Privately-held companies in the consumer goods (“FMCG or Fast Moving Consumer Goods) sector in India have outpaced their peers in the publicly traded spheres, highlighting an opportunity for private equity investors.
For example, listed cookie maker Britannia Industries Ltd., which owns popular brands such as Good Day and Tiger, grew at a CAGR of 14.4% between 2010 and 2016. Anmol Biscuits, a private entity whose net sales are less than a tenth of Britannia’s, recorded growth of 20% for the same period.
Highlights from a joint study by VCCircle’s data research arm VCCEdge and management consultancy AT Kearney:
- Though smaller in terms of revenues, private companies grew at a CAGR of 11% compared with 6% for listed firms from 2010 – 2016. This disparity in growth was due to better consumer connect, inorganic growth strategy, and entry into global markets, the report said.
- The study found that margins have fallen across the spectrum as companies have invested in infrastructure development for tapping new markets, and product innovation.
- Return on capital employed improved to 13.4% during FY16 against 10.4% in FY09, due to better capital utilization, reinvestment of profits in optimization of manufacturing facilities and supply chain networks.
- The report suggests that risk-averse investors should focus on large private FMCG firms, while risk-seeking investors should cherry-pick by targeting mid-sized firms.
Last updated: December 26th, 2025
