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Sales growth in Indian FMCG sector slowed to 5.4 per cent in volume during September quarter mired by disruptions due to GST rate changes, though value growth jumped to 12.9 per cent, according to the latest report from data analytics firm NielsenIQ. The rural market also slowed down from 8.4 per cent to 7.7 per cent year-on-year, but continued to outpace the pace of sales in urban areas for the seventh consecutive quarter, the report said. "The market recorded a 5.4 per cent rise in volume alongside a 7.1 per cent increase in prices, with unit growth outpacing overall volume growth signalling a stronger consumer preference for smaller packs," it said. Urban market, which forms bulk of fast-moving consumer goods (FMCG) demand, is recovering moderately, particularly in smaller towns. Sequentially, it experienced slowdown. Rural market, which is of small packets, is driven by affordability, accounts for around 38 per cent of the FMCG demand. "Rural India has recorded a 7.7 per cent
Leading FMCG player ITC expects a surge in the festive demand this season after the GST rate cut, and reduced prices will have a multiplier impact on volumes for the packaged food industry, a senior company official said. However, the FMCG major is also cautious about the existing inflation on some products, its Executive Director and Divisional Chief Executive of the Foods Business Division, Hemant Malik, said. ITC, which owns popular brands as Aashirvaad, Sunfeast, Bingo!, and B Natural, has already passed on the benefits of the GST rate cuts applicable from September 22, and expects a boost in consumption and investment as well as a multiplier impact on the economy. "A lot of expenditure by consumers is also driven by sentiment. When the message reaches consumers that prices have come down, it does allow people to open their purses. Once that happens, it is a multiplier impact in terms of volume increase It has a multiplier impact on the economy, both from the aspect of employme
Usha Shriram on Friday announced its entry into the FMCG segment with the launch of its premium packaged drinking water brand, Aquaero, and outlined plans to double its topline to Rs 1,000 crore in two years before considering an IPO. "Aquaero marks our third brand and our foray into FMCG," Usha Shriram COO Satnam Singh Sandhu said. He added that the packaged water industry in India is valued around Rs 50,000 crore, of which 60-70 per cent remains unorganised. "This space holds immense potential and we see Aquaero playing a strong role in tapping that opportunity," he said and expected GST cut will help boost demand. Usha Shriram zonal manager (east) Rajarshi De said the brand has been launched in Kolkata before it is expanded to other eastern states. Currently, Usha Shriram has a topline of Rs 480 crore. "We are confident of reaching Rs 1,000 crore in the next two years. Once we achieve that revenue threshold, we will look at an IPO," Sandhu said. The company also indicated a r
FMCG major HUL has received shareholders' nod to demerge its ice cream business, which owns brands like Kwality Wall's, Cornetto and Magnum, into an independent listed entity. With this, Hindustan Unilever Ltd (HUL) has taken one step closer to its goal to demerge its ice cream business. The majority of its shareholders have voted in favour of the resolution over the "Scheme of Arrangement between Hindustan Unilever Limited, Kwality Wall's", the FMCG major said while sharing the scrutiniser's report. "The Resolution for approval of the Scheme of Arrangement amongst HUL, Kwality Wall's (India) Ltd and their respective shareholders, as set out in the Notice dated 7th July 2025, has been passed by the Members by requisite majority, pursuant to Section 230(6) of the Companies Act, 2013, through remote e-voting and e-voting at the Meeting," it said. HUL has called for a meeting of its shareholders as per the directions of the National Company Law Tribunal (NCLT). According to the repor