />

for <strong>FMCG</strong> companies. With a customized service approach,<br />

the <strong>FMCG</strong> companies add a personalized touch to a<br />

consumer’s product. This adds a bonus po<strong>in</strong>t on the<br />

company’s name and makes the exist<strong>in</strong>g consumers to look<br />

forward for future collaborations. It also attracts new<br />

consumers to experience the customization process. This<br />

customization strategy comes with a cost, but also has<br />

immense benefits as it offers the <strong>FMCG</strong> companies an<br />

<strong>in</strong>sight <strong>in</strong>to their consumer’s behavior.<br />

Onl<strong>in</strong>e Market<strong>in</strong>g Leads the Way<br />

<strong>The</strong> millennial and Gen Z consumers are grow<strong>in</strong>g <strong>in</strong><br />

numbers and so are their unique sets of demands. A recent<br />

survey states that they are more <strong>in</strong>terested to know the<br />

experiences to share it on various social media platforms.<br />

Liv<strong>in</strong>g <strong>in</strong> a digital world, onl<strong>in</strong>e market<strong>in</strong>g is def<strong>in</strong>itely a<br />

way to reach out to the audience. As everyone today is<br />

<strong>in</strong>fluenced by social media, it def<strong>in</strong>itely gives an overview<br />

to understand or know any specification about products. In<br />

order to expand, the <strong>FMCG</strong> companies should emphasize<br />

on experience shar<strong>in</strong>g to attract consumer attention.<br />

Eat<strong>in</strong>g the Local Goodness<br />

It is always said that eat what grows close to you. Every<br />

country has different climatic conditions and the food that<br />

grows <strong>in</strong> one’s country is best suited for them. People are<br />

often <strong>in</strong>timidated by products that look fancy and are flown<br />

down from some country <strong>in</strong> the world. But, what they don’t<br />

realize is it can have adverse effects on their health. So, it is<br />

always better to stick to your roots and eat the local<br />

produce.<br />

<strong>The</strong> <strong>FMCG</strong> companies have also realized this and are<br />

<strong>in</strong>creas<strong>in</strong>gly appeal<strong>in</strong>g to consumers by launch<strong>in</strong>g products<br />

with regional flavors, <strong>in</strong>gredients, recipes and more. <strong>The</strong> big<br />

brands as well as SMEs are connect<strong>in</strong>g with consumers by<br />

us<strong>in</strong>g regional flavors and <strong>in</strong>gredients that meet the regional<br />

and home country pride.<br />

A Comprehensive Vision<br />

<strong>The</strong> <strong>FMCG</strong> sector is full of opportunities and challenges.<br />

Uniqueness <strong>in</strong> services and executions are the primary re<strong>in</strong>s<br />

which can drive companies through complexities of the<br />

market and roll out unmatched customer experience.<br />

Besides, consumers today are gett<strong>in</strong>g more attentive than<br />

ever before and are look<strong>in</strong>g ahead <strong>in</strong> a broader perspective.<br />

Establish<strong>in</strong>g a stable social platform and susta<strong>in</strong><strong>in</strong>g <strong>in</strong> the<br />

longer run can empower the enterprises to trek beyond the<br />

traditional horizons of <strong>FMCG</strong> market. This impact of the<br />

<strong>FMCG</strong> companies is considerably grow<strong>in</strong>g <strong>in</strong> <strong>India</strong> and also<br />

with the consumer behavior evolv<strong>in</strong>g at a fast pace, the<br />

companies will surely keep up with the market<strong>in</strong>g trends <strong>in</strong><br />

2018.<br />

28<br />

Septmber 2018|


I KNOWLEDGE<br />

FACTORY<br />

Digital Market<strong>in</strong>g is all set to Capture <strong>FMCG</strong> Sector<br />

Knowledge Factory has been devis<strong>in</strong>g and deliver<strong>in</strong>g<br />

Imean<strong>in</strong>gful solutions across multiple <strong>in</strong>dustry verticals.<br />

It has a rich experience for over a decade and has built<br />

a strong client base and also has a committed team of<br />

highly skilled professionals. It has ma<strong>in</strong>ta<strong>in</strong>ed <strong>in</strong>dustry<br />

standards and delivered benchmark projects with<br />

transparent and <strong>in</strong>novative campaign execution. It is a one<br />

stop platform for Digital Brand<strong>in</strong>g, Social Media<br />

Market<strong>in</strong>g, Website Design and Development.<br />

Digital market<strong>in</strong>g is no longer a buzzword but a watchword<br />

that marketers all over the world swear by. When it comes<br />

to offl<strong>in</strong>e mass market<strong>in</strong>g, <strong>FMCG</strong> is, without a shadow of<br />

doubt, the only sector that holds all the cards but has it been<br />

able to keep a pace with the new wave of digital market<strong>in</strong>g?<br />

<strong>The</strong> market<strong>in</strong>g realm isn't just about B2B or B2C but is<br />

gear<strong>in</strong>g towards H2H (human to human).<br />

<strong>The</strong> Resourceful Leader<br />

Ashish Dalia is the Owner and CEO of I Knowledge<br />

Factory (IKF). His determ<strong>in</strong>ed self and passion has nurtured<br />

the company to become a lead<strong>in</strong>g name <strong>in</strong> the digital<br />

market<strong>in</strong>g services <strong>in</strong> Pune and beyond. Ashish has been<br />

successfully liv<strong>in</strong>g and breath<strong>in</strong>g the whole and soul of the<br />

organization for the last eighteen years. He has served more<br />

than 850 clients locally and globally, across various<br />

verticals such as healthcare, manufactur<strong>in</strong>g, education, real<br />

estate, retail, <strong>FMCG</strong>, as well as government organizations.<br />

