Market Intelligence. Consulting Supply Chain: Indian FMCG Sector

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Supply Chain for FMCG Sector in India Agri-raw Materials Other raw Material Suppliers Transportation Personal Care Food Toiletries Household Care Tobacco Stationery Products FMCG Product Companies OTC Products Transportation Distribution and Aggregation Retail Customers/ Consumers © TechSci Research 3

Supply Chain for FMCG Sector in India Inadequate Supply Chain Infrastructure High Cost of Supply Chain Counterfeiting Multiple Micro-markets Inadequate Investments in IT & Supply Chain Automation Challenges To Overcome in Indian FMCG Supply Chain © TechSci Research 4

Opportunities in Indian FMCG Supply Chain Online Retail Increasing Scope of 3PLs Ramp-Up Government Reforms Goods and Service Tax (GST) Food Security Bill FDI in Organized Retail Relaxation of License Rules India Logistics Sector Facts Logistics Performance Index (2016)3.42 (35 th Rank) Logistics cost as % of GDP13% Transportation cost as a % of GDP8.2% Warehousing cost as a % of GDP3.8% Other logistics costs as a % of GDP1.0% FMCG Logistics as a % of revenues6%-8% “These players can provide benefits such as Operational Cost & time savings, better supply flexibility & allows the company to focus on their core business” Inner Circle: 2015 Outer Circle: 2020F Indian FMCG Market Share By Online Vs Offline Sales (%), 2015 & 2020F Supply Chain for FMCG Sector in India © TechSci Research 5

Supply Chain for FMCG Sector in India WAY FORWARD Indian FMCG Supply Chain WAY FORWARD Indian FMCG Supply Chain © TechSci Research 6 Improved IT Infrastructure Aligning Supply Chain Strategy with Business Strategy Better Regulatory Environment Multi-Tiered Operational Supply Chain Network Collaboration with 3PL Partners

Supply Chain for FMCG Sector in India Thank You © TechSci Research 7