India is one of the world’s fastest growing large economies. The International Monetary Fund has projected that India’s GDP will grow by 7.4% during the year 2016-17. This fastest growing economy has converted into a large market opportunity for FMCG players with a very large population and rapidly evolving consumer preferences. India represents world’s 12th largest consuming country in 2010. Such a large market means immense opportunities on one hand and various challenges on the other hand. FMCG sector is one of the important contributors of the Indian economy. This sector has shown an extraordinary growth over past few years, in fact it witnessed growth during recession period also. That is why, the researcher has aim to find out its liquidity position of the businesses. For this reason, the researcher had taken top ten companies of Indian FMCG sector on the basis of market capitalization from BSE index top 100 companies at the end of 2016. The study period is of ten years from 2007-08 to 2016-17. Here, the researcher has used secondary data for her calculations and applied one-way ANOVA test for hypothesis testing. The researcher had selected seven Liquidity Ratios for her research work on the basis of simple random sampling method. Here, the result is rejecting null hypothesis (Ho) and accepting alternative hypothesis (H₁). Thus, we can say that, in relation to Liquidity Ratios, there is significant difference between selected FMCG companies during the study period.
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Keywords: Indian FMCG Sector, Liquidity Performance, Liquidity Ratios, Indian Economy.
