Page 13 - Fmcg

FMCG firm Marico expects food business to reach Rs 850 cr in FY24

Home-grown fast moving consumer goods (FMCG) firm Marico expects its food business to scale up to Rs 850 crore in FY24 in the domestic market, according to the company's latest annual report. Saffola, the master brand under which Marico offers healthier foods, has expanded the total addressable market to over Rs 10,000 crore, through a portfolio of healthy value-added offerings, it said. "The company aims to ramp up its revenue from the foods portfolio to Rs 850 crores by fiscal 2024, after closing near the Rs 600 crore-mark in fiscal 2023," said Marico, which also owns popular brands such as Parachute and Hair & Care. In the last two-three years, Marico has expanded its play in the food segment with multiple products, including oats, honey, noodles, peanut butter, mayonnaise and ready-to-eat healthy snacking category under the aegis of Saffola Munchie. The company maintains a 'steadfast focus' on market development, brand building, supply-chain excellence, distribution expansion .

Marico expects gross margin to improve 200-250 bps as inflation cools

Homegrown FMCG major Marico expects its gross margins to improve by 200-250 bps in FY24, helped by cooling commodity inflation and portfolio mix normalising favourably. The company expects a "volume-led growth" in the domestic market and gains in market share by most of its products and increase spending in advertising & promotion (A&P), said Marico in its latest annual report. "On the domestic business, we will drive volume-led growth and market share gains across our portfolios, aided by distribution expansion, aggressive cost controls and adequate investment in market development and brand building," said Marico, which owns Saffola, Parachute, Hair & Care, among other brands. On the rural market, Marico said it will "keenly monitor" growth and is hopeful of a recovery in demand, considering a good harvest season, forecast of a normal monsoon and increase in government spending. On the input cost front, key input materials, other than crude oil derivatives, have ...

FMCG industry to witness 'significant growth' in FY24: Jyothy Labs

The fast moving consumer goods (FMCG) sector is expected to see a 'significant growth' in FY24 with rural demand showing improvement and inflation beginning to moderate, said Jyothy Labs in its latest annual report. The urban demand continues to remain steady, the report said. Growth is "fuelled" by large packs as there is a distinct trend of consumers upgrading to medium and high-value packs for its various key FMCG categories, said Jyothy Labs, maker of branded products like Ujala, Henko, Margo, Exo and Pril. "In this pack size transition has been observed in beverages, personal care, and branded product categories. Now that input prices have exhibited a downward trend and end-consumers have sufficient purchasing power, FMCG businesses are likely to experience an increase in the volume of demand and consequently volume-led growth this year," it said. The urban demand is steady now and the rural market is "increasingly exhibiting signs of normalcy" helped by easing inflation and .

Adani Wilmar reports 25% YoY volume growth in Q1FY24 due to strong demand

Adani Wilmar on Wednesday reported a 25 per cent year-on-year volume growth during the quarter ending June 30, mainly on account of robust consumer demand in edible oils and foods. The sale of branded products in edible oils and foods has been much stronger compared to overall sales of respective segments, the company said in a regulatory filing. However, the sales in value terms declined 15 per cent YoY following a sharp decline in the edible oil prices, the company added. The edible oil business grew by 25 per cent YoY in volume terms during the quarter on the back of continued strong consumer demand as well as the weak base of the corresponding quarter in FY23. Adani Wilmar further said that the food and FMCG segment recorded a revenue growth of 30 per cent during the first quarter of this fiscal compared to last year, crossing Rs 1,000 crore. This was the eighth consecutive quarter with 20 per cent year-on-year volume growth in the food segment and 30 per cent in the FMCG segm

FMCG sector to witness a lower 7-9% rise in revenue this year: CRISIL

The year is likely to see a higher volume amid a gradual recovery in rural demand and a stable growth in urban demand, but prices are expected to be range-bound

Marico expects June quarter revenue drop on sluggish rural demand

Rural consumers typically make up about two-thirds of consumer goods makers' sales, according to Bengaluru, Karnataka-based Bizom, which tracks retail industry trends

Optimistic about India market, will continue to grow categories: P&G

Leading FMCG maker Procter & Gamble is very "optimistic" in the mid and long-term prospects of India, where it will invest Rs 2,000 crore to set up an export hub, on the back of robust growth, according to company's country CEO LV Vaidyanathan. Procter & Gamble (P&G) India will continue to grow categories that are currently undeveloped and bring product propositions that are meaningful to the quality-conscious Indian consumer, he said. In the last three years, P&G has driven consistent double-digit growth in both the topline and bottomline. "Business has basically moved from the last couple of years seeing high single growth. Now we are starting to see very nice growth and hope to see some kind of momentum going and accelerate from where we are," Vaidyanathan told PTI. The maker of popular brands such as Ariel, Gillette, Head & Shoulders, Oral-B, Pampers, Pantene, Tide, Vicks and Whisper - follows July to June financial year. "Year is coming to an end and business .

