Friday, January 16, 2009

FMCG Sector Indian Stocks.

What are Fast Moving Consumer Goods (FM CG)?Products which have a quick turnover and relatively low cost are known as FM CG.FM CG Products are those that get replaced with in a year.Examples of FM CG generally include a wide range of frequently purchased consumer products such as toiletries,soap,cosmetics,tooth cleaning products, shaving products and detergents as well as other non durables such as glass ware,bulbs,batteries,paper products and plastic goods.FM CG may also include pharmaceuticals, consumer electronics,packaged food products,soft drinks,tissue paper and chocolate bars.A sub-set of FM CG's are Fast Moving Consumer Electronics which include innovative electonic products such as mobile phones,MP3 players,digital cameras,GPS Systems and Lap tops.These are replaced more frequently than other electonic products.White goods in FMCG refer to household electronic items such as Refrigerators,T.V's and Music System etc.Most of the product categories like like jams,tooth paste,skincare,shampoos etc in India have low per capita consumption as well as low penetration level, but the potential for growth is huge.The top ten FMCG compnies in India are as follows 1) Hindustan Unilever Ltd 2)ITC (Indian Tobacco Company), 3)Nestele India 4)GGMMF (Amul) 5)Dabur India 6)Asian Paints India 7) Cadbury India 8)Britania Industries 9)Proctor & Gamble Hygene and Health Care 10)Marico Industries.These are leaders in thier respective produt sectors.Nestle and Amul are leaders in Milk Powder segment, HLL,ITC,Goderej,Britania are leaders in food segment Godrej and Reckit (Reckitt's Mortein) are leaders in household care category,HLL and P&G in shampoo category, Dabur in herbal category and Cadbury India in chocalate confectionary category.There are two sector indices for this categories 1)BSE FMCG
Index and 2)BSE HC Index (Health Care & Pharma).This is good segment of Indian Stocks to watch and own.

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