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Global Powers of Consumer Products 2015

ITC, Ruchi Soya among 50 fastest growing global consumer products companies: Deloitte Report

The eighth annual Global Powers of Consumer Products report identifies the world’s 250 largest consumer products companies, and also looks at industry trends and M&A activity.

Mumbai, 16 April 2015 - The world’s 250 largest consumer products companies generated sales of nearly $3.1 trillion in fiscal year 2013 (which encompasses fiscal years ended through June 2014), despite economic uncertainty. This resulted in an average company size of US$12.3 billion, according to the 8th annual Global Powers of Consumer Products 2015: Connecting with the connected consumer report by Deloitte Touché Tohmatsu Limited.

Samsung Electronics, Apple Inc. and Nestle S.A. retained the top spots in the list of Top 250 consumer product companies globally. Indian companies ITC Ltd and Ruchi Soya Industries are the only two companies from the country to be featured in the top 250 list, and are also amongst the 50 fastest growing consumer products companies globally.

 

Strong M&A deal activity in consumer products industry

The number of deals has picked up every year since flat lining in 2009, with 1,421 total deals completed by consumer products companies in 2013. Based on the numbers to date, 2014 is on track to reach or surpass 2013’s deal volume. Unlike deal volume, however, deal values have trended down since 2009—that is until 2013 when the average value rebounded sharply.  The decline in deal values through 2012 may be accounted for, at least in part, by bargain hunting opportunities coming out of the global economic slowdown that allowed companies to pick up assets at distressed prices.

“Despite the flurry of mega deals over the past two years, the consumer products industry has learned that a clearly defined growth strategy is critical and that bigger is not necessarily better,” said Gaurav Gupta, Senior Director, Deloitte in India. “The impact of the global recession resulted in a number of companies re-evaluating their strategic positioning in order to generate sustainable earnings and ongoing growth.”

The Indian story

ITC has improved its ranking to 128 from 134 last year in the Top 250 Consumer Products Companies. It is on the 28th position in the list of 50 fastest growing consumer companies. ITC’s net sales are $5,821 million at a growth rate of 11.7%. Ruchi Soya is on 156th position a fall from its earlier ranking of 146. It has been ranked 22nd in the list of 50 fastest growing consumers companies. Ruchi Soya’s net sales growth rate slowed down to -4.9%.

Meanwhile, economic growth in the country is recovering from its doldrums but remains below potential. The central bank has managed to reduce inflationary expectations, which should have a positive impact on growth. Plus, lower oil prices are having a positive impact both on inflation and growth.

Global outlook

As a whole, 2013-2014 was another challenging year for the global economy. The report measured year-over-year composite growth rates by region for fiscal year 2013, with China/Hong Kong (17.5%); posting the highest gains, followed by other Asia /Pacific (12.7%) and Asia/Pacific (10.9%).The North American region consecutively dropped to 3.6%. However, North American companies continued to enjoy robust profitability. The 12.8 percent composite net profit margin in 2014 was up from an already-strong 12.3% result in 2012. Europe remained in recession as its big three economies failed to sparkle. French companies eked out a 0.6 percent increase, while German companies fared only slightly better with 1.6 percent growth. Top-line growth for the UK companies turned negative in 2013 following a 4.8 percent gain in 2012. Despite deteriorating sales growth, Europe has began to recover modestly by heading into 2014 profitability improved to 11% net profit margin. The U.S. economy grew slowly in 2013 largely due to a tightening of fiscal policy. Overall, recovery by many economies around the globe continued to be uneven and weak.

Top 10 consumer products companies 2013

Top
250
rank

Company name

Country of origin

Product sector

2013
net sales
(US$mil)

2013
net sales
growth*

1

Samsung Electronics Co., Ltd.

South Korea

Electronic Products

210,397

13.7%

2

Apple Inc.

United States

Electronic Products

170,910

9.2%

3

Nestlé S.A.¹

Switzerland

Food, Drink & Tobacco

99,485

2.7%

4

The Procter & Gamble Company

United States

Personal Care & Household Products

83,062

-1.3%

5

Sony Corporation

Japan

Electronic Products

66,756

17.4%

6

PepsiCo, Inc.

United States

Food, Drink & Tobacco

66,415

1.4%

7

Unilever Group

Netherlands and United Kingdom

Personal Care & Household Products

66,143

-3.0%

8

LG Electronics Inc.

South Korea

Electronic Products

53,489

14.1%

9

The Coca-Cola Company

United States

Food, Drink & Tobacco

46,854

-2.4%

10

JBS S.A.

Brazil

Food, Drink & Tobacco

43,306

22.7%

           
     

 

Source: Published company data.

Notes to the editor for reference purposes only:

This press release has been given by Deloitte Touche Tohmatsu India Private Limited

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

©2015 Deloitte Shared Services India Private Limited. Member of Deloitte Touche Tohmatsu Limited

 

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