FMCG hits the road to recovery on rural uptick, focus on essentials

Local lockdowns in several cities remain a concern, but impact would be limited, say analysts

An uptick in rural areas, as well as a focus on essential products, has helped bring fast-moving consumer goods (FMCGs) companies back on the growth track, and much faster than in most other sectors.

In the past one week, two companies — Godrej Consumer (GCPL) and Marico — have experienced strong underlying consumer demand in June, led by the hygiene and food categories. This is in step with firms that have indicated similar trends recently.

Britannia, Parle Products, and Nestle India, for instance, have said it is the smaller towns and cities that are feeding their supplies better than larger