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Distributors seek standardisation, low unit price packages complex: AICPDF

Smaller, lower unit-priced packages introduced by several consumer goods makers to expand their addressable market have placed an extra burden on existing infrastructure and resources within the distribution network, an industry body has said while suggesting standardisation of pack sizes into four main categories. To tackle the issue, the All India Consumer Products Distributors Federation (AICPDF) has suggested the government standardisation of pack sizes and categorizing products into four distinct classes - entry pack, small pack, medium pack, and large pack. Recently, several companies introduced various new SKUs (Stock Keeping Units) with lower unit prices aimed at catering to the rural market, which in turn is creating "price confusion" among the consumer and is posing "inventory management challenges," AICPDF said in a statement. "The difference in per-gram pricing among the numerous SKUs within the same price bracket has become a significant issue, as it often leads to ...

Global food, beverage market shrinking since start of year: Nestle

Large consumer goods companies have grown sales through sharp price rises in recent quarters, and many have suffered declines in volumes

Edible oil imports likely to fall 6% due to higher carryover stocks

The country is likely to import 9.5 million metric tons of palm oil next year against 10 million in 2022-23, he told a global conference on vegetable oils in Mumbai

We are now trying to reinvent Dabur as Dabur 2.0: CEO Mohit Malhotra

The brands being repackaged include the Rs 1,000 crore - Rs 1,500 crore Dabur Amla hair oil and Vatika shampoo in the home and personal care category

Burmans seek control of Religare Enterprises, make open offer to buy 26%

The entities are now looking to acquire 90,042,541 shares at a face value of Rs 235 per share

Behind ITC's hotels demerger

Why ITC threw down the gauntlet with the demerger of its hotels business

PGHH is cautiously optimistic on India's FMCG sector in the near-term

At its first-ever investor day, which the company held for both its entities - PGHH and Gillette India, the firm noted that commodity prices continue to remain high

Volume growth returning, rural demand seeing green shoots: Procter & Gamble

With softening of inflation, volume growth is finally returning and rural demand is witnessing green shoots, Procter & Gamble Hygiene and Health Care Ltd (PGHHL) said on Friday. PGHHL, which reported a 12 per cent sales growth in FY23 and 3 per cent sales growth in the first quarter this fiscal, said FMCG consumption in the June quarter was the fastest in the last six quarters. "Inflation is softening and volume growth is finally returning. A growth of 7.5 per cent in a quarter for the industry is great news," PGHHL Vice President Finance Gautam Kamath said in an investors' call. This volume growth eventually unlocks capital investment and triggers a positive investment cycle. "In another piece of good news, the rural demand is growing as well. With a quarter showing 1.4 per cent volume growth in the non-food sector in the rural economy after four quarters of significant volume decline," he added. After a couple of years of flat volume growth, the industry as a whole is looking to

Dabur aims for Rs 7,000 crore in revenues in home and personal care segment

The company is also targeting Rs 5,000 crore in sales from its healthcare segment

Paper industry revenue may dip 8-10% in FY24 despite volume gains: Crisil

Paper manufacturers' revenue may decline 8-10 per cent in the current fiscal despite gains in volume, as the average realisations are likely to soften on lower raw material prices and intense competition, rating agency Crisil said in a report. For FY24, the industry's total volume is expected to rise 5-7 per cent, similar to the last fiscal, and the operating margin will remain healthy at 18 to 19 per cent, ensuring a stable cash flow generation, it added. Moreover, modest capex spending undertaken -- mostly for debottlenecking and routine modernisation -- will help sustain credit risk profiles, as per the report. The Indian paper industry had reported revenue growth of 30 per cent a year before in FY23. "Indian paper manufacturers could see revenue decline of 8-10 per cent this fiscal, compared with a steep 30 per cent growth last fiscal, with average realisations expected to soften in keeping with lower raw material prices, and given intense competition," it said. The report is

Top headlines: 'INDIA' bloc to begin 2-day meet, dry Aug may slowdown FMCG

Business Standard brings the top headlines at this hour

E-commerce, FMCG demand for electric vehicles doubles in FY24

Companies are also increasing their focus on electric commercial vehicles to save fixed operating costs and reduce logistics costs

