FAST MOVING INDIA AND ITS HIT GOODS

Desi brands have been holding their own against an MNC invasion. A candy, a drink from the ’80s, a balm for pain are a few select examples of Indian FMCG prowess...

Certain brands leave such a deep impression on minds of consumers that they have become synonymous with a service or a product. Google’s search, for example, has become a verb while Xerox — a company that makes photocopying machines — is synonymous with any kind of copying.

But such phenomenal success is not the exclusive preserve of foreign companies. India has several companies that overshadowed multinationals in their respective fields, even becoming household names. Hence, Nirma, the go-to detergent powder of the 1980s and Amrutanjan for pain relief. And then, there’s Rasna — the drink that was a must in every home in the ’80s. These FMCG products became household names because of quality and word-ofmouth publicity.

Many of these companies became the subject of lectures across business schools and essential learning for entrepreneurs who want to carve a niche for themselves in the fast growing FMCG segment — currently dominated by cash-rich multinational companies. Their continuing prosperity has been largely linked to India’s growing economy. Any increase in the earning power of individuals instantly boosts FMCG sales as consumers naturally seek better-quality products.

According to an extensive research report by Assocham-TechSci, India’s FMCG market is expected to more than double to $104 billion by 2020 from the current $49 billion. The sector is expected to grow at a compounded annual growth rate of 20.6 per cent.

There is almost nothing else in the world growing this quick. Food products form the leading segment, accounting for 43 per cent of the overall market, followed by personal care (22 per cent) and fabric care (12 per cent).

These three segments are expected to see intense competition from the global majors so it is extremely important for Indian companies to devise out-of-thebox ideas to fight the strengthening invasion.