During the FY 2016, domestic Fast-moving consumer goods (FMCG) companies have performed significantly well vis-a-vis the multinational companies(MNC) in India, according to the just concluded study by ASSOCHAM-TechSci Research.
The combined overall revenue of selected eight MNCs during the Financial Year 16 registered a total of USD 9436.66 million, whereas the combined revenue of selected seven Indian FMCG is USD 11066.46 Million, reveals the joint study.
The highest profit after tax margin of leading Indian FMCG is maintained at 25.48 percent by ITC Ltd. as comparative to Procter & Gamble Hygiene & Health Care Ltd. among selected Leading MNC players in FMCG Sector in India, which maintained the highest profit after tax margin by 17.03 percent which is comparatively lower.
The study has observed performance analysis of selected Indian FMCG Companies that the ITC Ltd. is leading amongst others with its recorded 25.48 percent.
After Taxes Profit Margin (PAT) during the Financial Year, 2016; as its Profit After Taxes is USD 1514.57 Million against revenue of USD 5944.79 Million. While Britannia Industries Ltd. stands second among other selected ones in terms of generated revenue by USD 1222.75 Million during the FY 2016 and has registered growth in revenue by 10.76 percent as comparative to FY2015, however its After Taxes Profit Margin (PAT) is 9.43 percent which is comparatively lower than its peers in the sector.
The performance of Dabur India Ltd. is next to ITC Ltd. in terms of After Taxes Profit Margin (PAT) registered with 16.34 percent which is USD 144.54 Million against the revenue of USD 884.62 Million.In terms of After Taxes Profit Margin (PAT), the Godrej Consumer Products Ltd. is close to Dabur India Ltd. with 15.37 percent which is on the basis of USD113.80 Million of PAT against revenue of USD740.24 Million.
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The Marico Ltd. also performed closely with that of Godrej Consumer Products Ltd. as the percentage of PAT margin remained 14.19 percent which comes out on the basis of the disclosed figure of PAT USD107.98 Million against the USD761.14 Million of revenue. About the performance of Amul, although the company has revenue USD 743.69 Million, which is slight more than Godrej Consumer Products Ltd. but the PAT margin is least amongst others having just 0.32 percent. In case of Amul, the reason can be the fact of controlled prices and nature of milk and milk made products.
The Performance of Patanjali Ayurved has been unmatched and leaves behind all its competitors in the segment with record growth of 146.31percent in the revenue on Y-o-Y basis. As the Patanjali Ayurved has achieved the revenue of USD 769.23 Million during FY 2016 against just USD 312.31 Million during FY 2015.
After analyzing the performance of selected Multi-National Companies of FMCG Sector in India, the study has observed that the Hindustan Unilever Ltd. is leading with its revenue earned USD 4921.10 Million with 3.84percent Year over year ( Y-o-Y) growth in the revenue. But its PAT margin during the year is USD 628.06 Million i.e only 12.76 percent which is comparatively lower than its competitor. As data analysis shows that Procter & Gamble Hygiene and Health Care Ltd. is leading amongst others with its recorded 17.03percent After Taxes Profit Margin (PAT) during the Financial Year 2016 because its Profit After Taxes is USD 65.10 Million against revenue of USD 382.20Million.
Where the performance of Glaxosmithkline Consumer Healthcare Ltd. has recorded 15.94percent PAT margin for having its After Taxes Profit of USD105.68 Million against Revenue of USD 662.88Million, the Colgate-Palmolive (India ) Ltd. achieved 13.85 percent PAT Margin with its USD 88.69Million against revenue of USD 640.35Million.
Gillette India Ltd. achieved 10.19 percent PAT Margin for its just USD 32.77Million of PAT against USD 321.62 Million of revenue. The performance of Nestle India Ltd. has declined during the FY2016 by 17.04 percent in the revenue achieved upto USD1257.74 Million comparative to FY2015 when it was USD 1516.13 Million.
Hence the Overall PAT margin during the year remained only 6.89 percent. The logic behind the data decline of Nestle India Ltd. can be publicly known facts of post Maggy issue.
About the performance of PepsiCo India, there is 13.00 percent growth in the revenue during the FY16, when it has achieved USD1250.77 Million as Compared to USD 1106.88 Million during FY15 and thereby the company could manage to reduce the negative Profit After Taxes from USD 43.08 Million in FY15 to USD 27.23 Million during FY16 however, company could not make it possible to have satisfactory overall profit as there was negative PAT margin by 2.18 percent.