He strongly believes that it’s time for the <strong>FMCG</strong> players to<br />

adopt the spirit of the 21st century and become onl<strong>in</strong>e<br />

enthusiasts.<br />

An Overview of the <strong>FMCG</strong> Industry<br />

Fast-Mov<strong>in</strong>g Consumer Goods (<strong>FMCG</strong>) or Consumer<br />

Packaged Goods (CPG) is low-priced products that are sold<br />

30<br />

quickly across the table. <strong>The</strong>se <strong>in</strong>clude non-durable goods<br />

such as packaged foods, beverages, toiletries, over-thecounter<br />

drugs, and other consumables.<br />

<strong>FMCG</strong> sector is the most <strong>in</strong>novative sector when it comes<br />

to market<strong>in</strong>g, brand<strong>in</strong>g, position<strong>in</strong>g, and customer<br />

engagement. Brands like Patanjali, H<strong>in</strong>dustan Unilever<br />

Limited, Nestle, Coke, PepsiCo, and Britannia are a few<br />

giants that are upp<strong>in</strong>g the ante of the <strong>FMCG</strong> <strong>in</strong>dustry with<br />

their products as well as <strong>in</strong> terms of counter<strong>in</strong>g competition<br />

with their brand<strong>in</strong>g and position<strong>in</strong>g.<br />

Go<strong>in</strong>g the Digital Way<br />

<strong>The</strong> target audiences of these products generally tend to get<br />

carried away by the latest emerg<strong>in</strong>g trends <strong>in</strong> the market. In<br />

this day and age, where the digital media is grow<strong>in</strong>g by<br />

leaps and bounds, there is obviously pressure for brands to<br />

connect with their consumers. Naturally, this comes with<br />

both challenges and opportunities for brands as they need to<br />

keep themselves acqua<strong>in</strong>ted with their consumer’s needs<br />

and behaviour by mak<strong>in</strong>g an appeal<strong>in</strong>g statement with new<br />

packag<strong>in</strong>g, sentiment analysis, or CSR activities.<br />

Consumers these days spend more digital time via mobile,<br />

tabs and even computers. More and more data is gett<strong>in</strong>g<br />

populated on the <strong>in</strong>ternet with <strong>in</strong>novation.<br />

Digital has killed the gap between big player and small<br />

brands and presented a great opportunity for brands to show<br />

as well as make their <strong>in</strong>novation more accessible to their<br />

consumers by means of relevant platforms. I Knowledge<br />

Factory have seen <strong>in</strong> the past how campaigns like<br />

#Helpachildreach5, Lifebuoy se haath dhoye kya,<br />

#FuelFor<strong>The</strong>RealFit, Daag acche hote hai, #Share<strong>The</strong>Load<br />

and many more has impacted and touched the lives of<br />

consumers as well as impelled them to positively respond to<br />

their social messag<strong>in</strong>g.<br />

Septmber 2018|


1<br />

COMPANIES<br />

THE<br />

0<br />

<strong>Most</strong> <strong>Admired</strong><br />

<strong>FMCG</strong><br />

IN INDIA<br />

‘“ ‘<br />

We Craft, Care, and Amplify<br />

<strong>in</strong>novative ideas <strong>in</strong> Digital Market<strong>in</strong>g<br />

‘<br />

‘“<br />

This also tells us about a very crucial change that has been<br />

shap<strong>in</strong>g the digital scene - digital market<strong>in</strong>g isn’ only about<br />

social media but is also predicated on social sell<strong>in</strong>g, social<br />

listen<strong>in</strong>g, social conversations, and social sentiments.<br />

Salient Po<strong>in</strong>ters to Leverage Digital Opportunities<br />

Based on years of observations and experience of work<strong>in</strong>g<br />

<strong>in</strong> the digital space, Ashish shared some <strong>in</strong>sight nuggets<br />

with the <strong>FMCG</strong> brands for leverag<strong>in</strong>g digital opportunities.<br />

At the end of the day, it doesn’t matter whether you are a<br />

start-up or an established player, your success depends on<br />

how memorable and effective your communication strategy<br />

is:<br />

• Align all your digital platforms and sync them with each<br />

other<br />

• Integrate your onl<strong>in</strong>e and offl<strong>in</strong>e strategies<br />

• Always remember - it’s not about sell<strong>in</strong>g but <strong>in</strong>form<strong>in</strong>g<br />

educat<strong>in</strong>g<br />

• Go beyond physical distribution or sales channels<br />

• If your brand is small and midsize get along with<br />

marketplaces like (need <strong>in</strong>puts here)<br />

• Digital is about <strong>in</strong>novat<strong>in</strong>g and how do you differentiate<br />

your communication compared to your competition.<br />

• Digital had layed a platform for brands to connect with<br />

their consumers via various social message, campaign,<br />

participation & competitions<br />

<strong>The</strong> Growth of <strong>FMCG</strong> on the Digital Footpr<strong>in</strong>t<br />

