Page 8 - Fmcgs

HUL to cut prices of soaps, detergents to keep local competition in check

Large FMCG companies have seen their sales cut by homegrown brands in India. This is especially true for soaps, detergents, hair oil, tea, and biscuits

22% kirana owners extremely optimistic about business this festive season

The survey, conducted among 5,000 kirana owners across the country, showed that 22 per cent of kirana owners in India are feeling "extremely optimistic" about business prospects this festive season

Rural recovery for FMCG cos takes a pause amid food inflation, uneven rains

The FMCG industry has witnessed a challenging September quarter amid subdued consumer demand and a decline in rural consumption due to persistent food inflation and uneven rains in some regions. The operating environment remained tough for the FMCG (Fast Moving Consumer Goods) industry as rural demand continues to be sluggish, and some green shoots, which were visible in the preceding June quarter, seem to have paused following adverse conditions. Leading FMCG makers like HUL, ITC and Nestle have expressed concerns over uneven rains, the impact of crop output and rising prices of some commodities -- such as wheat, maida, sugar, potato, coffee, etc -- in their September quarter earnings. "Consumption demand has been relatively subdued, especially in the value segment and rural markets on the back of sub-par monsoons and persistent Food inflation, which saw a sharp spike during the quarter," ITC said in an earning statement. Persistent inflation has impacted rural demand, which ...

FMCG firms see subdued growth in Q2; rising food prices hamper rural demand

The FMCG industry expects a subdued low to mid-single-digit volume growth in the July-September quarter as weak macroeconomic conditions amid rising food prices and below-normal rainfall in some regions are impeding the recovery in rural demand. Companies such as Marico, Dabur and Godrej Consumer Products Ltd (GCPL) in their quarterly updates said that though there was an improvement in consumption in the second quarter, the recovery has been gradual. Moreover, the festive season this year has entirely shifted to the third quarter, due to which offtake related to festivals is delayed and will carry forward to the next quarter, the companies said. Over their gross margins, the companies said they expect it to be better sequentially, helped by moderating inflation and easing price growths. This also helped them to go for higher A&P (Advertisements and Promotions) spending. Updating its business performance for the September quarter, GCPL said: "In India, we witnessed weak macros and

Govt forms National Turmeric Board, aims to boost sector's global dominance

India holds the title for being the world's largest producer, consumer, and exporter of turmeric

Emami enters into definitive agreement to acquire 26% of Axiom Ayurveda

Axiom has its own manufacturing facility in Ambala, Haryana and is setting up a fully automated new facility in Jammu (Kathua) at a cost of Rs 160 crore

Dabur scaling up Hajmola and Odomos to include them on its power brand list

Home-grown FMCG major Dabur is scaling up its digestive brand Hajmola and mosquito repellent brand Odomos, amplifying their reach to include them on the list of its power brands, CEO Mohit Malhotra said. Dabur's fast moving consumer goods (FMCG) portfolio currently includes nine distinct power brands -- eight in India and one in the overseas markets, which together account for 70 per cent of its total sales. Currently, Dabur's 75 per cent revenue comes from the domestic business. Its domestic business is concentrated in eight power brands -- Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, Real. Vatika is Dabur's international power brand offering a range of personal care products for the global audience. Currently, Dabur has 17 brands that are above Rs 100 crore but lesser than Rs 500 crore in size, said Malhotra while addressing the investor meet last week. "We have 17 brands, which are in the range of Rs 100-500 crore

Tata Consumer 'narrows its universe'; identifies 5 core areas for launches

Within mini meals, it will look at the breakfast cereal, ready-to-eat, and snacks market, and also its protein platform, which includes plant-based meat and plant protein powders

Udaan makes organisational changes in business and tech verticals

Vivek Gupta, who led the essentials business, will transition from the operating role

India's record dry August may push domestic FMCG sector in slow lane

Rural demand had just started to move back into positive territory after being under pressure for over a year

Rural volumes grow for second straight quarter in 2023, shows NIQ data

Consumption increase drove India FMCG growth in June quarter to 12.2%

Reliance Retail crossed 1 bn transaction mark in FY23, to ramp up FMCG biz

In the previous financial year, it forayed into the FMCG and beauty businesses

Dabur scouting for acquisition targets in D2C healthcare, personal care

Homegrown FMCG major Dabur India is looking for an acquisition in direct-to-consumer (D2C) space, particularly in healthcare and personal care, its Chief Executive Officer Mohit Malhotra said on Thursday. The acquisition will help Dabur to increase its play in the fast-growing premium segment and also to strengthen our urban play, Malhotra said in a post-results Investors' Conference Call. Besides, the company, which owns iconic brands such as Dabur Amla, Dabur Vatika, and juice brand Real, is increasing investments in branding and promotion as its margins are improving quarter on quarter amidst softening commodity prices. When asked about any D2C acquisition, Malhotra replied: "We continue to scouting on targets in the D2C space also, particularly in healthcare and personal care... We are looking for a brand that will shore up margin and not be dilutive." "If we come across a company which is synergistic with the healthcare space and personal care space, skincare Ayurvedic play, w

