Is it worthwhile to take up a job in FMCG after completing MBA?

Published on Jul 22 2020

When we talk about getting a job or applying for one, we must first have a clear idea of all the what, why and hows.

So we will begin with the most basic part: What is FMCG all about?

Firstly, we need to know what FMCG actually means. These are packaged goods that have a lower shelf life, like processed foods, soft drinks, toiletries etc.

Fast Moving Consumer Goods (FMCG) as is popularly known, is one of the fastest growing sectors of Indian economy.

Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian economy with Household and Personal Care accounting for 50 per cent of FMCG sales in India.

Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector.

The urban segment (accounts for a revenue share of around 55 per cent) is the largest contributor to the overall revenue generated by the FMCG sector in India.

Some of the biggest names in the FMCG sector in Indian market include Hindustan Unilever, Dabur, GSK, Britannia, Amul, ITC etc. owever, in the last few years, the FMCG market has grown at a faster pace in rural India compared with urban India.

Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50 per cent of total rural spending.

Market Size

The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in 2017, with modern trade expected to grow at 20 per cent – 25 per cent per annum, which is likely to boost revenues of FMCG companies.

Revenues of FMCG sector reached Rs 3.4 lakh crore (US$ 52.75 billion) in FY18 and are estimated to reach US$ 103.7 billion in 2020.

The sector witnessed growth of 16.5 per cent in value terms between July-September 2018; supported by moderate inflation, increase in private consumption and rural income.

Rural consumption has increased, led by a combination of increasing incomes and higher aspiration levels; there is an increased demand for branded products in rural India.

The rural FMCG market in India is expected to grow to US$ 220 billion by 2025 from US$ 23.6 billion in FY18. In FY18, FMCG’s rural segment contributed an estimated 10 per cent of the total income and it is forecasted to contribute 15-16 per cent in FY 19.

FMCG sector is forecasted to grow at 12-13 per cent between April–June 2019.

On the other hand, with the share of unorganised market in the FMCG sector falling, the organised sector growth is expected to rise with increased level of brand consciousness, also augmented by the growth in modern retail.

Another major factor propelling the demand for food services in India is the growing youth population, primarily in the country’s urban regions.

India has a large base of young consumers who form the majority of the workforce and, due to time constraints, barely get time for cooking.

Online portals are expected to play a key role for companies trying to enter the hinterlands.

The Internet has contributed in a big way, facilitating a cheaper and more convenient means to increase a company’s reach.

It is estimated that 40 per cent of all FMCG consumption in India will be online by 2020.

The online FMCG market is forecasted to reach US$ 45 billion in 2020 from US$ 20 billion in 2017.

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Scope of MBA graduates in FMCG sector

Now, the question arises, is it worthwhile for an MBA student to join FMCG sector.

To understand this we need to realize the requirements of this sector and check if it is in sync with the knowledge of an MBA guy.

As FMCG involves goods with a limited shelf life, a proper supply chain management needs to be maintained.

Supply chain managers need to take care of the fact that the right products reach the right stores.

Even though it sounds easy, but for bigger companies which produce products in millions supply chain management requires proper planning and strategizing.

The most important aspect of FMCG sector is the marketing and sales of the product. Marketing involves the creation of a positive image about the product among consumers, taking responses from the market and planning to improve the product.

Sales, on the other hand, require expertise in convincing buyers on buying their products. So marketing and sales have a direct impact on the revenue generated by an FMCG company.

Last but not the least comes the finance section where analysts project the growth of the company in terms of revenues and certain other factors and it also involves cost accounting.

Thus we see that, for an FMCG company to run successfully, achieving finesse in the finished goods is not the only criterion.

The expertise required to run these companies can be provided by management graduates only.

FMCG companies need to create a brand name for themselves out of their products.

Creation of a brand name requires proper leadership and managerial skills of the competent individuals passing out of the illustrious B-schools.

The various profiles offered by FMCG companies in Bschool campuses are area sales manager, sales manager, zonal manager, brand manager, communications manager etc.

FMCG sector looks for candidates who have good people management skills and those who can talk to people on a day to day basis.

They look for very dynamic personality who can hustle. In the initial days of being a management trainee, bschool graduates are made to travel all across the country in different markets so that they get to understand the markets well.

So they need candidates who love travelling, meeting new people and who can learn on the job, especially if you are joining an FMCG company in a sales and marketing role or operations role.

If an MBA graduate wants to join the company in a finance role, expert knowledge in finance is required.

Candidates have professional finance degrees like CFA, CA etc. are preferred with an MBA.

For eg. An MBA graduate with a CA degree will be the ideal candidate for an FMCG finance role.

FMCG offers a challenging work environment for MBA graduates to work in be it in a marketing and sales role or operations or finance.

Most of the marketing concepts or operations concepts that are taught in a B-school can be applied in the real FMCG world.

We can say that B-schools draw a lot of their curriculum from FMCG business world.

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Be it supply chain management, retail management, marketing, sales, or finance it is imperative that a person with good managerial skills and knowledge is needed.

This is the reason the conglomerates are offering quite high salaries and impressive job profiles to the MBA guys.

A large number of MBA students are showing interest in joining this sector because of its huge potential.

With quite a high amount of disposable income among the middle-class, FMCG sector is bound to be on the rise.

The growth rate in consuming products have been higher in rural areas than in urban, as a result, it is clear that the market base for FMCG has broadened.

As these companies gear up to expand their market, more job opportunities open up for MBA students and it has a bright future ahead.

So is it worthwhile to take a job in FMCG sector after MBA? Yes definitely. It is a perfect match.

The salaries, responsibilities and the learning one gets in an FMCG company is coherent with what is expected from an MBA graduate.

The FMCG industry has emerged as the highest paying industry in India with an average annual cost to company (CTC) of Rs 11.3 lakh across all levels.

The career growth rate is also higher in this industry compared to other industries like IT or telecom etc.

Ability to switch roles and companies are also higher as FMCG employees generally work in cross functional roles and there is always a demand for such personals.

If you are interested in a position in an FMCG company in which the criteria is an MBA, check out the jobs offered in this by searching for FMCG jobs in the search bar.

If you liked the article, let us know in the comment section and you can call us at our 24/7 helpline number if you have any queries regarding career, career roles , which FMCG company to choose etc.

If you want to know the roles and responsibilities of an area sales manager in an FMCG company, then read the article here.

Article Career Advice English
Author Info:
Gourab Mukherjee

A writer by passion, a consultant by profession. Loves to write about the latest technology, FMCG, and Sales techniques. In his free time, loves to read books and desires to travel the world

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