<strong>The</strong> consumers are spend<strong>in</strong>g more time onl<strong>in</strong>e across<br />

platforms and apps as the nation is grow<strong>in</strong>g digital day by<br />

day. <strong>The</strong> emergence of modern trade has become the talk of<br />

the town and companies are work<strong>in</strong>g to build their own<br />

digital platform to attract a bigger audience.<br />

Ashish Dalia<br />

Owner & CEO<br />

<strong>The</strong> <strong>in</strong>ternet is advantageous <strong>in</strong> reduc<strong>in</strong>g the cost of<br />

purchases by giv<strong>in</strong>g supply-cha<strong>in</strong> partners quick access to<br />

relevant <strong>in</strong>formation required. <strong>The</strong> consumers are most<br />

likely to favour or reject a product based on onl<strong>in</strong>e<br />

recommendations and reviews. <strong>The</strong> evolv<strong>in</strong>g consumers are<br />

buy<strong>in</strong>g experiences over onl<strong>in</strong>e platforms as there is a<br />

seamless delivery of content across various platforms at no<br />

additional cost.<br />

As there lies no h<strong>in</strong>drance of geographical boundaries of<br />

stock and <strong>in</strong>ventories, the ability to monitor real-time<br />

consumer responses onl<strong>in</strong>e is an <strong>in</strong>creas<strong>in</strong>g percentage. <strong>The</strong><br />

digital space has bridged the shopp<strong>in</strong>g gap between rural<br />

and urban areas.<br />

|September 2018<br />

31


Sameer Shah<br />

Owner<br />

Sameer Distributors<br />

CHANGING TRENDS OF<br />

<strong>FMCG</strong> IN<br />

INDIA<br />

32<br />

Septmber 2018|


Leader’s Viewpo<strong>in</strong>t<br />

ameer Shah is the Owner of Sameer Distributors.<br />

SHis sheer contribution and dedicated-self has been<br />

successful <strong>in</strong> runn<strong>in</strong>g the bus<strong>in</strong>ess s<strong>in</strong>ce 1999. He<br />

attended the Ch<strong>in</strong>tamanrao College of Commerce <strong>in</strong> Sangli<br />

and is an authorized wholesaler <strong>in</strong> consumer products for<br />

various companies which supply goods to retailers. In<br />

conversation with him, he shared his <strong>in</strong>sights on the trends<br />

of the <strong>FMCG</strong> sector.<br />

<strong>FMCG</strong> alludes to customer non tough products required for<br />

successive or day by day utilize. Regularly, a purchaser<br />

purchases these products <strong>in</strong> any event once every month.<br />

<strong>The</strong> division covers a wide extent of items, for example,<br />

cleansers, latr<strong>in</strong>e cleansers, toothpaste, shampoos, creams,<br />

powders, sustenance items, candy parlors, dr<strong>in</strong>ks, and<br />

cigarettes. <strong>The</strong> <strong>FMCG</strong> segment has been the foundation of<br />

the <strong>India</strong>n economy. However, the division has been <strong>in</strong><br />

presence for a significant long time, it started to come to<br />

fruition just amid the last fifty-odd years. To date, the<br />

<strong>India</strong>n <strong>FMCG</strong> <strong>in</strong>dustry keeps on anguish from a def<strong>in</strong>itional<br />

difficulty. Indeed, the <strong>in</strong>dustry is yet to take shape as far as<br />

def<strong>in</strong>ition and market estimate, among others. <strong>The</strong> part<br />

contacts each part of human life, from looks to cleanl<strong>in</strong>ess<br />

to sense of taste. Maybe, characteriz<strong>in</strong>g an <strong>in</strong>dustry whose<br />

extension is so huge isn’t simple. <strong>FMCG</strong> <strong>in</strong> <strong>India</strong> has a<br />

solid and aggressive MNC nearness over the whole esteem<br />

cha<strong>in</strong>. <strong>The</strong> white collar class and the country fragments of<br />

the <strong>India</strong>n populace are the most encourag<strong>in</strong>g bus<strong>in</strong>ess<br />

sector for <strong>FMCG</strong>, and give mark creators the chance to<br />

change over them to marked items. <strong>The</strong> vast majority of the<br />

item classes like jams, toothpaste, healthy sk<strong>in</strong>, shampoos,<br />

and so forth, <strong>in</strong> <strong>India</strong>, have low per capita utilization and <strong>in</strong><br />

addition low <strong>in</strong>filtration level, however the potential for<br />

development is enormous.<br />

TRENDS<br />

Global Concentration<br />

Major worldwide buyer item organizations, (for example,<br />

Unilever, P&G, Colgate, Nestle, He<strong>in</strong>z) have a lot of the<br />

worldwide market. <strong>The</strong>se organizations have been built up<br />

for quite a while and have a grasp of solid brands with<br />

restrictive <strong>in</strong>novation. <strong>The</strong> vast majority of these<br />

organizations are money rich and very much oversaw. <strong>The</strong>ir<br />

brands produce solid money streams and enable them to<br />

re<strong>in</strong>vest <strong>in</strong> fortify<strong>in</strong>g their image value further, with<br />

proceeded advancements/promotions. (Harvard Bus<strong>in</strong>ess<br />

Review, Sept-Oct, 2004) <strong>The</strong>y likewise have the money<br />

related clout to get little nearby brands to fortify their<br />

situation <strong>in</strong> the class. <strong>The</strong>se organizations likewise make<br />

extensive <strong>in</strong>terest <strong>in</strong> R&D to hone and keep up their edge <strong>in</strong><br />

the bus<strong>in</strong>ess.<br />

Growth is <strong>in</strong> the Third World<br />

<strong>The</strong> vast majority of the worldwide majors have their<br />

start<strong>in</strong>g po<strong>in</strong>ts <strong>in</strong> Europe or USA. <strong>The</strong>y locate their home<br />

markets immersed and are counts on the third world for<br />

future development. <strong>The</strong>se organizations are sett<strong>in</strong>g up shop<br />

and are forcefully extend<strong>in</strong>g their base <strong>in</strong> these nations.<br />

