FMCG Case Study

nipunahuja16
Posts: 2
Joined: Fri Oct 28, 2016 7:20 am

FMCG Case Study

Postby nipunahuja16 » Thu Dec 29, 2016 9:57 am

In FMCG case of Niharika Consumer Products limited, on page no. 3 below there is given some parameters.
I doubt in first three parameters.

In FIRST parameter, there is a tapering growth rate from 15% in FY14 to 12% in five year's time.
DOUBT: Why they didn't taken in y-o-y growth rate in soap instead they applied in C.A.G.R of prices???

In SECOND parameter, There is assumption that CAGR is 0.5% less than historical CAGR over a period of time.
DOUBT: They have deducted from y-o-y growth rates of volumes in hair colour column and applied in C.A.G.R. column of prices... Why they didn't deducted from prices column from 6.1%.


In THIRD parameter, there is a growth rate of 5%-6% in detergents...
How we can come to know that whether they have given in prices of revenue drivers or volumes of revenue drivers???? They have take in prices....

Below is the PDF attached (highlighted parameters) and excel file uploaded....
Attachments
Fin_Model_Par_V3 sol.xlsx
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Edupristine - Fin Modeling Case Study.pdf
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edupristine
Finance Junkie
Posts: 745
Joined: Wed Apr 09, 2014 6:28 am

Re: FMCG Case Study

Postby edupristine » Thu Jan 05, 2017 6:37 am

Hi Nipun

In all three cases we are talking about volume not prices.
and growth rate is always higher in next year

nipunahuja16
Posts: 2
Joined: Fri Oct 28, 2016 7:20 am

Re: FMCG Case Study

Postby nipunahuja16 » Thu Jan 05, 2017 9:53 am

Thanks a lot....

edupristine
Finance Junkie
Posts: 745
Joined: Wed Apr 09, 2014 6:28 am

Re: FMCG Case Study

Postby edupristine » Thu Jan 05, 2017 11:19 am

welcome :)


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