Sunday, June 3, 2012

FMCG Consumer Goods Shares Gained Low Returns in India in year 2011-2012 : Stock Trading Indian shares market analysis


Here is a latest news on Stock Trading Indian shares market analysis report on FMCG Consumer Goods Shares analysis statistics for Reasons for FMCG Shares low profits and FMCG Companies Strategies to Increase Profits.

Consumer Goods Shares Gained Low Returns in India in year 2011-2012: Stock Trading Indian shares analysis

FMCG abbreviates for Fast Moving Consumer Goods. In India, there are many MNC and Domestic FMCG companies re ruling Indian FMCG business market.

For the year 2011-12, all FMCG companies’ shares returns are in good position. During 2012 to 2013 year, FMCG shares are attaining low profitable returns.

There are many reasons to low returns at shares market for fmcg shares. Increase in raw materials, Change in foreign exchange value (Rupee Vs Dollar), increased expenses in company advertisements etc…

HUL Hindustan Unilever is the Indian leading and largest company in consumer goods production sector.

For this fiscal year, the HUL gains 1,316.08 crores profits between April to September months of 2011. The profit of HCU Company is 1,099.13 crore only in 2010-2011 year.

ITC Indian Tobacco Company main income source is cigarette business. Recently ITC has increased navicut, classic brands cigarettes prices.

Reasons for FMCG Shares low profits:

Food inflation

Raw material cost increase

Packaging cost increase

High competition for each product

Increase in advertisements cost

Forex trading losses in export field as fluctuation in foreign exchange value (Rupee Vs Dollar).

FMCG Companies Strategies to Increase Profits:

The FMCG Companies are transferred the increased production cost to consumers and customers instead of bearing own. So these FMCG cpmpanies saved their business margin.

Regulation of expenses- FMCG Companies are lessening their expenses by monitoring regularly. At the same time they are planning to release new products after proper marketing research during their marketing strategy to overcome competition and to survive in business market also to attract the consumers towards their FMCG products.

MNC and corporate companies are planning to high budget on companies ads in different media to reach targeted customers. Many companies are planning to achieve both targeted short term business profits as well as long term business profits with their unique marketing strategies.

FMCG Companies are regularly doing marketing research to understand the current business market situation to protect their brand in the Indian FMCG market.

Corporate Indian FMCG companies also preferring takeover of company instead of JV Joint Ventures

Also Indian FMCG Companies always announcing their offers during unseasonal business and during seasonal festivals business seasons (from Dussarrah, Deevali/ Deepavali to Christmas festival).

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