INDUSTRY ANALYSIS

CHARU JINDAL
80012100156
H030
DIVISION-A
(TEAM 5)
 EXECUTIVE SUMMARY

The sector known as "Fast-Moving Consumer Goods" (FMCG) is the industry that makes the most
significant contribution to the Indian economy. This sector of Indian economy gives employment to
more than 3 million individuals which represents for around 5% of the total factory employment in the
nation. These items are used on a regular basis by people of every social class, financial bracket, age
group, and other demographics in the society regardless of these factors. The fast-moving consumer
goods (FMCG) sector is more lucrative due to low levels of market penetration, a well-established
distribution network, low operating costs, lower consumption on a per capita basis, a large consumer
base, and simple manufacturing processes for the majority of products, which result in relatively low
capital investments.
The purpose of this study is to present a concise summary of the industry as well as conduct research on
it. The data for the study came from secondary sources, such as theses, corporate websites, papers,
books, and journals. The study was based on these secondary sources.
The report covers a variety of aspects of the industry, such as its history and evolution, the growth
drivers of the industry, the strategies that various organisations have adopted to excel, and the
challenges that these organisations face. Additionally, the strategic analysis of the FMCG industry
discusses the fundamental frameworks of the respective FMCG industry, and this analysis assists the
respective industry in overcoming future challenges. In today's world, fast-moving consumer items have
developed into an essential component of everyday living. This industry is not susceptible to economic
downturns and has been responsible for the creation of a significant number of employment
opportunities in India; thus, it has become one of the primary supports for the country's economy.
 INTRODUCTION

The fast-moving consumer goods (FMCG) business is the fourth-largest sector in India, and sales of
domestic and personal care products account for fifty percent of FMCG sales in the country. The most
important growth factors for the industry have been changes in lifestyle, increased accessibility, and
increased levels of awareness. The urban segment is the most important contributor to the total income
generated by the fast-moving consumer goods (FMCG) sector in India. This segment accounts for
around 55% of the total revenue. Despite this, over the course of the past several years, the FMCG
market in rural India has developed at a more rapid pace when compared to urban India. The semi-urban
and rural markets are expanding at a rapid pace, and fast-moving consumer goods (FMCG) account for
fifty percent of all spending in rural areas.

FMCG Category and products:

Category Products

Household Care Fabric wash (laundry soaps and synthetic

detergents); household cleaners (dish/utensil
cleaners, floor cleaners, toilet cleaners, air
fresheners, insecticides and mosquito
repellents, metal polish and furniture polish).

Food and Beverages Health beverages; soft drinks; staples/cereals;

bakery products (biscuits, bread, cakes);
snack food; chocolates; ice cream; tea; coffee;
soft drinks; processed fruits, vegetables; dairy
products; bottled water; branded flour;
branded rice; branded sugar; juices etc.
 Personal Care Oral care, hair care, skin care, personal wash
(soaps); cosmetics and toiletries; deodorants;
perfumes; feminine hygiene; paper products.

MARKET SIZE

It is projected that the retail industry in India would increase to US$ 1.1 trillion by the year 2020, up
from US$ 840 billion in 2017. Modern trade is anticipated to expand at a rate of 20-25% per annum,
which is likely to improve the income of FMCG firms.
From a projected value of US$ 110 billion in 2020, the fast-moving consumer goods (FMCG) industry
in India is anticipated to see a compound annual growth rate (CAGR) of 14.9% between now and 2025.
Despite statewide lockdowns, the fast-moving consumer goods (FMCG) business in India reached a 9-
year high growth rate of 16% in CY21. This increase was backed by consumption-led growth and value
expansion from higher product pricing, notably for staples.
It is anticipated that the market for processed foods in India would grow to 470 billion US dollars by the
year 2025, up from 263 billion US dollars in 2019-20.

INVESTMENTS

This will boost employment, supply chain, and high visibility for FMCG brands across organised retail
markets, which will in turn boost consumer spending and encourage more product launches. The
government has allowed 100% Foreign Direct Investment (FDI) in food processing and single-brand
retail, but only 51% in multi-brand retail.

