Indian FMCG firms outpace MNCs in growth, revenue: ASSOCHAM-TechSci study

The combined overall revenue of selected eight MNCs during the FY 16 registered a total of $9436.66 million, whereas the combined revenue of selected seven Indian FMCG is $11066.46 Million, reveals the joint study.

The highest profit after tax margin of leading Indian FMCG is maintained at 25.48% by ITC Ltd. as comparative to Procter & Gamble Hygiene & Health Care Ltd. among selected Leading MNC players in FMCG Sector in India, which maintained the highest profit after tax margin by 17.03% which is comparatively lower.

The study has observed performance analysis of selected Indian FMCG Companies that the ITC Ltd. is leading amongst others with its recorded 25.48% After Taxes Profit Margin (PAT) during the Financial Year, 2016; as its Profit After Taxes is $ 1514.57 Million against revenue of $ 5944.79 Million. While Britannia Industries Ltd. stands second among other selected ones in terms of generated revenue by $1222.75 Million during the FY 2016 and has registered growth in revenue by 10.76% as comparative to FY2015, however its After Taxes Profit Margin (PAT)  is 9.43% which is comparatively lower than its peers in the sector.

The performance of Dabur India Ltd. is next to ITC Ltd. in terms of After Taxes Profit Margin (PAT) registered with 16.34% which is $ 144.54 Million against the revenue of $884.62 Million.In terms of After Taxes Profit Margin (PAT), the Godrej Consumer Products Ltd. is close to Dabur India Ltd. with 15.37% which is on the basis of $113.80 Million of PAT against revenue of $740.24 Million.

The Marico Ltd. also performed closely with that of Godrej Consumer Products Ltd. as the percentage of PAT margin remained 14.19% which comes out on the basis of the disclosed figure of PAT $107.98 Million against the $761.14 Million of revenue. About the performance of Amul, although the company has revenue $743.69 Million, which is slight more than Godrej Consumer Products Ltd. but the PAT margin is least amongst others having just 0.32%. In case of Amul, the reason can be the fact of controlled prices and nature of milk and milk made products.

The Performance of Patanjali Ayurved has been unmatched and leaves behind all its competitors in the segment with record growth of 146.31% in the revenue on Y-o-Y basis. As the Patanjali Ayurved has achieved the revenue of $769.23 Million during FY 2016 against just $ 312.31 Million during FY 2015.

After analyzing the performance of selected Multi-National Companies of FMCG Sector in India, the study has observed that the Hindustan Unilever Ltd. is leading with its revenue earned $4921.10 Million with 3.84% Y-o-Y growth in the revenue. But its PAT margin during the year is $628.06 Million i.e only 12.76% which is comparatively lower than its competitor.

As data analysis shows that Procter & Gamble Hygiene & Health Care Ltd. is leading amongst others with its recorded 17.03% After Taxes Profit Margin (PAT) during the Financial Year 2016 because its Profit After Taxes is $ 65.10 Million against revenue of $ 382.20Million.

Where the performance of Glaxosmithkline Consumer Healthcare Ltd. has recorded 15.94% PAT margin for having its After Taxes Profit of $105.68 Million against Revenue of $662.88Million, the Colgate-Palmolive (India ) Ltd. achieved 13.85% PAT Margin with its $88.69Million against revenue of $640.35Million.

Gillette India Ltd. achieved 10.19% PAT Margin for its just $32.77Million of PAT against $321.62 Million of revenue.

The performance of Nestle India Ltd. has declined during the FY2016 by 17.04% in the revenue achieved upto $1257.74 Million comparative to FY2015 when it was  $1516.13 Million.

Hence the Overall PAT margin during the year remained only 6.89%. The logic behind the data decline of Nestle India Ltd. can be publicly known facts of post Maggy issue.

About the performance of PepsiCo India, there is 13.00% growth in the revenue during the FY16, when it has achieved $1250.77 Million as Compared to $1106.88 Million during FY15 and thereby the company could manage to reduce the negative Profit After Taxes from $43.08 Million in FY15 to $ 27.23 Million  during  FY16  however, company could not make it possible to have satisfactory overall profit as there was negative PAT margin by 2.18%.