Mumbai-based leading FMCG company Procter & Gamble India (P&G India) has announced the launch of a multimillion-dollar fund which aims to invest in Indian startups and will also focus on collaborative growth strategy.
The company however has not yet disclosed the size of the fund which is named as Innovation Sourcing Fund.
Speaking of the launch, Madhusudan Gopalan, MD & CEO, P&G India Sub-Continent stated, “We believe that collaboration accelerates Innovation and the biggest wins come when all the stakeholders in the ecosystem work together. This is an exciting time to be in India with the way consumer behaviour is evolving in a dynamic market.”
Along with this announcement, P&G India also launched its first programme in India, “vGROW” which will focus on identifying and collaborating with startups, small businesses, individuals or large organisations and will be offering innovative industry-leading solutions.
In the line with the launch of its programme, the platform hosted a two day summit in Mumbai, vGROW External Business Partner Summit where suppliers pitched their solutions to P&G’s leadership team.
Gopalan added, “The Indian market that has been at the forefront of innovation in recent years continues to be a priority for the company globally. We are confident that through our initiative ‘vGROW’ and our ‘Innovation Sourcing Fund’, we will be able to identify and implement cutting-edge solutions that are a strategic fit for us on our journey to grow sustainably”.
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Additionally, P&G India will also be launching its online platform ‘P&G Hackathon’ in order to come up with innovative solutions via connecting external business partners with the company needs.
According to the company, this move will also help create a collaborative ecosystem. Once launched, startups, small or large businesses will get a platform to pitch their solutions and may also get business opportunities with the company.
P&G India was established in 1964 and currently operates under three entities in India – Procter & Gamble Hygiene and Health Care Limited, Gillette India Limited and Procter & Gamble Home Products’.
The company also claims to be present in India through its five plants and over nine contract manufacturing sites and is now serving 650 Mn consumers in the country.
FMCG Sector In India
According to a 2018 Ibef report, Fast moving consumer goods (FMCG) is the fourth largest sector in the Indian economy.
The report also stated that the Indian FMCG sector has grown from $31.6 Bn in 2011 to $52.75 Bn in 2017-18. The sector is projected to grow at a CAGR of 27.86% and expected to reach $103.7 Bn by 2020.
Some of the major FMCG players in the country are Hindustan Unilever Limited, ITC Limited, Marico among many others.
In August, Colgate-Palmolive Asia Pacific Limited, a subsidiary of Hong Kong-based consumer products company Colgate-Palmolive picked up 14% stake in Delhi-based men’s grooming startup Bombay Shaving Company after it raised an undisclosed amount of Series A funding.
Earlier this year in May, the RP-Sanjiv Goenka Group had launched a venture capital fund of $14.74 Mn (INR 1 Bn) to invest in fast-moving consumer goods (FMCG) startups.
With the FMCG market raising to new heights day by day, these steps may help more startups make a position in this sector.