mining, consumer durables and fmcg

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The Mining industry in India is a major economic activity which contributes significantly to the economy of India.

The GDP contribution of the mining industry varies from 2.2% to 2.5% only but going by the GDP of the total industrial sector it contributes around 10% to 11%. Even mining done on small scale contributes 6% to the entire cost of mineral production.

Indian mining industry provides job opportunities to around 700,000 individuals.

India is the largest producer of sheet mica, the third largest producer of iron ore and the fifth largest producer of bauxite in the world. India's metal and mining industry was estimated to be Rs.50,144 crore.

Minerals Locations Mineral Belt

North Eastern Peninsular Belt

Chota Nagpur plateau and the Orissa plateau covering the states of Jharkhand, West Bengal and Orissa.

Coal, iron ore, manganese, mica, bauxite, copper, kyanite, chromite, beryl, apatite etc. This region possesses India's 100 percent Kyanite, 93 percent iron ore, 84 percent coal, 70 percent chromite, 70 percent mica.

Central Belt Chhattisgarh, Andhra Pradesh, Madhya Pradesh and Maharastra

Manganese, bauxite, uranium, limestone, marble, coal, gems, mica, graphite

Southern Belt Karnataka plateau and Tamil Nadu.

Ferrous minerals and bauxite. Low diversity.

South Western Belt Karnataka and Goa. Iron ore, garnet and clay

North Western Belt Rajasthan and Gujarat along the Aravali Range.

Non-ferrous minerals, uranium, mica, beryllium, aquamarine, petroleum, gypsum and emerald

With the continuous inflow of disposable income and the advancement of technology, the need for the varied consumer durable goods are increasing.

This in turn is leading to a strong competition among the different consumer durable brands available in the nation as well as the price gap between the same consumer goods of different companies are narrowing down. Day by day these goods are becoming cheaper.

The rural and urban market of consumer durables has been growing at a rate of around 15 % on an average.

India is likely to emerge as the world’s largest middle class consumer market with an aggregated consumer spend of nearly US$ 13 trillion by 2030, as per a report by Deloitte titled 'India matters: Winning in growth markets'.

Fuelled by rising incomes and growing affordability, the consumer durables market is expected to expand at a compound annual growth rate (CAGR) of 14.8 per cent to US$ 12.5 billion in FY 2015 from US$ 7.3 billion in FY 2012. Urban markets account for the major share (65 per cent) of total revenues in the Indian consumer durables sector. In rural markets, durables, such as refrigerators, and consumer electronic goods are likely to witness growing demand in the coming years.

Some of the top consumer durables brands in India are:

LG Nokia Philips Samsung Sony Whirlpool Godrej India Hitachi India Limited Sharp India Limited Tata

Consumer durables can be broadly categorized into the following 3 heads:

White Goods:White goods mainly include air conditioners, refrigerators, washing machines, audio equipments and speakers.

Brown Goods:This kind of consumer durables mostly include kitchen appliances like chimneys, electric fans, grinders, iron, microwave ovens, mixers and varied other cooking ranges.

Consumer Electronics: Some of the mostly used consumer electronic goods are DVD players, MP3 players, mobile telephones, telephones, VCD players etc.

What are FMCG goods?

FMCG goods are popularly known as consumer packaged goods. Items in this category include all consumables (other than groceries/pulses) people buy at regular intervals. The most common in the list are toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and household accessories and extends to certain electronic goods. These items are meant for daily of frequent consumption and have a high return.

The fast moving consumer goods (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. Nestlé 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

FMCG brands would need to focus on R&D and innovation as a means of growth. Companies that continue to do well would be the ones that have a culture that promotes using customer insights to create either the next generation of products or in some cases, new product categories.

One area that we see global and local FMCG brands investing more in is health and wellness. Health and wellness is a mega trend shaping consumer preferences and shopping habits and FMCG brands are listening. Leading global and Indian food and beverage brands have embraced this trend and are focused on creating new emerging brands in health and wellness.

Thank you