During the last two decades, deregulation, globalization and liberalization measures adopted by the central government have made a paradigm change in the FMCG sector. In the post-reform period, foreign direct and portfolio investments in Indian FMCG sector have notably influenced the financial performance of the companies belonging to this fourth largest sector in the Indian economy. The present study seeks to measure the changing status of the overall financial performance of 16 selected companies in the Indian FMCG sector. In order to identify the change with respect to financial performance more accurately, the entire study period from 1993-94 to 2012-13, i.e., 20 years, has been subdivided into two phases (Phase I representing the period from 1993-94 to 2002-03 and Phase II representing the period from 2003-04 to 2012-13). Any improvement or deterioration with respect to overall financial performance of each company has been measured by making a comparison between the overall financial performance of Phase I and Phase II, by using relevant statistical techniques and tests.

Indian Fast-Moving Consumer Goods (FMCG) sector with a market share of $13.1 bn has presently proved itself as the fourth largest sector in the Indian economy. In fact, rural India with more than 70% share of the total Indian population has emerged as the most significant FMCG market. During the last two decades, deregulation, globalization and liberalization measures adopted by the central government have made a paradigm change in the FMCG sector. Both the foreign direct and portfolio investments in Indian FMCG sector in the post-reform period have notably influenced the financial performance of the companies belonging to this sector. Moreover, the increasing presence of MNCs in the Indian market has forced the existing domestic companies in the FMCG sector to reorient their financial strategies in order to survive. Against this backdrop, the present study seeks to measure the changing status of the overall financial performance of 16 selected companies in the Indian FMCG sector during the period 1993-94 to 2012-13. The paper is organized as follows: it reviews the existing literature relating to the financial performance of Indian FMCG sector, followed by a description of the objectives and the methodology adopted to pursue them. Subsequently, the findings of the study are discussed, and finally, the conclusion is offered.

Management Research Journal, Financial Performance, FMCG Companies, Post-Liberalization, Fast-Moving Consumer Goods (FMCG), Fixed Assets Turnover Ratio (FATR), Inventory Turnover Ratio (ITR), Debtors Turnover Ratio (DTR), Profit Before Interest and Tax Margin (PBITM), Return on Capital Employed (ROCE), Return on Net Worth (RONW).