FMCG INDUSTRY
FMCG sector expected to see 7-9 pc revenue growth in FY25, helped by a recovery in rural markets: Crisil
FMCG sector revenue is projected to grow 7-9% this fiscal, driven by rural revival, urban demand, and rising disposable incomes. Crisil Ratings indicates premiumisation will boost margins by 50-75 basis points despite marketing expenses. Rabindra Verma highlights 8-9% F&B and home care growth, and 6-7% for personal care. FY25 will see low single-digit product realisation growth.
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.
Rise in value-seeking customers, key FMCG sectors face tampering of growth: Report
The report highlighted a significant shift in consumer spending patterns with a rise in value-seeking buyers, which is evident across consumer businesses. While the consumer may increase their spending on leisure activities, suggesting a good performance for the aviation and hotel industries in FY2024-25, it added.
- Go To Page 1
Britannia committed to Bengal, says Amit Mitra amid no word on Kolkata plant operation
Britannia Industries Limited reaffirms commitment to West Bengal, with plans to enhance business operations despite worker VRS acceptance. The company's managing director will visit to ensure no major impact on operations, emphasizing sustained manufacturing and the continued presence in Kolkata.
FMCG sector to have sustained growth rate of 7-9% in 2024: Report
The FMCG industry was struggling after the pandemic and the rural sector was having successive degrowth for some quarters. However, the industry navigated through showcasing resilience and adaptability amidst evolving consumer trends and witnessed a notable upswing in volume and value growth in the second half of 2023.
3 top stock recommendations from CA Rudramurthy BV
Let us see how even budget comes out and then take aggressive position. So, for sure, this is not the time to take aggressive position, not to be in high beta and one has to have reduced leverage and risk management will hold the key if you are a very short-term trader.
All permanent workers of Britannia's Taratala factory accept VRS
All permanent workers at Britannia's Taratala factory in Kolkata have accepted the voluntary retirement scheme (VRS), ensuring no impact on business operations. The company had informed the bourses about this development recently. The Taratala plant is one of Britannia's oldest biscuit manufacturing plants in the country.
Auto & FMCG stocks offer support as Sensex settles 131 points higher; Nifty tops 23,500
Investors traded cautiously amid sectoral swings. Sensex closed around 77,341, Nifty sealed the day at 23,538. Sectorally, the gains were led by auto stocks, whose index was up nearly 0.9% and the FMCG pack, which rose around 0.72%. The Nifty IT, metal, PSU bank and pharma indices spoiled the market mood.
Changing customer behaviour, focus on sustainability present new challenges and opportunities for the dairy industry
The future of the dairy industry is tied to how players adapt to changes and can innovate themselves.
India's consumer market represents long-term structural opportunity: N Chandrasekaran
Tata Consumer Products Ltd Chairman N Chandrasekaran highlighted India's consumer market as a long-term structural opportunity, driven by factors like population, a growing middle class, rapid urbanisation, increasing disposable incomes, and rising aspirations.
Modi 3.0: FMCG companies can cheer the new coalition government
In a symbolic move, Prime Minister Narendra Modi's first action after being sworn in for a third term was releasing the 17th PM-KISAN installment, providing financial relief to 9.3 crore farmers. With a weaker mandate, the government is expected to focus on rural welfare, potentially boosting FMCG sector growth and consumption.
HUL managers a happy bunch, 200 execs took home Rs 1 cr pay in FY24
In the last fiscal year, 200 managers at Hindustan Unilever (HUL) earned over Rs 1 crore annually, a slight decline from 205 in FY23 but an increase from 163 in FY22. The median employee salary at HUL rose by 7.38% in FY24, down from 10.73% in FY23, with non-managerial staff seeing a 4.4% salary hike. Notably, one-third of HUL's high-earning executives were under 40, continuing a trend from the previous year.
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.