From April 2000 to March 2022, the industry saw a robust inflow of foreign direct investment (FDI) of
US$20.11 billion.
The following is a list of some of the most recent innovations in the FMCG sector:
PepsiCo India made the announcement in June 2022 that it planned to make an investment of Rs. 186
crore (US$ 23.84 million) in order to expand its largest greenfield foods manufacturing plant, which is
located in Kosi Kalan, Mathura, in the state of Uttar Pradesh, and which manufactures the popular Lay's
potato chips.
In April of 2022, Dabur India made public its intention to include a fleet of one hundred electric
vehicles into its supply chain in order to complete the final mile of product delivery.
Emami completed the purchase of Dermicool from Reckitt in March 2022 for a price of Rs. 432 crore
(US$ 55.37 million).

In February 2022, Dabur India, struck an exclusive relationship with Indian Oil, which would offer
Dabur's goods direct access to over 140 million Indane LPG user households across India. This deal was
announced in the month of February.
Dabur India met their target of collecting, processing, and recycling about 22,000MT of post-consumer
plastic three months ahead of schedule and accomplished this objective in February 2022.
Marico Ltd. made the announcement in February 2022 that the company wants to achieve net-zero
emissions in its global activities by the year 2040.

Tata Consumer Products (TCPL) signed formal agreements to buy 100% of the equity shares of Tata
SmartFoodz Limited (TSFL) from Tata Industries Limited in November 2021. The purchase price was a
cash consideration of Rs. 395 crore, which is equivalent to US$ 53.13 million. This action was
consistent with the strategic goal that TCPL has set for itself, which is to grow into value-added areas.
Unilever Plc and CVC Capital Partners reached an agreement in November 2021 to sell Unilever Plc's
worldwide tea business to CVC Capital Partners for EUR 4.5 billion (US$ 5.1 billion). Ekaterra, the
company that is now for sale, is home to a portfolio of 34 different tea brands, some of which include
Lipton, PG Tips, Pukka Herbs, and TAZO.
McDonald's India entered into a partnership with an FMCG company called ITC in November 2021
with the intention of including a differentiated fruit beverage called B Natural in its Happy Meal. This
beverage will be offered at all McDonald's restaurants in South and West India and will primarily target
children between the ages of 3 and 12 years old.
In October of 2021, Procter & Gamble made public their intention to invest Rs. 500 crore (about US$
66.8 million) in the rural areas of India.
In September 2021, Vahdam India, an Indian tea brand, raised Rs. 174 crore (US$ 24 million) as part of
its Series D round, which was led by IIFL AMC's Private Equity Fund. In the same month, RP-Sanjiv
Goenka Group entered the personal-care segment by launching skin and haircare products, with the goal
of reaching a revenue of Rs. 400-500 crore (US$ 53.84-67.30 million) in the next 4-5 years
Apnaklub is a B2B wholesale platform for consumer products that is situated in Bengaluru. In August
2021, it received US$ 3.5 million in funding from Sequoia Capital India's Surge as part of a seed round,
bringing the total amount of funding to US$ 5 million.

During the fourth quarter of the fiscal year 2021, the proportion of total FMCG sales attributable to e-
commerce activity was as follows: 8% for Marico Ltd., 6% for Hindustan Unilever Ltd., 5% for Dabur
India, 5% for ITC, and 4% for Godrej Consumer Products Ltd.
The rural market had a gain of 14.6% in the same quarter, while the metro market saw positive growth
following two consecutive quarters of growth. During the period of 2015–20, the annual compound
growth rate for final consumer spending was 5.2%.
After falling by more than 9.3% in 2020 as a result of the pandemic's impact on the economy, Fitch
Solutions projects that real household expenditure will climb by 9.1% YoY in 2021. This comes after
spending fell by more than 9.3% in 2020.
According to CRISIL Ratings, the revenue growth of the FMCG industry would more than double from
5% to 6% in the fiscal year 21 to 10% to 12% in the fiscal year 22.
 EXPANDING OF THE FMCG SECTOR IN INDIA

