Sourcing and manufacturing strategy for FMCG firms in India

Abstract

The FMCG industry is a key industry in Indian and is growing at rapid pace. It is one of the industry which is most shielded from the economic downturns but is influenced by the consumer purchasing behaviour and marketing ability of an organisation. And with the liberalization in retail sector, it is one of sector to look upon since FMCG sector most connected to retail sector. The industry realms and scale are vast as it almost touches each of our lives. In presence of such facts about the industry, it became interesting that how FMCG firms in India decide on their manufacturing and sourcing strategies and if these strategies are size dependent, product portfolio dependent, macroeconomic factors dependent, organisation structure dependent or any other factors that influences the decision making. Even the relation between the sourcing and manufacturing is worth exploring given the vast variety of products which the FMCG companies are engaged into. Given the industry context and future, it was important to gain deep understanding of the various sourcing and manufacturing strategies that are applicable to FMCG sector in Indian context. In order to study these strategies, it was important to have primary data from internet, interviews etc. as well as the secondary data.