FAST MOVING CONSUMER GOODS
FMCG Q1 check: Some hot, some not
Scorching summer heat and elections created a mixed quarter for consumer goods, with sales of cooling products like beverages, ice creams, talcum powder, and sunscreens rising up to 15 per cent amidst the heatwave. However, impulse snacks and single-serve beverages saw a decline due to reduced out-of-home consumption. Election restrictions impacted alcohol sales, while delayed monsoon affected insecticide sales. Last-mile servicing challenges were reported, particularly in rural areas due to the heat.
Consumer spending on ITCs' goods rises 12 pc to Rs 32,500 crore in FY24
ITC, headquartered in Kolkata, remains optimistic about expanding its FMCG business with a strong portfolio and efficient supply chain, generating a gross revenue of Rs 69,446 crore in FY24.
Reliance Retail's FMCG plans stay in fast lane with funds on tap
RCPL has raised a total of ₹1,053 crore as debt capital from the parent company over 14 months, according to the filings. RCPL began operations in November 2022 and completed its first full year in FY24. In the filings, RCPL said the proceeds will be used for business operations. A senior industry executive, aware of the plans, said the funding from the parent into RCPL will continue in this fiscal as well, since Reliance has plans to rapidly grow the FMCG business.
FMCG spends up 18% in two years due to inflation- Kantar
Consumers have increased their spending on daily essentials, groceries, and household products by 18% in the first quarter of 2024 compared to two years ago, according to a recent Kantar report. Despite a recent softening in commodity prices, the prices for these goods remain nearly a fifth higher.
Not e-comm alone, one has to be in modern trade, in kirana stores also to build scale: Sunil D'Souza, Tata Consumer
Sunil D'Souza of Tata Consumer says today's consumer who is coming of age is the consumer who is born in a liberalised India. They have seen an India which is confident, growing with an accelerating GDP. So, these consumers are very confident of going out and spending. It is not only premiumisation, the consumer will move to value also.
Technical Breakout Stocks: How to trade JK Paper, Endurance Technologies and KEC International on Tuesday?
Indian markets closed higher with S&P BSE Sensex rising over 180 points and Nifty50 closing above 23,400 levels. Buying was observed in auto, telecom, consumer durable, and capital goods stocks. Stocks like JK Paper, Endurance Technologies, and KEC International showed significant movements, with JK Paper hitting a record high and KEC International breaking out of a rising parallel channel.
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Green shoots seen in rural demand: Wipro Consumer CEO
Vineet Agrawal, CEO of Wipro Consumer Care and Lighting, noted positive signs of growth in rural demand and anticipates a recovery in the hinterland by September, supported by favorable monsoon conditions and a successful harvest. Furthermore, he suggests that stable government policies could potentially boost sales of discretionary products through continuity and consistency.
White goods, FMCG imports failing to get custom-fit tag
White goods, chemicals, pharmaceuticals, and FMCG companies face import delays or higher duties as customs authorities scrutinize third-party invoicing at various ports. This practice, used for tax optimization, allows invoicing through a country different from the goods' origin and is permitted under FTAs. However, customs officials suspect abuse of FTA provisions, withholding consignments and denying lower duty benefits at ports like Nhava Sheva. Authorities demand differential duty payments and invoke rules addressing potential duty evasion through third-party invoicing, leading to potential supply disruptions.
Should Joe Biden downplay his own success?
"People telling Biden to downplay the fact that his big spending has worked out well for the economy are to some degree revealing their own ideological biases rather than giving solid political advice."
That AC or fridge you were planning to buy just got more expensive
Consumers in Kolkata will experience 2-5% price hikes on electrical goods due to factors like high inflation rates in copper and aluminium, freight cost increases, Red Sea crisis, and rupee depreciation.
New-age consumer brands trend on deal street
Uppercase–a luggage brand started by former VIP Industries MD Sudip Ghose–is in talks with Flipkart-backer Accel to raise new capital, sources told us. This would be the 3rd major deal in the space after Peak XV Partners’ Mokobara investment and Lighthouse’s bet on Safari.
Summer products sales go off the charts
Demand for ACs surges in India as retailers face shortages, leading to production challenges for brands like Haier. Voltas office saw a retailer camping out for stock, while managing director Pradeep Bakshi dealt with high demand and depleted inventory.
Capital goods train delay hits India Inc's capex plans as manufacturers in China & Southeast Asia embark on their own expansion plans
Geopolitical tensions and the Red Sea crisis have increased delivery times for machinery, affecting production lines and capital goods planning for Indian companies like Amber Group and Havells India.