The fast-moving consumer goods (FMCG) sector in India provides domestic and foreign competitors
with an equal playing field. The urban market is generally more receptive to both domestic and foreign
brands, whereas the rural market is frequently controlled by regional and local manufacturers. It is
anticipated that the Consumer Market, particularly the Fast Moving Consumer Goods (FMCG) sector in
rural and semi-urban India would reach the $20 billion mark by the year 2018, and the $100 billion
mark by the year 2025. (AC Nielsen survey, 2011). In rural and semi-urban areas of India, some of the
most popular consumer products, such as fruit drinks, shampoos, and biscuits, are among the most
purchased things and will continue to be among the most purchased items in these areas. In addition, it
was discovered that the growth of the FMCG industry in urban India climbed 3.2 times between the
years 2000 and 2010, while the growth of the sector in rural India increased 3.5 times. The average
income in India is projected to increase by a factor of three over the next two decades, and the country
is on track to become the fifth largest consumer market in the world by the year 2025. Companies like
Marico Ltd. and Nestle India Ltd., which dominate their respective main categories, have seen their
market shares increase and have beaten their competitors in the FMCG industry, according to the
movements of their respective market shares. This has also been made easier by the fact that there is
very little competition in each of these categories. Single product leaders like Britannia Industries Ltd.
and Colgate Palmolive India Ltd. have also seen success in their respective categories, thanks to
innovations and solid distribution, respectively. Strong companies in the economy category have also
shown market share improvement, with reinvigorated development in semi-urban and rural regions.
Examples of these players are Godrej Consumer Products Ltd. in the soaps industry and Dabur in the
toothpastes industry. In several product categories, both the penetration level and the per capita
consumption rate are quite low. in comparison to the typical standards seen across the world, which
reflect the untapped market potential. The burgeoning population in India, particularly in the middle
class and the rural areas, provides a massive opportunity that has not yet been fully exploited by FMCG
companies. Consumer "upgrading" in more established product categories, such as processed and
packaged food, mouth wash, and other similar items, may also contribute to growth in these markets.
The presence of foreign players is a defining characteristic of the food, beverage, and tobacco (FMCG)
market.
by way of their subsidiaries (HLL, P&G, and Nestle), which guarantees the introduction of novel
products to the market from the portfolios of their respective parents. The fast-moving consumer goods
(FMCG) market in India's rural areas is on the cusp of achieving significant growth across the nation.
The majority of the fast-moving consumer goods (FMCG) sector in rural India is unorganised, and it is
mainly controlled by small-time sellers. Only metropolitan regions in India are included in the
organised food, beverage, and consumer goods industry. Agriculture is the primary source of income in
most parts of rural India, either directly or indirectly. In addition, about 68 percent of India's population
calls one of the country's approximately 6,000,00 villages home. The FMCG business in India's rural
areas has significant opportunities for expansion. The expansion of the rural FMCG market in India
would be helped along by improvements in rural infrastructure, including as roads, telecommunications,
and electrical networks, as well as supply chains and transportation systems. The FMCG industry,
which includes the food and beverage sector, the health care sector, and the personal care sector, has
significant development opportunities. At the moment, the consumption of fast-moving consumer goods
in rural India stands for 34% of the total, but it accounts for more than 40% of the consumption of
important FMCG categories such as personal care, hot drinks, and fabric care.
ITC is one of the most successful firms in India's private sector and a diverse conglomerate with
operations across a variety of industries, including fast-moving consumer goods, hotels, paperboards
and packaging, agricultural industry, and information technology. With a total gross sales value of
90,104 crores and a total net profit of 15,058 crores, the Company is widely recognised as being among
the most valuable commercial firms in India (as on 31.03.2022). According to the findings of a poll that
was carried out by Fortune India in collaboration with Hay Group, ITC was found to be the most
admired corporation in India. ITC is the leading FMCG marketer in the country, the undisputed market
leader in the Indian Paperboard and Packaging industry, a globally recognised pioneer in farmer
empowerment through its extensive Agri Business, and the most prominent hotel chain in India that is a
pioneer in 'Responsible Luxury.' ITC Infotech is a leading provider of specialised digital solutions on a
worldwide scale. It is a completely owned subsidiary of ITC.

