1. Presentation on Legal aspects of FMCG
Ahead Counsel, Advocates
Presentation on
Legal aspects of FMCG
Shashank Deo Sudhi
(Supreme Court Advocate)
Ahead Counsel, Advocates
105-B, Pocket-2, Sector-6, Dwarka, New Delhi

2. Ahead Counsel, Advocates
Introduction
Fast Moving Consumer Goods (FMCG) can be defined as packed goods that are sold at regular and small intervals.
Organized FMCG in India is a new concept and is also fast catching up in urban and semi-urban India.
FMCG mostly divided in three sectors i.e. food & beverage (19%), health (31%) and household & personal care (50%).
In the light of techno amalgamation, recently the electronic item which has less life has also been brought under the gamut of FMCG sector.
1. Human resource is sum of skills, creative abilities, innovative thinking, perception, imagination, knowledge and experience possessed by an individual.
2. Out of 5M resources only human resource could able to create all relevant resources (i.e. materials, machines, money and methods) of an organization.
3. The technique or rather we can say art of evaluating, recording and presenting systematically the worth of human resources in the books of account is known as Human Resource Accounting (HRA).

3. Ahead Counsel, Advocates
Consumer Class
Consumers play a crucial role in the Indian FMCG sector.
Price band of each FMCG product is fixed depending largely on the consumer class which the particular company is targeting.
Personal care, home care, bakery products, dairy products, processed foods are more consumed by the urban classes.
Fabric care and also the personal care items are consumed more by the rural population.
1. Human resource is sum of skills, creative abilities, innovative thinking, perception, imagination, knowledge and experience possessed by an individual.
2. Out of 5M resources only human resource could able to create all relevant resources (i.e. materials, machines, money and methods) of an organization.
3. The technique or rather we can say art of evaluating, recording and presenting systematically the worth of human resources in the books of account is known as Human Resource Accounting (HRA).

4. FMCG and Indian Economy
Ahead Counsel, Advocates
FMCG and Indian Economy
FMCG is 4th largest sector in Indian economy.
Price band of each FMCG product is fixed depending largely on the consumer class which the particular company is targeting.
Entry of multinationals, rise of commodity branding, opening up of retail sectors and low cost technology is changing the dynamics and economics of this industry.
1. Human resource is sum of skills, creative abilities, innovative thinking, perception, imagination, knowledge and experience possessed by an individual.
2. Out of 5M resources only human resource could able to create all relevant resources (i.e. materials, machines, money and methods) of an organization.
3. The technique or rather we can say art of evaluating, recording and presenting systematically the worth of human resources in the books of account is known as Human Resource Accounting (HRA).

5. Ahead Counsel, Advocates
Legal Compliance
Considering the market size of this sector, apart from the general laws there has been corresponding increase of the specific laws as regulatory.
Food safety and standards Act 2006 and Regulation
Legal Metrology Act, 2009.
Legal Metrology (Packaged Commodities) Rules, 2011.
The Insecticide Act, 1968.
Export (Quality Control and Inspection) Amendment Act,
1. Human resource is sum of skills, creative abilities, innovative thinking, perception, imagination, knowledge and experience possessed by an individual.
2. Out of 5M resources only human resource could able to create all relevant resources (i.e. materials, machines, money and methods) of an organization.
3. The technique or rather we can say art of evaluating, recording and presenting systematically the worth of human resources in the books of account is known as Human Resource Accounting (HRA).
Cont’d

6. Legal Compliance Voluntary Standards.
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Legal Compliance
Environment Protection Act, 1986.
Voluntary Standards.
Cable Television Networks Rules, 1994 (Programme and Advertisement Code).
The Cigarettes and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and Commerce, Production, Supply and Distribution) Act, 2003 (COTPA).
State-wise Regulatory laws governing the alcohol regime in India.
1. Human resource is sum of skills, creative abilities, innovative thinking, perception, imagination, knowledge and experience possessed by an individual.
2. Out of 5M resources only human resource could able to create all relevant resources (i.e. materials, machines, money and methods) of an organization.
3. The technique or rather we can say art of evaluating, recording and presenting systematically the worth of human resources in the books of account is known as Human Resource Accounting (HRA).
Cont’d

7. Legal Compliance Shelf-life of imported food.
Ahead Counsel, Advocates
Legal Compliance
Shelf-life of imported food.
The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 and The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Amendment Act,
The Consumer protection Act 1986.
Right to information Act 2005.
1. Human resource is sum of skills, creative abilities, innovative thinking, perception, imagination, knowledge and experience possessed by an individual.
2. Out of 5M resources only human resource could able to create all relevant resources (i.e. materials, machines, money and methods) of an organization.
3. The technique or rather we can say art of evaluating, recording and presenting systematically the worth of human resources in the books of account is known as Human Resource Accounting (HRA).
Cont’d

8. Legal Compliance Rights of Consumers :- Right to safety.
Ahead Counsel, Advocates
Legal Compliance
Rights of Consumers :-
Right to safety.
Right to information.
Right to choose.
Right to be heard.
Right to seek redressal.
1. Human resource is sum of skills, creative abilities, innovative thinking, perception, imagination, knowledge and experience possessed by an individual.
2. Out of 5M resources only human resource could able to create all relevant resources (i.e. materials, machines, money and methods) of an organization.
3. The technique or rather we can say art of evaluating, recording and presenting systematically the worth of human resources in the books of account is known as Human Resource Accounting (HRA).
Cont’d

9. Legal Compliance Responsibilities of Consumers :-
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Legal Compliance
Responsibilities of Consumers :-
Obtain full information regarding quality and price before making any purchase.
Be careful about false and misleading advertisement.
Purchase goods having quality marks like ISI/Agmark etc.
Obtain proper receipt.
Approach to consumer forum for redressal.
1. Human resource is sum of skills, creative abilities, innovative thinking, perception, imagination, knowledge and experience possessed by an individual.
2. Out of 5M resources only human resource could able to create all relevant resources (i.e. materials, machines, money and methods) of an organization.
3. The technique or rather we can say art of evaluating, recording and presenting systematically the worth of human resources in the books of account is known as Human Resource Accounting (HRA).
Cont’d

10. Ahead Counsel, Advocates
Impact of GST on FMCG
As per than tax regime, FMCG has to pay many taxes like VAT, Service Tax, Excise Duty, Central Sales Tax. However now under implemented GST law all said different taxes is coming in one single point of tax in form of GST.
FMCG sector would also benefit from GST in the form of saving a considerable amount of expenses on logistics.
GST law is benefiting by lower logistics cost which results in better competitive market for most of the FMCG products.
1. Human resource is appreciating assets as it improves with due regard to their ageing constraint. Whereas, value of physical assets evaluated as higher at the time of installation.
2. HRA basically tells to management for changes envisage towards human resources and its impact on business. In India, focus on ‘Return on Investment’ is emphasizes than to track towards ‘Return on Knowledge’.
3. The benefits of adopting HRA have manifolds and also helps an organization in taking managerial decisions based on the availability and necessity of human recourses.
4. The human resource cost accounting (HRCA) may be defined as the measurement and reporting of the costs incurred to acquire and develop people as organizational resources.

11. Ahead Counsel, Advocates
Any ? Please

12. Ahead Counsel, Advocates
Thank You