Cracking the investment strategy: FPIs are bullish on finance, auto stocks

Load up on financials, automotive stocks in May

FMCG, auto data shows rural demand is coming back: CII President R Dinesh

We are projecting FY24 GDP growth at 6.5-6.7 per cent. We believe 6.5 per cent will be achievable, even in a slightly negative scenario. And 6.7 per cent is our belief, let me put it that way

Foods give ITC an appetite for diversification, recipe for margin expansion

The largest chunk of the tobacco major's non-cigarettes FMCG portfolio is growing rapidly on the back of hectic brand building, acquisitions, and new ventures

Operating environment to remain volatile amid global slowdown: HUL

Leading FMCG maker HUL expects the operating environment to remain volatile with global slowdown risks and weather-related uncertainty although price increase will tail off. In its annual report for 2022-23, the company said it anticipated a recovery in market volume gradually as consumption habits readjust with a lag. In the near term, the operating environment is expected to remain volatile with global slowdown risks and weather-related uncertainty, said the report. It further said,While inflation has moderated, commodities remain elevated vis--vis longer-term averages. Looking forward, we expect that the price-volume growth will rebalance. In the March quarter earnings call, HUL said the rural slowdown is "bottoming out" and a gradual recovery in volume is expected. However, HUL also warned that the near-term operating environment is likely to remain volatile due to global slowdown risk and uncertainty related to weather phenomena like El Nino, and heat waves. On the medium to

HUL well placed to partner India growth story, says Chairman Nitin Paranjpe

Paranjpe said that HUL is well-placed to partner the India growth story and is committed to playing its role in creating a sustainable and equitable future

FMCG firm Adani Wilmar enters whole wheat category with Fortune brand

Food FMCG company Adani Wilmar on Friday said it has entered into the whole wheat category with its brand Fortune. With this pure whole wheat variants of Sharbati, Poorna 1544, Lokwan and MP Grade 1 will be available in Delhi, Maharashtra, Madhya Pradesh, Gujarat, Rajasthan under Fortune brand, Adani Wilmar said in a regulatory filing. Adani Wilmar will be the only national player in this highly fragmented and commoditised category to provide an access to the purest wheat seed of the most premium wheat varieties in the country. "Traditional wheat connoisseur households in the west and north of the country are very selective about their preferred wheat varieties which they get ground under their supervision in neighbourhood chakki stores. The range of Fortune Whole Wheat varieties will give them just what they are looking for and will stand out for their clearly superior quality and variety assurance," Adani Wilmar Associate Vice President - Marketing and Sales Vineeth Viswambharan .

Eye on exports, Bikano launches frozen products in international market

Bikano hopes to capitalise on prospects in the international market and anticipates sales of Rs 200 crore in 2023-24

Indian market offers opportunity of innovation for Nescafe: Nestle official

India is one of the fastest growing markets for Nescafe and offers a "huge opportunity" for innovation and premiumisation, according to a senior Nestle official. Nescafe is a coffee brand owned by leading Swiss food company Nestle. Nestle's Head of Coffee Strategic Business Unit Philipp Navratil, who is on an India visit, said the company is encouraged by the new coffee culture brewing in India with the opening of new coffee shops. "India is one of the fastest growing markets for Nescafe and offers a huge opportunity for penetration-led growth, both through in-home and out-of-home consumption," he said in a statement issued by the company on Tuesday. According to him, Nescafe has already reached a household penetration of 46 million in India, which is a substantial number. He also said there is a "huge opportunity" to bring Nescafe to the world, making it more affordable to consumers. "We believe Nescafe is perfectly positioned to introduce the world to coffee -- we are more ...

ADF Foods' net profit increases by 72% to Rs 20 cr in March quarter

FMCG company ADF Foods Ltd on Monday reported a 72 per cent rise in its standalone profit after tax to Rs 20.30 crore for the March 2023 quarter on account of higher revenues. It had reported a PAT of Rs 11.80 crore for the year-ago quarter, the company said in a statement. The company's revenue from operations surged 19 per cent to Rs 98.2 crore from Rs 82.4 crore in January-March FY22. The board has recommended a dividend of Rs 5 per share for the financial year ended March 31, 2023. On a business update, ADF Foods said its greenfield expansion plan for frozen food capacity is expected to kick off in the second quarter of FY24 and be complete in 12-18 months. ADF Foods Chairman & Managing Director Bimal Thakkar said, "Our flagship brand Ashoka remains a top Indian food brand in stores across the US, UK and Asia Pacific, thanks to our dedication towards traditional recipes and high-quality ingredients. Our planned expansion in Surat will unlock further frozen food production ...

FMCG sales slow on lower stocking; home care only category to report growth

Home care was the only category which saw growth on a year-on year basis in April at 11.2% however it was down sequentially at 20.9%

Marico reappoints Saugata Gupta as MD, Rajan Mittal joins as Ind Director

FMCG major Marico on Friday said its board has re-appointed Saugata Gupta as its Managing Director and Chief Executive Officer for another term of two years. Gupta's reappointment is effective from April 1, 2024. The board of Marico, in its meeting held on Friday, approved "re-appointment of Saugata Gupta as the Managing Director & Chief Executive Officer for a term of two years w.e.f. April 1, 2024 to March 31, 2026." He had joined Marico in 2004 as the Head of Marketing and was elevated to CEO of India Business in 2007. In 2014, he took over as Managing Director of the company. Besides, the company's board has appointed Rajan Bharti Mittal as an independent director for a term of five years, beginning from July 1, 2023 to June 30, 2028. Mittal is the Vice-Chairman of Bharti Enterprises, one of India's leading conglomerates with diversified interests in Telecom, Space Communications, Digital Solutions, Financial Services, Real Estate, Agri-Processed foods in addition to other ...

ITC increases stake in food brand Sproutlife to 39.42% for Rs 175 cr

Earlier in January this year, ITC had said that it would acquire 100% of Sproutlife Foods Private Limited, makers of Yoga Bar healthy foods

Dabur reports 0.5% fall in net profit, declares dividend of Rs 2.7 apiece

During the quarter, the revenue from operations, however, rose 6.3 per cent to Rs Rs 2,677.33 crore