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Nirma

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INDUSTRY PROFILE
Fast Moving Consumer Goods (FMCG) goods are all consumable items (other than groceries/pulses) that one needs to buy at regular intervals. These are items which are used daily, and so have a quick rate of consumption, and a high return. FMCG can broadly be categorized into three segments which are:
1. Household items as soaps, detergents, household accessories, etc,
2. Personal care items as shampoos, toothpaste, shaving products, etc and finally
3. Food and Beverages as snacks, processed foods, tea, coffee, edible oils, soft drinks etc.
Global leaders in the FMCG segment are Nestlé, ITC, Hindustan Unilever Limited, Reckitt Benckiser, Unilever, Procter & Gamble, Cadbury India Coca-Cola, Carlsberg, Kleenex, General Mills, Pepsi, Gillette, Nirma etc.
Strengths:
1. Low operational costs
2. Presence of established distribution networks in both urban and rural areas
3. Presence of well-known brands in FMCG sector
Opportunities:
1. Untapped rural market
2. 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 spending
Weaknesses:
1. Lowers cope of investing in technology and achieving economies of scale, especially in small sectors
2. Low exports levels
3."Me-too" products, which illegally mimic the labels of the established brands. These products narrow the scope of FMCG products in rural and semi-urban market.
Threats:
1. Removal of import restrictions resulting in replacing of domestic brands
2. Slow down in rural demand
3. Tax and regulatory structure
COMPANY PROFILE

NIRMA Date of Establishment | 1969 | Market Capitalization | 4,068 cr. | Corporate Address | Nirma limited
Nirma House ,Ashram Road ,Ahmadabad – 380 009
Gujarat – India. | | Management Details | Chairperson – Dr. Karsanbhai K.

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