The retail market is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade expected to grow at 20-25 per cent per annum, which is likely to boost revenue of FMCG companies. Revenue of FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and is estimated to reach US$ 103.7 billion in 2020. FMCG market is expected to grow at 9-10 per cent in 2020.

Some of the major initiatives taken by the Government to promote the FMCG sector in India are as follows:

• The Government of India has approved 100 per cent FDI in the cash and carry segment and in single-brand retail along with 51 per cent FDI in multi-brand retail.
• The Government has drafted a new Consumer Protection Bill with special emphasis on setting up an extensive mechanism to ensure simple, speedy, accessible, affordable and timely delivery of justice to consumers.
• The Goods and Services Tax (GST) is beneficial for the FMCG industry as many of the FMCG products such as soap, toothpaste and hair oil now come under the 18 per cent tax bracket against the previous rate of 23-24 per cent. Also, GST on food products and hygiene products have been reduced to 0-5 per cent and 12-18 per cent respectively.
• GST is expected to transformlogistics in the FMCG sector into a modern and efficient model as all major corporations are remodelling their operations into larger logistics and warehousing.
• Investment Opportunities :

• Mother Dairy enters bread segment aims Rs. 25000 Crores turn over in next 5 yrs.
• ITC completes acquisition of spice –maker Sunrise in Rs.2150Cr-all –cash deal.
• Britania Plans Rs.700 Crore capex,bullish on rural demand.
• Indian online grocery market can exceed US$ 3bn sales in 2020.

Nutrition brand Oziva raises US$5million from Matrix partners India.