Professional Documents
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(In Billions)
Industry Analysis
The Indian FMCG sector is the fourth largest Fast Moving Consumer
Goods in the economy with a total market size in excess of US$ 13.1
billion. The FMCG market is set to treble from US$ 11.6 billion in 2003 to
US$ 33.4 billion in 2015. Penetration level as well as Per Capita
Consumption in most product categories like jams, toothpaste, skin
care, hair wash etc in India is low indicating the untapped market
potential. With 200 million people expected to shift to processed and
packaged food by 2010, India needs around US$ 28 billion of investment
in the food processing industry.
An average Indian spends around 40% of his
income on grocery and 8% on personal care products. The large share of
FMCG products in total individual spending along with the large
population base is another factor that makes India one of the largest
FMCG markets.
Year to CY CY CY CY CY CAGR
December 03 04 05 06 07 (%)
(CY05-07
Net Sales 11546 12388 13889 16345 18724 16.1%
2 7 1 4 4
Adj. 14181 15898 18800 19461 22020 8.2%
Net Profit 13559 18905 19149 19123 21664 6.4%
Margins (%)
EBITDA 12.3% 12.8% 13.5% 11.9% 11.8%
NPM 11.7% 15.3% 13.8% 11.7% 11.6%
Per Share
Data
Adj. EPS 6.2 8.7 8.8 8.8 8.9
Mean =92400/5
=18480
Standard Deviation
Mean=∑x/N
=92400/5
=18480
S.D. = (35395732 /5) ½
S.D. =2660.66
C.V= S.D./Mean*100
C.V. =2660.66/18480*100
C.V. = 14.39%
P&G
Year Income X=(X-Mean X) X2
2003 39951 2892.4 8365977.76
Mean=214217/5
=42843.4
S.D. = (∑x2 / N) ½
S.D. = (101729741.2/5) ½
S.D. = 4510.64
C.V. = S.D./Mean*100
C.V. = 10.53%
Correlation
(
In Billions)
Regression
Year Profit(Y) X XY X2
2005 19149 0 0 0
∑y /N= a
= 92400/5
=18480
∑x y/∑x2= b
=16428/10
=1642.8
Y= a+ b x
So the regression line is in the form of =18480+1642.8(x)
We are calculating profit for the year 2008, so we will be calculating it with
the help of above regression line, so the profit for the year 2008 will be,
For the x= 3
Y= 18480+1642.8(3)
Y=18480+4928.4
Y= 23408.4
Conclusion
The field of FMCG market is opening up and the competition is
increasing day by day. Many players like ITC, Nestle etc. are expanding
their business at a large scale. And the use of statistical tools is
becoming very popular in the organization. There are various officers
being appointed in the organizations. Companies are finding various
ways to cope up with the competition within the market. The continuous
research on quantitative scale will help the HUL to review their past
Performance in quantitative terms and helps them to make further important
Decisions.
• The sales of the company are increasing for the past five years so
is the net profits. So the company will follow the same policy
which was followed earlier.
• How much more capital is more to be invested? The solution for
this is the regression lines. We can easily find out the amount
required for earning of any desired revenue.
• By computing correlation we can say that the company is earning
profit at increasing rate. So it is good method of judging the
company before investing.
Than k you