India A High-Growth Market For Consumer Product MNCs

New Delhi: India is quickly shedding its reputation as a daunting emerging market and is delivering superior returns to winning global consumer products companies, a new report said on Thursday.

For some leading multinational companies (MNCs), India affiliates deliver total shareholder return of between two and six times that of their global parents.

When looking at those with Indian revenue contribution of at least $100 million, the report by Bain & Company found that 60 per cent of the Indian affiliates’ revenues are growing at least double of their parent companies’ growth rate.

“Companies already investing in India are benefiting from accelerated growth, higher shareholder returns, and opportunities to shape globally relevant products,” said Ravi Swarup, head of Bain’s Consumer Products practice in India.

MNCs that have not entered the market must act now — or risk missing out on a vital growth engine and long-term strategic advantage, he added. India is the third-largest contributor to consumer products growth among emerging markets over the past decade.

In the next 5-6 years, it will see the highest increase in working-age population globally and the fastest growth for income per capita among the top five consumer products emerging markets, which also include China, Brazil, Mexico, and Russia.

While India has traditionally been considered a difficult market for MNCs, it has made tremendous improvements to barriers.