Group Members:1. Komal Maheshwari2. Mayur Sadawarti3. Raghav BC4. Shibam kumar Gupta

FMCG Industry•The FMCG segment is the fourth largest sector in the Indian economy with a total market size in excess of US$ 33.4 billion.•Expected to grow at CAGR 14.7% during 2012-20, whereas rural FMCG at CAGR 17.7%•It accounted for 2.4% of GDP in the year 2013.•It has grown at annual average rate of 11% in the last decade.

Distinguishing features of

Indian FMCG Business

Design and Manufacturing

Low capital intensity

Technology

Third Party manufacturing

Marketing and Distribution

High Initial Launch Cost

Limited Mass Media Options

Huge Distribution

Network Competition

Rising per capita disposable incomeIncreasing discretionary

expenditure

Growing rural market Growing popularity of modern trade

Key Growth Factors for Future

Urban / semi-urban

customerUrban customer

semi-urban/rural customer rural customer

Retail stockist Kirana store

Semi urban retailer

Rural wholesaler

Carrying and forwarding agents in a certain state

Manufacturing facilities

Redistribution stockist

E-commerce

Rural retailer

Distribution Network

Logistics spending in Indian FMCG Sector (% of total sales)

Source: ETIC, Cygnus Research

The Procter & Gamble Company, also known as P&G, is an American multinational consumer goods company headquartered in downtown Cincinnati, Ohio, USA. Its products include pet foods, cleaning agents and personal care products.

FOUNDERSWilliam Procter, a candle maker, and James Gamble, a soap maker,

emigrated from England and Ireland respectively.

P&G History: A Legend of Firsts

1837 Brothers-in-law William Procter and James Gamble start a partnership, making and selling candles and soap in Cincinnati

1859 P&G sales reach $1 million1879 The inexpensive, but high-quality Ivory soap is introduced1924 P&G is one of the first to create a market research department to study consumer preferences and

buying habits1955 Crest, the first toothpaste with fluoride clinically proven to fight cavities, is introduced1961 Pampers is introduced and eventually replaces cloth diapers1980 Sales reach $10 billion2002 P&G develops Naturally feminine pads specifically to meet the needs of low-income women in Latin

America.2005 High Frequency Stores, Consisting of nearly 20 million stores across the world, FS represents a

particular opportunity in fast-growing low income markets.Today P&G operates in 80 countries worldwide, employing more than 100,000.

Has 13 billion dollar brands in its portfolio: Charmin, Tide, Pantene, Iams, Folgers, Crest, Olay, Always, Ariel, Bounty, Downy, Pringles, Pampers.

In 2012, P&G recorded $83.68 billion dollars in sales. Fortune magazine awarded P&G a top spot on its list of "Global Top

Companies for Leaders", and ranked the company at fifth place of the "World's Most Admired Companies" list.

Chief Executive Magazine named P&G the best overall company for leadership development in its list of the "40 Best Companies for Leaders

Comparative statement (BS)Comparative statement

2014-13 (% Change) 2013-12 (% Change) 2012-11 (% Change) 2011-2010 (% Change)

Total Share Capital 0.00% 0.00% 0.00% 0.00%

Equity Share Capital 0.00% 0.00% 0.00% 0.00%

Total Debt -26.88% 9.41% 5.37% 14.69%

Inventories -0.32% 28.86% 41.24% 20.07%

Total Current Assets 29.48% 13.32% 42.64% 146.38%

Current Liabilities 0.99% -6.20% 66.88% -11.22%

P&G Comparative P&L

2014-13 2013-12 2012-11 2011-10

Net Sales 22% 31% 29.00% 11%

Total Income 19% 31% 31.00% 13%

Raw Materials 10% 36% 38.00% 40%

Total Expenses 11% 32% 33.00% 27%

Operating Profit 68% 25% 22.00% -32%

Reported Net Profit49%

12%20.00%

-16%

Earning Per Share (Rs)49%

12%20.00%

-16%

Jun '10 Jun '11 Jun '12 Jun '13 Jun '141.9

2

2.1

2.2

2.3

2.4

2.5

Current Ratio

Current Ratio

Jun '10 Jun '11 Jun '12 Jun '13 Jun '140

5

10

15

20

25

Inventory Turnover Ratio

Inventory Turnover Ratio

Jun '10 Jun '11 Jun '12 Jun '13 Jun '140

0.0005

0.001

0.0015

0.002

0.0025

0.003

0.0035

0.004

0.0045

Debt Equity Ratio

Debt Equity Ratio

Jun '10 Jun '11 Jun '12 Jun '13 Jun '140

0.5

1

1.5

2

2.5

Asset Turnover Ratio

Asset Turnover Ratio

Jun '10 Jun '11 Jun '12 Jun '13 Jun '140.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

16.00

Average Collection Period

Average Collection Period

Jun '10 Jun '11 Jun '12 Jun '13 Jun '140

5

10

15

20

25

30

35

40

Debtors Turnover Ratio

Debtors Turnover Ratio