Even as the battle among the big daddies of the FMCG industry gets uglier, the smaller, nimbler rivals are busy chipping away at their market shares. To grab and retain their pies, companies are busy devising new strategies, new product launches, indulging in price wars, sewing deals, and whatnot. Indeed, it's action time for the industry players.

To an average onlooker, having been devoid of thrills of an IPL T20 or ODI series involving India, the recent advertising war over the "Mystery Shampoo" campaign between Hindustan Unilever and P&G would have come as a refreshing entertainment. But for the avid watchers of the FMCG industry, it tells a serious tale of the ongoing brutal battle amongst large companies for the consumer mindshare even as smaller as well new rivals continue to snap at their heels. From the fierce fight over the glucose biscuit market share among Britannia, Parle (an old foe) and ITC (new, but a fearful rival) to the fast intensifying war which has created a stir in the Noodle Cuppa, literally, as Nestlé's Maggi brand of noodles for the first time faces multifaceted attacks from new as well as old rivals like Capital Foods Ching's and Smith & Jones and HUL's Knorr and Horlicks Foodles, the FMCG market is buzzing with lot of activities.

The FMCG sector in the country, which had been lying low for the past few years, is suddenly witnessing quite a flurry of activities, thanks to the onset of the modern trade, a burgeoning middle class in the country, rising disposable incomes, growing demand, etc. All these factors have helped to boost the demand for FMCG products in the country. However, while on the one hand, these factors have helped expand the market, on the other hand, entry of new players has toughened the competitive landscape for the existing players. The recent quarter performances of the players confirm the same. For instance, HUL, India's largest FMCG company, though grew its top-line by 7% to Rs 4,793.9 cr buoyed by volume growth of 11%, it suffered a decline of 1.8% in net profit at Rs 533.2 cr in the latest June quarter, hit hard by rising raw material costs (up 5.8%) and higher advertising expenses (up 34%). The performance of the laundry segment, which is a key contributor, remains a major concern for the FMCG giant. Industry analysts opine that until the company revives its performance in this crucial segment, it would be tougher to regain the lost growth momentum. Though, not many experts foresee that happening anytime soon.

The Analyst Magazine, Fast Moving Consumer Goods, FMCG, Hindustan Unilever, HUL, Godrej Consumer Products Limited, GCPL, Confederation of Indian Industry, CII, Information Technology, IT, Market Strategy, Mergers & Acquisitions, M&A, Economic Stability.