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Tag: FMCG

  • The Business Model of Britannia: The Untold Model of The Household Name

    It is almost impossible to not hear about Britannia while living in India. This household name has conquered the country with its spectacular food products, which have been tasted by almost everyone. From starting a ‘Good Day’ by being the partner of a cup of tea to patch up the broken hearts with ‘Little Hearts’. It has done everything, to be one of the leading food companies in India specializing in bakery and dairy products.

    Britannia, the name of the brand itself speaks its value. Since the 1990s, it has fallen under the Wadia group that has now been lead by Nusli Wadia. It has been a part of the country for over a hundred years and has been serving the taste buds of many generations.  From biscuits to cheese, to cakes, you name it, they have it.

    The success that this company tastes is a result of a structured business model. Let’s find out about the model that helps the business to climb the stairs, to reach the top position.

    Legacy of Britannia
    Where Does Britannia Operate?
    Products of Britannia
    Target Audience of Britannia
    Business Model of Britannia
    What is unique about Britannia’s Business Model?
    How Does Britannia Make Money through Its Business Model?
    FAQ

    Legacy of Britannia

    The history of Britannia is just like the taste of its products, rich and fascinating. In 1892, the Britannia industry was founded by some English businessmen and the investment was of just ₹295. It was started as a mere bakery at first.

    Later on 21st March of 1918, another businessman, named C.H. Holmes becomes a partner and the Britannia Biscuit Company Limited came into existence. Initially, Britannia was only manufacturing biscuits and was selling them. Although, in 1997, they started producing dairy products as well, since then it hasn’t looked back.

    Where Does Britannia Operate?

    Britannia has its footprints in more than 60 countries and has been serving them nonchalantly. Especially, it has conquered the hearts of the Middle Easterns, by locally manufacturing its products in UAE and Oman. International Bakery products serve as the subsidiary of Britannia. The main headquarters of the company is in Kolkata. Britannia products are distributed among over 5 million stores in the country.

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    Products of Britannia

    As mentioned before, Britannia manufactures and sells Bakery and dairy items.

    • Bread and Buns -Britannia bread, Atta Kulcha bread, Britannia Pav, Britannia sweet bun, Britannia fruit bun
    • Biscuits -Good Day, Britannia Crackers 50-50, JimJam, Milk Bikis, Tiger, Marie Gold, Little Hearts, Bourbon, Nutri Choice
    • Cakes– Britannia Gobbles, Britannia Muffins, Tiffin Fun
    • Dairy – Cheese, Milk, Butter, Ghee Yoghurt

    Target Audience of Britannia

    The target audience of Britannia is not limited to a certain age group or of an income group. It is truly for anyone and everyone. Products like Little Hearts, Tiffin cakes are used, to appeal the kids. Nutri Choice is for those who are a little bit health-conscious. Marie Gold caters to the need of the older generation as well.

    Business Model of Britannia

    Britannia is a brand that decided to serve the people with utmost care with deliciousness and nutrition. It basically focuses on two things, Bakery products, and Dairy products. Its main motive is to provide healthy and nutritious food items to the people. With that target, it has become the first food company that has zero Trans Fat in its food items.

    It mostly deals with the outdoor and traditional forms of advertisements for its marketing strategy. It placed its bets on Television and radio advertisements, thus attracting almost every group of consumers.

    Net profit of Britannia Industries Limited
    Net profit of Britannia Industries Limited

    About ITC Ltd. | How ITC makes Money? | ITC Business Model
    ITC Ltd. is an Indian company with diversified presence across several industries. know about the business model of ITC and how ITC makes money?
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    What is unique about Britannia’s Business Model?

    Britannia becomes one of the leading Indian bakery brands by following some unique strategies. It has 13 factories located all over the country and has 4 franchises.

    Some of the key points of Britannia’s business models that make it unique are:

    • Its main objective is to promote biscuits of the Britannia brand more than other products.
    • It concentrates on providing food items to its customers that will fulfill their daily need for nutrition.
    • It believes in quality food items that deal with fruits, nuts, seeds, pulses, dairy, and protein substances that are necessary for the healthy growth of a normal human being.
    • Focuses on producing better quality food and selling them economically in prices for every income group.
    • It has joined hands with the Government and different NGOs to fight against malnutrition and undernutrition prevailing in the country.
    • It has started the Britannia Cares program that offers fitness activities to ensure a healthy lifestyle amongst its employees.
    • To counter attack micronutrient deficiencies in India, it has taken steps to avoid all those products that are harmful according to the Food Safety and Standards Authority of India (FSSAI)
    • Britannia also decided to curb down the salt and sugar limit of its snacks to promote Eat Right Movement by FSSAI in 2018.

    How Does Britannia Make Money?

    There is a number of ways Britannia makes money although its main focus is to provide nutritional elements through their food items to everyone.

    • Britannia’s revenue depends on the sale of its bakery and dairy products.
    • 95% of sales depend on the products dealing with biscuits.
    • 5% of sales depends on dairy products.

    Britannia has signed a deal of joint venture with a Greek Company named Chipita S.A to produce and sell ready-to-eat croissants in India. It is also working on expanding its demand abroad, especially in Africa and South East Asia.

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    Did You Know?

    Some of the interesting facts of Britannia are:

    • In 1921, Britannia becomes the first company from the East of The Suez Canal to import and use gas ovens.
    • The trust Britannia has created from their initial days made it possible for them to supply biscuits to the British army during World War II.
    • It is one of the oldest biscuit companies in India and carrying its legacy since 1918.

    Conclusion

    ‘Britannia’, this name carries the trust of millions of people. From providing biscuits to the soldiers during World War II  to being responsible by taking steps to eradicate malnutrition and undernutrition from the country. It has come a long way to be one of the biggest Food and Beverage companies of India.

