List of the best FMCG companies in India 2022: All our lives depend on FMCG (Fast Moving Consumer Goods) products that satisfy our basic needs. FMCG products are those that have a short shelf life that is produced in high volumes with low cost and are made for rapid consumption.
This industry includes household items, over-the-counter medicines, food, personal care items, stationery and consumer electronics, etc. The fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector and has created employment for more than three million people.
Today, we take a look at the top 6 FMCG companies in India that are responsible for keeping over 1.3 billion Indians on their feet every day. Keep Reading!
Top 6 FMCG companies in India 2022
1. Adani Wilmar
Market cap: Rs 93,056.99 Cr / PE : 115.78
Founded in 1999, Adani Wilmar is a joint venture between the Adani Group and Singaporean Wilmar Group. Out of all the companies on this list, Adani Wilmar is one of the newest entrants in the stock market listing only in 2022.
Adani Wilmar is one of the few FMCG food companies which cover all the essential kitchen commodities. Their products range from edible oils, wheat flour, rice, pulses, sugar etc. Their packaged food brands are sold under “Fortune”, “Jubilee” and “Golden Chef”. In addition one of their latest offerings i.e. soaps are sold under “Alife”. The company operates through 22 plants across 10 states in India.
However, despite being a new entrant the company has made the news several times for its big moves. The company recently crossed the 1 lakh crore market cap. In addition to this, the company has acquired companies like Kohinoor Rice, and Gangavaram Port and is also in advanced talks to acquire Ambuja Cements.
If we take a look at the company’s financials the revenues are particularly impressive. Despite being listed on the stock exchange for a few months the company almost dethroned HUL, a company 4 times bigger in terms of MCAP. The company made revenues to the tune of Rs. 52,361 cr. The net profit however suffered earning only Rs. 2022 cr compared to other companies on this list.
The company does not have high debt but its debt-equity currency stands at 0.34 which could increase considering its expansion plans. It’s ROE and ROCE aren’t the best, standing at 10.95% and% 19.65%. One positive aspect has been the company’s promoter holdings which stand at whopping 87.94% signifying strong promoter belief in the company.
The stock however comes at a rather expensive price with a PE exceeding 100 when the Industry PE stands at 36.6.
Market cap: Rs 530,455.47 Cr / PE : 60.55
HUL is one of India’s oldest FMCG companies. It is a subsidiary of Unilever, a British-dutch company. The company was established in 1933 and has headquarters in Mumbai. HUL has served over 2 billion customers for over 87 years.
HUL has over 35 brands across 20 categories such as soaps, detergents, skin care, cosmetics, tea, and toothpaste. The brand includes famous names like Surf, Excel, Dove, Lux, Lifebuoy, Clinic Plus, Wheel, Sunsilk, Knorr, Axe, etc.
In April 2020, HUL also completed its merger with GlaxoSmithKline Consumer Healthcare (GSKCH India) for Rs 3,045 Crores. Apart from Horlicks, brands such as Boost, Maltova, and Viva are part of GlaxoSmithKline Consumer which has now come under HUL’s umbrella.
3. ITC Limited
Market Cap: Rs 283,731.01 Cr/ PE : 19.17
ITC Ltd. has flourished in the Indian markets for over 110 years giving them a deep understanding of the Indian Consumer. The ITC is known to guarantee a certain standard in production and packaging. They have broad distribution channels in India. This has allowed them to penetrate into even the most rural areas through several retail shops.
Their products include Bingo, Sunfeast, Aashirvaad, Fiama Di Wills, Vivel, Savlon soaps and handwash, Papercraft, and Classmate. ITC has 77% monopoly in the Indian Cigarettes market share and offers brands like Wills Navy Cut, Gold Flake Kings, Silk Cut, India Kings, Bristol, Gold Flake Super Star, Gold Flake Premium Lights, Classic Menthol, etc. In FY2020, ITC made a net profit after tax of Rs 15,300 Crores.
4. Nestlé India
Market Cap: Rs 174,433.87 Cr / PE : 77.82
Nestle is a transnational food and beverage company headquartered in Switzerland. Globally the company has been around for more than 150 years. In India, Nestle dates back to 1912 when it began operating as Nestle Anglo-Swiss Condensed Milk Company. They cater to the nutritional and wellness requirements of Indian consumers.
Nestle sells a plethora of products including beverages, bottled water, milkshakes, breakfast cereals, instant foods, performance, health care nutrition, etc. A few of the 2000 brands they currently own are Nescafe, Maggi, Milky Bar, Kit Kat, Bar One, Milkmaid, Nestea, etc.
Further, Nestle Cerelac has an undisputed market share of 96.5% in infants 6 months and older as a supplement for breast milk, despite functioning in an open to all industry.
Quick Note: If you want to look into the financials and fundamentals of these companies, you can find it on our stock research and analysis portal here.
Market cap: Rs 83,076.68 Cr / PE : 55.04
Britannia Industries is one of the oldest food-producing companies in the country. It was established in 1892 in Kolkata with an initial investment of merely Rs. 295. Their products are available in more than 5 million retail outlets.
More than 50% of Indian households are proud users of their range of food items. The FMCG is known as the first Zero Trans Fat Business in the country. They have an extensive distribution network in India and 60 other countries.
Their products include Good Day, Tiger, Milk Bikis, Bourbon, Marie Gold, Cake, Cheese, Milk, and Yogurt. The company is the largest brand in the organized bread market.
Marketcap: Rs 66,091.62 Cr / PE : 55.35
Marico was established in 1990 in Mumbai. It began as a brand for coconut and refined edible oil and later expanded into various kinds of consumer goods. The majority of its success lies in its two brands ‘Saffola’ and ‘Parachute’. The company has come a long way in the segment despite being around for only 3 decades.
Safola which competes in the premium refined edible oil segment has maintained its market leadership with a share of 73%. ‘Parachute’ on the other hand holds a market share of 59%. These also form up to 90% of their income.
It is currently operating in 25 countries in the emerging markets of Asia and Africa. They maintain their innovation in manufacturing and packaging to preserve the tagline “Make a difference”.
Marico’s household brand includes Parachute, Saffola, Nihar, Livon, Set Wet, Mediker. Its global products include Parachute, Haircode, Caivil, Black Chic, Isoplus, Code 10, and X-men.
Financial Comparison – Top 6 FMCG companies in India
|Particulars||Adani Wilmar||Hindustan Unilever||ITC||Nestle India||Britannia||MARICO|
|Market Cap (Rs Cr)||83,985||530,455.47||283,731.01||174,433.87||83,076.68||66,091.62|
|Debt To Equity||0.34||0||0||0.02||0.60||0.11|
|Last 3 Yr Returns||---||24.22 %||-16.53 %||60.41 %||10.93 %||40.22 %|
|Last 5 Yr Returns||---||164.38 %||-16.18 %||193.27 %||113.76 %||87.81 %|
(Updated till May 2022 | Source: Trade Brains Portal)
With the ever-growing needs and constantly improving standards of living the FMCGs play an even larger role. In order to fulfil these requirements, there are several other FMCGs too that compete for a significant spot in this market. They include Colgate Palmolive, Parle Agro, P&G, The Godrej Group, Amul, Patanjali, Dabur, etc.
In this highly competitive environment, the FMCGs have managed to keep customers satisfied by reaching out to every nook and corner of the country making each and every FMCG an integral part of the economy.
Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
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