Page 14 - Fmcgs

Top FMCG makers expect low to mid-single-digit volume growth in Q3

Leading FMCG makers are expecting a low to mid-single-digit volume growth in the October-December quarter, with an improvement in consumer demand on a sequential basis. Consumer demand from the rural market is lagging, though the urban markets stayed steady in the third quarter as exhibited in the September quarter, said leading listed FMCG firms such as Dabur, Marico and Godrej Consumer Products in their quarterly updates. Companies are optimistic of a gradual uptick as early signs of revival in consumption are visible with improving trends in volumes. Besides, the makers also expect expansion in the gross margins on a year-on-year basis helped by moderating inflation as prices of key inputs such as copra and edible oil prices remained at lower levels and crude derivatives also exhibited some downward bias. This will help FMCG makers channelise more funds towards advertising and promotions. "A significant portion of gross margin expansion will be channelled into enhancing adverti

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

Weak rural demand to delay Dabur's recovery; worst performer among peers

The slowdown in consumption was on account of higher food inflation that had impacted the home and personal care segment

In non-cigarettes push, how ITC built more than 25 FMCG mother brands

As we prepare to welcome 2024, ITC has metamorphosed from a tobacco giant into a conglomerate straddling multiple large-sized businesses

FMCG flavours: Better volumes and rural demand revival uptick in 2024

From an uptick in rural demand to higher volumes and favourable commodity prices, the country's FMCG industry is pinning hopes on diverse catalysts for a double-digit volume-led growth in the new year after a challenging 2023. Weaker-than-expected festive demand, rainfall deficit that hampered rural growth, unseasonal rains that dampened sale of beverages and higher commodity prices all together cooked a difficult-to-digest market recipe this year even though "green shoots" of recovery are becoming more visible. The sector, which has a high growth potential especially in an emerging market like India, is anticipating 2024 to be a "better year" with favourable input prices benefitting the Home and Personal Care (HPC) as well as certain food business segments. "We expect the demand situation to improve as we enter the next financial year. We expect FMCG players to increase the pace of innovation and premiumisation and also focus on significant investment behind expanding the quality o

FMCG giants embrace real-time data exchange for quick commerce channels

FMCGs including Nestle, ITC, Parle Products, LT Foods, and Coca-Cola, are leveraging real-time data exchange and demand forecasting to prevent stock-outs on quick-commerce platforms

ITC's FMCG biz grows at 14% CAGR in last 3 yrs, Aashirvaad Rs 8k cr brand

Diversified group ITC's FMCG business expanded at a compounded annual growth rate of 14 per cent in the last three years while its Aashirvaad brand has become an Rs 8,000 crore product in terms of consumer spends, according to a company presentation. ITC is "one of the fastest growing FMCG Businesses in India" with rapid scale in revenues, which is largely "driven by brands developed in-house", ITC in an investor presentation released on Tuesday. ITC's FMCG products are now "present in 3 of 4 households in India," it added. Its foods business has a CAGR of 13 per cent over 10 years and 3-times growth in last 10 years. The Sunfeast brand has crossed over Rs 5,000 crore in terms of consumer spends, said ITC. Moreover, its snacks brand Bingo, Yipee under which it sells instant noodles, Agarbatti brand Mangaldeep, stationery brand Classmate and its spice brand Sunrise have crossed Rs 1,000 crore of consumer spends. The company measures annual consumer spend as the sum total of what

FMCG companies expand into adjacent categories that offer high growth

The brand is already established in people's mind and these companies already have distribution in place, Rajat Wahi, partner at Deloitte India explained

Beauty-personal care split: HUL sets sights on customer of tomorrow

On Friday, the consumer major also announced that it had named Arun Neelakantan its chief digital officer effective January 1

Ahead of IPO, Mamaearth sold excess stock of its products to distributors

Around 70 distributors in Maharashtra and Goa are sitting on 90 days of inventory

FY24 earnings makeover: IndianOil to MRF, companies rewrite profit playbook

Q2 of 2023-24 saw a profit metamorphosis as standout firms marked the biggest earnings upgrades

From Godrej to Tata, India Inc begins breaking the diversity mould

According to Godrej, it communicates LGBT+ inclusive policies and practices through LinkedIn posts and ensures that job descriptions are crafted accordingly