    FAQ

    What is the revenue of Britannia?

    The revenue of Britannia was ₹11,878.95 Crores (US$1.7billion) in 2020.

    Who is the CEO of Britannia?

    The current CEO of Britannia is Varun Berry.

    When was Britannia founded?

    Britannia is one of the oldest companies in India founded in 1892 and is headquartered in Kolkata.

  • Business Model Of ITC Limited: How Does ITC Make Money?

    The height to which a business can be taken is sometimes hard for the eyes to meet. Some turn out to be pro at this, whereas sum ends up with nothing on this earth.  Several factors together build up to make a successful business stand; it becomes tough and competitive to keep all the elements simultaneously. Some minds prefer sticking to one type of business. On the other hand, some reasons go a step ahead creating various branches on which their business runs.

    Likewise, ITC limited is one that comes under the second category. With utter determination, it has become a well-renowned brand that pops up in nearly every advertisement that we come across. Not just stopping at one-way success, ITC made sure that it ends up ruling its domain. So here in the lines which follow, we will be sailing through the functioning and execution of the ITC limited.

    About ITC limited
    Business Model of ITC
    What is unique in the business model of ITC
    How does ITC make money?
    Conclusion
    FAQs

    ITC Limited Business model analysis

    About ITC limited

    1910 being the birth year of this highly established company, Kolkata in West Bengal houses its headquarters. Generally, ITC can be simply understood as a multi-industry company with its working hands in more than one business field. And that too is confined to single geographical coordinates, instead of growing with many locations in hand. However, the source of these hands is familiar with Sanjiv Puri as the chairman and managing director of this company breaths.

    Areas of operation

    The Indian subcontinents being the central arena to work on. Which further have countries like India, Nepal, Bhutan, Sri Lanka, Bangladesh. Besides that, the Gulf countries also get a taste of their business.

    Essential products and services

    ITC Products
    ITC Products

    As stated earlier, ITC is no one business company. Hence there’s a wide range of products this company houses. Because of this wide range of variety, it attracts the masses and meets the needs at large. If we go on having a quick look over the list would start from ;

    1. FMCG products: The light hectic free products from packaged food, household items, cosmetics, items we need daily, etc. Its fast-moving products include brands related to personal care products such as Fiama, Vivel, and Superia, stationery products such as Classmate, packaged food products such as Aashirvaad, Lychee Flavour, Bingo!, Sunfeast Dream Cream biscuits. Matchsticks and incense sticks such as Mangaldeep are also included under ITC’s products.

    2. Apparel: With fashion being a significant component in our lives, it was a good move on the part of ITC to have a competition in this too. John Players, ITC’s apparel brand, serves its customers with quality formals, casuals, denim, and accessories.

    3. Cigarettes: Named the tobacco company in its early days, cigarettes and tobacco were ITC’s initial products. Wills, the globally renowned cigarette brand by ITC, also serves its broad audience with designer wear, formal wear, casual wear, evening wear apart from cigarettes. Other popular cigarette brands include Scissors, Classic, Gold Flake, Flake, Insignia, Navy Cut, Briston, etc.

    4. Hotels and resorts: It’s one of the best investments, no doubt. ITC also holds its name under the list of premium hotels. Welcomhotel, ITC Hotels, Fortune Hotels, and Welcomheritage Hotels are the premium brands of hotels. These hotels have over 100 hotels spread across 70 destinations.

    5. Agribusiness: ITC ranks second in providing agri-products which include feed ingredients such as soya meal, marine products such as prawns and shrimps, food grains such as wheat, barley, maize, processed foods, and coffee.

    6. Paperboards & Packaging: ITC’s paperboard products include paperboard, specialty paper, graphic paper, and others. Apart from this, ITC provides printing services for both Indian and international clients.

    7. ITC Info Tech: ITC also provides business-friendly technical solutions related to manufacturing, banking, finance, travel, and healthcare.

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    Target audience of ITC

    Fixing a confined group to such a massive range of products and services is somewhat nearly impossible. With its diverse ability to produce constantly keeping the variety in front, it draws every pair of eyes and ears irrespective of the age group. That too from every field possible.

    Day by day, ITC is extending its services and targeting audiences from every age group. ITC has to go hand in hand with the people’s choice, which varies with every square kilometre. Thus, to suit every individual’s need, the company is always in a constant state of polishing itself. It makes sure that it takes people of all ages under its production umbrella in a way that makes room for everybody’s needs.

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    Business Model of ITC

    ITC Limited Logo
    ITC Limited Logo

    Hence, to build its revenue without any hindrance, the company has a beneficial business model on its table. ITC makes sure that it produces something new to attract the audience. This way, they would be drawn like magnets, end up investing in the latest products in the market.

    To get people to know about the new launches, it also never lags in displaying those. Along with that, back in the company’s production house, there’s always constant research about the mass. It helps in designing their upcoming innovation according to the audience’s feedback.

    To carry on the smooth functioning of the company, the resources have to be rigid. The infrastructures, physical inputs of the employees, transportation, and storage are valuable resources. These also include a set of experienced workers who know the mass from a closer perspective. And thus, insist on producing what should be the following product. These resources are like the pawns of the company. As a group, they contribute a significant amount to the revenue bar of the company.

    The customer gets a symbol of the wise company not to remain put with the profit from a particular segment. Likewise, ITC, by being an all-friendly company thinks about, the needs of every age group. Also, people of every geographical region. Every human should feel the essence of its products. Be it an urban or rural,  a small town or big city, ITC makes sure that the products reach every hand that searches for them. Hence, getting inputs from all directions helps the company with better motivation and finance as well.