Food industry impacted by high commodity prices: Britannia Industries

FMCG major Britannia Industries Limited said that the food sector in which it operates has been significantly impacted by high commodity prices, rising interest rates and due to the fall out of the Russia-Ukraine conflict. The long term effects of these factors continue to be felt extensively, the company said in its annual report for 2022-23. It said that although commodity prices were volatile and inflation was at unprecedented levels, the post-COVID normalisation of economic activities supported growth throughout 2022-23. During the last fiscal, the major challenge confronting the food industry was managing inflation in the cost of key inputs like wheat, milk, sugar, palm oil and crude oil, the company annual report said. The foods vertical of Britannia comprise segments like biscuits, cakes, rusks, bread and dairy. On the outlook for the foods vertical, the company said that businesses in the country are still optimistic on demand conditions despite apprehensions about global

Growing nuclear families powering premium FMCG purchases, says Kantar

HAVE MONEY, WILL SPEND: These families drive the premiumisation trend in the FMCG sector, says Kantar Worldpanel report

Marico to acquire 58% stake in Satiya Nutraceuticals for Rs 369 cr

Home-grown FMCG firm Marico will acquire a majority stake in Satiya Nutraceuticals, which owns plant-based nutrition brand Plix, for a consideration of Rs 369.01 crore. The company has signed a definitive agreement to acquire a majority stake of 58 per cent in Satiya Nutraceuticals for a consideration of Rs 369.01 crore, Marico said in a regulatory filing on Wednesday. According to Marico this is in line with its key strategic priorities. "The transaction will further expand Marico's total addressable market in the value-added foods and nutrition segments as well as presence in the rapidly growing Health & Wellness category," it said. It has completed acquisition of 32.75 per cent of the paid-up share capital of Satiya Nutraceuticals through primary infusion and secondary buyouts, completed on July 26, 2023. It will acquire the remaining 25.25 per cent of the paid-up share capital of Satiya Nutraceuticals on a fully-diluted basis, in one or more tranches by May 2025, said ...

FMCG firm Jyothy Labs logs net profit jump to Rs 96.25 cr in June quarter

FMCG firm Jyothy Labs Ltd on Tuesday reported an over two-fold increase in its consolidated net profit at Rs 96.25 crore in the June quarter, led by stable demand and moderation in input costs. It had posted a consolidated net profit of Rs 47.73 crore in the April-June quarter a year ago, according to a regulatory filing by Jyothy Labs, which owns brands such as Ujala, Pril, Margo and Exo. Jyothy Labs' revenue from operations rose 15.05 per cent to Rs 687.10 crore during the period under review as against Rs 597.20 crore a year ago. "We have observed relatively stable demand across our product portfolio. With moderating input costs, our EBITDA margin for the quarter stood at 17.1 per cent versus 10 per cent in the same period last year, thereby an increase of 96.3 per cent," a company's earnings statement said. It further said: "Our Net Profit also grew by 101.7 per cent over the same period last year." Its total expenses were at Rs 582.75 crore, up 5.24 per cent in Q4/FY24 as aga

FMCG sector seeing gradual volume growth in Q1: HUL CFO Ritesh Tiwari

FMCG industry is witnessing a gradual volume growth led by urban market with rural also turning positive in the first quarter of the fiscal after witnessing an over double-digit decline in the past, Hindustan Unilever Ltd CFO Ritesh Tiwari said on Thursday. Commodities prices have remained stable and inflation continues to moderate thereby leading to resurgence of small and regional players many of whom had vacated the market during peak of inflation, he said during an earnings call. "With most commodities remaining stable in the quarter, inflation continues to moderate. Consequently, we are seeing a gradual recovery in market volume growth. FMCG market volumes grew in mid single digit led by urban," Tiwari said. He further said, "Rural market volumes which at one point in time were declining in double digits have just been positive in this quarter." However, these growths have come on the back of decline in volumes in the past. "If you look at market growth on a two-year CAGR bas

Goodknight biz has implied value of around Rs 30,000 cr: GCPL chairperson

GCPL's total market capitalisation is around Rs 1.08 lakh crore, as per information available on BSE

ITC's FMCG biz records 21% rise in annual consumer spend at Rs 29,000 cr

Diversified conglomerate ITC's FMCG business has recorded a 21 per cent rise in annual consumer spend to nearly Rs 29,000 crore in 2022-23, according to the latest annual report of the company. ITC operates in the FMCG space with 25 home-grown brands. The company measures annual consumer spend as the sum total of what the consumer spends on buying the goods of the company. It is the net sales turnover of the brands along with channel margins and taxes. "Your company's vibrant portfolio of over 25 world-class Indian brands, largely built through an organic growth strategy in a relatively short period of time, represents an annual consumer spend of nearly Rs 29,000 crore and reaches over 230 million households in India," ITC said addressing its shareholders in the report. This is around 21 per cent higher than the financial year 2021-22. In the last annual report, ITC said its FMCG business had an annual consumer spend of over Rs 24,000 crore. In terms of distribution reach, ITC sai