Fewer hits than misses in FMCG as demand and supply concerns weigh

While hygiene and home care segment, rural-focused players could see better demand, a large portion coming from non-essential products means topline will be impacted

The fast-moving consumer goods (FMCG) sector is believed to be faring better, given the daily-use products it sells. Expected margin gains from lower input costs, following the sharp correction in oil prices, adds to the belief. However, the road ahead may be tough, as demand and supply-related issues are bound to take a toll on their overall performance till the next quarter.

Although hygiene, home care, and packaged foods may witness higher demand, the lockdown will have a visible implication on the supply chain and overall demand.

Dhaval Dama, analyst at Equirus Securities, says: “A curfew or lockdown will impact the supply