12 Top FMCG Companies In India

FMCG (Fast Moving Consumer Goods) is the fourth largest sector in the Indian economy after the services, industries, and agriculture sectors. 

Indian FMCG sector has shown a growth of 10-12% annually and is expected to keep expanding in the future because the daily use items market has to expand with population growth over time. The FMCG sector has seen significant growth even during the COVID phase in 2020-21.

FMCG sector growth in India

If you are searching for top FMCG companies in India, then go through this article as I have made a list of 12 top FMCG companies in India listed on the stock market.

Stock NameMarket Cap (in crores)Popular Brands
Hindustan Unilever Ltd. Rs. 6,38,443 Cr.Lux, Lipton, Ponds
Nestle IndiaRs. 1,95,162 Cr.Maggi, Kitkat
DaburRs. 1,04,020.23 Cr.Dabur Red, Amla Hair Oil, Vatika Shampoo
Britannia IndustriesRs. 1,08,414.82 Cr.Good Day, Tiger, NutriChoice
ITC Ltd.Rs. 4,27,039.12 Cr.Gold Flake, Sunfeast, Savlon
Colgate PalmoliveRs. 44,558.05 Cr.Colgate, Vedshakti, Palmolive Aroma
P&G HygieneRs. 45,339 Cr.Whisper, Vicks, Pampers
EmamiRs. 18,854.75 Cr.BoroPlus, Navratna, Zandu
Patanjali Foods Ltd.Rs. 45,719.95 Cr.MahaKosh, Nutrela
Adani WilmarRs. 71,963 Cr.Fortune oil, Kohinoor
Marico Ltd.Rs. 67,476 Cr.Parachute, Mediker
Jubilant FoodworksRs. 35,064 Cr.Domino’s, Dunkin’ Donuts

Disclaimer – I have shortlisted stocks based on FMCG Company’s brand value & product popularity in the market. The stock names mentioned in this article are purely for educational purposes and should not be considered as stock recommendations. Do your own research before investing.

Fundamental Factors to Evaluate Best FMCG stocks

#1. Financial Performance

Financial performance is a subjective measure of how well a firm can use assets in the business to generate revenues. It is a general measure of a firm’s overall financial health over a given period.

You can assess the overall financial performance of a company by analyzing its balance sheet, income statement, and statement of cash flows.

Major financial performance indicators that you should consider are –

  • Gross profit /gross profit margin
  • Working capital
  • Debt/Debt to equity ratio (should be <1)
  • Operating cash flow
  • Return on equity

#2. Future Perspective

You can estimate the future growth from past sales performance and how much profit has grown in past years.

For that, you have to analyze the Sales growth and Profit growth in financial statements for at least the past 3 years or ideally 5 years. You can check the reports on financial screening portals like the Screener.

Compare sales growth and profit growth with PE growth. If sales and profit growth is higher than PE growth, then it’s a good sign that the sales+profit may grow further in the future and that would eventually increase the share price.

You can consider above 10% sales growth and above 15% profit growth a good number. Higher is better in this case.

#3. Brand’s Value & Market Share

A brand’s value is described by brand equity. Brand equity is the value a company gains from its name recognition in the market.

You cannot build a brand overnight. It takes years of effort, marketing campaigns, quality products, efficient distribution, and customer service to make a brand popular among the end user.

All such things require lots of time and money to build a brand over time. But once built, brand equity has an immediate effect on sales growth and a company’s profitability because consumers get attracted toward products and services because of great reputations.

Then comes the market share, a bigger market share helps in consistent sales in a given time, thus consistent cash flow. 

#4. Robust Distribution Network

Distribution is the toughest thing in a business. 

You can easily start a new business, or launch a new product that can be of better quality than an established brand’s product. 

For example, you can introduce a new jam that is way better than Kissan jam in taste, quality, and nutritional value, but you have to make a strong distribution network to deliver your jam to every corner of the country which is a herculean task.

On the other hand, Hindustan Unilever can easily make a jam similar to your one and effortlessly supply all over the country. Thanks to its well-managed distribution network that it built over the years. 

A strong distribution network helps in the smooth outreach of the company’s products to distant places all over the country. That helps in covering the maximum target audience and earning adequate profits through increased sales.

Secondly, if a company launches a new product, it doesn’t increase any distribution cost of an established business because the well-managed distribution network is always there to deliver the newly launched product in the market.

#5. Valuation Ratios

You should study the profitability, liquidity and sustainability of a company’s business before investing in an FMCG stock.

