Published on: May 28, 2022

FAST MOVING CONSUMER GOODS

FAST MOVING CONSUMER GOODS

NEWS : Jakobstad Karnataka to set up Fast-Moving Consumer Goods (FMCG) cluster Mummigatti Industrial Area in Dharwad

DETAILS

  • Cater to three broad categories of products — personal and home care (such as cosmetics, perfumes and kitchen utility products), food processing (frozen foods, energy drinks, desserts, etc.) and healthcare products
  • Largely limited to agro and food processing
  • Despite a ‘dominant white-collar consumer base’ and raw material availability around
  • To encourage industries, the government has promised a 20% subsidy up to a maximum of Rs 25 crore
  • A performance-linked incentive of 3% of annual turnover for five years is also in the offing
  • Cluster was initially announced in the 2020-21 Karnataka budget
  • The government has envisaged to develop the cluster on the lines of an initiative in Guwahati, Assam

FMCG

WHAT –

  • Products in the market sold quickly and at a reasonably low price
  • Examples – meat, vegetables, dairy products, fruits, processed foods, soft drinks

PROPERTIES –

  • Lifespan is very short
  • Products have usually been sold or replaced within short time
  • Although sales profitability is weak in FMCG products relative to others, net profit is still higher as they are sold commercially in a large quantity

IN INDIA –

  • 4th largest sector in the Indian economy
  • Household and Personal Care accounting for 50% of FMCG sales in India
  • Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector