Indian FMCG (fast moving consumer goods) companies have been gradually losing market share to multinational corporations (MNCs) in a number of product categories.
In the past five years, MNCs have managed to take a lead over local competition in the consumer durables category, while in most other categories the market is divided almost equally between the two.
Till the late 1990s, Indian players like Videocon, BPL and Onida dominated the colour television (CTV) market with a 65 per cent market share.
But with the arrival of aggressive Korean players like LG and Samsung, the share of the local players has shrunk to less than 50 per cent in 2004. In other consumer durable categories, like refrigerators and washing machines, Indian manufacturers have seen a steeper slide.
In detergents too, HLL, P&G and Henkel control a little more than 50 per cent of the market.
Although Nirma, the Indian player that had successfully fought the MNCs, has lost some ground in recent years, smaller brands like Ghari, Double Dog and Fena are stymieing the MNCs’ growth.