Essay About Ayurveda Products And Largest Sector

Fast Moving Consumer Goods
Basic Industry informationFast moving consumer goods is fourth largest sector in India. Household and personal care is the leading segment which accounts for 50% of overall market. Indian retail markets are estimated to reach US $ 1.1 trillion by 2020 from US $ 672 billion in 2016, with the growth of 20% in modern trade. As people bracing the Ayurveda products which has resulted the overall growth of FMCG, Patanjali is one of those companies with market capitalisation of US$ 14.94 billion.[pic 1]Growth DriversOrganised sector growth is expected to grow as the share of unorganised market in the FMCG sector fall with increased level of brand awareness. Low penetration levels of branded products in categories like instant foods indicating a scope for volume growth. Investment in this sector attracts investors as FMCG products have demand throughout the year. Rural consumption is also going to play a major role in FMCG proliferation, huge market is there to be tapped. Rural market accounts for 40% of total FMCG market, as of may. Availability of products has become way easier as internet and different channels of sales has made the accessibility of desired product to customer more convenient than ever Key Success factorRisk factorI would suggest shares of Hindustan Unilever Limited (HUL). As HUL has topped in advertisement for this week and historical data suggest about the direct proportionality of advertisement and sales of HUL, chances of increment in price is very high. HUL is one of the few companies which has minimal effect of GST, so which implicitly insinuate retaining of its customer base. Subsequently increase in its revenue.[pic 2]Sector Report – July 2017