Start a Company in the FMCG Sector in India

Updated on Monday 27th August 2018

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The fast-moving consumer goods (FMCG) in India represents a major component of the Indian economy (4th largest industry), considering that the country has one of the largest consumer markets at a global level, of more than one billion persons. The largest contributor of the FMCG sector is represented by the urban population, which accounts for approximately 40% of the entire revenues
 
Businessmen who are interested in opening a company in India in this sector should know that the largest sub-sector is represented by the household and personal care products, which represent approximately 50% of the total market. As such businesses will handle, amongst many others, food products, it will be necessary to comply with a set of food safety standards, which can be detailed by our team of consultants in company formation in India
 

Food trends of the Indian FMCG industry 
 

Alongside with the household and personal care products, food products represent the other major component of the Indian FMCG industry and thus, investors starting a company in India should be aware of the current trends of the local consumer market, interested in the following types of goods
 
fortified goods and beverages  it accounts for 50% of the total food products sold through FMCG chains in India
dietary supplements  growth is driven by vitamin and mineral supplements, with an increasing interest for ayurvedic products
natural products  it represents approximately 17% of the entire food market and more and more companies have started using 100% natural, fresh and healthy ingredients
BFY (better for you) products they are represented by snacks, soups, beverages, biscuits and other similar packaged goods
 

Regulations for FMCG products in India 
 

One of the main concerns of a FMCG business operating in India refers to the regulations set out for the distribution of food products; our team of specialists in company formation in India can provide advice on the latest modifications imposed in this sense, but it is necessary to know that a draft on the Food and Safety Standards (Labeling and Display) Regulations 2018 addressed new procedures on the labelling of salt content of a product, amongst numerous other new standards.  
 
Businessmen are invited to contact our team of experts in company registration in India for more details related to the regulations addressed to FMCG companies; it is also important to know that the main institution which regulates the activities of businesses selling food products is the Food Safety Authority of India, which monitors all the food operations carried out here, including the import of such goods. 

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