VISION
Sustain ITC's position as one of India's most valuable corporations through world class
performance, creating growing value for the Indian economy and the Company's stakeholders

MISSION
To enhance the wealth generating capability of the enterprise in a globalizing environment,
delivering superior and sustainable stakeholder value.
 SWOT ANALYSIS

STRENGTH
● Extremely strong Brand presence in online as well as offline marketing
● Strong research and development department which helps in forming consumer centric
products exported over 90 countries.
● Annual revenue- Rs 56,306.09 crore
● Have brands like Gold flake,classmate sunfeast, Bingo etc who are market leaders in their
segment.
● ITC has brought in initiatives like E-Choupal, Choupal Pradarshan Khet (CPK) that
helped to improve its corporate image from a traditional tobacco manufacturer.
● ITC has a large and competent management team. Clear brand image, outstanding
promotional goods,Diversified range of products and services, including FMCG, hotel
chains, paper & packaging, and agribusiness.

WEAKNESS
● High Proportion of Tobacco Product Revenues
● ITC has many tobacco products in its portfolio that has an impact on its corporate image.
● The increase in the Tobacco Tax has an effect on revenue: due to the rise in the tax on
tobacco products, rates and, subsequently, profits are affected.
● Low market share in the hotel Industry.

OPPORTUNITIES
● ITC will try to increase its product range and broaden its non-tobacco FMCG business
and thus improve its revenue base.
● ITC can tap into rising buying power and changing customers’ lifestyles in India. It will
help to raise sales for all of its companies.
● ITC should use its distribution channel in the Personal Hygiene and Food Processing
Industry to capitalize on the growth of categories and thus increase revenue.
 ● The rising rural sector in India and other developing nations are generating enormous
opportunities to boost the company’s bottom line

THREAT
● ITC is facing intense competition in its FMCG market from major MNCs such as HUL
and P&G and Indian FMCGs such as Patanjali and Dabur. It limits the market share of
the ITC.
● Regulations and Increased Taxation in Cigarette Business: The Tobacco and Cigarette
Industry in India continues to be regulated by strict government regulations and the tax
system.
● Intense and increasing competition among other FMCG companies and hotel chains.
● There has been an increase in health awareness, which has resulted in a decrease in the
demand for tobacco products in India. Anti-smoking programs throughout the country
also have an effect
 ANSOFF MATRIX

MARKET PENETRATION

● The idea of marketing existing items in current markets is known as market penetration.
● Numerous discount programmes for its goods to entice customers to buy and consume
more of them.
● There are also augmented deals available -aids in introducing a different product to a user
of an ITC product.
● Has lessened competitiveness-Improvement in terms of ingredients, packaging, and taste.

MARKET DEVELOPMENT

● Market development is the practice of a company promoting its current products in new
markets. ITC was first introduced in India. But it did so by geographically extending both
within the nation and into neighboring countries.
● ITC has its presence in around 90 countries such as the US, Canada, Australia and New
Zealand, the UK, Germany, Netherlands, Italy, Sweden, UAE, Saudi Arabia with its
FMCG demand increasing outside India during the Covid scenario.
● Offering package alternatives with different sizes is another tactic the business does to
access new markets. The purchasing power of customers varies among markets, and not
all consumers can afford to buy large-size packaging. As a result, the business provides
packaging in a range of sizes.

PRODUCT DEVELOPMENT

● Product development is the marketing of new items in an existing market.

 ● ITC's initial tactic in this area is the introduction of new goods
● The business also strives to make its other items better. These relate to functionality,
effectiveness, packaging, and other factors.
● The company's research and development team is committed to creating new goods based
on market trends and consumer demands

DIVERSIFICATION

● The introduction of new items into new markets is referred to as diversification.

