A joint study of industry body Associated Chambers of Commerce and Industry of India (Assocham) and TechSci Research, has said that Indian fast-moving consumer goods (FMCG) firms have performed considerably good vis-a-vis the multinational companies (MNC) in India during 2015-2016. According to the study, during the FY16, the combined overall revenue of selected eight MNCs registered a total of $9436.66 million, whereas selected seven Indian FMCG registered a total of $11066.46 Million.
The study has observed performance analysis of selected Indian FMCG companies, during 2015-16 the highest profit after tax (PAT) margin is recorded at 25.48% by ITC as comparative to Procter & Gamble Hygiene & Health Care among selected leading MNC players in FMCG sector in India, which recorded the highest PAT margin at 17.03%. As per the joint study, Britannia Industries stood second among firms in terms of revenue of $1,222.75 million during 2015-16 and has registered revenue growth of 10.76% as compared to 2014-15. However, its PAT margin stood at 9.43%, which is comparatively lower than its peers in the sector.
The report also noted that the performance of Dabur India is next to ITC in terms of PAT registered at 16.34%, followed by Godrej Consumer Products at 15.37%. About the performance of Amul, although the company has revenue $743.69 million, which is slightly more than Godrej Consumer Products, its PAT margin is least amongst others at just 0.32%. In case of Amul, the reason can be the fact of controlled prices and nature of milk and milk-made products.
After analyzing the performance of selected multinational companies of FMCG sector in India, the study has stated that Hindustan Unilever is leading with its revenue of $4,921.10 million with 3.84% year-on-year growth in the revenue. However, the PAT margin of the company during the year is $628.06 million or 12.76%, which is comparatively lower than its competitor.