Source: ETRetail.com, Jul 10, 2018
NEW DELHI: The Food Safety and Standards Authority of India (FSSAI) is launching an “Eat Right Movement” with a view to get industry on board for implementation of draft food labelling regulation. The movement will be launched on Tuesday with participation from leading FMCG companies where they are likely to make “voluntary commitments” to reduce salt and sugar in food and eliminate trans-fats in a phased manner.
Source: ETRetail.com, Jul 02, 2018
With prices of most groceries and household and personal care products cut after the goods and services tax (GST) was implemented on July 1, 2017, the fast-moving consumer goods sector has seen double-digit growth over the past year, the highest since 2010.
Several products including cookies, toothpastes, soaps and hair oils are being taxed at 18% under GST compared with about 22% under the earlier indirect tax structure of excise duty and value-added tax (VAT). Nearly 200 products including detergents, shampoos and skin-care products that attracted a higher 28% levy were also included in the 18% bracket in November last year, triggering another round of price cuts.
Source: ETRetail.com, June 08, 2018
NEW DELHI: As Sri Sri Ravi Shankar’s FMCG brand Sri Sri Tattva tries to play catch-up with Baba Ramdev’s Patanjali, it plans to ramp up its marketing spend, earmarking about Rs 200 crore for advertising and promotion, said media buyers.
The new entrant in the field of ayurveda and herbal products will spend this amount on mass media advertising, outdoor campaigns and below-the-line marketing across the country to support its expansion plan of opening 1,000 stores in the country.
The Bengaluru-based firm was among the largest advertisers in the FMCG category during the recently concluded India Premier League (IPL), spending Rs 10 crore on television advertising. Read the rest of this entry »
Source: ETRetail.com, Jun 07, 2018
KOLKATA: The cumulative sales of eight of cigarette-to-soap maker giant ITC’s FMCG brands crossed the $2-billion (Rs 13,000 crore) milestone in the fiscal ending March 2018, with three packaged food brands Sunfeast biscuits, Bingo chips and snacks and Aashirvaad atta driving the surge. This propelled the annual consumer spend on ITC’s FMCG brands to more than Rs 16,000 crore in FY18 compared to Rs 14,000 crore the year before, an investor presentation from the company showed. The eight brands contributed over 80% to the total FMCG sales.
According to the presentation, Aashirvaad atta crossed Rs 4,000 crore sales last fiscal followed by Sunfeast biscuits at Rs 3,500 crore and Bingo chips and snacks at Rs 2,000 crore. Each of the brands rakes in Rs 500 crore worth of sales to last year numbers.
Source: LiveMint.com, May 21, 2018
Mumbai: Consumption growth in rural India has outpaced urban spending by the widest margin in five years, 
encouraged by relatively good rainfall last year and an increase in government spending on infrastructure.
Rural consumption rose by 9.7% in the year ended 31 March, faster than the 8.6% growth in urban spending, according to market researcher Nielsen. A year ago, rural growth outpaced urban spending by less than half a percentage point.
“If we look at growth in volume terms, we have reached the peaks last seen five years ago. Volumes were growing at about 10% then,” Sameer Shukla, executive director at Nielsen India, said in an interview earlier this month. Read the rest of this entry »
Source: ETRetail.com, Apr 20, 2018
NEW DELHI: India’s consumer-facing companies are getting jittery as the cash crunch this year across four states heading for assembly elections, and several surrounding ones, could derail the just recovering buoyancy after the twin blows of demonetisation and GST implementation.
Andhra Pradesh, Telangana, Karnataka, Bihar, Gujarat, Delhi, Madhya Pradesh, Chhattisgarh and Uttar Pradesh have been witnessing currency shortage over the past few weeks. Elections are underway in Karnataka, and scheduled later in the year in Madhya Pradesh, Chhattisgarh, Rajasthan and Mizoram by January 2019.
Source: ETRetail.com, Apr 06, 2018
MUMBAI: Fast moving consumer goods (FMCG) firms are expected to post a net revenue growth of 11.8 per cent in the March quarter, highest in the past 18 quarters, on acceleration in volume growth, GST-led savings and higher leverage benefits, said a report.
However, the March quarter’s performance isn’t strictly comparable with the same quarter last year due to GST-led reporting changes and demonetisation impact in the base quarter, according to Kotak Institutional Equities.
“At an aggregate level, we expect net revenue growth of 11.8 per cent, highest in the past 18 quarters. We expect 9.9 per cent growth for the staples pack, slightly lower than third quarter FY18’s 11.2 per cent on a reported basis but higher on a base-adjusted basis,” it said.
Visit INDOLINK profile on Linkedin
www.indolinkconsulting.com 