Reliance Retail plans 30-minute delivery model for quick commerce re-entry
Reliance Retail is re-entering the quick commerce market with a 30-minute delivery model, focusing on a wider assortment of products than existing players like Blinkit and Zepto. They will leverage their network of stores and kiranas, connected through the JioMart Partner initiative, for product sourcing. Unlike competitors, Reliance will not set up dark stores for under-ten-minute delivery but will optimize delivery routes using tech platforms like FYND and Locus. The venture will start with groceries and expand to apparel and electronics, utilizing the 19,000-plus store network.
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.
FMCG giants pivot to premium: Nestle and ITC lead with innovative strategies
FMCG giants like Nestle India and ITC are adopting innovative strategies to tap into the growing demand for premium products. Nestle plans to hire tasters and connoisseurs for its super-premium Nespresso coffee and boutiques, while ITC is leveraging AI and ML to predict demand and recommend products for its premium portfolio, including Fabelle chocolates and skincare.
Pulse’s DSFL crosses Rs 1,000 crore mark, aims for Rs 5,000 crore in next 5 years
DS Group's confectionary arm, Dharampal Satyapal Foods Ltd. (DSFL), reported a sales turnover of over Rs 1,000 crore in FY24. The division has achieved a compound annual growth rate (CAGR) of over 20% over the past three years, outpacing the industry's 9% growth. Vice chairman Rajiv Kumar credits this success to strategic indigenization, an expanded product portfolio, and a vast distribution network. DSFL aims for a sales turnover of Rs 5,000 crore in the next five years, with a CAGR of about 30%, by growing both organically and through acquisitions.
FMCG firm PoloQueen ropes in Raveena Tandon as brand ambassador for its home care and kitchen essentials products
PoloQueen appoints Raveena Tandon as brand ambassador to boost kitchen essentials sales, emphasizing brand loyalty for household products like PoloQueen's Shudh range of dishwashing liquid and bar.
DS Group eyes Rs 5,000 crore sales from confectionery business in 5 years
Dharampal Satyapal Group targets Rs 5,000 crore revenue in five years from their confectionery business. It surpassed Rs 1,000 crore in 2023-24. The group plans to double sales outlets to 50 lakh in India, focusing on tier II and III cities and rural markets. They aim to accelerate confectionery growth by 30% through organic and inorganic means.
FMCG demand most in five southern states: Discretionary or essential, sales go north in south
South India leads post-Covid demand recovery with increased FMCG sales, higher consumer spending, and more shopping trips in 2023, a Kantar report shows. Retail sales growth in the peninsula region outperforms the rest of India. The region's rapid recovery is fueled by a young workforce, new-age sectors, and robust manufacturing investment.
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 companies to see muted demand in June quarter, recovery likely in H2
Overall volumes, which indicate the number of products consumers bought, expanded 5.2% in the March quarter, unchanged from the three months to December. Sales volumes in rural markets climbed 5.8%, and in cities by 4.7%, from a year earlier, data from Kantar showed. Kantar monitors branded and unorganised products, including unpackaged voluminous commodities. Nielsen, on the other hand, tracks primarily branded retail sales.
FMCG companies expect volume growth in FY25 with improvement in revenue
The companies were forced to slash prices as prices of major commodities had fallen, which had in turn impacted their topline and value growth in the last two quarters of FY24.
Hills are alive with the sound of FMCG
Rural market drives FMCG growth, aided by normal monsoon and producer pricing. Big players benefit from input cost spikes. Motorcycle sales rise with rural demand, while small car sales lag. Rural consumption revival crucial for India's economic recovery.
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.
Rural FMCG sales outgrew urban for the first time in 5 quarters in Q1: NielsenIQ
In the January-March ’24 quarter, rural markets surpassed urban consumption for packaged consumer goods for the first time in five quarters, with rural growth at 7.6% while urban demand declined by 5.7%. Overall FMCG sector value grew by 6.6% driven by consumption, with flat price growth at 0.1%. NielsenIQ highlighted the growth in the FMCG industry being driven by consumption trends, with rural areas leading the growth. By volume, the sector grew by 6.5% nationally, with non-food sector sales growing at 11% compared to 4.8% for food. Home and personal care categories outperformed food categories, with larger pack sizes driving growth.
Load More