<strong>The</strong>y additionally pay special m<strong>in</strong>d to chances to obta<strong>in</strong><br />

neighborhood brands to push beg<strong>in</strong> or merge their situation<br />

<strong>in</strong> these bus<strong>in</strong>ess sectors.<br />

Value for Money<br />

Amid the last 4-5 years, especially after dim<strong>in</strong>ished buyer<br />

spend<strong>in</strong>g amid the worldwide subsidence, the new trendy<br />

expression is an <strong>in</strong>centive for cash. <strong>FMCG</strong> organizations all<br />

around have set out upon real re-organiz<strong>in</strong>g/cost cutt<strong>in</strong>g<br />

activities as the bus<strong>in</strong>ess has turned out to be wildly<br />

aggressive. Additionally, a few developments <strong>in</strong> bundl<strong>in</strong>g<br />

media have occurred.<br />

Adapt<strong>in</strong>g to Local Conditions<br />

Over the most recent couple of years, procedure of<br />

adjust<strong>in</strong>g to nearby conditions has quickened. MNCs are<br />

adjust<strong>in</strong>g their items, process and advertis<strong>in</strong>g<br />

correspondence to the nearby conditions. <strong>The</strong>y adjust the<br />

assembl<strong>in</strong>g procedure to boost utilization of neighborhood<br />

crude materials and suit their items to the taste and<br />

necessities of nearby shoppers. This procedure has been<br />

required by the basic to be f<strong>in</strong>ancially savvy and be focused<br />

versus solid nearby players.<br />

Packag<strong>in</strong>g<br />

<strong>The</strong> job of bundl<strong>in</strong>g has expanded essentially lately, mostly<br />

because of change <strong>in</strong> bundl<strong>in</strong>g <strong>in</strong>novation. Customarily,<br />

bundl<strong>in</strong>g was relied upon to fill the need of assurance and<br />

economy. At that po<strong>in</strong>t, bundl<strong>in</strong>g was relied upon to satisfy<br />

the target of accommodation. (Kotler Philip, 2003)Today,<br />

bundl<strong>in</strong>g is utilized as a compell<strong>in</strong>g <strong>in</strong>strument for<br />

advancement. In addition, new bundl<strong>in</strong>g <strong>in</strong>novation has<br />

empowered most <strong>FMCG</strong> organizations to altogether lessen<br />

their bundl<strong>in</strong>g costs.<br />

Rural Distribution<br />

Expanded spotlight on country conveyance has expanded<br />

co-ord<strong>in</strong>ations spend for the ma<strong>in</strong> organizations.<br />

|September 2018 33


WHOLESOME<br />

FOODS<br />

Celebrat<strong>in</strong>g the Goodness of Traditions<br />

In this fast paced world, the most important asset an<br />

<strong>in</strong>dividual can gift itself is consum<strong>in</strong>g nutritious meals<br />

and lead<strong>in</strong>g a healthy life. One such company with a<br />

vision to provide healthy, convenient, authentic food to<br />

foodies worldwide is Wholesome Foods. In order to fulfill<br />

its vision, it started with sett<strong>in</strong>gs up a manufactur<strong>in</strong>g plant<br />

which sells frozen fruits, vegetables and ready to eat<br />

products. This is designed as per the latest food safety<br />

norms of the USA, the UK and Japan. <strong>The</strong> company<br />

believes that clients are their biggest assets and hence it<br />

works with a client-centric approach. It looks at every<br />

customer’s requirements and caters customized solutions<br />

accord<strong>in</strong>gly.<br />

Wholesome foods offer its customers with highest quality<br />

products <strong>in</strong> a cost-effective manner. <strong>The</strong> company’s<br />

foundation is based on virtues, commitment, experience and<br />

knowledge for its customers, partners and <strong>in</strong>vestors. It is<br />

driven by found<strong>in</strong>g ideals like quality, accountability,<br />

commitment, <strong>in</strong>novation, <strong>in</strong>tegrity, and ethics.<br />

A Resourceful Leader<br />

A determ<strong>in</strong>ed personality, Jeet Hirpara is the Manag<strong>in</strong>g<br />

Partner at Wholesome foods. Initially, dur<strong>in</strong>g his education<br />

<strong>in</strong> the USA and the UK, he realized that it was imperative to<br />

have a nutritious meal every day. Shar<strong>in</strong>g his experiences of<br />

abroad, he recalls “Dur<strong>in</strong>g our college days, we used to<br />

have a mass cook<strong>in</strong>g session on the weekends and freeze it<br />

so we wouldn’t have to worry about foods on the<br />

weekdays”. Hence, he decided to implement his idea of<br />

provid<strong>in</strong>g healthy and tasty food options to the customers.<br />