Annapurna Swadisht gears up for 50% CAGR over next 4-5 years to Rs 1,000 cr

Annapurna Swadisht Ltd on Sunday said it aims to double revenue in 2023-24 to over Rs 300 crore and maintain a compound annual growth rate (CAGR) of at least 50 per cent over the next 4-5 years. This ambitious growth for the food-focused FMCG company of East and Northeast India will be driven by increased market penetration and expansion into two major categories: biscuits and noodles, a senior company official said. To achieve this, the company has roped in GP Sah, the global CEO of the Nepal-based FMCG company that owns Wai Wai branded noodles, to steer the company into its next phase of growth. Annapurna's managing director, Shreeram Bagla, infused fresh talent into the company with the goal of reaching a topline of Rs 1,000 crore within 3-4 years from Rs 160 crore in FY'23. "A revival in rural demand, driven by greater distribution strategies and the addition of new categories like biscuits and noodles, will help Annapurna achieve robust growth in the coming years. "In FY'24 .

Dabur plans to open mfg unit in South India; portfolio expansion in offing

Leading FMCG and ayurvedic products maker Dabur is planning to set up a new factory in South India in less than a year's time, as its business scales in the region, according to company's CEO Mohit Malhotra. Dabur, which now gets 20 per cent of its domestic sales from South India with its business there doubling in the last 5-6 years, is identifying gaps and usages to launch products customised to the markets, he told PTI in an interview. The company, having 13 manufacturing units across the country, is augmenting its capacity further to meet the demand and is diversifying its manufacturing activities by adding new lines, he added. Dabur India, which has an annual capex of around Rs 350-450 crore, also plans to expand its manufacturing activities in the international markets catering to regions such as the Middle East and Europe. Besides, the company is consolidating its manufacturing operations and has shut down some units where tax sunsets are coming in, and opening new units whe

2 Dabur firms get relief in lawsuits in US, 3rd entity to face charges

In a relief to FMCG major Dabur, two of its foreign subsidiaries, Dabur International and Dermoviva Skin Essentials, have been removed as a defendant in multiple lawsuits filed in a US court over allegations that their hair-relaxer products caused ovarian cancer, uterine cancer and other related health issues. However, lawsuits filed against its third international subsidiary Namaste Laboratories LLC, would continue before the US District Court for the Northern District of Illinois, according to a statement from Dabur on Wednesday. Dabur International and Dermoviva were removed and got relief in the multiple suits due to lack of jurisdiction as they have not either manufactured, marketed, distributed or sold hair relaxer products in the US, it added. Three foreign subsidiaries of Dabur India -- Namaste Laboratories LLC, Dermoviva Skin Essentials Inc and Dabur International Ltd -- were facing approximately 5,400 cases in the federal and state courts in the US, which was later ...

FMCG supply chain gridlock: Demand declines and inventory adds up

The situation remains the same even in central India as inventory days have gone up to 20 days which was lower earlier

Good recovery in rural mkts, hopeful to grow at par with urban: Dabur CEO

Home-grown FMCG major Dabur India is seeing "very good recovery" in rural markets and expects growth from these markets to come at par with the urban market in the next 3-4 quarters, CEO Mohit Malhotra said. As inflation is coming down with the cooling of commodity prices, a "slow volume recovery" is happening in those markets, which is narrowing the difference between the growth rate between rural and urban, he said. The recovery from the rural market is likely to continue despite a disruption in rain in some parts of the country, led by factors such as hike in MSP, good sowing of winter crops, and election season. Besides, India's unemployment rate has decreased in the rural areas and the consumer confidence index is also at an all-time high, almost reaching the pre-COVID level, he added. "There are definite very good recovery signs, which actually I am seeing. The festive season which is coming in, should augur very well for us going forward in the future. So I am very hopeful,"

Open to acquisitions in health, personal care categories: Dabur Chairman

Dabur India is the maker of Hajmola and Fem beauty bleach

Financial stocks account for 50% of FPI selloff in second half of October

The selling pressure was less intense in the broader markets

FMCG industry logs 8.6% volume growth in Q2 on rural revival: NIQ

Hindustan Unilever and ITC both pointed out after announcing their September quarter results that regional brands have gained momentum