The report revealed that two-thirds of MNCs outperformed the overall Indian FMCG industry in growth between 2018 and 2023
Bengaluru: India is quickly shedding its reputation as a daunting emerging market and is delivering superior returns to winning global consumer products companies, according to a report by Bain & Company.
The report profiled 30 top consumer products multinational companies (MNCs) with Indian operations and found that two-thirds of the companies (19) outperformed the overall Indian FMCG industry in growth between 2018 and 2023.
For some leading 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 found that 60% 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.”
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. Rapid digital adoption and widespread smartphone and internet penetration have enabled companies to effectively reach India’s diverse population.
E-commerce and quick commerce have grown 2–3 times faster in value than traditional and modern trade channels, diminishing the need for an extensive traditional trade network to enter the market. Digital payments are also gaining popularity, with 45% of Internet users adopting them for transactions.
However, the consumer landscape in India will change rapidly in India, and the playbook from other emerging markets will not necessarily apply here, the repoer added.
“Despite recent improvements, India remains a complex market,” said Nikhil Ojha, head of Bain’s Strategy practice in the Asia-Pacific region. “What we are seeing is a market where both legacy players and new entrants can win, but only if they rewire their approach to be truly India-centric.”
The study points out a successful approach in the Indian market includes building a strong core business and leading in key categories, as seen with Hindustan Unilever and Nestlé.
Growth can be driven by expanding portfolios across premium and mainstream segments and tailoring global offerings to local needs. Adapting the 4Ps—Product, Price, Place, and Promotion— to India’s diverse markets is crucial, along with treating India as a long-term investment—focusing on selective distribution, efficient marketing, and building local talent and digital capabilities for sustained profitability.