All eyes on rural recovery and volume growth in FMCG post Q1 results

Brokerages have highlighted that the second half of the year will be closely observed

FMCG Q1: Volume up as inflation moderates, small players make comeback

The FMCG industry witnessed growth in volume and expansion in gross margins in the June quarter aided by moderation in inflation which also boosted small players in select categories. Several small players, which had earlier vacated some of the market segments during the peak of inflation, returned back and intensified the competition at the local level, forcing several big FMCG players to go for price corrections. Most of the listed FMCG entities reported volume-based growth in home care, personal care, beauty and foods products business, except the ice cream and beverages portfolio which was impacted by unseasonal rains in April and early May during the quarter. As material inflation reduced from high single digits to low single digits, there has been an uptick in volumes in both urban and rural markets, indicating promising signs of recovery in demand and makers including HUL, ITC, Godrej Consumer, Dabur, Marico and Tata Consumer are increasing spends on advertising and ...

Rising demand to help Indian F&B packaging industry to reach $86 bn by 2029

The Indian food and beverage packaging industry that is growing by 14.8 per cent annually is expected to reach USD 86 billion in 2029, following rapid urbanisation, rising disposable incomes and evolving consumption patterns, All India Food Processors Association said on Saturday. "Post-Covid-19, the demand for natural food ingredients has surged. FSSAI's new regulations for nutraceuticals and organic foods are driving growth in the sector. Packaging has evolved from protection to marketing and sustainability. Trends like natural, organic, vegan, and GI-tagged products are reshaping the landscape," All India Food Processors Association, Western Region, chairman Prabodh Halde said in a statement on the last day of the Food Ingredients (Fi India) and ProPak India. The organised packaged ingredients market is valued at about Rs 20,000 crore annually, indicating a shift from loose to packaged products, he stated at the 17th edition of Food Ingredients (Fi India) and the 5th edition of ..

ITC bets big on FMCG for growth with annual consumer spend of Rs 29,000 cr

Diversified conglomerate ITC Limited on Friday said the FMCG business has immense potential for growth with its brands commanding an annual consumer spend of Rs 29,000 crore. Speaking at the 112th AGM of the company, ITC chairman Sanjiv Puri told shareholders in his address that the FMCG brands are being exported to several countries and the business vertical has immense growth potential due to the rising per capita income of the people. "The ITC Next strategy for the FMCG business is to build a future-ready portfolio. With more than 25 brands at the moment, the annual consumer spend is around Rs 29,000 crore", Puri said. He said that the addressable market for the FMCG vertical of ITC is USD five trillion. "The business has immense opportunity to harness this potential", Puri added. Regarding the hotel business, the ITC board had given in-principle approval to demerge the vertical and spin it off into a new entity. Puri said that the business is well poised to capitalise on the .

Godrej FMCG firm to set up Rs 515 cr manufacturing unit in Tamil Nadu

Godrej Consumer Products has announced capital expenditure plan of Rs 900 cr

Big brands on their toes as smaller FMCG companies make a comeback

By innovating in terms of product, promotions, and packaging, and keeping prices low, these local brands have grabbed a share of the pie from their larger counterparts

Nestle to invest Rs 4,200 cr by 2025, will set up 10th factory in Odisha

FMCG major Nestle India has strong commitments for local manufacturing with plans to invest Rs 4,200 crore by 2025, including in its 10th plant in the country at Odisha, its Chairman and Managing Director Suresh Narayanan said on Friday. Nestle India, the maker of popular Maggi noodles, KitKat chocolate and Nescafe, is investing to create capacity as it sees "fairly robust" demand in coming years in the Indian market. "The investments done are fairly significant... till the first half of 2023, about Rs 2,100 crore already been invested on capital investments," said Narayanan in a media roundtable here. These investments are for augmentation of manufacturing capacity, he said adding a third of that has gone into food space, another one-third on chocolate and confectionary and the rest on nutrition and others. "Another Rs 4,200 crore is being spent between 2023 and 2025. This includes around Rs 900 crore for a new factory in Odisha," he said. Last year in September, Mark Schneider,

Hindustan Unilever stock falls 2.4% after costs hit quarterly profit

Fast-moving consumer goods markets are recovering gradually although the operating environment remains "challenging," CEO Rohit Jawa said