FMCG
Surge in Q2 FMCG, phone, car sales may bring festive cheer
Sales of FMCG, cars, smartphones, and household appliances surged in the September quarter, driven by lower inflation, improved monsoon, price cuts, and offers. Passenger vehicle makers had their best-ever quarter, while the FMCG market grew 8-12% boosted by rural demand and price cuts. Sales of high-value items like televisions and refrigerators also increased. However, sales of mass segment and entry-level products have yet to recover. Rising crude oil prices are reversing the benefits of lower input costs, putting pressure on production costs.
RPSG group's Guiltfree faces Rs 39 crore GST demand notice
The company said it is preparing an appropriate response to address the concerns raised in the show cause cum demand notice.
Godrej Agrovet to invest Rs 300 cr in integrated palm oil unit in Telangana
It will invest Rs 300 crore over the next 3-4 years in setting up the integrated palm oil complex. With 65,000 hectares of palm oil under cultivation across the country, Godrej Agrovet plans to increase cultivation to 1.2 lakh hectares by 2027.
New smaller FMCG packs leave distributors in pain
New smaller packs are "placing extra burden on retailers as they have to keep on adding new packs, leading to inventory management challenges, and impacting distribution efficiency," said Dhairyashil Patil, national president of All India Consumer Products Distributors Federation (AICPDF).
Small FMCG packs a challenge; need for standard packaging: Distributors
Distributors in India are facing challenges due to the indiscriminate launch of small-packs of fast-moving consumer goods (FMCG), leading to storage issues. The All India Consumer Products Distributors Federation (AICPDF) has written to the Ministry of Public Distribution, suggesting that there should be only four pack sizes. Retailers are reluctant to stock a large number of stock keeping units (SKUs) due to increased complexity and potential confusion among consumers.
Dry August pinches consumers’ pockets, smaller packs pip larger packs’ growth
The downtrading phenomenon, where consumers switch to purchasing smaller product sizes due to financial difficulties or rising prices, has intensified in the fast-moving consumer goods (FMCG) sector. Data from retail intelligence platform Bizom shows that smaller product sizes have experienced more rapid growth compared to medium or high-priced alternatives across most FMCG categories.
This festive season, bigger e-commerce sales set to light up volumes
Ecommerce platforms in India, including Flipkart, Amazon India, JioMart, Ajio, and Tata Neu, are set to offer steep discounts of up to 60% during the upcoming festive season sales. The companies have allocated a higher budget for online promotions this year, leveraging lower input costs. Discounts are expected to be the highest for mid-to-premium models, as companies aim to boost sales growth. Smartphone brands, such as Realme, are planning to spend significant amounts on consumer offers.
Local FMCG players take the fight to big companies
Rajkot-based snacking firm Balaji Wafers, which has been aggressively wooed by PepsiCo's Indra Nooyi and other large snacks giants, is setting up its first plant in North India, in Lucknow. "Our expansion plan is to go across India, well beyond Gujarat, one territory at a time," Chandubhai Virani, founder of Balaji, said. "We will continue to follow our value-for-money strategy."
Why India's biggest consumer goods company won't bid final farewell to its directors
This would be Sanjiv Mehta’s last time as host --he retired in June -- but not the last time he would be attending. Rohit Jawa as his successor -- he was an invitee to the event this year -- will take over host duties.
P&G India investing big in next-gen supply chain: CEO LV Vaidyanathan
The fast-moving consumer goods market saw a 7.5% volume growth and P&G said demand eventually unlocked capital investments and triggered a positive investment cycle. Rural growth is inflecting as well, with the quarter showing 1.4% volume growth in the non-food sector after four quarters of significant volume decline.
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Volume growth returning, rural demand seeing green shoots: Procter & Gamble
Procter & Gamble Hygiene and Health Care Ltd (PGHHL) has reported a 12% sales growth in FY23 and 3% sales growth in Q1 of this fiscal year. The company stated that with the softening of inflation, volume growth is returning, and rural demand is showing signs of improvement. PGHHL remains optimistic about growth but has some concerns about the monsoon and retail inflation.
L'Oreal expands operations in India, enters dermocosmetic market
L'Oreal India Managing Director Aseem Kaushik said the entry is significant for India where the ratio of dermatologists to consumers is one of the lowest in the world (0.7 dermatologists for every 1,000 people). "We believe everyone deserves access to expert dermatological care and effective skincare solutions. Skin health is the foundation of beauty and with LDB we aim to deliver on our promise to both Indian dermatologists and patients," he said.
Price cuts, discounts trigger sales volume bounce for consumer companies
Consumer goods companies that have implemented price cuts or promotional offers are experiencing a surge in demand, with sales volumes increasing by up to 25% in certain categories. Parle Products, a leading biscuit manufacturer, achieved a 20% growth in sales volume after offering price reductions. Emami also saw volume growth in categories such as healthcare and pain management due to promotional offers.
Rural demand improving; gap with urban narrowing: Dabur
While cooling inflation and early rains led to improvement in rural demand in the June quarter, rains have been erratic over the past two months, giving way to concerns about sustained recovery in rural demand - crucial for sustained growth of the FMCG sector. Dabur, which makes Vatika shampoo and Real juices, saw its rural volumes increase 8% in the April-June quarter, compared to the industry average of 4%.
Nature-positive household & personal care sector may yield additional USD 62 bn a year by 2030: WEF
By emphasising on water stewardship, responsible sourcing, nature conservation, and circularity, household products and personal care sector can reshape its role in halting and reversing nature loss by 2030, the research titled Nature Positive: Role of the Household and Personal Care said.
Tata Group needs to find the elusive elixir of growth to ward off Ambani
The Tata Group has denied rumors of acquiring a stake in Haldiram's, a snack-food maker. Instead, the Indian conglomerate may focus on expanding its consumer super-app, Tata Neu, which has the potential to tap into India's online commerce market. The group is also venturing into AI and semiconductor manufacturing through partnerships with Nvidia. However, the competition from Mukesh Ambani's Reliance Industries, which is also exploring similar fields, poses a challenge.
