India’s personal care industry is composed of hair care, bath products, skincare and cosmetics, and oral care. The sector is driven by rising income, rapid urbanization, and celebrity promotions. This industry accounts for 22% of the country’s fast-moving consumer goods (FMCG), which is the term for Consumer Packaged Goods in India. Worldwide This Industry has grown widely for not 2-3 decades, but Some companies have a long profit-making history for 2 centuries. Today Companies like Johnson & Johnson as well as P&G were among world's TOP 30 companies with a profit of around 1 lakh Cr. As GDP/Capita of our country rises we may see growth in premium products. Now E-Commerce is playing a big role in this industry. Y-O-Y FMCG product contribution is increasing in E-Com. Out of 10 Cr Indian shoppers, 3 Cr are FMCG shoppers. Rising upper Middle class to 54 Cr in 2022 from currently just 38 Cr will be a key trigger for high growth. Indian Upper Middle class would be more than the Population of North America.
The majority of the companies are for a long time and hence today they are able to distribute more than 50% of profits in Dividends. Indian companies are also growing internationally showing high growth. We can have 1-2 companies from this industry in the portfolio giving 5-7% of the total weightage.
Total Market Cap by Personal Care Products would be reaching 3.6 Lakh Cr this year and out of this Dabur, GodrejCon, Marico are responsible for 80% Mcap or even Sales & profits. Focused should be here as they are TOP quality companies with lesser debt and long history of Profit making.
Dashboard of Personal care Products can be viewed here: