After two years of disruption due to demonetisation and implementation of the goods and services tax, consumer companies faced more regulatory changes in 2018. From being under the lens of the National Anti-profiteering Authority to changes in Customs duty on electronics, these firms have had to constantly tweak their business models.
However, there was some relief for fast-moving consumer goods companies due to lower commodity prices, leading to improved margins. And, it reflected on their performance at the bourses.
Electronics and telecommunication players were under pressure due to rising import cost of components, accentuated by a weak rupee. Durable makers, as a result, saw slower sales growth due to frequent price increases. But smartphones grew at a steady pace, despite headwinds.