An Operant Analysis of Demonetization: A Study of ITC Limited

Fast moving consumer goods (FMCG) is a very complex industry but one the most profitable sector in the present scenario. The fast moving consumer goods (FMCG) segment is the fourth largest sector in the Indian economy. India's market for fast moving consumer goods is expected to more than double to $104 billion by 2020 from the current level of $49 billion. ITC is one of India's foremost multi-business enterprise with a market capitalization of US $ 45 billion and a turnover of US $ 8 billion. This paper is an exploratory cum descriptive study and intends to check the impact of demonetization on fast moving consumer goods with special reference to ITC limited. ITC's aspiration to create enduring value for the nation and its stakeholders is manifest in its robust portfolio of traditional and Greenfield businesses encompassing Fast Moving Consumer Goods (FMCG), Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and Information Technology. This diversified presence in the businesses of tomorrow is powered by a strategy to pursue multiple drivers of growth based on its proven competencies, enterprise strengths and strong synergies between its businesses. The government's move to scrap Rs 500 and Rs 1, 000 currency notes has had an adverse impact in several fast moving consumer goods categories such as biscuits and salty snacks, where sales have declined by up to 40%, according to data from market research agency Nielsen. The study is based on both primary and secondary data. This study was initiated by visiting various outlets with DS in order to know about various products of ITC available in the market. Then a schedule was framed after thorough study and information collected by visiting wholesale dealers, secondary wholesale dealers and retailers in order to study the impact of demonetization on FMCG industry in Kashmir valley. Findings of the research where that a majority of outlets had received a drop in the sales and had decreased the order level post demonetization. Cashless transactions on the majority of outlets had increased. The introduction of higher denomination notes had made the business difficult for majority of the outlets.