Top FMCG Companies in India: Explore Top 10 FMCG Stocks in 2024

Are you looking for the best FMCG stocks to invest in India? How about we give you an overview of the top FMCG companies in India in 2024?

FMCG, or fast-moving consumer goods, are one of the most popular and evolving sectors in the Indian stock market. These are the products that sell quickly and at relatively low cost, such as food, beverages, toiletries, cosmetics, and medicines.

This is because of the growing population, rising income, changing lifestyles, and increasing urbanisation. FMCG companies also have to constantly innovate and adapt to the changing consumer preferences, tastes, and trends.

In this blog post, we will explore the top 10 FMCG companies in India based on their market capitalisation, performance, products, and brands, along with the FMCG sector stock list.

What are FMCG Companies?

FMCG companies are those that produce, distribute and market FMCGs. Some of the examples of FMCGs include packaged foods, beverages, toiletries, cosmetics, over-the-counter drugs, and other consumables. 

FMCG- Fast Moving Consumer Goods sell quickly and at fairly low cost.

FMCG companies function in a highly competitive and vigorous market. Thus, they have to constantly innovate and adapt to changing consumer preferences, tastes, and trends. 

FMCG companies are divided into several categories based on the type of products they offer. 

Some of the common categories are:

•  Processed foods: These include cheese products, cereals, and boxed pasta.

•  Prepared meals: These include ready-to-eat meals, frozen foods, and snacks.

•  Beverages: These include bottled water, energy drinks, juices, and soft drinks.

•  Baked goods: These include cookies, croissants, and bagels.

•  Fresh foods: These include fruits, vegetables, and nuts.

•  Medicines: These include aspirin, pain relievers, and other medications that can be purchased without a prescription.

•  Cleaning products: These include baking soda, oven cleaner, and window and glass cleaner.

•  Cosmetics and toiletries: These include hair care products, concealers, toothpaste, and soap.

•  Office supplies: These include pens, pencils, and markers.

Top 10 FMCG Companies in India Based on Market Capitalisation-2024

S.No.	Name	Market Cap Rs.Cr.
1	Hind. Unilever	₹562139.73
2	Nestle India	₹236715.10
3	Varun Beverages	₹191187.83
4	Godrej Consumer	₹136142.47
5	Britannia Inds.	₹126137.85
6	Dabur India	₹101130.28
7	Colgate-Palmolive	₹73142.39
8	P & G Hygiene	₹51352.75
9	Hatsun Agro	₹24963.40
10	Emami	₹23335.30

The above top 10 FMCG companies in India have been ranked based on the latest data shared by Screener.in as of 28 May 2024.

What is Market Capitalisation

Market cap helps you measure the size and value of a company. It is one of the significant factors to help investors compare different companies and sectors. Generally, companies are classified into different categories based on their market cap, such as large-cap, mid-cap, and small-cap.

Now, let us take a look at the Top FMCG companies in India.

Top 10 FMCG Companies in India| Detailed Overview 

Let us walk you through the brief about the top FMCG companies in India.

•  Hindustan Unilever

Year of Establishment– 17 October 1933

CEO– Rohit Jawa

This is the best FMCG company in India and a subsidiary of the global consumer products company Unilever. It was established in 1933 as Lever Brothers India Ltd and later merged with Hindustan Vanaspati Mfg. Co. Ltd and United Traders Ltd in 1956.

This FMCG company ranks first among the top 10 FMCG companies in India owing to its variety of products. These include foods, beverages, cleaning agents, personal care products, and water purifiers.

Some of its popular brands are Lux, Surf Excel, Dove, Lifebuoy, Kissan, and Brooke Bond.

•  Nestle India

Year of Establishment– 1961

Chairman and MD– Mr Suresh Narayanan  

This is a subsidiary of the Swiss food and beverage giant Nestle SA. Formed in India in 1961, Nestle is one of the top 10 FMCG companies in India. The company set up its first factory in Moga, Punjab, where it developed the milk economy.

It manufactures and markets products that cater to both cooking and consumption, such as milk, dairy products, chocolates, coffee, noodles, sauces, and infant nutrition.

Some of its well-known brands are Nescafe, Maggi, Milkybar, Kit Kat, Milkmaid, and Nestea.

•  Varun Beverages

Year of Establishment– 1995

Chairman- Ravi Kant Jaipuria

This is one of the largest franchisees of PepsiCo in the world, outside the US. It was incorporated in 1995 and produces and distributes a range of carbonated and non-carbonated beverages. The products of this FMCG company in India includes. Pepsi, Mountain Dew, 7UP, Mirinda, Slice, Aquafina, and Tropicana.