After return<strong>in</strong>g to <strong>India</strong>, he noticed the same trend was<br />

com<strong>in</strong>g to picture here too <strong>in</strong> <strong>India</strong>. With the chang<strong>in</strong>g<br />

lifestyle, there has been an <strong>in</strong>crease <strong>in</strong> the number of<br />

nuclear families. Jeet understood, it could be convenient<br />

option for such families to have a wholesome meal which<br />

tastes like a home-cooked meal.<br />

With his sheer hard-work, he conceptualized, executed and<br />

implemented this facility.<br />

He has been <strong>in</strong>strumental <strong>in</strong> design<strong>in</strong>g the factory as per the<br />

latest technology and food safety standards. He is also<br />

work<strong>in</strong>g on the sales and market<strong>in</strong>g efforts of the company<br />

with hav<strong>in</strong>g spearhead<strong>in</strong>g the sales team dur<strong>in</strong>g<br />

<strong>in</strong>ternational and domestic exhibitions such as Anuga<br />

Germany, Foodex Japan, Sial Middle East, Indus Foods<br />

and the World Food <strong>India</strong> dur<strong>in</strong>g the last year.<br />

An Excellent Service Provider<br />

Wholesome foods offers a range of frozen fruits,<br />

vegetables, paste and ready to eat items. A scientific<br />

approach is used to prepare the products and <strong>in</strong>crease shelf<br />

life without us<strong>in</strong>g any preservatives. <strong>The</strong> frozen vegetables<br />

are grown <strong>in</strong> selected farms, washed, peeled, cut and<br />

blanched (semi-cooked) so it is as easy as open<strong>in</strong>g a pack of<br />

vegetables and start cook<strong>in</strong>g your favorite recipe without<br />

the hassles of preparation. <strong>The</strong> company's frozen ready to<br />

cook items take convenience to the next step as these meals,<br />

snacks, and desserts; just need to be heated for a few<br />

m<strong>in</strong>utes to enjoy a wholesome meal prepared <strong>in</strong> the most<br />

hygienic conditions.<br />

Wholesome foods believe <strong>in</strong> stay<strong>in</strong>g true to its taste by<br />

keep<strong>in</strong>g the authenticity of the product <strong>in</strong>tact. As the<br />

36<br />

Septmber 2018|


1<br />

COMPANIES IN INDIA<br />

THE<br />

0<br />

<strong>Most</strong> <strong>Admired</strong><br />

<strong>FMCG</strong><br />

‘“ ‘<br />

Our goal is to provide easy access to authentic and traditional<br />

food solutions to millions of people across the world<br />

‘<br />

‘“<br />

company <strong>in</strong>cludes cuis<strong>in</strong>es like North <strong>India</strong>n and South<br />

<strong>India</strong>n it ensures to <strong>in</strong>corporate effective measures to stand<br />

by its orig<strong>in</strong>al flavor. <strong>The</strong> company has both B2B and B2C<br />

verticals <strong>in</strong> the company. In case of dissatisfaction of the<br />

customer <strong>in</strong> the B2C vertical, the customer can return the<br />

product and get a full refund without any questions asked.<br />

While <strong>in</strong> the B2B bus<strong>in</strong>ess, the company guarantees timely<br />

delivery with various pack<strong>in</strong>g options as per convenience.<br />

Tackl<strong>in</strong>g Challenges Effectively<br />

It is imperative to change with present times and<br />

technology. As salient modifications take place every now<br />

and then, it is mandatory to stay up-to-date with the food<br />

<strong>in</strong>dustry and emerg<strong>in</strong>g bus<strong>in</strong>esses. “As we are <strong>in</strong> food<br />

bus<strong>in</strong>ess, there is a huge variation <strong>in</strong> cost due to seasonality<br />

and the huge dependence on monsoon <strong>in</strong> <strong>India</strong>” says Jeet.<br />

Wholesome foods analyze historic data and try to procure<br />

the raw materials at the right time.<br />

<strong>The</strong> frozen food <strong>in</strong>dustry is at its nascent stage and the<br />

number of companies is also less, but as the demand is also<br />

limited creat<strong>in</strong>g a fierce competition. In order to mitigate<br />

risks and enhance growth, the company <strong>in</strong>vests <strong>in</strong> R&D.<br />

Celebrat<strong>in</strong>g a Friendly Work Environment<br />

“We are a family run bus<strong>in</strong>ess and try to keep the same<br />

atmosphere for all employees.”<br />

Wholesome foods celebrate a healthy and respectful<br />

work<strong>in</strong>g atmosphere to experience a pr<strong>in</strong>ciple work ethical<br />

environment. It believes <strong>in</strong> treat<strong>in</strong>g everyone with respect<br />

and ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g a personal relationship with each<br />

employee. This creates a feel<strong>in</strong>g of ownership among the<br />

employees which helps them to succeed at their maximum<br />

potential.<br />

<strong>The</strong> company conducts monthly review meet<strong>in</strong>gs of each<br />

division where at least one partner is present. <strong>The</strong>se<br />

meet<strong>in</strong>gs are conducted for employees to share their<br />

valuable suggestions and also give feedback accord<strong>in</strong>gly.<br />

<strong>The</strong> company takes <strong>in</strong> consideration and tries to evaluate<br />

these suggestions and implement the necessary changes.<br />

Future Endeavors of the <strong>FMCG</strong> <strong>in</strong>dustry<br />

Jeet Hirpara<br />

Manag<strong>in</strong>g Partner<br />

<strong>FMCG</strong> <strong>in</strong>dustry <strong>in</strong> <strong>India</strong> is go<strong>in</strong>g through a tremendous<br />

change. <strong>The</strong> <strong>India</strong>n government is focus<strong>in</strong>g to <strong>in</strong>crease farm<br />

