FMCD SECTOR - A BOOMING INDIAN SECTOR.

        India's FMCD sector is one of the largest economic and industrial sector in the country and are playing an important role in the growth and development of the world's largest democracy.

v  India is one of the largest and the fastest growing FMCD markets in the world.

v  India’s FMCD market reached USD 31.48 Billion Dollars in 2017.

v  The FMCD market is expected to grow at 41 per cent CAGR between 2017-20 to reach US$ 400 billion.

v  The consumer durables sector in India is expected to grow 8.5 per cent in 2018-19.

v  Such growth can be attributed to the rise in India’s middle class, increase in rural electrification, change in the lifestyles of the Indians, 100 percent FDI in the electronics hardware-manufacturing sector under the automatic route.

v  Consumer electronics exports from India reached USD 362.12 million in FY18.

v  The market consists of two types of goods. First is the Brown goods. It consists of televisions, laptops, digital cameras, personal computers etc. The second one consists of White goods. It includes air conditioners, electric fans, refrigerators, microwave ovens etc.

       

v  Godrej group, Mirc Electronics, Blue Star and Videocon Industries are few of the major domestic players operating in India consumer durable market.

v  India was the world’s third largest smartphone market in 2017 with smartphone shipments growing at 14 percent annually to 124 million units. In Q1 2018, India witnessed 30 million smartphone shipments.

v  The firms are now partnering with e-retailers to promote sales and increase their penetration into the Indian market. Growth in online retailing is a key factor to reach out as a new segment  of online customers, with increase in demand for their products.

v  Non metro markets namely Vishakhapatnam, Bhopal, Vadodara, Chandigarh etc. have grown and developed rapidly in regard to consumption pattern and they are becoming the main target markets for the FMCD companies, posing a huge potential for these FMCD companies into new business centers as compared to metro cities.

v  This sector has seen huge amount of investments in the last few years. In January 2018, Panasonic started its first refrigerator plant in India with an annual production capacity of 500,000 units with an investment of USD 17.76 million. British technology company Dyson will invest around Rs 1,300 crore USD 200 million in the Indian consumer durables sector by 2023.

v  “Make in India” initiative to further strengthen the investments coming to India from around the world.

v   Companies are planning to increase the use of environment-friendly components and reduce e-waste by promoting product recycling. India has made it mandatory for manufacturing companies to control emissions from climate-damaging refrigerants that are hazardous to the environment.

v  India’s FMCD sector is growing at a rapid pace and is expected to grow at a rapid pace in the future, with vast and lucrative business opportunities in the country of 1.2 billion people.