It has operations in India and several international markets, such as Africa, Nepal, Sri Lanka, and Morocco.

•  Godrej Consumer Products

Year of Establishment– 1897

CEO and MD– Sudhir Sitapati

This is one of the top 10 FMCG companies in India in the home and personal care segment, part of the diversified Godrej Group. The company was started as the part of India’s Swadeshi movement – the original ‘Make in India’ movement. 

It manufactures and sells products in categories such as hair care, skin care, oral care, household insecticides, and hygiene. Some of its flagship brands are Cinthol, Godrej No.1, Godrej Expert, Hit, and Protekt. It also has a strong international presence in Asia, Africa, and Latin America.

•  Britannia Industries

Year of Establishment– Kolkata in 1892

CEO and MD– Varun Berry

Read about the amazing history of Britannia Industries!

This is one of India’s oldest and most trusted food companies, specialising in bakery and dairy products. It was founded in 1892 by a group of British businessmen and later acquired by the Wadia Group in 1993. It offers a variety of biscuits, breads, cakes, rusk, cheese, and milk products under brands such as Britannia, Good Day, Tiger, Marie Gold, NutriChoice, and Cheese.

It has a presence in over 60 countries across the globe.

•  Dabur India

Year of Establishment– 1884

Chairman- Mr. Mohit Burman

This is one of the largest Ayurvedic and natural healthcare companies in India, with a legacy of over 135 years.

It was founded in 1884 by Dr. S.K. Burman as a small pharmacy in Kolkata. It offers a range of products based on the principles of Ayurveda and natural ingredients, such as health supplements, hair care, oral care, skin care, home care, and foods.

Some of its renowned brands are Dabur Chyawanprash, Dabur Honey, Dabur Amla, Dabur Red Paste, and Real.

• Colgate-Palmolive

Year of Establishment– 1937

Managing Director and CEO– Prabha Narasimhan

This multinational corporation, founded in 1806 by William Colgate in New York City, focuses on manufacturing and distributing a wide range of products. The products of this top FMCG company in India include household items, health care products, personal care items, and veterinary products. 

Initially established as a soap and candle business, it has evolved into a diverse enterprise over the years. It later merged with Palmolive-Peet Company in 1928.

How did Colgate Palmolive begin its operations in India?

It offers products such as toothpaste, toothbrush, mouthwash, soap, shampoo, and pet food under brands such as Colgate, Palmolive, Protex, Ajax, and Hill’s. 

• P&G Hygiene and Health Care

Year of Establishment- 1964

Director and MD– Mr. Chittranjan Dua

This is a subsidiary of the American consumer goods giant Procter & Gamble Company in India. It was incorporated in 1964 and operates in the feminine hygiene and healthcare segments.

One of the leading names among the top 10 FMCG companies in India, this manufactures and markets products such as sanitary napkins, tampons, cough and cold remedies. They also produce analgesics under brands such as Whisper, Vicks, and Old Spice.

P&G Hygiene and Health Care exports its products to several countries in Asia, Africa, and Europe.

• Hatsun Agro Product

Year of Establishment– 1970

MD– Mr. C.Sathyan

This is a leading private sector dairy company in India with headquarters in Tamil Nadu, Chennai. It was founded by R. G. Chandramogan in 1970. 

Another one of the top 10 FMCG companies in India manufactures and markets a wide range of products for both cooking and consumption. These include milk, skimmed milk powder, curd, ice cream, dairy whitener, ghee, paneer, and butter. Some of its brands are Arun, Arokya, Hatsun, HAP Daily, Ibaco, and Santosa. It also has operations in overseas markets, such as Africa and Sri Lanka.

• Emami

Year of Establishment- 1974

Owners- Mr. R.S. Agarwal and Mr. R.S. Goenka

This is a reputed business group in India that operates in the personal care, health care, and paper sectors. It was founded by R.S. Agarwal and R.S. Goenka in 1974 as a cosmetic manufacturing unit in Kolkata. 

One of the best FMCG companies in India, it offers a range of products based on Ayurveda and natural ingredients, such as balms, oils, creams, lotions, powders, and deodorants. Some of its popular brands are Boroplus, Navratna, Zandu, Fair and Handsome, and Kesh King. It also has a presence in over 60 countries across the world.