    ITC being such a vast organization has the best value services for its customers. As it is confined to a single sector of producing, the customers are provided with a variety of offers and reasons to visit the company’s doorstep. The central bullet point is that all these services root from a single branch.

    To sell its products, ITC never falls short of platforms. It is evident that for such a vast project, several stations would be required to enter the market. Thus, the online distribution network is a convenient way. Apart from that, all sorts of apps designed by or for ITC do the job. It attracts, gives ideas, and makes aware people of the existence, efforts, and production of ITC. All these factors shape the business model of ITC.

    What is unique in the business model of ITC

    Starting from consumables to household items and paperboards, ITC does its best to satisfy its audience. A hard-to-count bunch of products brings ITC its title of being the most renowned producer. Apart from a small loophole of producing tobacco, the rest of its products are high on demand always.

    There’s no doubt that ITC has a robust network when it comes to the delivery of products. Production, storage, and delivery of such large quantities would sit on a vast expanse of land. That, too, ITC has well-taken care of. It is making sure that its products reach the assigned location in the minimum time possible.

    In the initial days, ITC diversified its resources and extended its business across many different sectors. It helped it create its brand presence which ITC utilized while entering into the FMCG sector. Moreover, ITC’s diversified business has led to reduced costs of outsourcing. The interrelation between its businesses has helped it grow and establish itself.

    How does ITC make money?

    Breaking down the streams of revenue, cigarettes contribute to about 77% of its revenue generation. On the other hand, paperboard & packaging contribute about 7.3% to the payment. Looking at other products, their agri-business contributes about 7.0%, hotels contribute about 4.3%, and FMCG products contribute about 4.0% to their total revenue.

    Conclusion

    Starting from scratch as a tobacco-producing company to being the ITC limited, this company has come a long way. Striding past innumerable competitors, it has gained what many dreams. Nevertheless, ups and downs are a combo pack that comes with every business. But with the amount of build-up ITC has already created, it would be a sweat-drenching process for any company to snatch the market from ITC. We, as consumers, with great delight, pick up the products of ITC without any second glance, which makes it even more invincible.

    FAQs

    What is main business of ITC?

    ITC Limited is an Indian conglomerate with diversified businesses in Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes, Apparel, Stationery Products, Incense Sticks, Safety Matches, Hotels, Packaging, and others.

    What is the revenue of ITC?

    According to the 2020 update, 52,001 crores is what the present revenue of ITC stands for.

    Who is the CEO of ITC?

    Sanjiv Puri was appointed as the CEO in February 2017 and continues with his post to date.

    How much debt does ITC have?

    329.35 crores are the debt amount ITC has, as recorded in March of 2021.

  • Why E-pharmacy firms saw huge order surge in second wave of pandemic

    The second wave of the Covid-19 pandemic in India has led to the significant growth of online pharmacies. The lockdown being implemented in various states and the strict restrictions have led to the surge in for medical devices and PPE kits by the consumers through e-pharmacies. Let’s look at the growth of e-pharmacies in India.

    Growth of E-pharmacy market
    Growth of 1mg
    Wellness Forever Medicare
    Other E-pharmacy companies
    Reason for the order surge
    Demand for Covid-19 related products
    FAQ

    Growth of E-pharmacy market

    The growth of the e-pharmacy sector has increased by up to 35 % compared to last year according to Industry trackers which is almost 3 times the expansion in the number of consumers ordering medicines and the essential substances for Covid-19 online. They claim that the sector is expected to witness much more growth in the current year as well.

    Ankur Pahwa who is the Partner and National leader for the E-commerce and Consumer Internet sector of EY India had said that since the base is much more larger, they expect the growth to slow down. He added that the sector will not be able to see a growth of 40-45 % this year, but is still expected to remain high because of the increase of digitalization in the country.

    EY has an estimation that the online pharmacy sector in India will grow to around USD 2.7 billion by the year 2023 from USD 360 million in 2019.

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    1mg is one of the top 3 e-pharmacy firm in the country. The company has said that there has been an increase in the medicines such as Fabiflu and Doxzee which is said to treat the mild cases of Covid-19. The company said that there was an increase of around 40x to 50x in the month of April 2021 compared to March 2021.

    The company said that the sales of these drugs would have been higher if they wouldn’t have faced challenges regarding the supply of the drugs. 1mg reported that the demand for the Covid-19 related products was 5 times more in the month of April 2021 compared to the previous month March 2021.

    Wellness Forever Medicare

    Wellness Forever which is an omnichannel pharmacy chain has said that their orders have increased due to the second wave by around 25 %. The company has said that they have seen an increased demand for medical devices such as thermometers and oximeters, medicines and FMCG products.

    Gulshan Bhaktiani who is the co-founder of Wellness Forever Medicare said that the company has seen a similar rise in order over different mediums such as walk-ins, app and calls. The company’s revenue had seen an increase of around 25 % for the year ended March 2021.

    Indian pharmaceutical sector growth
    Indian pharmaceutical sector growth

    Other E-pharmacy companies

    Pharmeasy which is backed by Prosus and the leader of the online pharmacy market in India said that the company is looking forward to provide vaccination for around 30 million people. The company wants to become the largest private player in the vaccination drive in India.

    It is planning to work with Corporates, healthcare providers and resident welfare associations.

    Even the healthcare booking platform Practo has said that it is planning to largely work with corporates in order to provide vaccination to around 10 million people. The company has already confirmed that around 500 corporates have shown interest and have an employee strength of 1 million.

    The company said that it is looking forward to work with around 1,000 companies for the first round of the vaccination drive.

