FMCG companies may see price hike-led revenue growth In July-September

Volumes to remain under pressure due to grammage reductions

Revenues of fast-moving consumer goods companies are expected to continue rising on the back of price increases in the July-September quarter. However, volumes are expected to remain under pressure due to grammage reduction, inflation and slowdown in rural demand.  

Rural demand for FMCG products remained soft during the quarter. Godrej Consumer Products said in its quarterly update that rural markets witnessed slower growth compared to urban.

Dabur India said in its quarterly update ahead of its earnings, “Urban markets were driven by modern trade and e-commerce which saw double-digit growth." It added that rural markets saw some pressure on the