In the past month, wheat prices have increased 6.3% as production is expected to be 1.5% lower, in terms of crop acreage, than the earlier estimate
Raw materials, power and fuel cost grew faster than domestic companies' revenues for seven quarters in a row, biting into their margins
Both stocks and mutual funds focusing on this theme will benefit from a favourable monsoon and generous MSP hikes
Analysts attribute the volume growth to a pick-up in consumer demand in rural and urban India, which in turn lured investors to this segment
The category's blistering pace of growth is at the heart of the interest shown by these companies
Traders, retailers and manufacturers struggle to shake off the double whammy of demonetisation and GST
Analysts say the impact of trade destocking is likely to be higher in the September quarter
Analysts say sector funds are for investors with high risk appetite
Normal monsoon makes FMCG, automobile and consumer durable firms optimistic about growth prospects
GST would provide a level-playing field to organised players in the industry
Sector grows two percentage points faster than the same quarter last year: Kantar Worldpanel
Rising demand expected to sustain former's high valuations
Interested companies include ITC, Britannia & Big Basket
FMCG is followed by power and the IT sector
March quarter will be better than previous one; full recovery will be visible next financial year
Even as consumption demand in rural as well as urban markets remains under pressure, fast moving consumer goods (FMCG) companies have some reason to cheer. With crude oil as well as palm oil prices near their three-month and five-month lows, respectively the input cost inflation for companies making paints and soaps such as Asian Paints, Hindustan Unilever (HUL), Godrej Consumer Products, Pidilite, amongst others could come down. Interestingly, most of these companies have already reduced the promotional intensity and/or taken price hikes in these products to reflect the increase seen earlier in input costs on a year-on-year basis. Both these factors will aid their margins in the near term. In fact, price hikes could also aid realisations and compensate for continued weakness in volumes to some extent, believe analysts. The rupee, too, has strengthened in recent times and is hovering around its year high now. This also benefits consumer companies as it further reduces the cost of ...
One year horizon has 7.4 times the risk involved in a 10-year investment horizon
Currently, consumer goods cos have warehouses in every state to avoid paying a 2% CST for goods sale
Firms are planning to push up brand-building effort and increase product prices in the future
Branching out from just providing digital services, education and online transaction, the government is now tying up with major FMCG players to push their products via 2.5 lakh common service centres (CSCs).The government is in talks with companies including Proctor and Gamble, Hindustan Unilever and Patanjali among other major players. "The government is focused on expansion of CSCs because it can transform rural India. With the sale of Patanjali products door has been opened for popularizing e- commerce through CSCs," Ravi Shankar Prasad, Minister for IT and Law said.Common service centres are points in villages where government provides a host of governmentservices such as ration card, birth certificates, railway tickets and also facilitate transfer money, fill forms online and also train people in using digital services."With the demand for FMCG products in villages increasing, it was decided to use the vast network of CSCs to sell these products. People in villages can come to ...