● ITC has already expanded into a number of related and unconnected businesses because
it is a conglomerate.
● The business still has the opportunity to expand its diversification into further industries
that it has not yet entered. Sports, consumer electronics, industrial machinery, cellphones,
information technology, and so forth are a few of these.
● These tactics will aid in strengthening the company's control over its supply chain. It can
also open retail locations in countries like India. Although hazardous, diversification is an
effective approach for ITC.
 PORTER’s 5 FORCES MODEL

Bargaining power of suppliers (Low)

ITC consumer products face low supplier power as it deals in huge volumes of goods and has
direct access to its distribution network. Due to constant pressure of taxes on tobacco, ITC has
created a separate division for distribution. Earlier distribution was a part of the firm's cigarette
division. ITC‘s innovation e-choupal also helped the firm in a way to have direct access to
products and faster delivery.

Bargaining power of buyer (Low)

Bargaining power of the buyer is low as the nature of the product is addictive. Prices are already
consumer centric different products available in the market as well as new innovative products
getting launched by ITC as well.

Threat from new entrants (Low)

● The FMCG sector is already dominated by brands like HUL, P&G, Britannia, Nestle,
Patanjali and ITC. Also because the capital requirement in this sector is high.
● Further, these companies have maintained a direct and strong control over its distribution
network.which makes it difficult for the new player to invest in this sector.
One of the many reasons is also product differentiation as this company has already launched a
variety of products and its variants in different price segments.
Threat of substitutes (Low)

● The threat of substitutes were comparatively low as ITC had a strong consumer base and
brand power. Its competitor Godfrey Philips prices were strategically kept low to capture
market share of gold flake. In order to fight this, ITC launched a similar variant which
was cheaper and smaller in size.
● ITC‘s diversification strategy has further helped the firm in keeping its hold over market
share.ITC has launched 20 flavors of bingo which was comparatively huge in number
than its competitors Lays and Frito Lays. It also launched new flavors for its yippee
noodles which is giving tough competition to Nestlé‘s Maggi.

Competitive rivalry (High):

● There is a tough competition between established brands like HUL, Parle, Nestle etc.
over price.
● Every industry indulging in product differentiation is providing customers with numerous
varieties to switch to other products. Therefore, price sensitivity plays a major in
increasing rivalry between competitors in this sector.
 PROMOTION AND ADVERTISING STRATEGY

● ITC designs its promotion strategy keeping in mind its brand proposition and its target
audience.
● It promotes its product through Social media, print and radio till now.
● Different brands have different brand ambassadors- Classmate by Yuvraj Singh and Soha
Ali Khan; Saina Nehwal endorsed Savlon; Shahrukh Khan endorsing the entire range of
snacks under the umbrella brand of Sunfeast.
● ITC has various promotional discounts as well as combo packages to promote its
products during the festive seasons.
● ITC has many campaign properties under its name, the recent one being #enjoylearning.
● ITC is trying to grow its online presence since Covid and has invested a lot in its digital
presence through different digital short term campaigns for different segments.
 HR AND LEARNING AND DEVELOPMENT PRACTICES

● ITC's Learning & Development initiatives include core programmes which includes
dimensions of Leadership, Capability Enhancement and Skill(s) Development along with
customized programmes that address diverse capability-building needs at various levels
of the organization.
● These programmes cover not just functional competencies but behavioral inputs as well,
to ensure comprehensive development of our human resources. Focused programmes
aimed at ensuring meaningful induction of talent into the organization.
● Initiatives to address current and future capability requirements of the organization.
● Platforms to understand what the future holds for us in terms of technology and process
advancement and development inputs to enhance managerial and leadership capability of
our resources are the mainstay of our Learning & Development agenda.
 ITC'S CORPORATE STRATEGIES

● Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organizational capability with opportunities in domestic and export markets.
● Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
● Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
● Ensure that each of its businesses is world class and internationally competitive.
● Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities residing in ITC's various businesses.
● Create distributed leadership within the organization by nurturing talented and focused
top management teams for each of the businesses.
● Continuously strengthen and refine Corporate Governance processes and systems to
catalyze the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
 FINANCIAL ANALYSIS

LIQUIDITY RATIO: A liquidity ratio is a type of financial ratio used to determine a company’s
ability to pay its short-term debt obligations. A ratio of 1 means that a company can exactly pay off all
its current liabilities with its current assets. A ratio of less than 1 would imply that a company is not able
to satisfy its current liabilities. A ratio greater than 1 would imply that a company is able to satisfy its
current bills. In fact, a ratio of 2.0 means that a company can cover its current liabilities two times over.
Current Ratio = Current Assets / Current Liabilities Quick Ratio = (Cash + Accounts Receivables +
Marketable Securities) / Current Liabilities
Inference: We could see from the above table that the current ratio and the quick ratio has reduced after
2020 but still stands above 1. This shows that the company is still capable of satisfying its current bills.

