The Associated Chambers of Commerce of India (ASSOCHAM), one of the oldest, largest and leading apex chambers of commerce and industry of India, will host a summit on fast moving consumer goods here on Thursday.
The event to be held at the Hotel Royal Plaza, will be focussed on the theme of issues and opportunities in the FMCG sector.
Union Minister for Consumer Affairs, Food and Public Distribution Ram Vilas Paswan will be the chief guest at the event, an ASSOCHAM statement said.
The other speakers will be Siraj Chaudhry, Chairman, Cargill India Pvt. Ltd.; Vijay Sardana, Head- food security initiative and agri business, United Phosphorous Group; Prof. Dr. Uday Salunkhe, Group Director, Welingkar Institute of Management Development and Research; C S Jog, Executive Director, Resurgent India Limited; S.K. Jindal, Chairman, Investor and Investment Protection Committee, ASSOCHAM; Uday Wig, Co-Chairman, FMCG Brand Promotion and Anti Smuggling Committee and D.S. Rawat, secretary general of ASSOCHAM.
According to a statement of the India Brand Equity Foundation (IBEF), fast moving consumer goods (FMCG) is the fourth largest sector in the Indian economy.
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The overall FMCG market is expected to increase at a compound annual growth rate (CAGR) of 14.7 per cent to touch USD 110.4 billion during 2012-2020, with the rural FMCG market anticipated to increase at a CAGR of 17.7 per cent to reach USD 100 billion during 2012-2025.
The FMCG sector has grown at an annual average of about 11 per cent over the last decade. Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share. Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector.
The Government of India's policies and regulatory frameworks such as relaxation of license rules and approval of 51 per cent foreign direct investment (FDI) in multi-brand and 100 per cent in single-brand retail are some of the major growth drivers in this sector.
The government has also amended the Sugarcane Control Order, 1966, and replaced the Statutory Minimum Price (SMP) of sugarcane with Fair and Remunerative Price (FRP) and the State Advised Price (SAP).
There is a lot of scope for growth in the FMCG sector from rural markets with consumption expected to grow in these areas as penetration of brands increases. Also, with rising per capita income, which is projected to expand at a CAGR of 7.4 per cent over the period 2013-19, the FMCG sector is anticipated to witness some major growth.
