Smaller FMCG firms race ahead, put bigger rivals on notice

Source: LiveMint.com, Nov 26, 2018

When the goods and services tax (GST) was rolled out in July 2017, one question was whether large fast moving consumer goods (FMCG) firms would gain at the expense of the unorganized sector. While it may take a few years before one can have a certain answer, managements of most large listed firms have so far not called out any significant changes on this front.

But an answer to this question could lie elsewhere. Small and regional companies are faring much better than the larger ones in recent quarters, according to retail sales data of the FMCG sector, provided by market researcher firm, the Nielsen Co. While the top 50 firms contributed to 60% of revenue in the 12 months ended September with a healthy 10.6% growth, the tail-end of 48,000 companies grew by a much higher 18.5%. What’s even more interesting is that this growth differential has risen in the past few quarters (see chart). The September quarter saw smaller companies growing at 38% versus 15% for the national firms.

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GST anti profiteering clause puts FMCG firms in a fix

Source: LiveMint.com, Oct 25, 2018

New Delhi: With input costs remaining high, manufacturers of consumer packaged goods have had little choice so far but to increase prices and protect their margins. But with anti-profiteering provisions of the goods and services tax (GST) now in place, increasing prices has become tricky.

This clause requires companies to pass on the benefit of reduced tax rates by slashing their prices, bringing an element of ambiguity.

As Anita Rastogi, indirect tax partner at PwC India pointed out, the statutory provisions of anti-profiteering require “commensurate” benefit to be passed on, and not “equivalent” benefit of the change in tax rate.

The word “commensurate” as used under the GST law intends to take overall facts and circumstances into its consideration for passing on the benefit, which has not been considered while passing various orders passed by the authority, she said.

Paswan asks FMCG firms to use Hindi, regional languages on products

Source: ETRetail.com, Oct 09, 2018

Union Consumer Affairs Minister Ram Vilas Paswan on Tuesday asked the fast-moving consumer goods companies to write the names of their products in Hindi and other regional languages.

Writing the names of products in Hindi and other regional languages, besides English, will bring about transparency and benefit consumers, the Minister said at an event here.

He also asked the FMCG industry to write the minimum retail price, net weight, manufacturing and expiry dates in larger fonts to bring about transparency.

“(Accepted that) you cannot write everything in Hindi or regional languages. But at least you can write products’ names. What is the problem with that?,” he asked.

After making Patanjali leader in FMCG space, Baba Ramdev wants to invest Rs 1,00,000 crore in these sectors

Source: Financial Express, Oct 09, 2018

After establishing Patanjali Ayurved as a leader in the FMCG space, Baba Ramdev wishes to spend Rs 100,000 crore on charity work. Speaking at a conference organised by FICCI Ladies Organisation in Delhi, Yoga Guru Baba Ramdev said that he wishes to spend rupees one lakh crore in the sectors related to health, education, research and development, agriculture and environment.

Patanjali Ayurved is now putting its focus on the agriculture and food processing sector, PTI reported citing Baba Ramdev. The FMCG company wants to bring out more products from the farm and food processing sector, he said. In addition, Patanjali wants to work in the solar energy sector, he said.

FMCG plans to light up festive season with pricing offers & promotional schemes

Source: ETRetail.com, Sept 21, 2018

NEW DELHI: Consumers shopping for groceries and other items of daily use can look forward to value deals that are about 10-15% cheaper this festive quarter compared with the last two years.

Companies are planning a fullscale offensive with pricing offers and promotional schemes after two subdued December quarters in a row on account of demonetisation in November 2016 and the goods and services tax (GST) rollout in July last year, both of which hit consumption hard.

FMCG firm Marico aims up to 10 per cent volume growth, healthy market share gains in 5 years

Source: Financial Express, Sept 03, 2018

New Delhi: Home-grown FMCG firm Marico is expecting a volume growth of 8 to 10 per cent and double-digit constant currency growth in international business over the next 3 to 5 years on account of strategic investments, a top company official has said. The company is also looking at achieving a healthy market share gains as it plans to focus on strengthening its core portfolio, driving premiumisation in value added hair oils and expanding portfolio in the existing and new markets.

FSSAI to launch movement for healthier FMCG food products

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.