Abstract: The purpose of this study is to distinguish between good and poor performing Indian FMCG companies to indicate the areas of improvement for the poor performers and suggesting strategies for improvement. The performance separation is carried out using multiple discriminant analysis technique. Top five and bottom five companies are selected on the basis of their net profit after taxes and the overall discriminant model is developed considering all possible financial variables. The developed equation satisfactorily divides companies into 2 groups, performance wise. It further identifies the key financial variables responsible for the performance. This study provides a benchmark to poor FMCG performers highlighting the possible areas of improvement. This study is limited to Indian FMCG sector only. Thus, the model cannot beapplied to evaluate sustainable performance outside the scope of this study. This study concentrates in finding out the relative performance of Indian FMCG companies. It can help companies to analyze their position in the market with respect to their competitors. This study can also be helpful for investors to identify their potential investment avenue. The study involves developing a discriminant model that separates Indian FMCG companies, performance wise using the latest data available. The developed equation can be generalized to any company related to the Indian FMCG sector to know the relative position of the particular company with respect to its competitors.