FMCGs

Quick commerce has become the fastest-growing sales channel for FMCG companies, prompting them to adopt new packaging strategies to protect traditional retail channels

Persistent weak urban demand could impact firms' performance in Q3FY25

However, sales in large cities are under pressure as consumers cut back on spending due to high costs of living

Dabur expects a "low single-digit growth" in the December quarter along with a "flattish operating profit" as the homegrown FMCG major faced inflationary headwinds in some of the segments. This forced Dabur to go for "tactical price increases" and tried to mitigate the inflationary pressure through cost-efficiency initiatives partially, Dabur informed in its quarterly updates on Friday. During the October-December period, rural consumption of FMCG was resilient and continued to grow faster. Alternative channels like modern trade, e-commerce, and quick commerce continued to post strong growth, while general trade, which mainly includes neighbourhood kirna stores was still under pressure in the October-December period. In the domestic market, Dabur's HPC (home & personal care) is expected to grow in the mid to high single digits, while Health Care is expected to be 'flattish' due to the delayed winter onset. "While the Beverages portfolio is expected to report muted performance, our

The per household average spend in the urban market recorded a 13% jump in a year to reach Rs 6,761 this Oct quarter

The FMCG industry hopes for a revival in consumption growth in 2025 with some 'green shoots' already visible, after having a challenging year amid escalating input costs and a double-digit rise in food inflation, which ultimately slowed down the pace of the urban market growth in the second half of 2024. Soaring prices of commodities such as palm oil, coffee, cocoa and wheat forced FMCG players to go for a hike of 3 to 5 per cent or resort to shrinkflation by reducing pack sizes and grammage to retain attractive price points, fearing a volume loss. The makers also expect a shot in the arm in the upcoming annual budget, which would help the stressed middle-income group and stimulate consumption, besides a good monsoon and continued rejuvenation of the rural market. A resurgence of high food inflation once again in 2024 disrupted consumption patterns, particularly among mass-segment consumers, said Emami Vice Chairman & MD Harsha V Agarwal, adding elevated food inflation continues ..

The court, however, clarified that if coconut oil is packaged in small bottles and labelled as hair oil, it should be classified as hair oil under the Central Excise Tariff Act, 1985

The surge comes amid a consumption slowdown that dragged economic growth to 5.4 per cent in the September quarter, the weakest in nearly two years

Dabur is expanding its premium portfolio and Total Addressable Market (TAM). The company estimates its existing portfolio, contributes less than 5 per cent of TAM

Noting that modern trade and quick-commerce channels are thriving, offering new growth avenues, he said insurgent brands are capturing significant growth by winning the hearts of underserved customers

ITC Agri Business Division is encouraging the cultivation of medicinal and aromatic plants to expand the conglomerate's presence in the fast-growing health and wellness products market in the food, personal care and other categories. The agri-division of ITC is working with farmers and helping them to diversify their crops by encouraging them to cultivate high-demand crops like Ashwagandha, Tulsi, and Kalonji in Madhya Pradesh and turmeric in southern states. Through this initiative, ITC looks to meet its requirements by chasing its FMCG ambitions and also leverages the B2B nutraceuticals space, bridging the demand-supply gap in the market, which has evolved rapidly after the pandemic. "As a part of the ITC Next strategy, the company's Agri-Business Division has pivoted its strategic focus towards rapidly scaling up its value-added Agri Products (VAAP) portfolio to accelerate growth and competitiveness. In line with the larger ITC NextGen Agriculture vision, we are focusing on ...

Leading FMCG makers such as HUL and Wipro have hiked soap prices by around 7 -8 per cent to offset the impact of a surge in palm oil prices, a key raw material for the product. Companies such as HUL and Tata Consumer have also increased prices of tea recently due to a decline in production caused by erratic weather conditions. During the earning calls for the September quarter, several listed players hinted at a price increase in soaps in the current quarter to safeguard their margins, as they were facing a rise the prices of commodity inputs such as palm oil, coffee and cocoa. "The prices of palm oil derivatives, a key raw material in soap manufacturing, have risen significantly -- 30 per cent plus increase since the start of this year," Wipro Consumer Care Chief Executive Neeraj Khatri told PTI. "In response, all major players in the industry have implemented price hikes of approximately 78 per cent to partially offset the increase. Our pricing adjustments are aligned with these

Reliance Consumer Products disrupts FMCG market by offering its distributors 6-8 per cent margins - double the industry average - while pricing products 20-40% lower than competitors, to drive growth

In Q2FY25, ITC's sales on quick commerce grew by over 50 per cent year-on-year on a smaller base, contributing 50 per cent of its overall e-commerce sales

Direct seller Amway India Enterprises has reported widening of net loss to Rs 52.78 crore, while revenue from operations, stood at Rs 1,283.75 crore in FY'24. Its total income, which includes other income, was marginally up 0.7 per cent to Rs 1,293.97 crore for the financial year ended March 31, 2024, according to the RoC filing by the company. Amway India had reported a net loss of Rs 21.72 crore and revenue from operations was at Rs 1,278.69 crore a year before, for the financial year ended March 31, 2023, according to financial data accessed through the business intelligence platform Tofler. The 'advertising promotional expenses' in FY'24 were down 25.5 per cent to Rs 61.03 crore, as against Rs 81.93 crore a year ago. However, the royalty paid to its US-based parent firm was up 4.06 per cent to Rs 65.74 crore in FY'24. This 'cost royalty' was at Rs 63.17 for the financial year ended on March 31, 2023. Amway India Enterprises is a wholly-owned subsidiary of Ada, Michigan, US-bas

Record production estimates for kharif foodgrains as well as promising rabi crop prospects augur well for farm income and rural demand, going forward

The repercussions continue to weigh on the Swiss company's revenue after shoppers switched to cheaper, better advertised or more innovative brands, eating into Nestle's market share

FMCG major Marico is looking for double-digit growth in the second half of FY25 and expects the prevailing high food inflation to moderate in the next two quarters, which will help revive urban consumption, its MD & CEO Saugata Gupta said. The company, which has already gone for a price hike for its Saffola range, expects a similar action from other FMCG players as prices of raw materials such as coffee, cocoa, and palm oil have gone up. "In the sector, there will be some price increases. If you look at some other input costs for other players, there has been a globally significant increase in the prices of coffee, and cocoa, So there is a little bit of inflation situation and now you are seeing a significant increase in palm oil prices. "So across the sector, there will be some price increase," Gupta told PTI. However, he also pointed out that most of the big-scale FMCG manufacturers would try to absorb a portion of the increase in the commodity prices through various cost ...

Since the end of the pandemic, India's economic growth has been driven in large part by urban consumption, however, that now seems to be changing

Some images, which RAN said were taken during a field investigation in February 2024, showed that oil palm seedlings were planted on burnt ground surrounded by fallen trees inside the reserve