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    Reason for the order surge

    The increase in the cases due to the second wave in most of the metro cities and this leading to lockdown and strict curfews have made the consumers to order the medicines and the Covid related items online rather than visiting offline pharmacies and diagnostic centers.

    According to the company executives and industry experts, this is the major reason for the increase in sales by up to 25 – 65 % for online pharmacies.

    Prashant Tandon who is the co-founder of 1mg said that there is an unlimited need by the consumers currently and the company is investing on an active basis to ensure the supply chains can reach the demand of the consumers.

    He added that the consumers are very anxious and fearful about exposure as they get their lab tests and medicines.

    The demand for Covid-19 related products such as pulse oximeters, oxygen cans, masks, PPE kits, supplements such as Zincovit and Limcee is similar in all the major online pharmacies according to experts.

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    FAQ

    How do online pharmacies operate?

    Customer requests for products on an online platform. The request is sent to an off line brick and mortar store. The prescription is validated and verified by pharmacists and only then the order is accepted for fulfilment.

    Does online pharmacy require drug license?

    Yes, online pharmacy businesses require drug license.

    What is an online prescription?

    Online prescription enables people to compare treatment prices, find a healthcare provider, and schedule an appointment all in the comfort of their own home.

    Conclusion

    The second wave of the Covid-19 pandemic is the main reason for the growth of the e-pharmacy business around the country. We may be able to see an increase in the growth of industries in the coming years.

  • Why FDA might ban Menthol cigarettes in USA

    The Food and Drug Administration of the United States has announced a plan to ban menthol cigarettes and cigars with flavors by next year. Let’s look at why the FDA is planning to ban menthol cigarettes in the country.

    About The ban
    Reason for the Ban
    What Research Suggests
    Downsides of the Ban
    FAQ

    About The ban

    On 29 April 2021, the United States Food and Drug Administration had announced its plans to ban the menthol cigarettes and the cigars with flavour additives within the next year.

    Xavier Becerra who is the secretary of the Department of Health and Human Services (HHS) had said in a statement that the science-based decision is the reflection of the administration of Biden in order to commit towards the improvement of the health of all Americans.

    He also added saying that this step will help to tackle the differences in health in the most marginalized communities.

    Reason for the Ban

    In the United States, Menthol is the only flavour that is allowed to be used in cigarettes which are marketed in the country according to the 2009 Tobacco Control Act (TCA). The main reason for the ban of Menthol Cigarettes is a step taken by the agency to try to take action to reduce the addiction to tobacco and to reduce the deaths related to smoking.

    In order to achieve the above goal, the Food and Drug Administration believes that the ban on menthol cigarettes would help. There are strong pieces of evidence that the ban on menthol cigarettes will help people quit smoking.

    The FDA said in a statement that certain studies show that menthol increases the need for tobacco and it also leads to regular smoking, which is particularly seen in the youth and the young adults. The agency had further added saying that the menthol cigarettes will cover the unpleasant flavours and the harshness of tobacco products which leads to an increase in their consumption.

    FDA to Ban Menthol cigarettes
    FDA to Ban Menthol cigarettes

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    What Research Suggests

    In certain studies, it is found that there are more blacks for the use of menthol cigarettes. According to The New York Times, since the year 1950, the menthol cigarettes have been marketed to the smokers of the black community in the United States.

    According to a report that is noted by the FDA, In the United States, there are around 18.6 million users of menthol cigarettes and out of which 85 % of the consumption is done by black smokers and the rest are white smokers.

    As per a study which was published in the BMJ Journals, around 21. 5 % of the people in the Canadian provinces had quit smoking due to the ban of menthol cigarettes in seven provinces and around 59.1 % of the smokers switched to non-menthol cigarettes.

    The study had noted that the smokers of menthol cigarettes were more likely to quit smoking when compared to the non-menthol smokers to make an attempt to quit.

    Even though there are likely chances for a menthol cigarette smoker to switch to non-menthol cigarettes, the ban of menthol cigarettes is associated with quit attempts at a higher rate and also quit success with menthol smokers compared to non-menthol smokers.

    The study noted that the ban on menthol cigarettes has helped the menthol smokers to prevent the relapse towards smoking by the ones who had quit before the ban.

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    Downsides of the Ban

    There are certain downsides as well due to the ban on menthol cigarettes. As per certain critics, the banning of menthol cigarettes may not achieve the expected results among smokers and may lead to a black market for the menthol cigarettes.

    Legal and Advocacy Organization (ACLU) had written a letter to Becerra after the announcement of the FDA’s decision. In the letter, ACLU has conveyed that the ban on menthol cigarettes would lead to serious implications on racial justice.

    FAQ

    Is menthol FDA approved?

    FDA and the U.S. Food and Drug Administration is planning To Ban Menthol Cigarettes in the United States.

    Are newports menthol?

    Newports is an American brand of menthol cigarettes, currently owned and manufactured by the R. J. Reynolds Tobacco Company.

    What does FDA stand for?

    FDA stands for Food and Drug Administration.

    Conclusion

    The decision of the FDA towards the ban of menthol cigarettes is a significant step taken by the commission on the health of the citizens in the country. The letter had said that the ban would trigger criminal penalties which would impact the people on the basis of colour disproportionately.

  • These companies are Enjoying the Monopoly in India

    A Monopoly is a situation in the market when a specific company or an enterprise is the only supplier of a particular product in the country. India has some companies in which have a monopoly in the market. Let’s look at the companies which have a monopoly in the Indian market.

