Financial Appraisal of the Fast Moving Consumer Goods (FMCG) Industry of India

FMCG industry is one of the most important industries of the world. India’s FMCG sector is the fourth largest industry in India. It provides employment for more than four million people in downstream activities. Its principal components are Household care, Personal care and Food and Beverages. The total F.M.C.G. market is of more than Rs. 200,000 Crores. Its current growth rate is in double digit and is expected to maintain a high growth rate. The financial performance is an indicator of the overall soundness of a business concern. In broader sense, financial performance refers to the degree to which financial objectives have been accomplished. It is a technique of measuring the results of a firm's policies and operations in monetary terms. It is used to measure firm’s overall financial performance over a given period of time. In the current study the overall financial performance of selected FMCG Companies of India is analyzed using Ratio Analysis and various other statistical techniques. The study takes a fresh look at the financial performance of the FMCG sector. It will help the future investors to choose a safe investment and to identify the growth opportunities. The scope of the study is limited because it is based in secondary data using financial statements and reports published by the company