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Top FMCG Sector Stocks to Buy in India 2024 for Your Portfolio

Top FMCG Sector Stocks to Buy in India 2024 for Your Portfolio
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From the toothpaste you use every morning to the snacks you munch on during your break, FMCG in India is an integral part of our daily lives. Hence, these Fast Moving Consumer Goods products are constantly in demand and can be considered essential household items. In India, FMCG stocks in NSE have been a popular investment choice due to the consistent growth of the sector and the ever-increasing consumer demand for these products. Thus, in this blog, we will explore what is FMCG stock, the world of FMCG share lists, and discuss some top-performing FMCG companies in India.

What is FMCG (Fast Moving Consumer Goods)?

Abbreviated as FMCG, Fast Moving Consumer Goods are everyday consumer products that are sold quickly and at a relatively low cost.

Accounting for 15% of the GDP and employing more than 10 million people in India, FMCG serves over 1.3 billion people.

These consumer products companies usually sell non-durable goods consumed or used up within a short period, typically less than a year. Thus, examples of FMCG products include packaged foods and beverages, personal care items, household cleaning products, and over-the-counter medicines.

Since the FMCG companies in India have transformed incredibly over the past two decades, offering a high turnover rate, investors have found a new interest in them. As a result, they are investing in FMCG stocks in NSE. FMCG stocks are stocks of companies that manufacture and distribute FMCG products. The demand for FMCG products is generally stable, and these products are consumed regularly by people across all income groups. 

Thus, FMCG companies in India tend to have a more stable revenue stream and can be considered defensive stocks. Additionally, investing in FMCG stocks in NSE can be an excellent way to diversify one’s portfolio and add stability.

What is the Nifty FMCG Index?

Since the FMCG market is large, it becomes difficult to analyse which FMCG companies in India will be best suited for your portfolio. Therefore, the NIFTY FMCG Index is an index that tracks the performance of the FMCG sector stocks list in the Indian stock market. It is part of the NIFTY index family, owned and managed by the National Stock Exchange (NSE) of India.

Hence, the index primarily consists of the top 15 FMCG companies in India that are primarily engaged in producing and distributing FMCG products. The index includes companies from various sub-sectors, such as food and beverages, personal care products, household items, and tobacco products. 

Further, it is calculated using a free-float market capitalization-weighted methodology. This means that companies with higher market capitalization have a more significant weightage in the index. Additionally, the index provides a broad representation of the FMCG sector stocks. It enables you to access the overall performance of the sector and individual companies within the sector.

List of Best FMCG Companies in India to Invest in 2024

With brick-and-mortar stores offering limited selection and high prices, consumers are increasingly opting for quick, safe, and contactless deliveries. As a result, many new competitors have entered the Indian FMCG market. Let’s take a look at top 10 FMCG stocks in India.

Stock NameSub-Sector Market Cap (in Cr) Share Price
Hindustan Unilever LtdHousehold Products₹5,98,675₹2,375.55
ITC LtdTobacco₹5,80,902₹459.3
Nestle India LtdFoods₹2,41,232₹2,462.9
Britannia Industries LtdFoods ₹1,20,799₹5,048.1
Godrej Consumer Products LtdPersonal Products ₹1,12,909₹1,130.4
Dabur India LtdPersonal Products₹95,592₹524.8
Tata Consumer Products LtdTea & Coffee₹1,06,539₹1,145.65
Marico LtdPersonal Products₹67,789₹520.95
Colgate-Palmolive (India) LtdFoods₹67,865₹2,438.4
Procter & Gamble Hygiene and Health Care LtdPersonal Products ₹56,190₹17,048.15
Disclaimer: Please note that the above list is for educational purposes only, and is not recommendatory. Please do your own research or consult your financial advisor before investing.

Note: The data is from 23rd January 2024.  However, for real-time updates on FMCG stock prices and market trends, visit the smallcase stocks collection today!

Future Projections of the FMCG Industry in India

The Indian FMCG stocks future has seen exponential growth thanks to changes in consumer behaviour, rapid urbanisation, and rising disposable incomes. Therefore, these best consumer goods stocks in India have a high turnover rate due to the large market size. The market is not only very large, but it is also very competitive. 

Thus, with differentiated business models, several booming FMCG companies in India are optimising their strategies to meet the rising demands of the present consumer. Therefore, according to industry reports, the sector is projected to grow at a compound annual growth rate (CAGR) of around 9-10% over the next few years, reaching a market size of USD 104 billion by 2025. 

Additionally, with the emergence of e-commerce and digital adoption, investing in FMCG can be a wise choice for any investor.

Overview of the Top FMCG Stocks in India

Here is a brief overview of the 10 best FMCG Stocks in India. 

