Page 10 - Fmcg

India Inc likely to report 8-10% revenue growth in Q3: CRISIL Ratings

Corporates' revenues are likely to have grown 8-10 per cent in the 2023 December quarter on an annual basis, according to a report. The operating profits have likely expanded 100-150 basis points on-year in the three months ended December 2023, giving the corporates an overall operating margin of 19-20 per cent in the first nine months of 2023-24 fiscal, as per Crisil Ratings. Revenue growth would have been stronger but for the decline in agri-linked sectors such as fertilisers, consumer staples such as edible oils, industrial commodities like chlor-alkalis and commodity chemicals, and aluminium, Crisil Ratings said in the report based on the analysis of 350 companies, excluding financial services and oil and gas sectors. Also, the rating agency said that revenue growth seemed to be propelled by volume. Aniket Dani, a director with the agency, said construction-linked sectors, which together account for 20 per cent of the overall revenue, grew 5-7 per cent as construction activity

Will look for more organic, inorganic buys: Tata Consumer Products MD & CEO

Tata Consumer Products announced that it has signed pacts to acquire Capital Foods and Organic India, Sunil D'Souza talks about the reason behind both acquisitions

FMCG distributors to boycott HUL in Maha, starting with Taj Mahal Tea

FMCG distributors demanding restoration of old margin structures from the leading maker HUL on Thursday said they would boycott its products in Maharashtra, starting with Taj Mahal Tea. The distributors further said that if the company does not pay attention to their demand, then they will boycott the Kissan brand and leading detergent brand Rin along with Taj Mahal tea brand going ahead. HUL, which owns brands such as -- Lux, Lifebuoy, Surf Excel, Rin, Pond's and Dove, has reduced the fixed margin by 60 basis points and increased the variable margins by up to 100 to 130 basis points for its distributors. The distributors are demanding a minimum basic margin of 5 per cent. They are supporting incentive parameters, but they should not interfere with the distributor's margin. The All India Consumer Products Distributors Federation (AICPDF), an umbrella body for distributors, has raised concerns over the new margin structure. AICPDF on Thursday shared a statement from the Maharashtra

Dabur India sees sequential improvement in demand in December quarter

The demand trends witnessed "sequential improvement" in the December quarter, although rural growth was still lagging urban growth, according to homegrown FMCG major Dabur India. In its latest quarterly updates, early signs of revival in consumption are visible with improving trends in volumes. "With pricing growth remaining subdued due to price increases in the base year, growth is large volume led," Dabur India said. The company, which owns various brands, including Dabur Chyawanprash, Dabur Honey, Dabur Pudin Hara, Dabur Amla, Real and Vatika, expects to register "mid to high single-digit growth during Q3 FY24" in its revenue. In the domestic business, the food & beverages segment is expected to grow in the high-single-digit and HPC (home & personal care) is expected to record growth in the mid-single digit. "Because of delay in onset of the winter season, we anticipate the Health Care business to grow in low to mid single digit," it said. Besides, Badshah Masala continued .

FMCG cos to witness low topline growth in Q3, volume growth to remain soft

Also, during the year, companies resorted to cutting prices of their products as commodity prices softened, thus also having restricted the growth in revenue in the quarter

HUL receives Rs 447.5 cr GST demands and penalties, firm to make assessment

Leading FMCG maker Hindustan Unilever Ltd on Monday said it has received Goods and Services Tax demands and penalties totalling Rs 447.5 crore from the authorities. In a regulatory filing, HUL -- which owns brands such as Lux, Lifebuoy, Surf Excel, Rin, Pond's and Dove -- said these "orders are currently appealable" and it will make an assessment. The company received a total of five orders passed from different zones of GST officials over issues such as disallowance of GST credit, salaries including allowances paid to expats etc on Friday and Saturday last week. "The Orders were received by the company on 30th December, 2023 and 31st December, 2023, respectively and the intimation is being submitted today i.e. 1st January, 2024, being the first working day after receipt of the Orders," said HUL. This includes the demand for tax "on salaries including allowances paid to expats amounting to Rs 372.82 crore and penalty amounting to Rs 39.90 crore" from the Joint Commissioner, CGST an

Skincare brand Nivea India appoints Geetika Mehta as managing director

Mehta, who has an experience of over two decades in the FMCG sector, will steer the brand in the country, Nivea India said in a statement

Investcorp leads Rs 340-cr funding to packaging firm Canpac Trends

Global alternative investment firm Investcorp has led an investment of Rs 340 crore (USD 41 million) in the paper-based packaging solutions provider Canpac Trends, companies said in a joint statement on Friday. The transaction provides a partial exit to JM Financial's second India fund that has been invested in Canpac since 2021. Founded by Nilesh Todi, Ahmedabad-based Canpac makes folding cartons, which have diverse end-use in fashion and retail, food and food services, FMCG, and industrial products. It also makes paper bags, luxury boxes, corrugated cartons and flexible laminate solutions. Canpac has four manufacturing plants in Ahmedabad, Kolkata and Tiruppur in Tamil Nadu, apart from an R&D facility. The investment will help Canpac expand its production footprint to more manufacturing hubs, apart from scaling up sales capabilities, Canpac founder Nilesh Todi said. Gaurav Sharma, head of India investment business at Investcorp, said paper packaging champions sustainability, a .

