Indian Consumer Durables and FMCG Industry Analysis

Consumer durables revenues have been growing at a healthy pace

• The consumer durables sector revenues reached US$ 9.7 billion    in FY15 and is expected to reach US$ 12.5 billion in FY16.

• Consumer durable market expected to grow at CAGR of 13 per    cent from FY05 to FY20

• Around two third of the total revenue is generated from urban   population and rest is generated from rural population.

• Samsung has emerged as the market leader in the consumer   durable segment followed by the Indian giant Videocon.

      The consumer durables market is expected to reach US$ 12.5 billion in 2015 and US$ 20.6 billion by 2020. Urban markets account for the major share (65 per cent) of total revenues in the consumer durables sector in India. There is a lot of scope for growth from rural markets with consumption expected to grow in these areas as penetration of brands increases. Also demand for durables like refrigerators as well as consumer electronic goods are likely to witness growing demand in the coming years in the rural markets as the government plans to invest significantly in rural electrification. 

The FMCG sector has grown at an annual average of about 11 per cent over the last decade.  The overall FMCG market is expected to increase at (CAGR) of 14.7 per cent to touch US$ 110.4 billion during 2012-2020, with the rural FMCG market anticipated to increase at a CAGR of 17.7 per cent to reach US$ 100 billion during 2012-2025.Food products is the leading segment, accounting for 43 per cent of the overall market. Personal care (22 per cent) and fabric care (12 per cent) come next in terms of market share. 

Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the consumer market. The Government of India's policies and regulatory frameworks such as relaxation of license rules and approval of 51 per cent foreign direct investment (FDI) in multi-brand and 100 per cent in single-brand retail are some of the major growth drivers for the consumer market.

                                                                  Thank You 

                                                                                                                             RAGUL.M

                                                                                                          ragulmohankumar@gmail.com

                                                                                                                         

Supply Chain Trends for 2016

“The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency.”

Every industry undergoes changes in their trends and their workings. Let’s see a few of the pressing changes in the supply chain industry

#1: Supply Chains will look to Go Digital

Technology has driven a new wave of productivity by digitizing key financial and business processes and enabling collaboration across the organization. This 2016 supply chain trend will continue as best-in-class organizations leverage business networks to create a digital community of partners executing coordinated processes in a more organized and informed way than in the past.

#2: Responding to Innovation & Change but with an Eye on Fundamentals

The ability to accept innovations and take advantage of the synergy effects of individual movements is a core competence of future-oriented companies. Not losing sight of the essentials while filtering out what is personally important, requires our full attention and continual development. Nevertheless, we reach our limits time and again and need support, e.g. from operations research, which provides us with intelligent decision-making algorithms enabling us to keep up with today’s fast-paced operating environment.

Advances in technologies available to optimize supply chains have made faster implementation times a reality

#3: Augmented Reality 

DHL (a famous Logistics company) says AR is the future to SCM and its co- activities

DHL looks at the following ways Augmented Reality will provide benefits to the supply chain as listed:

·        Picking Optimization

·        Facility Planning

·        Freight/Container Loading

·        Dynamic Traffic Support

#4: Artificial Intelligence

Huge Investments being made in Artificial Intelligence by many companies including Facebook, Google, Apple, Tesla, and many many more companies. Machine vision and robotics are already in use around us, most notably in industrial applications, including the warehouse, as well as facial recognition systems used by law enforcement.

And further, that advent of  Industry 4.0 and Smart Factories all powered by the Internet of Things will make running a supply chain as easy as pushing buttons (of course this all means it was set up correctly!). The use of Artificial Intelligence seems almost endless, but be on the lookout for some serious applications in the supply chain for 2016. 

#5: Agile = The New Lean

Agile methodology is an alternative to traditional project management, typically used in software development. It helps teams respond to unpredictability through incremental, iterative work cadences, known as sprints. Agile methodologies are an alternative to waterfall, or traditional sequential development.

#6: Procurement’s New (read Bigger) Role in the Supply Chain

Think purchasing & procurement and often what comes to mind is the struggle or battle to make a supplier give you materials or services for the lowest amount of money possible. 

GE is deploying strategies like purchasing small suppliers that provide critical parts or services. None of those strategies work without a strong procurement practice that is integrated with other supply chain processes.

#7: Collaboration Continues to Take Center Stage for Efficient Supply Chain Management

Speaking of supplier collaboration, many companies have taken steps to improve the efficiency and effectiveness of their supply chain operations by automating key processes beyond procurement to areas such as with orders, invoicing, and payment. This is with good reason backed by data.

