India’s contribution to the global volume growth of consumer products is tremendous. Its contribution to growth during the last five years (2019 to 2024) has increased the volume share by 2 to 8 times compared to the previous year in various categories. This has made India a strong growth engine for major consumer goods multinational companies (MNCs). According to the report released today by Bain & Company: ‘Playbook for Consumer Products Multinational Corporations in India’, India’s share in the global volume of consumer appliances was 5 percent in the year 2024. But between the year 2019 to 2024, India’s share in global volume growth was 44 percent, which is 8.6 times more than its volume share last year. Similar trends are seen in other categories as well.
India’s share in the global volume of apparel and footwear was 8 percent in 2024. But during the last five years, India’s share in the global volume growth of this category was 34 percent. India’s share in the global volume of hot beverages may be 6 percent in 2024, but during the last 5 years, India’s share in the global volume growth of this category was 24 percent. Similarly, India’s share in the global volume of the snacking category was 10 percent in 2024, but during the last 5 years, India’s share in the global volume growth of this category increased 2.1 times to 22 percent.
Bain has also provided data on about 42 global consumer goods companies with revenue of more than $10 billion. Of these, 30 companies also do business in India. These companies include FMCG companies that make everyday use items but tobacco, agriculture and food processing firms have been excluded.
Analysis shows that doing business in India can be very profitable. The total shareholder return (TSR) of Indian subsidiaries of many such multinational companies has been excellent. Between the years 2015 and 2024, their total shareholder return was 2 to 6 times higher than that of the global parent company. Not only this, Bain’s report also revealed that 60 percent of the multinational companies in the consumer goods sector doing business in India are growing at almost twice the rate of global growth rate.
This is reflected in the compound annual growth rate (CAGR) between 2018 and 2023. Multinationals that do not operate in India have missed out on this opportunity. For example, a UK consumer goods company with a market capitalisation of $64 billion in India has a total shareholder return of 12 per cent over 10 years (2015 to 2023), which is 1.8 times higher than its global parent.
Similarly, a European consumer goods company with a market capitalisation of $24 billion in India had a total shareholder return of 15 per cent over the same period, while its global parent’s total shareholder return was just one-fifth of this. A US oral care company with a market capitalisation of $9 billion in India recorded a total shareholder return 2.4 times higher than its parent. A US home appliances company with a market capitalisation of $3 billion in India had a total shareholder return of 11 per cent, which is 12.7 times higher than its parent.