FMCG industry grew 16% in 2007-08: Ficci

The Indian FMCG industry, valued at Rs 74,650 cr in 2006-07, grew by 16% in 2007-08 compared to 14.5% growth in the previous fiscal, a survey by industry body Ficci said.

The high growth in the sector is backed by the rising demand, fiscal incentives provided by the government such as tax exemptions in some states and improved performance by leading companies, the chamber said in a statement.

Driving the growth of the sector, the 'deodorant' segment of the industry has achieved the highest growth of 40% followed by hair dye at 30% and chemical segments including cleaner and repellents at 23%, the survey pointed out. However, there has been some deceleration in the soap and toiletries segment.

The industry has been able to achieve growth despite of rising prices, increase in costs of various inputs such as petroleum products and packaging materials, the chamber said.

According to the study done by Indian Market Research Bureau, the industry has witnessed launch of over 251 new products including 223 variants of existing products during the first 10 months of 2007, compared to 191 products including 173 variants in the same period in 2006.

The on-going retail boom in the country has forced FMCG companies to re-work strategies and make arrangements with retail majors for sales promotion, the chamber said.