Financial Performance of Fast-Moving Consumer Goods (FMCG) Companies in India

The FMCG industry has been facing challenges such as increasing consumer demand, low consumer spending power, a rise in the health concerns, government regulations and a highly competitive market environment. However, with the increasing population of India with an average age of 28.2 years and an increase in the working population and awareness for healthy and ready to eat foods, a raise in nano-marketing makes the FMCG companies to seize a huge scope in both the rural and urban India. P & G Hygiene and Health Care Limited is in the first position concerning the overall performance score of 62 followed by Nestle India Limited with 57 and Colgate-Palmolive India Limited with a performance score of 55. It is of interest to observe that P & G Hygiene and Health Care Limited obtained one first rank and three second rank out of five indicators viz., Profitability concerning investment, Profitability with regard to sales, Operating efficiency and liquidity. Similarly, Nestle India Limited got one first rank (Solvency) and two-second ranks (Liquidity, Profitability with regard to investment). Good performance in all the categories would contribute to overall performance. P & G Hygiene and Health Care Limited has maintained its position in long-term performance ranking (2010-11 to 2021-22) also with an overall score of 60 points. Colgate-Palmolive India Limited is in the 2nd position. While, Nestle India Limited was pulled down to 3rd position. It can be observed that there is an improvement in the performance of some companies like United Spirits Limited in the recent past as compared to long-term performance. United Breweries Limited, and Tata Consumer Products Limited have maintained their positions in both periods.