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  Q2 2007, Volume 2, Issue:12
   
  FMCG (Fast Moving Consumer Goods)
 

The fourth largest sector in Indian economy, this sector has an estimated market size in excess of $ 13.1 billion and is set to grow to $ 33.4 billion in 2015. Top 15 FMCG companies in India are showing double-digit percentage growth in sales and profits for the past few quarters.

Food:
A $6.1 billion industry with a CAGR of 9%: growth primarily driven by the huge uptake of packaged goods being consumed by the ballooning Indian middle class.

Automobiles:
The Indian auto industry, worth $ 34 billion in 2006, has grown at a CAGR of 14 % over the past five years. Indians bought over 9 million vehicles in 2005-06. 2 million cars are expected to be sold in India by 2010. From its present no 11 position, India is expected to move to seventh largest passenger car market in the world by 2016. India is the second largest two-wheeler market with a sale of six million two-wheelers.

White goods:
Estimated size $ 4.5 billion, predicted, steady growth of 10 to 12%

Luxury goods:
The estimated worth of the luxury goods and services market is over $400 million. Around 1.6 million households earn over $100,000 annually, and spend approximately $9000 on luxury items. The market for luxury watches, branded jewellery, expensive automobiles, and international travel are growing over 40% annually. American Express estimates the millionaire population in Indian to increase at 12.8% year on year, with combined wealth of $322 billion by 2009.

Credit cards:
According to India Brand Equity Foundation, the total number of debit and credit cards issued in India, as of end March 2006 is estimated to be around 47 million and 18 million respectively. Approximately $50 billion were withdrawn from ATM in 2005 through credit cards.

Home Mortgage:
20.5 million urban households went after housing loans, a huge jump from the just 2.6 million urban households in 1995 that could afford a home mortgage. This category is showing a CAGR of over 25%

Travel:
Fuelled by the low-cost airlines and the availability of a wide range of options in destination and accommodation, Indians are now spending 30% more on vacations than ever before. World Travel and Tourism Council (WTTC) estimates that by 2020, tourism in India could contribute $ 189.3 billion to India's GDP.

Real Estate:
The Indian real estate sector presently estimated at $12 billion is growing at over 30% annually. Stimulating the huge growth are factors like rapid urbanization, easy home finance, and big demand for space by large format shopping malls and other commercial establishments.

Knight Frank, the global real-estate consulting group has ranked India 5th in the list of 30 emerging retail markets and has predicted an impressive 20 per cent growth rate for the organized retail segment by 2010. With the Government allowing 100% foreign direct investment (FDI) under the 'automatic route' in 2006, big global names in the realty business are pumping in large investments. Like for example Morgan Stanley Real Estate, which has invested around $68 million in Mantri Developers Private Ltd, a Bangalore-based private real estate developer.

Dubai-based Emmar Properties, the largest listed real estate developer in the world, which has joined hands with the Delhi-based MGF Developments to announce India's biggest FDI in the realty sector amounting to over US$ 500 million in projects having capital outlay of US$ 4 billion.


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