If there is one product category that is consumed all year, regardless of the current micro or macroeconomic scenario, it is Fast Moving Consumer Goods (FMCG). According to several reports, the FMCG sector is one of the country’s largest and contributes significantly to the Indian economy.
We are specifically going to be talking about NIFTY FMCG Index in detail here. But, before that, let’s just have an intro for our newbies.
What is the Meaning of an Index?
A stock market index is a statistical metric that depicts movements in the stock market. To build an index, a few similar types of equities are selected and put together from among the securities already listed on the market.
The type of industry, market capitalization, or size of the company could all be stock-picking criteria. The underlying stock values are used to calculate the value of the stock market index. Any changes in the underlying stock values have an impact on the index’s overall worth. If the prices of the majority of the underlying securities rise, so will the index, and vice versa.
In this approach, a stock index reflects the overall market mood as well as the direction of price changes in financial, commodities, and other markets.
What is the NIFTY FMCG Index?
Fast Moving Consumer Commodities are non-durable and consumable goods that are commonly used on a regular basis. FMCG includes, among other things, cosmetics, health care items, packaged food, beverages, and toiletries. Because they are the key drivers of consumer demand, manufacturers of such FMCG play a significant role in an economy.
The National Stock Exchange created the Nifty FMCG sectoral index to effectively evaluate the performance of FMCG enterprises. The index consists primarily of 15 FMCG manufacturers whose stocks are traded on the NSE. Individuals, traders, and fund managers can use this to measure and benchmark the performance of their portfolio or fund.
Components of the NIFTY FMCG Index
The NIFTY FMCG Index has 15 different constituents. Let’s have a closer look at them.
- a) Colgate Palmolive
- Colgate Palmolive is a significant maker of personal care and dental care products in India.
- Colgate and Palmolive are the two brands under which the corporation sells its products.
- The Colgate brand’s goods are mostly concerned with mouth hygiene. This brand produces toothpaste, toothbrushes, and mouthwash, among other things.
- Palmolive products are mostly used for personal care. This brand produces handwashes and body washes, among other things.
- b) Emami
- Emami, a well-known FMCG manufacturer in India, was founded in 1974 in Kolkata.
- The core business of the company is the production of health care, personal care, and skin care goods.
- The company manufactures a wide range of consumer items, from hair oils and pain balms to fairness creams and hair colour.
- c) Britannia
- Britannia Industries, one of India’s oldest firms, was founded in the city of Kolkata in 1892.
- The core business of the company is the production of various meals and beverages.
- Among the products manufactured by the company are biscuits, bread, dairy products, cakes, rusks, wafers, and croissants.
- d) Dabur India
- Dabur India is another FMCG business with roots dating back to the late 1800s.
- The company is associated with the production of ayurvedic products.
- Dabur India has a diverse product portfolio that includes, among other things, hair oils, health supplements, digestives, oral care, skin care, shampoos, and home care items.
- e) Hindustan Unilever
- Hindustan Unilever, India’s largest FMCG maker, was founded in 1933 and is a subsidiary of Unilever.
- Food, beverages, cleaning agents, personal care and health care items, and water purifiers are among the products manufactured by the corporation.
- Hindustan Unilever owns and manages around 64 key FMCG brands.
- f) Godrej
- Godrej Consumer Products, founded in 2001, is another Indian FMCG business involved in the personal care, skin care, and toiletry segments.
- Among other things, the company makes liquid detergents, hair colourants, room fresheners, and toiletries.
- Cinthol, Hit, Good Knight, and Aer are some of the company’s most well-known brands.
- g) Jubilant Foodworks
- Jubilant Foodworks, India’s largest food service company, was founded in 1995.
- The corporation has the master franchise rights to two of the most well-known international fast-food chain brands: Domino’s Pizza and Dunkin’ Donuts.
- In addition to these two brands, the company’s brand portfolio also includes Hong’s Kitchen, EKDUM!, and Chef Boss.
- h) Nestle
- Nestle India, founded in 1959, is a subsidiary of Nestle, a Swiss multinational FMCG producer.
- The core business of the company is the production of chocolate, food, confectionary, and beverages.
- Nestle India controls a number of well-known brands, including Maggi, Nescafe, KitKat, and Cerelac.
- i) ITC
- ITC is another big FMCG firm in India with a strong brand presence.
- The company manufactures FMCG goods in a variety of areas, including cigarettes, meals, personal care products, education and stationery products, and lifestyle retail products.
- ITC owns and manages over 31 brands in various FMCG industries.
- j) Marico
- Marico, founded in 1990, is a significant FMCG manufacturer situated in Mumbai.
- The company manufactures a variety of FMCG items in the health, beauty, and wellness areas.
- Marico owns and operates over 21 different brands, the most well-known of which are Parachute and Saffola.
- k) United Breweries
- United Breweries, headquartered in Bengaluru, is one of India’s leading beverage makers.
- The company manufactures both alcoholic and non-alcoholic beverages and is well-known for its high-quality beer.
- UB owns up to 30 different brands, with Kingfisher serving as its flagship.
- l) Procter & Gamble Hygiene & Health Care
- The American global FMCG maker Procter & Gamble first entered India in 1964.
- The company has been active in the production of health care, grooming, home care, fabric care, and personal care goods since its foundation.
- P&G owns and controls approximately 13 well-known brands, including Gillette, Old Spice, Oral B, Vicks, Ambi Pur, Head & Shoulders, Pampers, Ariel, and Tide.
- m) Tata Consumer Products
- Tata Consumer Products, founded in 1962, is another company in the Tata Group.
- The firm is the world’s second-largest producer and distributor of tea.
- Tata Consumer Products’ core business focus is tea, coffee, water, and snacks, and the company owns approximately 17 different brands.
- n) United Spirits
- United Spirits, which is part of the UB group, is likewise located in Bengaluru and is the world’s second-largest manufacturer of spirits.
- The product line of the corporation contains up to 50 different spirit brands, including numerous home-grown names as well as some classic global brands.
- o) Varun Beverage
- Varun Beverages, founded in 1995, is an Indian bottling company that manufactures, bottles, and distributes all of PepsiCo’s beverages.
- In reality, PepsiCo’s bottling company is the world’s second-largest.
- Varun Beverages is in charge of packaging and distributing PepsiCo’s carbonated and non-carbonated drinks in India and other countries.
The stock market index functions as a barometer, indicating the overall state of the market. They assist investors in detecting the broad market pattern. The stock market is used by investors to determine which stocks to invest in. Moreover, knowing about the FMCG Index ensures that you know about the business you deal with on a daily basis.