<strong>in</strong>come and the MSP prices with relatively good monsoon<br />

will aid <strong>in</strong> the <strong>FMCG</strong> sector. With GST stabiliz<strong>in</strong>g s<strong>in</strong>ce a<br />

year of its launch, the prices of <strong>FMCG</strong> have seen a revision<br />

on the lower side which is further add<strong>in</strong>g to growth. Overall<br />

the outlook of the <strong>in</strong>dustry is positive and is expand<strong>in</strong>g its<br />

outreach. <strong>FMCG</strong> sector will play a huge role <strong>in</strong> GDP and<br />

employment, <strong>in</strong>dicat<strong>in</strong>g a progressive sign for <strong>India</strong>’s<br />

future.<br />

|September 2018 37


38<br />

Septmber 2018|


From Editor’s Desk<br />

THE UPSWING<br />

IN THE INDIAN<br />

<strong>FMCG</strong> SECTOR<br />

n this fast-paced world, <strong>in</strong>dustries are constantly striv<strong>in</strong>g to cater the needs of mank<strong>in</strong>d. In today’s global marketplace,<br />

Ithe <strong>in</strong>formation associated with a product is fast becom<strong>in</strong>g a critical l<strong>in</strong>k <strong>in</strong> the supply cha<strong>in</strong>. Especially <strong>in</strong> fast mov<strong>in</strong>g<br />

consumer goods (<strong>FMCG</strong>s) <strong>in</strong>dustry, there is more fierce competition and more unstable requirement. <strong>Most</strong> plants use<br />

manufactur<strong>in</strong>g resource plann<strong>in</strong>g system to manage the process of production. <strong>The</strong> various <strong>in</strong>dustries play a pivotal role <strong>in</strong><br />

contribut<strong>in</strong>g and enhanc<strong>in</strong>g the economy. <strong>The</strong> <strong>FMCG</strong> (Fast Mov<strong>in</strong>g Consumer Goods) is the fourth largest sector of the<br />

<strong>India</strong>n economy. As <strong>in</strong>dividuals experience a set of measures like grow<strong>in</strong>g awareness, easier access, and chang<strong>in</strong>g scenarios,<br />

which assists <strong>in</strong> boost<strong>in</strong>g the growth of this sector. <strong>The</strong>se changes have been seen due to the liberalization, urbanization and<br />

<strong>in</strong>crease <strong>in</strong> the disposable <strong>in</strong>comes and modifications <strong>in</strong> the lifestyle of the people. <strong>The</strong> <strong>FMCG</strong> products have a small shelf<br />

life at considerably low cost and it doesn’t consume a high f<strong>in</strong>ancial <strong>in</strong>vestment to purchase. It is popularly known as<br />

consumer packed goods and <strong>in</strong>cludes consumables which <strong>in</strong>dividuals buy at a regular <strong>in</strong>terval for day-to-day chores.<br />

Key Factors of the <strong>India</strong>n <strong>FMCG</strong> Sector<br />

• As the modern trade is ga<strong>in</strong><strong>in</strong>g importance day-by-day, it is a big ticket item that is expected to grow at 20% year-on-year<br />

and is credibly to boost revenues for <strong>FMCG</strong> players.<br />

• <strong>The</strong> household and personal care is one of the primary segments account<strong>in</strong>g for 50% of the overall market and the Food<br />

and Beverage at 19% market share.<br />

|September 2018 39


• With the <strong>in</strong>creas<strong>in</strong>g adoption of sales technologies and grow<strong>in</strong>g mobility usage, the <strong>FMCG</strong> distribution system<br />

has become more transparent, organized and convenient.<br />

• By 2020, the <strong>India</strong>n <strong>FMCG</strong> market is expected to grow at a CAGR of nearly 21%.<br />

• A rise is expected <strong>in</strong> rural consumption is all set to drive the <strong>FMCG</strong> market. It is estimated to grow at a CAGR of<br />

14.6% by the year 2025.<br />

<strong>The</strong> Rural Areas Set to Rise<br />

Over the years the <strong>FMCG</strong> sector has rapidly progressed and cont<strong>in</strong>ues to expand its outreach. <strong>The</strong> rural areas have<br />

immensely impacted the sector and are estimated to be a major driver and cont<strong>in</strong>ue to <strong>in</strong>crease <strong>in</strong> the regions. As<br />

compared to the urban areas, the rural areas have experienced a higher rise <strong>in</strong> the sector. <strong>The</strong> companies' recognized<br />

this as a golden chance and has rushed to capitalize on this, it granted excellent services like direct distribution and<br />

utmost <strong>in</strong>frastructure. With such a great response, the companies are creat<strong>in</strong>g specific products, which are prom<strong>in</strong>ently<br />

targeted for the rural market.<br />

<strong>The</strong> Government of <strong>India</strong> has taken effective measures to support the rural population with facilities such as higher<br />

m<strong>in</strong>imum support (MSPs), loan waivers, and disbursements through the National Rural Employment Guarantee Act<br />