                                    Thank you                                

                          

VARUN S

varunsc1794@gmail.com

Market Instability Due to Brexit and GST

In the last few months we have seen two very important economic events occur, one a global event which is Britain’s exit from the European Union and Another a national event which aims to make the Indian economy an attractive place for investment which is the approval of GST (Goods and Services Tax) by the parliament which makes the indirect tax system a much more transparent procedure. Apart from the two large events the spark of Raguram Rajan’s exit from the RBI is not seen as a relief during this time of global instability.

         
         The Rupee has seemed to weaken a bit and had fallen against the dollar to 67.97 but seemed to stabilize again. Though there is no direct threat of the rupee against the fall of Brexit, it can be seen that a global crisis will affect it indirectly from economies like USA and Russia from which India has direct relations. It will also affect the inflow of foreign investment at least for a while and hamper the growth of policies like make in India. Though the market sentiment holds that the Brexit in the long term is good for India and the market can use it to an advantage for better access to both the UK and EU.

GST will definitely see a positive impact in the manufacturing sector and especially in the transport and logistics sector can see an improvement. It will also aim to bring together the various states and also make for easy compliance and reduce the cascading tax on tax problem faced. It will also make the Indian goods available at competitive prices in other foreign market. It will also boost India’s GDP and assist in the collection of tax thus also increasing the revenue for the government.

Thus my overall view is that even though there is a lot of market instability, it seems as an opportune moment for India to make use of the available advances and gain revenue overall.

                                                                                   
                              Thank you all  

                                              

                                                                     - Pranay Kothari.N

                                                                          pranaykothari99@gmail.com

A WARM WELCOME TO ALL VIEWER....

Dear recruiters,

Welcome to the official blog of School of Management, D G Vaishnav College. We call it Management By Attitude, or MBA for short.

Attitude is one key element that is missing in most managers today. D G Vaishnav prides itself in grooming managers with the right attitude apart from equipping them with the usual managerial skills which will carry budding managers to distant shores.

Here you can find a plethora of articles, essays, thoughts and videos related to the field of management. The blog is regularly updated with articles tailored to suit the current scenario. The ultimate aim of this blog is to appeal to all readers irrespective of their knowledge in the subject matter.

Hope you have a great time going through all that we have to offer. Feel free to leave your thoughts and comments for improving reader experience.

Happy reading!

Art of Investing in Indian Market Explained By Mr.Vijay Kedia

Inspiring Innovation in Organizations

How to get people to think creatively, while still keeping everyday operations running smoothly? This is one of the biggest challenges almost all organization faces .

There are certain organizations who are able to come up with great ideas over and over again. Some of the ideas are for new products, some for new ways of working, others are for new strategies, still others for entirely new lines of business. How are they doing it ? Is there a secret to these companies’ successes?

Innovation is an important concept to understand as a manager and for an organization as a whole. Used in the correct manner, innovation can give an organization the competitive advantage they need to be a success in their market.

It is not an easy feat to inspire innovation, many things play a vital role to get inspired to innovate. But there are certain norms that can be adopted to inspire innovation;
1. Make innovation a ROUTINE, let it be an annual contest of ideas or regular brainstorming sessions. this is to bring forth ideas and concepts from the staff .
2. MOTIVATE employees to think up new things that will contribute to the organizations . recognition and appreciation go a long way in motivating employees.
3.  Make COMMUNICATION easier for better flow of ideas. You never know who will come up with the next big idea.
4.   Encourage "OUT-OF-THE-BOX" thinking, think of new ways to solve existing problems.
5.  Never be AFRAID of FAILURE. Failure becomes a lesson to organizations to work better and smarter.

6.  Get the FEEDBACK of customers and use that as a inspiration for innovation. Customers often make suggestions that the organization fails to see.
7.  Innovate anything INTERNAL or EXTERNAL-we tend to think of an innovation as a new product but innovation can be done with a new process, method, business model, partnership, route to market or marketing method. Indeed every aspect of an business operation is a candidate for innovation.
8.   Have the PATIENCE and PASSION to pursue innovative ideas and concepts . It might feel easy to stop pursuing them but when it comes to innovation it is either "All the way through" or "Stop and lose what was gained".

 

In a fast-changing world, an innovative culture helps an organization constantly move forward. Innovation matters to an organization as it is the core element of management strategy and it leads to results every organization must achieve on the way to its ultimate success in the market. The results of innovation can be even more far-reaching than their utility for the customers who buy them. Innovation is the catalyst to growth.

                                                                                                               - Fathima Juwairiya juwariya10@gmail.com