1. FMCG in India

2. MARKET SEGMENT Household Care Personal Care Food & Beverages Health Care FMCG Fabric wash, Household cleaners Oral care, hair care, skin care, cosmetics / deodorants, perfumes, feminine hygiene and paper products OTC products & ethicals Health beverages, staples/cereals, bakery products, snacks, chocolates, ice cream, tea/coffee/soft drinks, processed fruits & veg’bles, dairy products, branded flour 2

3. CAGR 15.3% 43%22%12%8%4% 2%5% Food ProductsPersonal CareFabric CareHair CareHouseholdsOTC ProductsBaby CareOthers $ 19.3 Bn$ 9.9 Bn$ 5.4 Bn$ 3.6 Bn$ 1.8 Bn $ 0.9 Bn$ 2.2 Bn 66%34% UrbanRural $ 29.6 Bn$ 15.3 Bn MARKET SIZE Segment wise Market Size Geography wise Market Size 3 (Values in USD Bn) YoY Sales Projection (USD Bn):

4. MARKET PENETRATION LEVEL Area wise: Top FMCG Products Penetration Level  Hair oils, toothpastes and shampoos have significantly high penetration in both urban and rural markets  Glucose and toilet cleaners are picking up in the rural areas due to increased awareness Category wise FMCG Products Penetration Level  Among those where the penetration is higher, per capita consumption is comparatively low, hence offering scope for high growth in future  Penetration of major products such as fairness cream, antiseptic cream & cold cream, is just 18.6%, 1.6% & 1.1%, respectively 4

5. MARKET DISTRIBUTION NETWORK Sales Channel Breakdown  In 2013, 8.4 million outlets served 1.26 billion people and accounted for US$37 billion in sales  Grocers are the dominant retail format, accounting for 59%  Majority of sales still move through traditional trade, availability of products in stores will continue to drive sales to a large extent.  A blanket approach to store expansion might not help; going to stores which matter more for the respective category and brand, will make all the difference in maximizing returns and growth.  A small proportion of stores account for a large proportion of sales; hence going to these stores and ensuring presence and avoiding churn will play a pivotal role. Distribution Remains a Priority: NOT JUST DISTRIBUTION EXPANSION BUT THE RIGHT DISTRIBUTION EXPANSION CAN MAKE ALL THE DIFFERENCE TO GROWTH. “ 5

6. MARKET LEADERS Hair Oil Shampoo Oral Care Skin Care Fruit Juice 42% 46% 50% 58% 50% Dabar – 15% Bajaj – 8% Emami – 5% P&G – 24% CavinKare – 10% Dabar – 6% HUL – 22% Dabar – 13% L’oreal – 13% P&G – 10% Emami – 9% Pepsico – 45% Market Leader Other 6 (Values in USD Mn)

7. MARKET STRATEGY Research Online & Purchase Offline Promotions & Offers Production Innovation FMCG companies are trying to influence consumers with intelligent deals Firms like ITC offers combo deals to the consumers. For example, in the case of soaps and cosmetics; four soap cases are offered at the price of three, selling the range of deodorants for men and women at a discounted price The internet enables consumers to make their own research on the kind of products or commodities they want to purchase. One in three FMCG shoppers goes online first and then to the stores Almost half of the automobile consumers follow the Research Online Purchase Offline (ROPO) method Indian consumers have become choosy and are less likely to stay loyal to a brand Emami is coming up with a new glucose energy drink under Zandu known as Zandu Gluco Charge Dabur has launched India’s first drinking yogurt and Real Supafruits under its brand Activ. 7

8. MARKET FACTORS - DRIVING SALES CONTROLLABLEAVAILABILITY SACHET OFFERINGS AWARENESS VALUE PACKS NOT DIRECTLY CONTROLLABLE EMPLOYMENT RATE INDEX OF INDUSTRIAL PRODUCTION (IIP) GDP CRUDE OIL PRICES 33% 18% 03% 01% 20% 13% 07% 05% 55% 45% 8 Factors INNOVATIONS THROUGH SACHETS AND THE RIGHT ASSORTMENT: Reports say, Marketers now need to boldly innovate and come out with appealing packs which are affordable and can get consumers into the fold. Given the economic environment, affordable low volume packs will play an important role in driving consumer adoption and sales. Sachets/ low volume packs are a part of assortment theme and stand out as a key driver given the nature of the Indian market and purchase dynamics. 8

9. MARKET TRENDS - FMCG 9 Consolidation Indian FMCG companies are consolidating their existing business portfolios Product Innovation Several companies have started innovating or customizing their existing product portfolios for new consumer segments Brand Consciousness Consumers are becoming more brand conscious and prefer lifestyle and premium range products given their increasing disposable income Focus on Rural Market Companies are now focusing on the rural market segment which is growing at a rapid pace and contributes about 34 per cent to the total FMCG market Expanding Distribution Network Companies are now focused on improving their distribution networks to expand their reach in rural India Third Party Manufacturing This approach has helped FMCG companies focus on front-end marketing Reservation of several items for SSI as well as additional tax incentives have made third party manufacturing a popular route for many big players Focus on Smaller Size Packs Companies are increasingly introducing smaller stock keeping units at reduced prices. This helps them to sustain margins, maintain volumes from price-conscious customers and expand their consumer base Enhancing Presence in Africa FMCG companies entering Africa as it helps to be close to consumption markets within Africa Such foreign investments are encouraged by local governments, as they offer incentives to enter the markets Reducing carbon footprint and eco- friendly products FMCG players in India are increasingly focusing on reducing their carbon footprint by creating eco-friendly products. They generate the required energy from renewable sources and earn CER credits for the same Private Label Penetration With the rise of retail players, private label has become popular in the FMCG space. Private Label goods are considered substitutes of premium branded goods

10. Thank You Reference : India Brand Equity Foundation Report – FMCG Aug’14, Featured Insights Delivering Consumer Clarity by Nielsen