Fast Moving Consumer Goods or FMCG goods is one of India's most dynamic and rapidly growing industries. FMCG is the fourth largest sector of the Indian economy, where urban areas generate almost 55% of the total revenue. However, due to rising incomes, awareness, and the growing penetration of the internet, the contribution of rural areas towards the growth of the FMCG industry has increased manifold.
The FMCG industry consists of various products. Primarily, FMCG distributors sell products that are perishable and in high demand. These products include chocolates, cold drinks, biscuits, dairy products, pulses, and grains. For those who want to venture into FMCG distribution, it is recommended that they specialise in distributing a particular product or a group of products.
How Does FMCG Distribution Work?
The FMCG distribution network is headed by large organisations involved in the manufacture of FMCG products. These firms aim to sell their goods to both rural and urban consumers. Hence, they are transported to super stockists in large quantities to get their products distributed. Super stockists hold goods in bulk to transfer them to various distributors. These distributors then sell these goods to multiple retailers, who then sell them to end consumers.
Things to Keep in Mind Before Becoming an FMCG Distributor
You need to know certain things before deciding to become an FMCG distributor. Let us take a look at some of them.
1. Determine Your Product
Before you decide to become an FMCG distributor, the first and foremost step is to determine which product you want to specialise in. Since FMCG consists of many goods, it is best to determine beforehand which product you want to distribute. It could either be a single product or a group of products. However, before starting your business, it is suggested that you conduct in-depth market research about the demand for your product, its shelf life, and future scope. Try to specialise in goods always in demand, such as pulses and grains, dairy products, poultry, chocolates, and bakery items.
2. Create a Business Plan
After you have decided which product to market, it is time to create a business plan. Since a business plan is a foundation for any business, ensure that your plan consists of the entire vision of your business. It should include the type of distributor you want to be, your target customer, the management strategy of your business, logistics and supply chain model, and future growth plans.
The most crucial aspect of starting a business is choosing its location. The size of the space or warehouse you want depends upon the size and demand for your product as well as the delivery modes of your goods. It is suggested that when you start your business, begin by renting or buying a small space to save any rental or overhead costs. Later, as your business grows, you can move into a larger space.
4. Registering Your Business
After you have laid out your business plan and have decided which product you want to sell, it is time to start working. However, before that, make sure that you get your business registered. Check with your state regulations regarding the type of license you need and the necessary paperwork involved. Also, make sure to gather information whether you require a founding document or an operating agreement for your business.
Best FMCG Distributors in Ahmedabad
1. Piecan Pharma Private Limited
Piecan Pharma Private Limited is one of the leading FMCG distributors in Ahmedabad. It specialises in the sale and distribution of medicines and skincare products. Some of the products distributed by them include neem soap, neem face wash, lemon facewash, moisturising soap, mouthwash, and protein powder. Piecan Pharma’s USP is known for delivering products in a timely and efficient manner, and none of its products has any artificial chemicals or side effects.
2. Sunrise Remedies Private Limited
Sunrise Remedies Private Limited is a pharmaceutical organisation located in the Santej area of Ahmedabad. Their average annual turnover ranges between Rs. 20-21 crores and they have been in business for over 20 years. Some of the key products sold by Sunrise Remedies include Omesun, Sertima Tablets, Proexsun Tablets, Poxet-60 Tablet, and Isotretinoin 20mg Tablet. All the products sold by them undergo rigorous quality checks and inspections.
3. Amazon Spices Private Limited
Amazon Spices Private Limited was established in 2012 and specialised in selling and distributing spices. It has an annual turnover ranging between Rs. 10 crores and Rs. 12 crores. Some of the goods sold by Amazon Spices include cumin seeds, fennel seeds, coriander powder, fenugreek powder, popcorn masala, Maggi masala, pasta masala, garlic powder, and dextrose.
4. Fable Food Products Private Limited
Fable Food Products Private Limited is an FMCG distributor that supplies a range of milk and dairy products under Aabad & Shree Vallabh. It was established more than 75 years ago and revamped itself in 2004. However, it stuck to its original business model of distributing dairy products. Its annual turnover is Rs. 300 crores and has tied up with more than 250 distributors. Fable Food Products' goods include cow ghee, buffalo ghee, curd, flavoured milk, honey, lassi, and paneer.
5. Amrit Foods
Amrit Foods is an FMCG distributor in Ahmedabad specialising in international foods and snacks. It was set up in the year 2011 and has reported an annual sale of Rs. 4 crores. The company sells products such as Italian spices, bakery items, chocolate products, Indian spices, and sweets.
6. Shyam Sunder Foods Products LLP
Established in 1969, Shyam Sunder Foods Products LLP is one of the oldest FMCG distributors in Ahmedabad. Marketed under Shyam Sunder's brand, the company has over 400 distributors and annual revenue of Rs. 2.5 crores. The company sells food items such as namkeen, khakra, sweets, and bakery products.
FMCG distributors engage in the sale and distribution of FMCG goods. Some of the most in-demand FMCG products include dairy, grains, pulses, chocolates, and bakery items.
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Q. Who are FMCG distributors?
Ans. FMCG distributors are companies who sell FMCG products from manufacturers to end consumers.
Q. What are some of the most common FMCG products?
Ans. Some of the most common FMCG products include dairy and meat products, bakery items, grains, pulses, and bakery items.
Q. How does an FMCG distributor work?
Ans. The FMCG distributor network is headed by large companies that manufacture FMCG goods. These goods are then sold to super stockists in bulk quantities, then sold to FMCG distributors. The FMCG distributors then sell the products to the end consumers.
Q. Is FMCG distribution profitable?
Ans. Currently, the FMCG industry is the fourth-largest industry in India; hence, it is a lucrative sector to invest in.
Q. Can I start an FMCG business with little or no capital?
Ans. Yes, you can start an FMCG distributor business with less capital. However, you need to have a well-drafted business proposal in place.