There are 3 major valuation ratios 

  • ROCE(Return over Capital Employed) is an important ratio that shows how efficiently a company is utilizing its capital employed for profit generation.
  • Net margin ratio shows how much profit the business generates for shareholders as a percentage of net sales.
  • The inventory turnover ratio is another important factor that tells how fast a company is selling its inventory as compared to the industry average. Generally, an inventory turnover ratio between 6 to 10 is considered good but above 10 is better.

Top FMCG Companies In India

#1. Hindustan Unilever Ltd. (HUL)

HUL logo
Market CapRs. 638,443 Cr.
Stock PriceRs. 2,717.25
Stock P/E67.9
Sale Growth (in the last 5 years)9.93%
Profit Growth (in the last 5 years)14.45%
Debt to Equity0
Inventory Turnover15.66
Dividend Yield1.25 %
EPS40.33
ROCE 24.61%

Established in 1931 as Hindustan Vanaspati Manufacturing Co., later renamed as Hindustan Unilever is one of the most popular FMCG companies in India. 

Hindustan Unilever has more than 50 product brands in 14 different categories catering to all your daily needs such as soaps, tea, detergents, edible oils and many more. Some of its brands such as Lux, Vaseline, Kissan and Glow & Lovely (earlier fair & lovely) are number one in their respective segments.

Hindustan Unilever’s popular brands

HUL Brands

Hindustan Unilever has around 39% market share in India ensuring its strong brand equity. 

HUL’s revenue increased 16.1 percent to Rs 15,144 crore in the July-September 2022 quarter and the sales volume raised to 4% while the whole market was on a decline.

#2. Nestle

Market CapRs. 1,95,860 Cr.
Stock PriceRs. 20,314.20
Stock P/E90.46
Sale Growth (in the last 5 years)9.98%
Profit Growth (in the last 5 years)16.46%
Debt to Equity0.02
Inventory Turnover10.11
Dividend Yield0.99 %
EPS224.55
ROCE 147.86%

Nestle is among the most widely known consumer food brands in India. 

You can understand its popularity from its instant noodle product Maggi which captures 60% market share of India in its segment.

Nestle’s major product categories are mentioned below  – 

  • Milk products and nutrition – Everyday, Lactogen, Cerelac
  • Beverages – Nescafe, Ice tea
  • Prepared dishes and cooking aid – Maggi, Ketchup
  • Chocolate and confectionery –  Kit Kat, Munch, Bar-one, Milkybar.

Nestle has some brands which are No. 1 in the market in their respective segments such as Cerelac, Maggi, Nescafe, Everyday milk powder, and Kitkat.

Nestle’s popular brands

Nestle India brands

Nestle’s 47% of revenue comes from milk and nutrition products, 10% from drinks & beverages, 30% from cooking aids, and 13% from confectionery (majorly chocolates).

Nestle is also one of the most expensive shares in India, you can check out our list of top most expensive shares in India.

#3. Dabur India

dabur logo
Market CapRs. 1,04,020.23 Cr.
Stock PriceRs. 587.10
Stock P/E72.68
Sale Growth (in the last 5 years)9.1%
Profit Growth (in the last 5 years)7.5%
Debt to Equity0.09
Inventory Turnover7.54
Dividend Yield0.88 %
EPS8.08
ROCE 32.14%

Dabur India Limited is the fourth largest FMCG Company in India and the world’s largest Ayurvedic and Natural Health Care Company with a portfolio of over 250 Herbal/Ayurvedic products.

Dabur India’s product categories and revenue generation are discussed below – 

  • 47% from home & personal care 
  • 36% from the healthcare segment 
  • 17% from beverages

Dabur’s popular brands

Dabur brands

Dabur has a huge distribution network, with over 3.2 million retail locations across India helping in deeper penetration in rural and urban areas.

Dabur also has a strong overseas presence in over 120 countries across the globe. Revenue generation from overseas markets is as follows –

  • Asia – 22%
  • America – 16%
  • Europe – 12%
  • Africa – 24%
  • Middle East – 26%

#4. Britannia Industries

Britannia_Industries_logo
Market CapRs. 1,08,414.82 Cr.
Stock PriceRs. 4,501
Stock P/E68.43
Sale Growth (in the last 5 years)9.71%
Profit Growth (in the last 5 years)13.70%
Debt to Equity0.91
Inventory Turnover12.44
Dividend Yield1.28%
EPS65.77
ROCE 47%

Britannia is among the most trusted food companies with a hundred-year legacy. Its brands like Good Day, Tiger, NutriChoice, and Marie Gold are household names in India.  

Britannia is also a leading player in bread manufacturing with an annual production of over 1 lakh Ton in volume worth Rs.451 Cr.

Britannia’s popular brands

Britania brands

Britannia is a part of the Wadia Group, a reputed Indian house that has a presence in several business segments like 

  • Airlines – Go Air
  • Textiles – Bombay Dyeing
  • Clothing retail – Plantations 

Britannia’s annual revenues are more than Rs. 9000 Cr making it a large-cap FMCG brand.

