Burning Beach

A recent boom in FMCG sector-Indian context FMCG sector is one of the booming sector in Indian economy. the FMCG sector comprises of a market size of 13.1 billion US$ and is the forth largest in the economy. With the help of well-established distribution channels, intense competition between the organized and unorganized segments it is expected to grow by over 60% by 2010.which leads to an annual growth of 10% over a five year period. it has also been estimated that there will be a rise from around Rs 56,500 crores in 2005 to Rs 92,100 crores in 2010 in the FMCG sector. with the entry of many players FMCG sector has shown a healthy growth in the last few years. for example tobacco giant ITC shifted its market from cigarettes to luxurious hotels and then to brands like John players and finally to cosmetics and shampoo brand like fame. When we talk about EasyAzon its growth prospects we cannot neglect the rural FMCG market as its has got 12.2% of the world population in the rural India. Increased focus on farm sector which will boost rural incomes, hence providing better growth prospects to the FMCG companies. Better infrastructure facilities will improve their supply chain. FMCG sector is also likely to benefit from growing demand in the market. Because of the low per capita consumption for almost all the products in the country, FMCG companies have immense possibilities for growth. And if the companies are able to change the mindset of the consumers, i.e. if they are able to take the consumers to branded products and offer new generation products, they would be able to generate higher growth in the near future. It is expected that the rural income will rise in 2010, boosting purchasing power in the countryside.