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STRENGTHS: 1. Presence of established distribution networks in both rural and urban India.2. Low operational costs and lower labour costs.3. Availability of a wide range of raw material bases suitable for various
FMCG organizations , mainly food processing units and chemical units.4. Functioning of 30,000 ft Research & Innovation (R&I) centers at Kolkata
and Mumbai, facility have become fully operational. WEAKNESSES:
1. Lower investment scope in relevant technology and achieving economies of scale especially in small sectors
2. Low export levels.3. Extreme competition, leading to a significant rise in the marketing costs of
middle and small sized players of the industry.4. Infrastructure bottlenecks may hinder in certain cases
OPPORTUNITIES:1. Low rural penetration and high consumer goods spending2. Rising income levels, i.e. increase in purchasing power of consumers.3. Large domestic market – a population of over one billion.4. Export potential.5. High consumer goods spending6. Low penetration levels in rural market offers room for growth
THREATS:1. Removal of import restrictions resulting in there placement of domestic
brands.2. Rising crude oil, menthe oil and other raw materials costs threaten margins3. Slowdown in rural demand.4. Tax and regulatory structures.
FUTURE PLANS:
1. It includes putting greater emphasis on ayurveda to deliver innovative and effective products.
2. Indian companies were the major suppliers for the perfumes, the future will see multinational fragrance houses contributing for perfume development.
3. To widened the direct reach from around 600,000 outlets in FY13 to 625,000 in FY14 and target 800,000 in FY16.