(NREGA) program. All these measures has helped <strong>in</strong> reduc<strong>in</strong>g poverty <strong>in</strong> rural <strong>India</strong> and lifted the rural purchas<strong>in</strong>g<br />

rate.<br />

An Overview of the Rural Market Consumer Behavior<br />

<strong>The</strong> urban market accounts for almost 60% revenue share and the semi-urban and rural segments are the high potential<br />

markets that is grow<strong>in</strong>g faster day-by-day and is recently accounts for 40% revenue share. One of the <strong>in</strong>terest<strong>in</strong>g facts<br />

to note is that <strong>FMCG</strong> products accounts for 50% of total rural regions spend <strong>in</strong> <strong>India</strong>. Mobile comes very handy to the<br />

user and hence it has evolved as one of the most important devices over the years. <strong>The</strong> mobile <strong>in</strong>ternet users <strong>in</strong> rural<br />

areas are experienc<strong>in</strong>g a growth of nearly 26%. <strong>The</strong> mobile handset penetration <strong>in</strong> rural <strong>India</strong> is much higher than TV.<br />

See<strong>in</strong>g the statistics, the <strong>FMCG</strong> brands can use the mobile medium creatively to expand its outreach.<br />

Strategies Embraced by <strong>FMCG</strong> <strong>Companies</strong><br />

In order to succeed <strong>in</strong> a competitive market develop<strong>in</strong>g key strategies is a must. Some of the most likely strategies<br />

experienced by the <strong>FMCG</strong> brands <strong>in</strong>clude offer<strong>in</strong>g of the customized products ow<strong>in</strong>g to different target audiences. It<br />

provides dist<strong>in</strong>ct customer preferences like women based products or kids based products. <strong>The</strong> <strong>FMCG</strong> players hugely<br />

spend on product <strong>in</strong>novation and promotion so as to surpass competition and to stay ahead <strong>in</strong> the race.<br />

As people today are liv<strong>in</strong>g <strong>in</strong> a digital world, it is important for <strong>FMCG</strong> companies are focus<strong>in</strong>g on build<strong>in</strong>g their onl<strong>in</strong>e<br />

presence. As the onl<strong>in</strong>e research enables customers to make <strong>in</strong>formed purchas<strong>in</strong>g decisions and gives them the required<br />

details at a click. <strong>The</strong> <strong>FMCG</strong> sector is climb<strong>in</strong>g the ladder of success steadily, <strong>in</strong> order to rise and ma<strong>in</strong>ta<strong>in</strong> the pace of<br />

<strong>in</strong>vest<strong>in</strong>g <strong>in</strong> new sales technologies such as SFA (Sales Force Automation). Some of these SFA solutions are number of<br />

<strong>in</strong>creased <strong>in</strong>ternet users across the country, emerg<strong>in</strong>g competition, advent of modern trade and need for a well-def<strong>in</strong>ed<br />

retail distribution system. This has prompted lead<strong>in</strong>g <strong>FMCG</strong> players to <strong>in</strong>tegrate these solutions <strong>in</strong> the sales system.<br />

This <strong>in</strong>deed will create an advanced, strong and seamless bus<strong>in</strong>ess environment for organizations.<br />

<strong>The</strong> Road Ahead<br />

Hav<strong>in</strong>g extensively discussed the <strong>FMCG</strong> landscape, it is clearly evident that it is on upsurge today grow<strong>in</strong>g at a rapid<br />

pace. To ma<strong>in</strong>ta<strong>in</strong> this scenario, the <strong>FMCG</strong> companies need to focus on R & D and <strong>in</strong>novations <strong>in</strong> terms of growth.<br />

Consistency is the key <strong>in</strong> any bus<strong>in</strong>ess, companies that cont<strong>in</strong>ue to do well would be the ones to promote us<strong>in</strong>g<br />

customer <strong>in</strong>sights to create new product category or next generation of products.<br />

40<br />

Septmber 2018|


FACTORS<br />

Affect<strong>in</strong>g<br />

Vi-john Group has established itself as a lead<strong>in</strong>g<br />

brand of personal care, cosmetics and perfumes <strong>in</strong><br />

<strong>India</strong>. It has now spread its w<strong>in</strong>gs <strong>in</strong> the global<br />

market to be recognized as a prom<strong>in</strong>ent <strong>in</strong>ternational name.<br />

<strong>India</strong> is a dynamic Country where growth will come from<br />

all Sections of Society be it Urban <strong>India</strong> or Rural <strong>India</strong>. On<br />

one side the E-Commerce and Modern Trade are grow<strong>in</strong>g<br />

very-very fast <strong>in</strong> Cities and Towns and on the Contrary<br />

Rural <strong>India</strong> is show<strong>in</strong>g the growth even faster.<br />

