Consumer products multinational corporations (MNCs), with operations in India, have experienced higher-than-FMCG industry growth between 2018 and 2023.
According to a report by Bain & Company, of the 30 top global MNCs based in India, 19 have reported higher growth than the FMCG industry in this span.
The report observed that the Indian affiliates delivered a total shareholder return of between two and six times that of their global parents.
Additionally, the report found that 60% of the Indian affiliates’ revenues are growing at least double their parent companies’ growth rate.
India is the third-largest contributor to consumer product growth among emerging markets over the past decade.
“Companies already investing in India are benefiting from accelerated growth, higher shareholder returns, and opportunities to shape globally relevant products, said Ravi Swarup, head of Bain’s Consumer Products practice in India.
While India has traditionally been considered a difficult market for MNCs, it has made tremendous improvements to barriers. Rapid digital adoption and widespread smartphone and internet penetration have enabled companies to effectively reach India’s diverse population. E-commerce and quick commerce have grown 2–3 times faster in value than traditional and modern trade channels, diminishing the need for an extensive traditional trade network to enter the market. Digital payments are also gaining popularity, with 45% of Internet users adopting them for transactions.
“What we are seeing is a market where both legacy players and new entrants can win, but only if they rewire their approach to be truly India-centric,” Nikhil Ojha, head of Bain’s Strategy practice in the Asia-Pacific region said.