This report profiles India’s Fast Moving Consumer Goods (FMCG) industry, discussing market trends and outlook into 2015 and beyond. The report also highlights leading players in the sector including Hindustan Unilever Ltd, Godrej Consumer Products Ltd and Dabur India Ltd. Sales growth in the FMCG industry recovered in FYE Mar-15, after experiencing a five-year low in FY14. Decline in inflation and better economic growth led to an improvement in sales figures and profitability for FMCG companies in FY15. The outlook for Indian FMCG is stable because of growing sales, strong financials of leading players and increasing urbanization. Moreover, the wide distribution network built by previous major players ensures the high penetration of the FMCG products in rural India, which is home to more than 65% of Indian population. The ever increasing middle-class backed by rising per capita income will further act as a growth driver for this sector in the years to come. Key Points: • According to a study by the Confederation of Indian Industries (CII), the FMCG sector is projected to grow at a double-digit rate (Base case=12%; High Case=17%) till FY20. • Production saw improvement in FY15 with the overall index growing by 2.8% y/y, while the index for food products and beverages grew by 4.5% y/y during the same period. • Steep decline in crude oil prices brought a much needed relief from inflation. WPI inflation declined considerably in FY15, falling to a five-year low of -4.9% in August 2015. CPI also saw a significant decline, falling to 3.7% in August 2015. • Sales growth and profitability of FMCG players improved in FY15, supported by the decline in inflation and better economic growth.