Why should you invest in this smallcase?
The FMCG sector is the 4th largest sector in the Indian economy and is expected to grow at a compounded growth rate of 23.15% to reach US$ 103.70 billion by FY21 from US$ 68.38 billion in FY18.
- Increased brand consciousness has been driving the growth of the organized FMCG sector. Growth in modern retail will further drive the growth of the organized FMCG sector.
- Increasing internet penetration and online grocery stores has provided new sales channels for FMCG companies.
- Rural population which accounts for 65% of India's total population has only 45% revenue share in FMCG sales. Increasing disposable income and consumption in rural areas provides a large untapped market.
- Government has allowed 100% FDI in food processing and single-brand retail and 51% in multi-brand retail, this will provide high visibility for FMCG brands in organized retail markets, bolstering consumer spending and encouraging more product launches.
This smallcase comprises food & beverages, tobacco, household products, batteries and personal products companies to allow investors to efficiently track and invest in the FMCG sector.
Past Performance vs
Equity Large Cap
Mar 3, 2014
Past performance doesn't guarantee future returns & is inclusive of all rebalances. Download chart