Abstract
We study the performance of the fast-moving consumer goods (FMCG) sector, in India. It is the fourth largest sector in India. Macroeconomic factors, modern production techniques, robust logistics facilities, efficient distribution networks and superior marketing capabilities have given the sector an edge over the other sectors. Firm performance is determined by considering liquidity, solvency and profitability ratios and also by employing common size statements, and comparative statements. We find that the sector appears to be overly dependent on the performance of a few firms. We further find that firm performance is not related to non-commercial factors such as CSR.
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