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Impact of Budget On FMCG Sector

The document summarizes the impact of the Indian budget on the fast moving consumer goods (FMCG) sector. It discusses several key proposals including an increase in excise duty on cigarettes of certain lengths by 15-25% which will negatively impact tobacco companies. The implementation of a nationwide goods and services tax by April 2016 is expected to streamline taxation and improve product movement, benefiting the entire FMCG sector. Maintaining allocations for employment generation should also help purchasing power and positively impact FMCG companies. The top companies in the Indian FMCG sector are also listed.

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Ashish Verma
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56 views8 pages

Impact of Budget On FMCG Sector

The document summarizes the impact of the Indian budget on the fast moving consumer goods (FMCG) sector. It discusses several key proposals including an increase in excise duty on cigarettes of certain lengths by 15-25% which will negatively impact tobacco companies. The implementation of a nationwide goods and services tax by April 2016 is expected to streamline taxation and improve product movement, benefiting the entire FMCG sector. Maintaining allocations for employment generation should also help purchasing power and positively impact FMCG companies. The top companies in the Indian FMCG sector are also listed.

Uploaded by

Ashish Verma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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IMPACT OF

BUDGET ON
FMCG
SECTOR
P R E S E N T E D BY A S H I S H K U M A R
VERMA

INTRODUCTION TO FMCG
SECTOR IN INDIA
FMCG segment is the fourth largest sector in the Indian
economy.
The market size of FMCG in India is estimated to grow
from US$ 30 billion in 2011 to US$ 74 billion in 2018.
Food products is the leading segment, accounting for 43
per cent of the overall market. Personal care (22 per
cent) and fabric care (12 per cent) come next in terms
of market share.
Growing awareness, easier access, and changing
lifestyles have been the key growth drivers for the
sector.

The top ten India FMCG brands


are:
1.Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestl India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and
Health Care
10. Marico Industries

TOP
COM
PANI
ES

B U D G ET
P R O P O SA L &
I T S I M PAC T

Proposal

Excise duty on cigarettes of length not


exceeding 65mm is being increased by
25% and for cigarettes of other lengths
is being increased by 15%.

Impact

Though the volume of less than 65mm


length is likely to be less than 15% , it is
likely
to
impact
the
companies
adversely.
The
weighted
average
increase in duty is likely to be in the
range of 18-20%.
This duty hike is likely to impact the
volume growth of the companies going
forward.

Companies
impacted

Negative: The industry was expecting


a lower increase in excise duty as
Interim budget had already increased
excise duty steeply.
Companies impacted are ITC, VST
industries, Godfrey Phillips.

Proposal

GST implementation likely by


April, 2016.

Impact

This is likely to streamline the


taxation across the country and
improve
mobilization
of
products.

Companies impacted

Positive for the entire FMCG


sector.

Proposal

The allocation to employment


generation has been maintained.

Impact

This is likely to improve the


purchasing power of consumers.

Companies impacted

Positve for entire FMCG sector.

THANK YOU

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