THE GROWTH<br />

OF THE<br />

RURAL<br />

Infrastructure<br />

MARKETS<br />

<strong>The</strong> Growth of <strong>FMCG</strong> products largely depends upon the<br />

reach to Rural Sectors. And Reach depends upon the<br />

Infrastructure available to rural <strong>India</strong>. Even today many of<br />

the Rural Markets are unexplored due of the lack of<br />

Infrastructure. This is the reason why we have not been able<br />

to explore the Rural Markets till and also it is the Biggest<br />

opportunity available for the <strong>FMCG</strong> sector for their further<br />

growth.<br />

In the Rural Markets Growth of <strong>FMCG</strong> Products depends<br />

upon three major factors:-<br />

1. Infrastructure available to Reach the Villages<br />

2. Education<br />

3. Consumer Awareness<br />

Rural <strong>India</strong> is untapped potential for the Marketers <strong>in</strong><br />

<strong>FMCG</strong> Sector. Youth <strong>in</strong> Villages is also aspir<strong>in</strong>g towards<br />

mov<strong>in</strong>g for Towns and Cities and adopt what is be<strong>in</strong>g used<br />

<strong>in</strong> these areas. <strong>The</strong> Roads are a vital reason for the Growth<br />

of <strong>FMCG</strong> sector <strong>in</strong> Rural <strong>India</strong>. People are gett<strong>in</strong>g more<br />

Educated and therefore the Consumer Awareness <strong>in</strong><br />

<strong>in</strong>creas<strong>in</strong>g.<br />

<strong>The</strong> <strong>in</strong>frastructure development is happen<strong>in</strong>g fast <strong>in</strong> <strong>India</strong>.<br />

Roads are be<strong>in</strong>g constructed all across <strong>India</strong>. Villages of<br />

<strong>India</strong> are gett<strong>in</strong>g closure to towns and Cities. Previously the<br />

Consumer was dependent upon the Retailer <strong>in</strong> the Villages,<br />

whatever he used to get from the Catchment wholesale<br />

markets, same was available for the consumers. He knew<br />

that consumer is go<strong>in</strong>g to buy whatever he wants to sell else<br />

consumer had no other Choice. So he always used to sell<br />

what gives him more profit. Result was organised <strong>FMCG</strong><br />

products were not reach<strong>in</strong>g Rural <strong>India</strong>. But with the Roads<br />

gett<strong>in</strong>g better, he has the threat that if he doesn't sell what<br />

consumer needs, someone else will replace him. <strong>The</strong>refore<br />

improvement <strong>in</strong> Roads has resulted <strong>in</strong> the <strong>FMCG</strong> Products<br />

to grow and same will cont<strong>in</strong>ue to happen <strong>in</strong> the years to<br />

come.<br />

42<br />

Septmber 2018|


Expert’s View<br />

About the Author<br />

Vimal Pande, CEO of Vi-john has an<br />

extensive experience of work<strong>in</strong>g over<br />

three decades <strong>in</strong> the <strong>FMCG</strong> Industry.<br />

<strong>The</strong> professional journey of Vimal<br />

started as a front l<strong>in</strong>e salesman but<br />

over the succeed<strong>in</strong>g years his<br />

pr<strong>in</strong>cipled work ethics and sheer<br />

contribution has achieved him the<br />

position of CEO with Vi-john group of<br />

companies. He is very passionate<br />

about his work and enjoys what he<br />

does. In conversation with him, he<br />

shared his <strong>in</strong>sights on the various<br />

aspects on the <strong>FMCG</strong> Sector.<br />

Vimal Pande<br />

CEO<br />

Vi-john<br />

<strong>The</strong> above said reasons are the reasons of Growth due to<br />

<strong>in</strong>crease <strong>in</strong> the width of distribution. But how the demand <strong>in</strong><br />

the Villages will <strong>in</strong>crease rema<strong>in</strong>s unanswered.<br />

Education<br />

Education is also one of the biggest reasons which will<br />

attract growth <strong>in</strong> Rural <strong>India</strong>. Earlier the needs of consumer<br />

were to Food, Cloth<strong>in</strong>g & Shelter. He didn't need much and<br />

so the scope for growth was limited. But the educated youth<br />

knows what he should buy and not merely depend upon<br />

what a rural Retailer sells.<br />

Awareness<br />

Education is go<strong>in</strong>g <strong>in</strong>crease the awareness among the<br />

consumer. <strong>The</strong> consumer who has always been dependent<br />

on the retailer will now become demand<strong>in</strong>g from the<br />

retailer for the products he needs. Marketers will eventually<br />

make the consumer more and more aware. <strong>The</strong> marketers<br />

are go<strong>in</strong>g to f<strong>in</strong>d new and new ways to communicate with<br />

rural consumers and make them aware.<br />

<strong>The</strong> demand of <strong>FMCG</strong> products <strong>in</strong> <strong>India</strong> is bound to<br />

<strong>in</strong>crease as the rural consumer is gett<strong>in</strong>g the awareness<br />

faster than before about the products. Gone are the days<br />

when the consumer was satisfied because his needs were<br />

fulfilled with what is available <strong>in</strong> the villages. Now the<br />

Consumer is gett<strong>in</strong>g aware and his aspirations to Go for<br />

Brands rather than commodities is also go<strong>in</strong>g up.<br />

“It is the comb<strong>in</strong>ation of education, awareness and<br />

Infrastructure that will br<strong>in</strong>g the growth of <strong>FMCG</strong><br />

products <strong>in</strong> Rural <strong>India</strong> for many more years to come. It is<br />

the untapped Opportunity for all the marketers to explore<br />

and avail the opportunity available.”<br />

|September 2018 43

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!