Consumer Stocks in India

Consumer stocks are those that belong to companies that provide goods and services to consumers. Consumer stocks are classified into two types: consumer discretionary and consumer staples. 

• Consumer discretionary stocks are those that depend on the income and spending power of consumers, such as automobiles, apparel, entertainment, and leisure. 
• Consumer staples stocks are those that provide essential goods and services that consumers need regardless of their income, such as food, beverages, household products, and personal care.

Disadvantages of Investing in FMCG Stocks in India

You might encounter some challenges when investing in these top 10 FMCG companies in India.

1. Changing consumer preferences and seasonal shifts can cause demand to fluctuate.
2. FMCG products have short shelf lives and are fragile, requiring efficient supply chain management.
3. Meeting strict regulatory standards and maintaining high-quality control can be difficult and costly.
4. Some of the FMCG companies may not be transparent with respect to their financial reports.

Advantages of Investing in FMCG Stocks in India

You may benefit when investing in these top 10 FMCG companies in India.

1. FMCG stocks tend to be resilient during economic downturns because of consistent demand for essential goods.
2. The FMCG sector’s high barrier to entry protects established companies from new competition.
3. Strong brand loyalty encourages repeat purchases and customer retention, benefiting FMCG companies.
4. The top FMCG stocks often provide stable cash flows and regular dividends, making them appealing.

Things You Must Check Before Investing in the FMCG Stocks

As a smart investor, you must keep a check on:

1. Market Position

Look for FMCG companies that have a strong brand, loyal customers, a wide distribution network, and a big market share in their products. These companies benefit from things like lower costs, higher prices, and customer loyalty.

2. Financial Performance

Compare the best FMCG companies based on important money measures like profit margins, return on equity (ROE), 5-year growth rates, cash flows, and other return ratios. 

3. Future Growth

Analyse FMCG companies on their business models and growth potential. Pick companies with diverse products, innovative research plans to grow, and a strong online presence. 

4. Valuation

Check the value of FMCG companies using ratios like P/E and dividend yield. Look for companies that are priced well compared to others and their past averages. Consider how much the company is expected to grow and the quality of its earnings.

5. Regulatory Environment

Be aware of rules and challenges that affect the FMCG sector, like GST, FDI, food safety, environmental norms, and consumer protection. Choose companies that follow the rules and have a good record of doing things right.

FMCG Sector Stocks List

Here is the list of FMCG stocks with the latest data shared as of May 2024.

S.No.	Name	P/E	Mar Cap Rs.Cr.	Div Yld %	NP Qtr Rs.Cr.	ROCE %
1	Hind. Unilever	53.76	₹562139.73	1.78	2561.00	27.24
2	Nestle India	72.82	₹236715.10	0.68	934.17	152.52
3	Varun Beverages	86.44	₹191187.83	0.17	547.98	28.82
4	Godrej Consumer	68	₹136142.47	1.14	-1893.21	19.33
5	Britannia Inds.	58.71	₹126137.85	1.36	536.61	48.92
6	Dabur India	54.01	₹101130.28	0.91	341.22	22.28
7	Colgate-Palmoliv	53.76	₹73142.39	1.78	379.82	96.79
8	P & G Hygiene	68.84	₹51352.75	0.67	154.37	100.63
9	Hatsun Agro	83.34	₹24963.40	0.55	52.16	13.65
10	Emami	36.71	22907.52	1.52	260.65	28.02

•  Market Cap Rs.Cr: This is the market capitalisation of the company in Indian rupees crore..It represents the total value of the company as determined by the stock market.

•  Div Yld %: This is the dividend yield percentage of the company. It represents the annual return on investment for the shareholders from the dividends.

•  PE: This compares a company’s share price to its earnings per share, indicating how many rupees investors are willing to pay per rupee of earnings.

•  NP Qtr Rs.Cr.: This is the net profit of the company in Indian rupees crore for the latest quarter. It is calculated by subtracting the total expenses from the total revenue for the quarter. 

•  Qtr Profit Var %: This is the quarter profit variance percentage of the company. It represents the year-on-year growth or decline in the net profit of the company.

•  ROCE %:  (Return on Capital Employed percentage) measures a company’s profitability and efficiency in using its capital.

The top 10 FMCG companies in India have established their market position, financial performance, future growth, valuation, and regulatory compliance, making them attractive investment options. 

However, before investing in any FMCG stock, it is advisable to do a thorough research and analysis of the company, its products, its competitors, and the industry trends. 

FAQs | Top FMCG Companies in India

Source- screener.in

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.