    IRCTC
    Coal India
    ITC
    Pidilite
    Nestle
    Marico
    Hindustan Zinc
    HAL
    FAQ

    IRCTC

    IRCTC has a 100% monopoly in their respective sector in the Indian market. IRCTC stands for Indian Railway Catering and Tourism Corporation. IRCTC is a subsidiary company of Indian railways which involves in providing services such as ticketing, catering and tourism.

    The company was founded in the year 1999 and has its headquarters located in New Delhi, India. The Company in the beginning was fully owned by the Government of India under the control of Indian Railways but during the year 2019, the company was listed on the National Stock exchange (NSE). The majority shareholding is still with the Government of India.

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    Coal India

    Coal India has an 82% monopoly in their respective sector in the Indian market. Coal India Limited is also a company which is undertaken by the Government of India. The company was founded in the year 1975 and has its headquarters in Kolkata, India.

    Coal India is the largest coal-producing company in the world. The company is also a Maharatna public sector undertaking. The company has a contribution of around 82% of the total coal production in India. Coal India is owned by the Union Government of India and its operations are taking place through the Ministry of Coal. It is the 8th most valuable company in India.

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    ITC

    ITC has a 77% monopoly in their respective sector that is the manufacturing of Cigarettes in India. ITC Limited is an Indian based multinational conglomerate. The company was founded in the year 1910 and has its headquarters located in Kolkata, India.

    ITC has a monopoly over their cigarette brands in the country other than that they have a wide range of products and services such as Hotels, FMCG, Packaging, Paperboards, Agribusiness and Specialty Papers. The company was formerly known as India Tobacco Company limited and later in the year 1974 it was renamed as ITC Limited where ITC doesn’t stand for any acronym.

    Pidilite

    Pidilite has 70% monopoly in their respective sector in the Indian market. Pidilite Industries Limited is an Indian based manufacturing company. It was founded in the year 1959 and has its headquarters located in Mumbai, India.

    Pidilite Products
    Pidilite Products

    The company is mostly involved in the manufacturing of adhesives and also has its monopoly share in the adhesive manufacturing sector. Other than this the company is involved in consumer products such as art materials, food and fabric care, car products, stationery materials, etc.

    They are also involved in the manufacturing of specialty industrial products such as industrial pigments, industrial adhesives, textile resins and leather chemicals.
    One of the major brands under Pidilite is Fevicol.

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    Nestle

    Nestle has a 97% monopoly in their respective sector that is Cerelac in India. Nestle is a Switzerland based multinational conglomerate. It was founded in the year 1866 and has its headquarters in Vaud, Switzerland. The company is involved in the manufacturing of food and drinking products. Nestle is the largest food company in the world.

    Nestle Products
    Nestle Products

    Cerelac is an instant cereal which is manufactured under Nestle. Other than this Nestle has a wide range of products such as baby food, medical food, bottled water, coffee and tea, dairy products, confectionaries, ice cream, chocolates, frozen food, pet foods, etc.

    Marico

    Marico has a 73% monopoly in their respective sector that is Premium Edible Oils in India. Marico is an Indian based company. The company was founded in the year 1990 and has its headquarters in Mumbai, India. Marico is one of India’s leading companies in the consumer goods sector.

    Other than Premium edible oils the company has a wide range of products and brands such as hair care, skincare, male grooming, health foods, fabric care, etc. Marico has its presence in almost 25 countries across Africa and Asia.

    Hindustan Zinc

    Hindustan Zinc has a 78% monopoly in their respective sector that is the manufacturing of Zinc in India. Hindustan Zinc Limited is an Indian integrated mining and resource-producing company. The company is undertaken by a Central Public Sector. The company was founded in the year 1966 and has its headquarters located in Rajasthan, India.

    The company is involved in the mining and resource production of zinc, lead, cadmium and silver. In the year 2003 Hindustan Zinc was sold to Vedanta Ltd. Currently, the company is a subsidiary company of Vedanta Ltd.

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    HAL

    HAL has a 100% monopoly in their respective sector in the Indian market. Hindustan Aeronautics Limited which is commonly known as HAL is an Indian company that is owned by the state. The company was founded in the year 1940 and has its headquarters in Bangalore, India. HAL is an aerospace and defense company.

    HAL is involved in the operation of aerospace and is also involved in the design, assembling and fabricating of aircraft, jet, engines, helicopters and their spare parts. The company is governed under the management of the Indian Ministry of defense.

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    FAQ

    What is a good example of a monopoly?

    A monopoly is a firm who is the sole seller of its product, and where there are no close substitutes. Examples: Microsoft and Windows.

    What are the 4 types of monopolies?

    Natural monopoly, Geographic monopoly, Government monopoly, and Technological monopoly are 4 types of monopolies.

    Is Coca Cola a monopoly?

    Coca-Cola, Pepsi, etc are not a monopoly because they are in one of the most crowded industries – Drinks and Soft Drinks.

    Conclusion

    These are the top companies that has a monopoly in the Indian market. A monopoly market has its own benefits and disadvantages. It is always good for a country to have a mixture of companies with some monopoly companies.

  • List Of All The Subsidiaries Of The Godrej Group

    Godrej is known to be a pioneer in many products that we use in our daily life. Godrej Group is an Indian Conglomerate company that is owned by the popular Godrej Family. The main founders of Godrej is Ardeshir Godrej and Pirojsha Burjorji Godrej, establishing the company 1897. Godrej has makes products in various sectors such as consumer products, FMCG, industrial engineering, appliances, furniture, security, real estate, agricultural products and more. Godrej is known to have more than 500 million Indian customers with over 10 million turnover in 2020.