Hindustan Unilever Ltd.

Hindustan Unilever Limited is engaged in fast-moving consumer goods business. The Company’s segments are Soaps and Detergents, Personal Products, Beverages, Packaged Foods, chemicals, water business and infant care products. This FMCG company in India is the best in the country. According to NSE data, HUL Hindustan Unilever traded 4 shares in the last transaction. 


ITC is a diversified conglomerate with a strong presence in sectors such as cigarettes, FMCG (Fast-Moving Consumer Goods), hotels, paperboards, and agribusiness. Managers brands like Sunfeast, Yippee, Aashirvaad, Bingo!, B Natural, Engage, Savlon soaps, Classmate and others.  

Nestle India Ltd

Nestle India Limited is engaged in food business. It manages brands like NESCAFE, MAGGI, KitKat, BarOne, Alpino, Munch, Eclairs and POLO. According to NSE data, Nestle India traded 1 share in the last transaction. 

Britannia Industries Ltd

Britannia Industries Limited is a food company, which is engaged in the manufacture of biscuits, cakes and rusks. The Company operates through the FMCG foods segment, which comprises bakery and dairy products. According to NSE data, Britannia Industries traded 2 shares in the last transaction. 

Godrej Consumer Products Ltd

Godrej Consumer Products is a leading FMCG company with a diverse product portfolio, encompassing personal care, hair care, home care, and hygiene products. Renowned for its innovation and commitment to sustainability, Godrej Consumer Products continues to be a household name in India and beyond.

Dabur India Ltd

Dabur is a well-established player in the Indian consumer goods industry, specializing in natural healthcare and personal care products. With a legacy spanning decades, the company’s Ayurvedic offerings and focus on herbal formulations have earned it a trusted position among consumers seeking holistic and natural solutions.

Tata Consumer Products Ltd

Tata Consumer Products is a dynamic player in the consumer goods sector, with a diverse product range including tea, coffee, water, and ready-to-eat products. The company’s commitment to quality and sustainability, combined with the strength of the Tata brand, positions it as a key player in the global consumer products market.

United Spirits Ltd

United Spirits, a subsidiary of Diageo, is a leading player in the alcoholic beverages industry. Known for its iconic brands and a diverse product portfolio ranging from Scotch whisky to popular Indian spirits, the company has a significant presence in the premium and luxury segments of the market.

Marico Ltd

Marico is a renowned consumer goods company specializing in beauty and wellness products. With a focus on innovation and consumer-centric solutions, Marico has created a strong presence in the hair care, skincare, and edible oil segments, earning consumer trust through brands like Parachute, Saffola, and Livon.

Colgate-Palmolive (India) Ltd

Renowned for its global presence in oral care. The company’s commitment to oral health is reflected in its iconic toothpaste offerings, making it a household name trusted for generations.

Procter & Gamble Hygiene and Health Care Ltd

As a subsidiary of the global consumer goods giant, P&G, this Indian arm focuses on health and hygiene products. It has built a strong portfolio, including brands like Whisper and Vicks, addressing the diverse needs of consumers in the personal and healthcare segments.

How to Invest in the FMCG Industry via smallcase?

With smallcase, you can not only invest in the FMCG Tracker portfolio but also track its performance at the same time.  At last, the future looks bright for the FMCG industry in India, and it is likely to remain a key contributor to the country’s economic growth.

However, if you’re confused about which stocks to pick, you can explore smallcases:

  1. smallcases are readymade portfolios of stocks/ETFs, that are based on a theme idea or strategy
  2. They’re created and managed by SEBI-registered experts
  3. smallcase.com offers over 200+ stock portfolios, created by 180+ managers
  4. Some of the popular smallcases among new investors are as follows:

Equity & Gold smallcase by Windmill Capital

Top 100 Stocks smallcase by Windmill Capital

All Weather Investing smallcase by Windmill Capital

Disclosures for aforementioned smallcases

FMCG Tracker smallcase by Windmill Capital

Factors to Consider Before Buying the FMCG Stocks

Before you consider investing in the best FMCG shares, it is important to consider these key factors to make an informed investment decision:

  • Market Share and Revenue Growth: Therefore, look for FMCG companies in India with a strong market share and revenue growth, indicating a strong demand for their products. 
  • Brand Value: The top FMCG company is most likely to have a loyal customer base and a competitive advantage. Thus, it’s advisable to consider investing in FMCG companies with strong brand value and marketing strategies.
  • Distribution Network: FMCG companies with a strong and efficient distribution network are better positioned to reach a broader customer base. Thus, consider investing in companies that have a strong and established distribution network.
  • Price-to-Earnings Ratio: Consider the price-to-earnings (P/E) ratio of the FMCG share price you are interested in. A high P/E ratio indicates that the stock is overvalued. While a low P/E ratio suggests that the stock is undervalued.
  • Economic Indicators: FMCG share prices are sensitive to economic indicators such as inflation, interest rates, etc. Consider investing in consumer goods companies in India that are less sensitive to economic fluctuations.
  • Competition: Consider the level of competition in the Indian FMCG market and the company’s ability to maintain market share and revenue growth despite competition.
  • Government Regulations: FMCG companies are subject to various manufacturing, advertising, and labelling regulations. Thus, consider the potential impact of government regulations on the company’s operations and profitability.