MARCH 22 MARCH 21 MARCH 20 MARCH 19

CURRENT RATIO 2.7 3.13 4.02 3.07
QUICK RATIO 1.82 2.2 3.13 2.28

PROFITABILITY RATIO: Profitability ratios are a class of financial metrics that are used to assess a
business's ability to generate earnings relative to its revenue, operating cost, balance sheet assets,
or shareholder’s equity over time, using data from a specific point in time. Higher ratio results are often
more favorable. OPERATING PROFIT MARGIN: The earnings before Interest Tax Depreciation &
Amortization (EBITDA) margin indicates the efficiency of the management. It tells us how efficient the
company’s operating model is. It tells us how profitable the company is at operating level.
Inference: We could see that over the past 4 years the operating profit margin grew constantly from
2020 We could infer that the operating model of the company is efficient and is constantly growing
after Covid.
 MARCH 22 MARCH 21 MARCH 20 MARCH 19
OPERATING PROFIT MARGIN 14.18 14.11 9.78 18.19

NET PROFIT MARGIN:

The net profit margin, or simply net margin, measures how much net income or profit is generated as a
percentage of revenue.
Net profit margin is typically expressed as a percentage but can also be represented in decimal form.
Net profit margin is one of the most important indicators of a company's overall financial health.

Inference:
From the above table we could see the net profit margin grew from 2019 to 2021 followed by a dip in
the year 2021 and 22
The company diversified its product portfolio, the result of this diversification can be seen in the net
profit margin.

MARCH 22 MARCH 21 MARCH 20 MARCH 19

NET PROFIT MARGIN: 26.72 28.65 33.17 27.70
RETURN ON EQUITY:
Return on equity (ROE) is a measure of financial performance calculated by dividing net
income by shareholders' equity.
ROE is a gauge of a corporation's profitability and how efficiently it generates those profits.
The higher the ROE, the better a company is at converting its equity financing into profits.

Inference:
From the above data we could see that ROE constantly grew from 2019 to 2022.
It shows the stability of the company how easily and efficiently the company is generating
the profit.

MARCH 22 MARCH 21 MARCH 20 MARCH 19

RETURN ON EQUITY: 24.52 22.08 23.63 21.50

RETURN ON CAPITAL EMPLOYED (ROCE):

Return on capital employed (ROCE) is a financial ratio that can be used to assess a
company's profitability and capital efficiency.
In other words, this ratio can help to understand how well a company is generating profits
from its capital as it is put to use.
The ROCE ratio is one of several profitability ratios financial managers, stakeholders, and
potential investors may use when analyzing a company for investment.

Inference:
From the above data we could see that ROCE is constantly growing from 2020 to 2022.
We could see that the company is constantly generating profit from the capital it invested this
again shows the diversification of the company into new products

MARCH 22 MARCH 21 MARCH 20 MARCH 19

(ROCE) 31.23 28.02 29.26 30.70
EPS
Earnings per share (EPS) is calculated as a company's profit divided by the outstanding
shares of its common stock. The resulting number serves as an indicator of a company's
profitability. The higher a company's EPS, the more profitable it is considered to be.

MARCH 22 MARCH 21 MARCH 20 MARCH 19

EPS 12.22 10.59 12.33 10.19

Inference: As we can see, that EPS dropped after 2020 during the covid times to 10.59 and
picked up again in 2022.

WORKING CAPITAL RATIO:

The working capital ratio is the ratio that helps in assessing the financial performance and the
health of the company, where the ratio of less than 1 indicates the probability of financial or
liquidity problems in the future to the company.

a) INVENTORY RATIO:
It helps the company know how many times a certain company has to replace or sell the stock
within a time frame.