Growth gains, dividend yield along with stable taxation to boost ITC stock

Non-cigarette segments have delivered annual revenue growth of 14% and net profit growth of 20% over FY18-23

Some green shoots, but rural a stressor for FMCG companies: Top honchos

Top honchos say urban demand continues to grow

New businesses to boost growth momentum of Tata Consumer Products

The key driver of growth for the company is expected to come from new segments of Sampann (packaged staples), Soulful (healthy snacks/drinks) and NourishCo

Marico expects revenue growth to come back in H2, says MD & CEO Gupta

Home-grown FMCG major Marico expects revenue growth to come back in the second half of the fiscal and sluggish rural demand to gradually improve, said its Managing Director and CEO Saugata Gupta. It has taken price corrections after softening of inflation in the domestic market in the last two quarters, which has some effects on its revenue growth. However, it has helped it either gain or sustain market share and also increase penetration in some of its portfolio, he added. In the next two quarters, revenue growth of the company would be in line with volume growth, Gupta told PTI. "Revenue growth is expected to move into the positive territory in H2 as pricing deflation in the domestic business steadily tapers off. The company has taken price drops in its core brands as Saffola and Parachute," Gupta added. Last week, Marico, which owns popular brands like Saffola, Parachute, and Livon, reported 17.2 per cent increase in consolidated net profit for September quarter. However, its ..

Dabur Q2 result: Profit up 5% to Rs 507.04 cr, revenue at Rs 3,203 cr

Homegrown FMCG major Dabur India Ltd on Thursday reported a 5 per cent increase in consolidated net profit at Rs 507.04 crore in the second quarter ended September 30. The company had posted a net profit of Rs 490.86 crore in the July-September quarter a year ago, according to a regulatory filing. Its revenue from operations was at Rs 3,203.84 crore in the quarter under review as against Rs 2,986.49 crore in the corresponding quarter of the previous fiscal. The company's expenses were at Rs 2,669.43 crore in the September quarter. Shares of Dabur India Ltd rose 2.18 per cent to Rs 528.40 apiece in afternoon trade on the BSE.

GCPL net profit rises 21% to Rs 432.77 crore during Jul-Sep quarter

FMCG major Godrej Consumer Products Ltd (GCPL) on Wednesday reported a 20.6 per cent increase in consolidated net profit to Rs 432.77 crore for the second quarter ended September. The company had posted a net profit of Rs 358.86 crore in the July-September period last year, according to a regulatory filing. Revenue from the sale of products of Godrej group's FMCG arm was up 6.06 per cent at Rs 3,568.36 crore during the second quarter of the current fiscal. In the year-ago period, the same stood at Rs 3,364.45 crore. Similarly, its revenue from operations was up 6.19 per cent in the September quarter to Rs 3,601.95 crore. GCPL's total expenses during the quarter under review rose 2.86 per cent to Rs 3,035.97 crore. Total income of GCPL in the September quarter was at Rs 3,667.88 crore, up 6.87 per cent compared to the year-ago period. Shares of the company declined 1.68 per cent to close at Rs 975.90 on the BSE.

Tata Consumer to merge 3 subsidiaries to reduce compliance requirements

Tata Consumer Products Ltd said it would merge its three wholly-owned subsidiaries -- NourishCo Beverages, Tata SmartFoodz and Tata Consumer Soulfull -- to ensure "more effective utilisation of the resources" and reduce "compliance requirements". The board of the Tata group firm's FMCG arm on Tuesday approved the Scheme of Amalgamation of the three wholly-owned subsidiaries of the company, informed Tata Consumer Products Ltd (TCPL). The combined businesses will have "more effective utilisation of the resources of the said companies, reduction in overheads, costs and expenses, economies of scale, elimination of duplication of work and rationalisation and reduction of compliance requirements", said TCPL. "The scheme is proposed to the advantage of the transferor companies and the transferee company and will yield beneficial results for the shareholders, creditors, employees, and all concerned," said TCPL, which was earlier known as Tata Global Beverages Ltd. The scheme involves the .

As stake value doubles, govt puts plans to sell ITC stock in cold storage

The Centre is getting around Rs 1,000 crore dividend annually from the cigarette-to-FMCG conglomerate for its 7.87 per cent stake

Marico Q2 results: Net profit rises 17.3% to Rs 353 cr, misses estimates

Marico's net profit rose 17.3% to Rs 353 crore in the July-September quarter, but missed analysts' average estimate of Rs 357 crore, according to LSEG data

We don't see rolling back of prices as an imminent issue: Nestle India

The company is also increasing its advertising and promotional spends, particularly digital spends

Recovery signs in rural consumption, but stress remains: Kantar report

Household consumption has also grown on the back of the return of atta into shoppers' baskets, after the government halted the free grain distribution scheme

Hindustan Foods Ltd to invest Rs 100 cr to in sports shoes manufacturing

Hindustan Foods Limited has entered into a sales and purchase agreement (SPA) to acquire 100 per cent of the shareholding of KNS Shoetech Private Limited from its existing shareholder