19 or 30 best MC consumption products with Indian operations experienced higher than industry growth between 2018-2023 | Photo credit: Nagara Gopal
India has become the third largest taxpayer to the growth of consumer products (CP) among emerging markets along with more expansion margin, according to the new Bain and Company report, jump to win: a play book for multinational corporations of consumption products in India.
The report indicated that multinational companies have historically failed in India due to their difficult market operations, obstructions due to low performance or revenue growth or lower gains than expected, prevalence of un organized, traditional trade and the competition of low -cost players.
However, the study found that India, due to its digital adoption, the penetration of smartphones and broadband, and financial inclusion, has caused multinationals to arise as the number one or number two players in more than 20 CP categories in India, ranging from soda and spirits to wise snacks, detergents and dipers. This is not limited to multinationals who are old players, but also newcomers who recently entered India’s markets.
MNCs with headquarters in India exceed global parents
Bain outlined 30 main multinational companies of consumer products (MNC) with Indian operations and discovered that Indian affiliates generate shareholder yields that are 2-6 times higher than their global parents. 19 of the companies experienced a higher growth than the industry between 2018-2023. The remaining 11 companies are still struggling to find growth.
21 companies are sub-indexed in India. In those companies, India’s contribution to global income, lower than India’s contribution to global GDP (3.4 percent) was.
“Companions who are already investing in India benefit from accelerated growth, greater returns from shareholders and opportunities to shape globally relevant products. Multinational companies that have not entered the market must act in this period, Out-out-out-out-out-out-out-out-out-out-out-out-out-out-out-out-out-out-out-out-out-out-out-out-vitual vitual, lack of room, swarup, practice consumption products in India.
Indian lever or markets potential
In the play book, they introduce the Marco Leap, which is a structured approach adapted to help multinational companies navigate the thesis and successful challenges in the Indian market. This covers from building a nucleus that FET cultivates and gain a leadership position, expand to main segments and premium and adapt the product, price, place and promotion (4PS) to capture several consumption groups. This also includes investments in building brands and capabilities, local talent and digital capabilities.
(With entries from Business line Internal Nethra Sailh)
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Posted on April 24, 2025
