India becomes third largest contributor to consumer product growth among emerging markets: Report

19 of 30 top consumer products MNCs with Indian operations experienced higher than industry growth between 2018-2023
| Photo Credit:
NAGARA GOPAL

India has become the third-largest contributor to consumer products (CP) growth among emerging markets along with further room for expansion, according to Bain and Company’s new report, LEAP to Win: A Playbook for Consumer Products Multinational Corporations in India.

The report stated that MNCs have historically failed in India due to its difficult market operations, obstructions due to underperformance or lower than expected revenue or profit growth, prevalence of unorganised, traditional trade, and competition from low-cost players.

The study, however, found that India, due to its digital adoption, smartphone and broadband penetration, and financial inclusion, has made MNCs emerge as the number one or number two players in more than 20 CP categories in India, ranging from soft drinks and spirits to savoury snacks, detergents, and diapers. This is not limited to MNCs that are age-old players but also newcomers who have recently entered India markets.

India-based MNCs outperform global parents

Bain profiled 30 top consumer products multinational companies (MNCs) with Indian operations and found that Indian affiliates generate shareholder returns that are 2-6 times higher than their global parents. 19 of the companies experienced higher than industry growth between 2018-2023. The remaining 11 companies are still struggling to find growth.

21 companies are under-indexed in India. In those companies, India’s contribution to global revenue was lower than India’s contribution to global GDP (3.4 per cent).

“Companies already investing in India are benefiting from accelerated growth, higher shareholder returns, and opportunities to shape globally relevant products. MNCs that have not entered the market must act now—or risk missing out on a vital growth engine and long-term strategic advantage,” said Ravi Swarup, head of Bain’s Consumer Products practice in India.

Leveraging potential of Indian markets

In the playbook, they introduce the LEAP framework which is a structured approach tailored to help MNCs navigate these challenges and succeed in the Indian Market. This ranges from building a fats-growing core and earning a leadership position, expanding to both mainstream and premium segments and tailor the product, price, place and promotion (4Ps) to capture diverse consumer groups. This also includes investment in building brands and capabilities, local talent and digital capabilities.

(With inputs from businessline intern Nethra Sailesh)

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Published on April 24, 2025

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