Why Mukesh Ambani can't ignore a new consumer habit
Reliance Industries (RIL) chairman Mukesh Ambani is expanding the company's retail empire to include quick commerce services through JioMart. This move aims to compete with players like Blinkit and BigBasket, leveraging Reliance's extensive reach and resources. The shift towards quick commerce reflects changing consumer habits, favoring convenience and instant deliveries.
In Focus: Scrips that like a cloud on the horizon
Companies such as Hindustan Unilever (HUL), Britannia, Dabur, Hero Motocorp, Westlife Foodworld, Shoppers Stop and others have already indicated in their commentary a gradual demand recovery if the monsoon forecast turns out to be accurate.
Nifty’s next move to 25,000 will come with a GST rate rejig: Ajay Srivastava
Ajay Srivastava, CEO of Dimensions Corporate, highlights the need for a GST rate rejig to boost the consumer side of the market. He emphasizes the importance of stimulating consumption to enhance the overall market performance. Srivastava also says that this is a market which favours momentum investing more than value investing and that is the key takeaway as the market hits new highs.
ITC Q4 Results: Net profit drops marginally to Rs 5,020 crore
Revenue from operations went up by 1.4% at Rs 17,752.87 crore in the period under review. The company said excluding the agri-business (which was severely impacted due to government restrictions in trade of agri-commodities), the company’s gross revenue during the fourth quarter has gone up by 6% y-o-y.
Financial services, IT top on FPI selloff list in May
The construction sector witnessed foreign selling worth ₹3,811 crore in the first half of May after they bought shares worth ₹280 crore in April. Oil & gas and fast-moving consumer goods (FMCG) also saw foreign selling worth ₹2,808 crore and ₹1,158 crore respectively.
Sensex ends 267 points higher, Nifty near 22,600 ahead of Fed mins
Domestic equity indices, BSE benchmark Sensex and NSE Nifty, surged on Wednesday, led by gains in fast-moving consumer goods and Reliance Industries, ahead of the Federal Reserve minutes.
A heavy monsoon season is great news for these Indian stocks
Stocks of Indian firms reliant on rural demand are rising with optimistic monsoon forecasts. Motorcycle, farm-equipment, and FMCG companies are seeing improved sales in rural areas. Nifty FMCG Index is up, Hindustan Unilever and Dabur India expect demand growth.
Share of quick commerce in online FMCG sales rockets to 35% in FY24
Quick commerce drove overall ecommerce for these companies as well as the broader fast moving consumer goods (FMCG) industry, company executives said.
FMCG shares rise up to 10%, hint at 'start of a catch-up rally'
Shares of Marico, Godrej Consumer Products, Hindustan Unilever, Dabur India, Emami, Britannia Industries and Nestle India ended 2-10% higher on Tuesday even as benchmark indices closed 0.5-0.6% lower.
FMCG, auto companies break the jinx as rural growth rises above urban
Rural FMCG demand outpaced urban markets in Jan-Mar 2024. Car companies reported higher rural sales. NielsenIQ noted 7.6% rural growth. Factors include robust rabi crop and government measures. Maruti Suzuki saw record rural sales.
Improving macro-indicators, good monsoon to drive consumer demand for FMCG products
FMCG industry expects growth driven by improving macro-indicators, good monsoon/rabi crops, rural demand pickup, and international business expansion despite currency challenges, aiming for sustainable profitable growth in medium term.
FMCG sector: Rural demand growth for daily essentials outstrips urban sales
Rural markets grew 6.5% by volume in both December and January, and by 11.1% in February, according to executives citing NielsenIQ data. Urban markets, in comparison, grew 6.1% in December, 4.7% in January and 8.7% in February, data showed.
Maruti, Hyundai, Tata Motors, Renault post record rural sales in 2023
Maruti Suzuki, Hyundai Motor, Tata Motors, and Renault India achieved their highest-ever share of sales from rural markets in 2023. While rural demand for fast-moving consumer goods and consumer durables was affected by inflationary pressures, car sales in rural areas saw double-digit growth.
Fewer phones, more FMCG items flying off ecommerce shelves
Consumers are moving back to brick-and-mortar stores to buy expensive items such as smartphones and televisions. However, the opposite is observed in the case of FMCG products. For fast-moving consumer goods (FMCG), companies like ITC, Emami, Marico, Parle Products and Dabur have reported a growth of 3-5% percentage points in e-commerce contribution in the last one-two years, driven largely by quick commerce.
Muted festive demand has led to excess stocks: FMCG distributors
"Contrary to expectations, Diwali witnessed subdued enthusiasm for the FMCG sector. Post-Diwali sales have historically been low. Particularly hard-hit segments are chocolates, confectionery and biscuits, followed by beauty, and cosmetics," said Dhairyashil Patil, national president of All India Consumer Products Distributors Federation (AICPDF).
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