Challenges of Investing in FMCG Stocks in India

Like any other investment, investing in FMCG stocks in India comes with its own set of challenges. But with the help of financial advisors or a trustable platform like smallcase, you can easily tackle these challenges. Hence, let’s learn how. 

  • Sensitivity to economic volatility: Due to FMCG’s sensitivity to market and economic changes, investing in FMCG stocks can be challenging. However, with smallcase, investors can diversify their portfolios by investing in a basket of FMCG stocks, reducing their overall risk.
  • Transparency: One of the challenges of investing in FMCG stocks in India is the lack of transparency in financial reporting. However, smallcase provides investors with transparent and detailed information about the stocks, including financial statements and performance metrics.
  • Changing consumer preferences: With smallcase theme-based portfolios, you can invest in the best consumer stocks in India that offer multiple products so that changes in consumer preferences don’t incur risks.

Advantages of Investing in FMCG Stocks in India

There are several advantages of investing in the listed FMCG companies in india. Here are some of the key benefits:

  • Stability: FMCG stocks in NSE are considered defensive stocks that tend to be less volatile than other sectors. For investors looking for stability, FMCG companies potentially tend to have stable demand regardless of economic conditions.
  • Long-term growth potential: Investing in the best FMCG stocks for long term can lead to steady revenue growth over the long term. Investing in FMCG stocks lists can provide a steady source of income for investors.
  • Diversification: FMCG shares in India can diversify your investment portfolio, as they tend to be less correlated with other sectors. By investing in FMCG stocks India, you can reduce the overall risk of their portfolio.
  • Brand value: The best FMCG company in India tends to have strong brand value, which can result in customer loyalty and increased sales. Investing in FMCG companies with strong brand value may potentially lead to long-term growth.
  • Defensive nature: Dividend payments to shareholders can be consistent when FMCG companies are profitable and have a steady cash flow. This makes FMCG stock list less sensitive to economic fluctuations, which can provide a defensive nature to a portfolio.
  • Dividends: FMCG sector in India tends to be profitable and have stable cash flows, which can result in consistent dividend payments. Thus, investing in FMCG stocks can provide a source of passive income through dividends

To Wrap It Up…

In conclusion, FMCG stocks in India can offer a promising investment opportunity. The top FMCG companies in India tend to dominate the market. Thus, with the growth of the Indian economy, the sector is expected to continue its upward trajectory. 

Therefore, investing in FMCG companies in India could be a diversified bet with the FMCG Tracker smallcase. This smallcase enables you to track and invest efficiently in the Indian FMCG sector companies. Includes companies from the FMCG food companies & beverage, household products, batteries, and other consumer goods company. Isn’t that amazing? 

Well, people don’t lie when they say good things come in smallcases! So, what are you waiting for? Download the app and start investing today!


1. What are the best stocks of the FMCG Industry?

The top 5 FMCG stocks in India are:

1. Hindustan Unilever Ltd.
2. ITC Ltd
3. Nestle India Ltd
4. Britannia Industries Ltd
5. Godrej Consumer Products Ltd

Note: This information is provided for educational purposes and is not intended as a recommendation or endorsement.

2. How can I invest in FMCG  sector stocks?

With smallcase, you can not only invest in the FMCG Tracker portfolio but also track its performance at the same time.  At last, the future looks bright for the Indian FMCG industry. It is likely to remain a key contributor to the country’s economic growth.

3. Is it a good time to invest in FMCG stocks?

The evergreen demand for FMCG products potentially makes this sector a safe and top long-term investment option. If you plan to invest for at least 5-6 years, you can expect favorable returns. Investors must consider their investment goals and risk appetite before investing in FMCG Stocks.

4. Who should invest in FMCG sector stocks?

Investors seeking steady revenue growth are attracted to FMCG company stocks because of their strong consumer loyalty and brand recognition. However, one must evaluate their risk appetite and investment goals before investing.

5. Can FMCG stocks be profitable for investors?

The FMCG business generally maintains a narrow profit margin, ranging from 2% to 25%, due to the multiple steps involved in getting products to customers through stores. Investors should comprehend both the growth potential and challenges confronted by FMCG Stocks.