MARCH 22 MARCH 21 MARCH 20 MARCH 19

Working Capital Ratio 6.14 5.54 5.99 6.18

Inference: We can see that the ratio is much higher than 1. This show that the company is
financially sustainable in future and has a provision of inventory as well.

b) DEBTORS TURNOVER RATIO:

Debtors velocity indicates the number of times the debtors are turned over during a year.
Generally, the higher the value of debtors turnover the more efficient is the management of
debtors/sales or more liquid are the debtors.

MARCH 22 MARCH 21 MARCH 20 MARCH 19

 Debtors turnover ratio 8.4 8.0 6.5 3.6

Inference: Debtors velocity has increased from 2019 exponentially which shows that the
debtors are paying the company at a good rate or velocity and the liquidity of the company
shows positive reflection.

c)WORKING CAPITAL TURNOVER RATIO:

A high turnover ratio shows that management is being very efficient in using a company’s
short-term assets and liabilities for supporting sales.

MARCH 22 MARCH 21 MARCH 20 MARCH 19

Working capital turnover ratio 2.894625976 2.101797514 1.6639366 2.255777811

Inference: This shows thatthe sales are increasing and shows that the company is generating
higher revenue with the help of its working capital

4. CAPITAL STRUCTURE RATIOS

Capital structure is defined as the combination of equity and debt that is put into use by a
company in order to finance the overall operations of the company and for its growth.
Different ratios are used to calculate capital structure. One such is: 1) Debt equity ratio The
debt-to-equity (D/E) ratio compares a company's total liabilities to its shareholder equity and
can be used to evaluate how much leverage a company is using. Higher-leverage ratios tend
to indicate a company or stock with higher risk to shareholders.

MARCH 22 MARCH 21 MARCH 20 MARCH 19

Debt equity ratio 2.7 3.1 4.0 3.1

Inference: The debt to equity ratio is declining reflecting that the firm is able to finance itself
and is not risky for its lenders. The more debt the company uses, the ratio would increase
increasing the risks as well.

RECENT AND CONTEMPORARY DEVELOPMENT OF THE COMPANY

ITC proposes to acquire 10% stake in Blupin Technologies Private Limited, the company
behind brand Mylo for 40cr.
ITC will further expand its presence in the D2C mother and baby care segment. In
November 2021, the Company had announced its investment in Mother Sparsh Baby Care
Private Limited, an ayurvedic and natural personal care brand in the D2C space with a
focus on the mother and baby care segment.
ITC has added more hotel brands to its name in 2021 only named Mementos and Storii
raising their investment from 4 hotel brands to 6 hotel brands.
The company is actively performing its social responsibility by converting its packaging into
100% recyclable packaging which has helped in 36% increase in revenue from this segment.
Fiama Shower Gel bottles are now made with 30% Post-Consumer Recycled (PCR) material.
These innovative packaging solutions have been developed leveraging the synergistic
capabilities of ITC‘s Packaging and Printing Business and Life Sciences and Technology
Centre (LSTC) and are a testament to ITC‘s philosophy of embedding sustainability into its
business value chains. ITC's interventions in the newer FMCG businesses enabled the
segment to grow 25 per cent in revenue terms during the last two years of the pandemic,
reaching nearly Rs 16,000 crore in FY22 ITC has launched its super app Meta Market for
Advanced Agricultural Services (ITC MARS) to provide agricultural and allied services to
farmers on a digital platform.

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59
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sector/104718
 https://www.resurgentindia.com/pro_bfloors/services_img/pdf_teders/18973
793FMCG_Issues-Opportunities.pdf
 https://wits.worldbank.org/CountryProfile/en/Country/WLD/Year/2018/Trad
eFlow/Export/Partner/by-country/Product/UNCTAD-SoP3%23

 https://economictimes.indiatimes.com/itc-ltd/yearly/companyid-13554.cms

 https://www.itcportal.com

 https://www.moneycontrol.com/financials/itc/ratiosVI/ITC#ITC

 https://tradebrains.in/best-fmcg-companies-india/