From the time we start our day and till we end, we all depend on these products. The fast-moving consumer goods (FMCG) business, also known as consumer packaged goods (CPG), is responsible for producing, delivering, and advertising fast-moving consumer goods. The FMCG industry is India's fourth-largest economic sector, with domestic and personal care products accounting for half of all FMCG sales.
The packed food industry in India is expected to double to $70 billion by 2025. Food processing and single-brand retail have received 100 percent FDI approval, while multi-brand retail has received 51 percent approval. The Indian FMCG industry increased 9.4% in the January-March quarter of 2021, according to Nielsen, driven by consumption-driven growth and value increase from higher sales volumes, notably for basics.
Hindustan Unilever Limited (HUL)
HUL was founded in 1931 as Hindustan Vanaspati Manufacturing Co. and was renamed Hindustan Lever Limited in 1956 after a merger of constituent organizations. In June 2007, the firm was renamed Hindustan Unilever Limited. The stock gained 54.25 percent over three years, compared to 43.81 percent for the Nifty 100 index. Over three years, the stock returned 54.25 percent, while the Nifty FMCG provided investors a 27.06 percent return. It is a large-cap firm in the FMCG industry with a market capitalization of Rs 587,391.95 crore. Surf, Excel, Dove, Lux, Lifebuoy, Clinic Plus, Wheel, Sunsilk, Knorr, Axe, and other well-known brands are among the popular brands.
ITC is India's leading FMCG marketer, the clear market leader in the Indian Paperboard and Packaging industry, a globally recognized pioneer in farmer empowerment through its substantial Agri-Business, and India's leading hotel network. ITC Infotech, a wholly-owned subsidiary of ITC, is a global digital solutions specialist. The stock has returned -23.08 percent over the last three years, while the Nifty 100 has returned 43.81 percent. With a market value of Rs 250,423.44 crore, it is a Tobacco-related Large Cap company.
The margin improvement was assisted by lower raw material costs, particularly milk. Recent price hikes in several other basic commodities, such as sugar and palm oil, may, however, restore some pressure in the second quarter. Sales through the e-commerce sector are rapidly expanding. Nestle India Ltd., formed in 1959, is a large-cap company in the FMCG industry with a market valuation of Rs 167,715.14 crore.
Biscuits are the company's most well-known product. Biscuits, breads, and dairy products under the Britannia and Tiger brands are sold in India and over 60 countries across the world. The company with a 100-year history and yearly revenues of over Rs. 9000 crore. Britannia is one of India's most trusted food companies, producing popular brands like Good Day, Tiger, NutriChoice, Milk Bikis, and Marie Gold, which are household names in the country. In March 21, Britannia Industries reported a flat financial result. In the last three months, the score has dropped from 7 to -5. It is traded on the BSE under the symbol 500825, the NSE under the symbol BRITANNIA, and the ISIN is INE216A01030. Over three years, the stock returned 22.8 percent, compared to the Nifty FMCG, which returned 27.19 percent.
Marico had revenue of Rs 73 billion (USD 1 billion) in 2019-20 from sales in India and other selected rising Asian and African regions. In the sectors of hair care, skincare, edible oils, health foods, male grooming, fabric care, and hygiene, Marico has cultivated over 25 brands. Over the last three years, the company has maintained a respectable ROE of 29.28 percent. The company's promoters own 59.61 percent of the corporation. Over three years, the stock yielded 54.48 percent, while the Nifty FMCG yielded 27.19 percent.
Tata Consumer Products,
Tata Consumer Products, a subsidiary of the Tata Group, is a fast-moving consumer products corporation located in Mumbai, Maharashtra, India. It is the world's second-largest tea producer and distributor, as well as a major coffee grower. Tata Consumer Products Limited, formerly Tata Global Beverages Limited (TGBL), is a subsidiary of the Tata Group. Tata Consumer Products was founded in February 2020 when Tata Chemicals consumer products division joined with Tata Global Beverages Ltd. For the past three years, the company has grown its sales by 30.52 percent. Over three years, the stock returned 186.43 percent, while the Nifty FMCG provided investors a 27.19 percent return. The company has almost decreased its debt by Rs35 Crore.
Godrej Consumer Products
Godrej Consumer Products Limited (GCPL) is a Mumbai-based Indian consumer goods firm. GCPL has seven manufacturing plants in India, divided into four working clusters. Over the last three years, the company has maintained a respectable ROE of 27.50 percent. The company has been able to keep its typical operating margins at a healthy level.
7 Best FMCG Company Stocks To Invest In India 2021
|Company Name||Price in Rs||MARKET CAP in Rs||P/E||DIV. YIELD|
|Hindustan Unilever Limited||2,448.65||5,75,332.07 Cr.||72.33||1.65%|
|Nestle India||17,506.70||1,68,792.10 Cr||78.17||1.14%|
|Britannia Industries||3,670.05||88,399.87 Cr||50.23||1.69%|
|Tata Consumer Products||757.60||69,816.76 Cr||112.7||0.53%|
|Godrej Consumer Products||870.55||89,012.54 Cr||72.7||0.92%|
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