    Godrej is one of the oldest brands in India and has loyal customers from more than a hundred years The most popular subsidiaries and acquired companies are Godrej Industries, Godrej Consumer products, Godrej Agrovat, Godrej and Boyce and Godrej Properties. More than 20% of its business is done overseas because it is present in more than 60 countries. The headquarters of Godrej is based in Mumbai, Maharashtra. It has more than 1.1 billion consumers globally. The company trusts have 23% holding of Godrej, are known to invest in the sectors of environment, health and education.

    The Godrej Group has huge footprint that extends beyond the earth because its engines now give power to many of India’s space missions. Godrej is one the most trusted brands in India and is supporter of the World Wide Fund in India and has helped develop an ecofriendly business in the town of Vikhroli in Mumbai. The Godrej Group is broadly divided into two major well-known companies which work independently: Godrej Industries and Godrej & Boyce.

    A Brief History on Godrej Group
    Top 6 subsidiaries of Godrej
    Frequently Asked Questions
    Conclusion

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    A Brief History on Godrej Group

    Godrej was originally established in 1897 by the brothers Ardeshir Godrej and Pirojsha Burjorji Godrej from the well-known Godrej Family line. Ardeshir Godrej was originally a lawyer who went on to give up the profession to practice lock making. The company then becomes big after Godrej introduces the first ever lock with lever technology in India. In 1902, Godrej manufactures the first Indian safe and by 1920 starts its own soap company using only vegetable oil which gives the company all the more boost. By 1955 the company had started producing its own typewriter which at that time became popular.

    The company kept growing for the next twenty years with inclusion of trucks, the Godrej Agrovet limited, etc. Godrej got its first subsidiary the Godrej Properties limited in 1988 and became the first company from India to introduce PUF or polyurethane form. In 1994, the company acquired Transelektra, formed an alliance with Sara Lee USA and renamed Translektra to Sara Lee USA. The Godrej Soaps was renamed as the Godrej Industries Ltd in 2001. In 2013, the company introduced Godrej global solution limited which offered BPO solution.

    The History of Godrej Group

    The company merged its food business with Godrej Tea and renamed it to Godrej Beverages & Foods limited. Godrej also launched FreeG which is the county’s first non-web based mobile browsing experience in 2014. The most recent advancement of the company was in 2020, when it started the Godrej Housing Finance in order to provide affordable home loans. One of the main contribution of Godrej is the refrigerator that the company without any CFC (Chlorofluorocarbon), HFC (Hydro fluorocarbons) and HCFC (Hydro Chlorofluorocarbons).

    The success of the company is because of the mergers, its subsidiaries and acquisitions and recent joint ventures which are cleverly chosen by the company. Another person who has helped the company grow to new heights is Adi Burjorji Godrej. Under his guidance the company emerged as a FMCG market and turned the then ₹10 crore turnover to $5 billion conglomerate. He expanded the company in Zambia, Senegal and Kenya with the acquisitions of their personal care companies.

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    Top 6 subsidiaries of Godrej

    Godrej Industries Limited

    Godrej Industries Limited is a one the biggest and number one manufacturer of various different chemicals that are used in over two dozen companies. The headquarters of Godrej is located in Mumbai, Maharashtra. The company is also known to manufacture edible oils, fatty oils, Glycerin, fatty alcohols, vanaspati and other bakery fats. The company was known as Godrej Soaps until 2001, after which the company split into two big corporate companies called Godrej Consumer Products and Godrej Industries. The company is well equipped to deliver the products which are superior quality at competitive prices.

    Godrej Industries
    Godrej Industries

    Godrej Industries is interested in many sectors such as consumer goods, real estate, agriculture, chemicals and financial services which has been successful because of its subsidiaries and associate companies across 18 countries. Besides that the company also works under four divisions which are Corporate Finance, corporate HR, Corporate Audit and Assurance, Research and development. Godrej industries have two manufacturing plants in Valia (Gujarat) and in Vikroli, (Mumbai). Its international quality products are exported to more than 40 countries in North and South America, Asia, Europe, Australia and Africa.

    The companies further has its own subsidiaries which are:

    • Godrej Agrovet
    • Godrej Oil Palm Limited
    • Godrej International Limited
    • Godrej Realty Private LTD
    • Godrej Investment Pvt. Ltd
    • Godrej Remote Services Limited

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    Godrej Agrovet Limited

    The company is a sector that is dedicated for animal feed, agriculture and agribusiness. Agrovet is the market leader when it comes to poultry, processing, and animal feed and oil palm plantations. The company is also the largest oil palm developers in the country. It has oil plantation is states like Telangana, Andhra Pradesh, Karnataka, Tamilnadu, Goa, Maharashtra, Orissa and Mizoram.  It had four automated plants in cities like Bengaluru, Kharagpur, Baramati and Erode in order to reach the demand of the ever growing market of animal feed. The company is also well known for animal feed and poultry in Bangladesh.

    The company also has a history of joint ventures with companies like Tyson foods from America, through which it manufactured and marketed packed and processed poultry and other vegetarian products. One of the most well-known brands of this is the Yummiez and Good Chicken. It also is a key player in the Agri inputs business as it has come up with new agro chemicals and has a strong market share amongst the plant growth promoters and soil conditioners. Godrej Agrovet has over 300 employees with a network of 10,000 rural distributors in various industries.

    All about the Godrej & Boyce company

    Godrej and Boyce

    Godrej and Boyce is a flagship company of the Godrej group company that manufactures products like locks, refrigerators, washing machine, air conditioners, home security system, furniture and safes and products for institutions like furniture for offices, audio visual products, security products, beverage vending machine, etc. and industrial products like process equipment, industrial storage products, and precision equipment. The company is headquarters Pirojshanagar, at Vikhroli in Mumbai. G&B has so far filed for over 209 patents and has been granted 77.