Britannia also has a robust distribution network with above 5 Million retail stores pan India, reaching around 50% of Indian households.

The food giant has a global presence in 80 countries generating 5.5% of its revenue from there. Britannia has also set up its manufacturing units in UAE and Oman.

#5. ITC Ltd.

ITC logo
Market CapRs. 4,27,039.12 Cr.
Stock PriceRs. 344.10
Stock P/E25.15
Sale Growth (in the last 5 years)7.0%
Profit Growth (in the last 5 years)8.1%
Debt to Equity0
Inventory Turnover6.14
Dividend Yield3.38 %
EPS13.68
ROCE 33.04%

Incorporated in 1910, ITC is the largest cigarette manufacturer in India with a domestic market share of over 80%. ITC sells popular brands like the Gold flake and Classic. 

The cigarette business contributes to 40% of ITC’s revenue.

27% of its revenue comes from other FMCG segments having more than 25 brands. Let’s discuss the major segments in which ITC is active.

  • Packaged food – Aashirvaad, Sunfeast, Yippee noodles, and Mint-O
  • Personal care – Savlon, Fiama, Vivel and Engage
  • Stationary – Classmate and Paperkraft
  • Clothing – WLS (earlier Wills Lifestyle)
  • Agarbatti – Mangaldeep and Homelites matchbox
  • Hotels- ITC Hotels, Welcome heritage

ITC’s popular brands

ITC Brands

You might not be aware but ITC is also the 2nd largest exporter of Agri products in India trading in food grains, marine products, processed fruits, coffee and animal feed.

#6. Colgate-Palmolive (India) Ltd.

Colgate-Palmolive logo
Market CapRs. 44,558.05 Cr.
Stock PriceRs. 1,638.25
Stock P/E67.9
Sale Growth (in the last 5 years)5.07%
Profit Growth (in the last 5 years)13.31%
Debt to Equity0
Inventory Turnover14.79
Dividend Yield2.43 %
EPS39.10
ROCE 97.56%

Colgate-Palmolive (India) Limited is a subsidiary of Colgate-Palmolive USA with a 40% equity share in the Indian venture. 

Palmolive bought Colgate in 1928 to become Colgate-Palmolive Co.

Colgate-Palmolive’s popular brands

Colgate-Palmolive brands

Colgate-Palmolive is the industry leader in the personal care industry. Colgate Palmolive is invincible in the oral care category since 1990 with the highest market share. 

Colgate Palmolive’s market share is as follows –

  • 51% market share in the toothpaste segment, 
  • 48% in the toothpowder, 
  • 30% share in the toothbrush segment.

Apart from that, only Colgate toothpaste has a penetration of almost 90% in the Indian market.

On the other hand, Palmolive is popular for making face and body care products from natural extracts which are parabens and silicon free.

#7. Procter & Gamble (P&G) Hygiene and Healthcare

Market CapRs. 45,339 Cr.
Stock PriceRs. 13,967.35
Stock P/E88.58
Sale Growth (in the last 5 years)9.93%
Profit Growth (in the last 5 years)14.45%
Debt to Equity0
Inventory Turnover16.14
Dividend Yield1.15 %
EPS157.69
ROCE 110.39%

P&G Hygiene and healthcare (a subsidiary of P&G USA) was incorporated in India in 1964 as a healthcare brand. 

P&G offers several day-to-day products such as Whisper, Vicks, Pampers, Tide and many more. 

Procter & Gamble’s popular brands

Colgate palmolive brands

More than 67.8% of its revenue is generated from hygiene products like Whisper and Pampers. 19.2% of the revenue comes from ointments like Vicks Vaporub. The rest of the revenue comes from other popular products like Olay, Tide, and Old spice.

#8. Emami Ltd.

Emami logo
Market CapRs. 18,854.75 Cr.
Stock PriceRs. 427.40
Stock P/E23.12
Sale Growth (in the last 5 years)4.49%
Profit Growth (in the last 5 years)19.69%
Debt to Equity0.10
Inventory Turnover9.59
Dividend Yield1.85%
EPS18.49
ROCE 33.75%

Emami is another popular personal care brand with a market cap of Rs. 18K crores. Emami brings many household brand names such as BoroPlus, Navratna Oil, Fair and Handsome, Zandu, and others.

Emami’s popular brands

Emami brands

Apart from the above top brands, Emami has more than 300 ayurvedic products in its portfolio.

Emami’s BoroPlus has the highest market share at 74% in its segment. Emami derives around 84% of its revenue from the Indian market and 16% from global markets.

