FMCG PRODUCTS
At FMCG box office, rural to script summer blockbuster
This is in sharp contrast to the last two years, when fast-moving consumer goods (FMCG) companies such as ITC, Dabur, Marico, Britannia, Parle Products, Emami and Hindustan Unilever had been focused mainly on premiumisation with demand turning sluggish in villages as the rise in prices of daily essentials, vegetables and fuel had forced consumers to cut down on spending. In the last two years, more than 60% of launches by large FMCG companies have been in the premium segment.
Dabur adds 2 lakh outlets to its network in FY24, highest by any FMCG player
Dabur India significantly expanded its sales network in FY24, adding 200,000 outlets to reach over 7.9 million retail points and 1,22,000 villages. Chairman Mohit Burman highlighted Dabur's deep penetration, with direct access to 1.42 million outlets. The company introduced 14 new products and ventured into emerging categories like mosquito repellents and gel toothpaste.
Assam based tea planters get into value chain of tea business
Rujani Tea, the online brand of Aideobarie Tea Estate in Jorhat, is making waves in the tea industry with new CTC variants and a focus on sustainability. The company, founded in 1897, has expanded globally to Australia, Sweden, the USA, and more. Director Raj Barooah highlights the challenges faced by the tea industry but emphasizes the company's innovative approach. Assam and West Bengal are experiencing a decline in tea production due to weather conditions, raising concerns for the future of the industry.
Stock Radar: FMCG stocks in focus! Tata Consumer forms strong base above 1000 since March; time to buy?
The FMCG stock hit a record high of Rs 1,269 on March 7, 2024, but soon after the rally lost steam. Treading below the 20- & 30-week moving average, it found support above the 1,000 level. This is the level in which it has consolidated in a range since April on the weekly charts. So, technically, it has formed a strong base and is ready for a rebound.
Urban areas hardest hit while rural sector holds steady as FMCG growth slows
FMCG sales growth has slowed down in both urban and rural areas despite price cuts. Factors such as heat waves, election-related restrictions, and reduced cash-buying have impacted demand. Analysts foresee a potential rural-led recovery in the second half of FY25, with expectations of muted value growth and potential volume growth for staple companies.
Kaustubh Pawaskar on 3 FMCG stocks to be bullish on for next 2 years
We should expect rural growth to improve from the current level. Large part of it will be seen in the second half of the year and that will drive the overall volume growth for the consumer good companies and it will help also earning growth to be better.
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FMCG makers expect single-digit revenue growth, margin improvements in April-June quarter
Fast-moving consumer goods cos expect single-digit volume growth along with expansion in margins during the April-June quarter of this fiscal, helped by a revival in rural demand and a stable urban market. Listed FMCG companies such as Dabur, Marico and Adani Wilmar in their latest quarterly updates have reported a "gradual improvement" in demand trends in the April-June quarter, which was on the expected lines.
Future group's FMCG arm FCL defaults on payments of Rs 449.04 crore till June-end
Future Consumer Ltd (FCL), the FMCG arm of debt-laden Future Group, disclosed on Saturday that it defaulted on payments totaling Rs 449.04 crore as of June 2024. This includes Rs 284.81 crore towards bank loans and revolving facilities, and Rs 164.23 crore on borrowings through unlisted debt securities (NCDs and NCRPs). FCL also reported outstanding debt securities amounting to Rs 222.06 crore, with defaults of Rs 164.23 crore owed to non-convertible debenture holders since May 2022.
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.
India's FMCG sector to see revenue growth of 7-9 pc in fiscal 2024: CRISIL
CRISIL forecasts 7-9% revenue growth for the FMCG sector in the current fiscal year, driven by increased volume and rural demand recovery. The report highlights stable product prices in personal care and home care, while food and beverages face modest raw material cost increases. Rural growth is bolstered by better monsoons and government initiatives, while urban demand remains robust due to rising incomes and premium product preferences
Kaya shares surge 10% after it announces collaboration with Marico
Shares of Kaya rose 10% to Rs 501.45 on BSE after announcing a collaboration with Marico, whose shares traded flat at Rs 608.15. The collaboration aims to market 75+ science-based personal care products, leveraging channels for wider reach. CEOs Rajiv Suri and Saugata Gupta emphasize growth, market expansion, and long-term consumer satisfaction.
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.
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.
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.
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.
Mom & pop stores vs new kids: India's ubiquitous kirana stores have a new rival
Tech-enabled players running self-service outlets like Frendy, SuperK, and Kirana King are challenging traditional kirana stores post-Covid. These modern trade stores have digital apps for orders and sourcing, contributing 4% to FMCG sales and up to 10% in premium categories.
Tata Consumer Products aspires to be a full-fledged FMCG Co, to double capex to Rs 785 cr in FY25: N Chandrasekaran
Tata Consumer Products Ltd plans to diversify and expand into new FMCG categories, doubling capex to Rs 785 crore for FY25 with a focus on a new plant in Vietnam. Chairman N Chandrasekaran emphasized growth through acquisitions, particularly in health-oriented and food products, while investing in digital technology and advertising.
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.
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.
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.
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.
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.
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 giants bite price bullet to keep small companies off their turfs
Market researcherfirm Kantar reports that local businesses operating in a single area increased their market shares by over 13% in the year that ended in April 2023, while national brands expanded by 9% in the same period. Kantar examined 13 categories in the personal care, home care, and food and beverage industries. Regional brands that operate in many markets experienced a 2% decline in market share, whilst unbranded enterprises witnessed a 5% decline in market share.
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.
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.
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