    The turnover of Godrej and Boyce is Rs 11,000 crore in 2020, its employees are more than 14,000. The G&B is present in over 10 different industries like complex engineering solutions to consumer goods like appliances, furniture and security solutions. The products of Godrej and Boyce are also sold in countries like Europe, US, Middle East, Africa and South East Asia. Over 616 million Indian are known to use the company’s products. The G&B have been constantly innovating from the past 123 years and have managed to provide us with new products, solutions, fulfilling aspirations of their customers and helped them lead a secured life.

    The main subsidiaries and acquisitions of the company are:

    • Godrej Infotech
    • Godrej Interio
    • Godrej Efacec Automation and Robotics Ltd
    • Godrej Presicion engineering
    • Godrej Security solutions
    • Godrej Storage Solutions

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    Godrej Infotech Limited

    Godrej Infotech Limited, a subsidiary of Godrej and Boyce which is one of the main subsidiaries of the Godrej Group. This company had already started in 1897 and was initially the High tech engineering department under the consumer products and then became thee IT sector of Godrej and Boyce. Godrej Infotech is mostly known for its software services and consulting and became a separate company only after April 1999. The company headquarters is located in Mumbai, Maharashtra.

    Godrej has a 15 year partnership with Infor Partner Network, in order to sell wider range of products in countries like UAE, Saudi Arabia, Oman, Qatar and Bahrain. It so far has received many certification for Analysis, Design, Coding, Testing, Delivery and maintenance of commercial application software, ERP consultancy and facilities management services. They also provide its employees with constant training to help develop their skills and to get professional excellence.

    Godrej InfoTech is known to have a dedicated team that is experts in providing business and tech solutions for the projects, real estate, construction, oil and gas. The company has so far worked with over 200 industry customers and has manufactured chemicals, automotive, machine equipment, metal fabrication, heavy engineering, printing and publishing, Food and beverage and textiles. The company also provides various services from Business process, consulting, infrastructure management, implementation and global rollout, application support and maintenance, mobile development and training.

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    Godrej Consumer Products

    Godrej Consumer Products is one the most leading company that manufactures consumers and personal care products. The company’s total sales is Rs. 10,314 Crore while the market capitalization id Rs. 72,080 Crore. The company is headquartered in Mumbai Maharashtra. Godrej Consumer Products include soaps, hair colourants, toiletries, Air freshener and liquid detergent. The company owns popular brands such as Cinthol, Godrej no 1, Godrej Shikakai, Godrej hair dye, Renew, Ezee, etc. IT has manufacturing firm across India like Malanpur (Madhya Pradesh), Guwahati (Assam), Baddi (Himachal Pradesh), Pondicherry, Chennai and even in Sikkim.

    Few of its international acquisitions include Keyline Brands limited from UK in 2005, Rapidol Limited in 2006, Godrej Global Middle East in 2007, Argencos in Argentina, Cosmetica Nacional from Chile and Frika hair from South Africa in 2015. The company was ranked 6th in the Best Employers Study conducted by Hewitt Associate and Economic Times, it also considered to be the 9th greatest place to work according to Great Places To Work survey. The company became even bigger in 2010, with its acquisition of Sara Lee Corp. Godrej Sara Lee is now open of the leading household insecticide player in India with brands like Good Knight and Hit.

    The consumer goods by Godrej consumer products
    The consumer goods by Godrej Consumer Products

    Godrej Properties Limited

    Godrej Properties is the real estate sector of the Godrej Group. The company’s headquarters is based in Mumbai, Maharashtra. The company was established in 1990 under Adi Godrej. Godrej properties is currently working on upcoming projects on over 89.7 Million square feet of land. The company is so big that it is also listed on the Bombay Stock Exchange (BSE) and the National stock exchange (NSE). It currently operates in cities like Chandigarh, Bangalore, Chennai, Mangalore, Kochi, Ahmedabad, Nagpur, Mumbai, Kolkata and Pune.

    The company has so far brought over many innovations, sustainability and excellence to the real estate industry. The total sales of the company is Rs. 2,817 crore, while its market capitalization is up to Rs. 32,259 crore. Until now, the company was awarded with  over 250 awards and recognition such as The Most Trusted Real Estate Brand in 2019, The Real Estate Company Of The Year in 2019 as well and The Economic Times Best Real Estate Brand of 2018. The company has a 123 year long legacy of providing its customers with cutting edge design and technology.

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    Frequently Asked Questions

    What are the top 6 subsidiaries of Godrej Group?

    • Godrej Properties Limited
    • Godrej Agrovet Limited
    • Godrej Infotech Limited
    • Godrej Consumer Products
    • Godrej and Boyce
    • Godrej Industries Limited

    Where is the headquarter of the Godrej Group?

    The headquarter of the Godrej Group is in Mumbai, Maharashtra.

    What are the subsidiaries of Godrej Industries?

    • Godrej Agrovet
    • Godrej Oil Palm Limited
    • Godrej International Limited
    • Godrej Realty Private LTD
    • Godrej Investment Pvt. Ltd

    What are the two other subsidiaries of Godrej and Boyce?

    They are Godrej Aerospace and Godrej Precision Engineering.

    How many customers does Godrej Group have?

    Godrej is known to have more than 500 million Indian customers with over 10 million turnover in 2020.

    Conclusion

    Godrej Group is an India conglomerate that offers various products in countless categories. With a revenue of more than 4.1 million US dollars, the company is growing at a fast pace. In India, Godrej is one of the oldest and the most trusted brand because of the quality of products is offers. Over past 120+ years Godrej has expanded to over 60 countries and ensures that their customers buy their products wherever they go. The company has over 500 million and is continuing to expand the horizon internationally. The success of the company is because of strategic acquisitions and subsidiaries that the company has accumulated over the years.

