How to Start Fast Moving Consumer Goods (FMCG) Business?

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FMCG (Fast Moving Consumer Goods) are the products that are sold quickly and at a relatively low cost. FMCG includes generally household goods, packed foods, beverages, toiletries, over the counter drugs, dietary supplements and other products.

FMCG sector is fourth largest sector in India. In 2017-18, FMCG sector has grown to US$ 52.8 billion from US$ 31.6 billion in 2011. This sector is expected to grow at CAGR 27.9% to reach US$ 103.7 billion by 2020.

The Fast Moving Consumer Goods (FMCG) sector has vast opportunities to start business i.e. manufacturing, marketing, distribution, retail etc. In this article, we will discuss about starting the Fast Moving Consumer Goods (FMCG) Company. You can start either FMCG manufacturing company or FMCG marketing company.

FMCG is a vast sector and contains different types of products from different segments and sectors. Some FMCG products come under regulated products and marketing & manufacturing could be licensed under certain law and regulations. So, you need to be careful about product, you want to market or manufacture. You need to check law and regulations related to those products.

For example if you want to manufacture cosmetic products i.e. face wash, hand wash, cream, lotion, gel etc then you will require cosmetic manufacturing license. If you want to launch ayurvedic cosmetic products then you will require Ayurvedic manufacturing license. Likewise you need to take licenses and complete requirements as per law & regulation applicable for those products.

There are few common steps for starting business and company that also applicable to FMCG goods. These steps are:

To know more about licenses and requirements to start FMCG business, we have to categories Fast Moving Consumer Goods. General categories of FMCG are:

  • Food and Beverages
  • Cosmetic & Toiletries
  • Food Supplement and Over the Counter Medicines
  • Electronic and other Household goods
  • Stationery Products
  • Sanitary Products

Food and Beverages: Food and beverages includes processed foods, baked foods, Diary products, confectionery items, Juices, Cold Drink, Tea, Coffee, Beer, Alcohol, Bottled water, Health beverages, Cold Drinks, Wines, sugar, chocolates, biscuits, candies, fruits, vegetables and similar products etc.
For starting company related to Food and Beverages, you will need to take FSSAI registration and License for starting any type of business i.e. manufacturing, marketing, distribution, wholesale, retail etc. If you want to start manufacturing of Food and beverages, you need to take FSSAI license. For marketing, you may require FSSAI registration or license depend at turnover of your business.

Cosmetic and Toiletries: Cosmetic products include Oral Care (Toothpaste, Mouthwash, Sanitizers), Skin Care (Fairness Creams, Lotions, Gellies, Shower Gel, Face Serums, Sun skin Cream, Moisturiser, Face wash, Hand Wash , Mahendi ,Shaving Cream , Razor), Hair Care (Hair Oil, Shampoos, Hair Color, Hair Dye), Face Cream, Lipstick , Nail Polish, Talcum Powder, Eye shadow, Mascara, Eye shadow, Perfume, Deo, Attar etc.
Toiletries products include Fabric wash, Synthetic Detergents, Laundry soaps & Powders, Dish/utensil cleaners, Abrasive Cleaners, Floor cleaners, Toilet cleaners, Bleaches, Upholstery Cleaners, Metal polish, Furniture polish, Shoe Polish, Car Fragrance, Air Fragrance, Mosquito repellent, Insecticides etc
For manufacturing of cosmetic and toiletries products, you will need to take cosmetic manufacturing license. Few cosmetic and toiletries products could be manufactured under Udyog aadhar registration.  
Many cosmetic preparations can also be manufactured under Ayurvedic Manufacturing license.

Food supplements and Over the Counter Drugs: Food supplements and OTC drugs includes Ointment, Balm, Cough syrup, Chyawan prash, protein powders, malts, calcium/iron/vitamins supplements, food for special nutritional uses, pain relief preparations etc.
Products that fall under food supplement will require same formalities as we discussed into Food and beverages section. Over the counter drugs are fall under medicines and drugs. OTC drugs are the drugs which could be sold out without prescription of registered medical practitioner. For manufacturing of OTC drugs, you will need drug manufacturing license. For marketing and distribution, will require wholesale drug license and for retailing, will require retail drug license.

Electronic and other Household Goods: Household goods include phone, laptops, head phones, food wrapping foils, Dish/utensils, disposables, LED lights and other consumable goods.
You need to compile with the laws and regulations applicable to specific products you want to manufacture. You can start manufacturing of either product by taking business license, Tax identification number. Few products require taking license & permissions and few products can be manufactured without any license & permissions.

Stationery Products: Stationery products include Pen, Notebook, Pencil, Boxes, Staples, Color box Etc.
You need to compile with the laws and regulations applicable to specific products you want to manufacture. You can start manufacturing of either product by taking business license, Tax identification number. Few products require taking license & permissions and few products can be manufactured without any license & permissions.

Sanitary Products: Sanitary products include Tissues, Diapers, Sanitary pads, Corrugated Boxes etc.
You need to compile with the laws and regulations applicable to specific products you want to manufacture. You can start manufacturing of either product by taking business license, Tax identification number. Few products require taking license & permissions and few products can be manufactured without any license & permissions.

FMCG sector is vast sector. It can’t be categorized in few categories. There are so many other products also that aren’t cover here because any product that are consuming faster into market. FMCG term doesn’t limit to any sector or products or group of products. Any product that fulfill the criteria of FMCG , will fall under FMCG goods.

Hope above information is helpful to you…
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