#9. Patanjali Foods 

Patanjali
Market CapRs. 43,110 Cr.
Stock PriceRs. 1,190.90
Stock P/E52.44
Sale Growth (in the last 5 years)5.49%
Profit Growth (in the last 5 years)21.44%
Debt to Equity0.76
Inventory Turnover9.19
Dividend Yield0 %
EPS22.71
ROCE 16.29%

Patanjali Foods (earlier Ruchi Soya Industries) is a subsidiary of Patanjali Ayurved group primarily engaged in the edible oils and oil-seeds processing business. Patanjali group acquired Ruchi Soya in 2019 for Rs. 4,350 Cr. 

Apart from being the largest Palm oil manufacturer, Patanjali Foods is well placed in terms of its brands like Mahakosh, Ruchi Gold, Nutrela and Patanjali Aarogya.

Patanjali’s popular brands

Patanjali Foods brands

#10. Adani Wilmar

Market CapRs. 71,963 Cr.
Stock PriceRs. 553.70
Stock P/E103.36
Sale Growth (in the last 5 years)17.91%
Profit Growth (in the last 5 years)28.61%
Debt to Equity0.40
Inventory Turnover7.62
Dividend Yield0%
EPS5.36
ROCE 20%

Adani Wilmar (AWL) is a top Indian FMCG food company that offers essential kitchen commodities for Indian consumers, including edible oil, wheat flour, rice, and sugar. 

AWL is a joint venture between the Adani Group (an Indian business conglomerate) and the Wilmar Group, one of Asia’s leading agribusiness companies. 

65% of its revenue comes from edible oil products such as soyabean oil, palm oil, sunflower oil, rice bran oil, mustard oil, groundnut oil, cottonseed oil, and vanaspati.

Adani Wilmar’s popular brands

AWL brands

AWL’s Fortune oil brand is at no. 1 in its edible oil segment.

Adani has a strong distribution network with 5,590 distributors and 16 lakh retail outlets located in 28 states and 8 union territories of I, catering to over. Adani Wilmar has the highest no. of retail outlets covering 35% of retail outlets in India.

The only concern I found with AWL is a huge debt of more than 3,000 crores.

#11. Marico Ltd.

Marico_Logo
Market CapRs. 67,476 Cr.
Stock PriceRs. 521.85
Stock P/E52.23
Sale Growth (in the last 5 years)9.11%
Profit Growth (in the last 5 years)6.66%
Debt to Equity0.03
Inventory Turnover8.45
Dividend Yield1.77%
EPS9.99
ROCE 45.66%

Marico is a leading beauty and wellness company with a presence in 25 countries apart from India. 

Product segments that Marico caters to in the Indian market are as follows.

  • Coconut Oil – Parachute, Nihar Naturals.
  • Refined edible oils – Saffola.
  • Hair oils – Parachute advanced, Hair & Care.
  • Healthy foods – Saffola oats, Coco Soul. 
  • Premium Hair Nourishment – Livon Serums 
  • Male Grooming – Set Wet, Beardo, Parachute.
  • Skin Care – Kaya Youth 
  • Hygiene – Mediker, Veggie Clean.

71% of the total revenues are generated from the domestic business out of which 40% of revenue generation is from coconut oil sales.

Marico popular brands

Marico brands

Most of the Marico brands are at no. 1 in its segment whether it’s Parachute coconut oil, Livon or Mediker.

Marico’s sales & profit growth have been slow in the last 4-5 years but its sales have seen a spike of 18% in the current year.

#12. Jubilant Foodworks

jubilant-foodworks-logo
Market CapRs. 35,064 Cr.
Stock PriceRs. 531.40
Stock P/E74.04
Sale Growth (in the last 5 years)11.21%
Profit Growth (in the last 5 years)45.43%
Debt to Equity0
Inventory Turnover30.13
Dividend Yield0.05 %
EPS7.18
ROCE 41.94%

Jubilant Foodworks is a part of Jubilant Bhartia Group which has diversified businesses in different segments, especially food service.

Jubilant has a total of 7 brands out of which two main brands are – Domino’s Pizza and Dunkin’ Donuts.

Jubilant popular brands

JUBILANT Foodworks brands

The company has 1330+ Dominos stores, 30 Dunkin Donuts stores & 5 Hong’s Kitchen stores pan India.

Jubilant has shown a tremendous profit growth of 45% in the last 5 years.

Which is your favorite FMCG company, let me know in the comments.

About Rajan Dhawan

Rajan has covered personal finance and investing for over 5 years. Previously, he was in the IT field for 8 years after completing his MCA but his deep interest in personal finance led him to become an investing expert. He is passionate about investing, stocks, startups, and cryptos.

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