  • Top 6 Marketing Strategies used by Dabur and Its SWOT Analysis

    Being one of the top FMCG companies in India, Dabur has a wide range of products in the market-leading in personal, health care, and food and beverages. Dabur has touched many lives in India and is considered to be an integral part of Indian families as it has a spread of goods in distinct consumer categories.

    In the past few years, Dabur has leveraged its brand and potential to the new online markets and has largely incorporated its business in digital means. The brand has been since then continuously rebuilding and renovating its brand so as to have a digital strategy for brand visibility.

    Dabur aims and objectifies itself as a young, modern, and socially conscious brand. In this article, you will find the top 8 amazing marketing strategies used by Dabur to build its brand.

    Working Extensively on Websites
    Presence on Online Grocery Stores
    Marketplace Exploration
    Youthful Packaging
    Pricing Strategies
    Social Initiatives
    SWOT Analysis of Dabur
    FAQ

    Working Extensively on Websites

    Dabur constantly envisions providing the best experience to its consumers. They have started to focus a lot on improving the website in order to improve the user experience. Customers can order anything and explore all range of products from their website homepage.

    Dabur Website
    Dabur Website

    Not only has the website focused on its diversified ayurvedic and herbal product range but also covers the social activities the company is indulged in and various paths through which the public or the customers can collaborate with the company.

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    Presence on Online Grocery Stores

    Dabur already had its presence in online and offline stores. E-commerce websites like FMCG titan, Snapdeal, Flipkart, etc, all were and are selling Dabur products. In fact, Amazon has a separate page for Dabur’s product range display.

    In order to increase this customer base and reach, Dabur marked its presence over online grocery stores like Big Basket, and Grofers. Since people prefer to buy groceries online today, it has become easy for them to order their personal care products or Ayurvedic products of Dabur from such places.

    Revenue of Dabur India
    Revenue of Dabur India

    Marketplace Exploration

    Dabur wants to increase its reach extensively, for which the company has been working hard on market place exploration. Whenever a consumer visits the website of Dabur, the website redirects the customers to the marketplace/s. The more and more options the consumers get, the more sales the company makes.

    Youthful Packaging

    Dabur India Ltd has continued to move towards targeting the youth and modern lifestyle consumers. Even though the generation today doesn’t bother to consider Ayurveda as seriously as the earlier generations did, but Dabur has been constantly attracting the youth by its appealing packaging of products and marketing strategies.

    The target market of the company covers the consumers in the 15 – 40 years age bracket of which most of them are closer to the upper limit. The smell, taste, and looks of all Dabur products are made consciously with the approach to appeal to this target market.

    Pricing Strategies

    Dabur has tactfully organized its pricing strategies. The company has differentiated its premium products from other variants under every category due to which prices of the products vary from one another. Considering the competitors like HUL, Pepsi co. etc, Dabur has kept its price affordable so that every family of all income classes can buy Dabur products.

    Also by providing premium products, Dabur also targets upper-class families to fulfill their needs as well. Also, the company tries to give a high margin to all the stockholders so that they don’t lose interest in the company’s products and also enjoy good profits on sales.

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    Social Initiatives

    Dabur often invests its resources in many social initiatives and campaigns, for example, in uplifting the rural areas. By doing such activities, Dabur attracts the attention of the masses by touching the sentiments of Indian consumers.

    SWOT Analysis of Dabur

    Dabur is operating its functions in the FMCG industry and the following is the SWOT analysis of their business which can give you a clearer understanding of the business environment.

    STRENGTH

    • Dabur India Ltd. has a good brand name, goodwill, and reputation in the Indian market since it is a century-old company.
    • Dabur has one of the biggest herbal and Ayurvedic product range in India
    • Dabur has a very strong distribution network throughout the country
    • The company has an extremely effective supply chain

    WEAKNESS

    • People have somewhere developed a notion that Dabur does not provide quality products
    • Some of the products of Dabur are said to overprice as compared to its competitors
    • Seasonal demand products like Chayawanprash and Vatika do not cover high sales all the time

    OPPORTUNITIES

    • There is an untapped market of Chyawanprash that Dabur can explore like its competitors
    • The overall market of Dabur can be developed and the consumer reach can be increased.
    • Dabur has an extension to its product like ‘Vatika’ where the company has its skincare and body wash product segment

    THREATS

    • The new entrants in the same sector which are rapidly increasing in the market are a big threat to Dabur
    • Existing competition in various product segments needs to be tackled with great marketing and innovation strategies.
    • The substitute Ayurvedic products that are present in the local market are a huge threat to Dabur’s ayurvedic products.
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    FAQ

    Is Dabur Indian brand?

    Dabur India is an Indian consumer goods company.

    Who is the CEO of Dabur?

    Mohit Malhotra is the CEO of Dabur.

    Is Dabur a FMCG company?

    Dabur India Ltd. is one of India’s leading FMCG companies.

    Conclusion

    Dabur is one of the oldest companies in India. However, it is still leveraging the modern channels of marketing to always stay relevant. Moreover, they are expanding their number of product to cover  the needs and wants of almost all the age groups. It helps the brand to keep the customer loyal as all the generations of a family is using a single brand for their different needs.

    In the sector of FMCG and OCT Ayurvedic Medicine, Dabur has been a major player in the market and has its presence in nearly all parts of the world. The company also has a widespread exposure to the e-commerce marketplace. The brand has now been serving the market for over 135 years now. The company aims to keep working towards serving totally organic products that do not have harmful chemicals because that is what the brand is known for.  With continuous improvements, innovations and creative marketing strategies, the brand will continue to grow and flourish in the market.