Rural economy, monsoon to boost FMCG firms in 2018

downloadSource: The Hindu Business Line, Jan 08, 2018

Mumbai: In the next 12 months, consumer goods companies would see a revival, both in volume and margin terms, with an anticipated revival in the rural sector, said a report. With a few state elections and expected populist budget, the rural sector is anticipated to be prime beneficiary. This, coupled with improving macros and good monsoon after two consecutive droughts, also augur well, said the report on the consumer good sector brought by Edelweiss.

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Patanjali ranked India’s most trusted FMCG Brand

Source:, Dec 22, 2017

Patanjali has been ranked as India’s most trusted Fast Moving Consumer Goods (FMCG) Brand by the Brand Trust Report India Study 2017 and has been announced as the most attractive brand in India.

SK Tijarawala, Spokesman, HH Swami Ramdev, took to his Twitter handle to announce this news, along with the picture of the certification.

He said Patanjali has been ranked as India’s most trustedFMCG Brand in a study covering 11000 brands across 16 cities by The Brand Trust Report India Study 2017, adding that after an analysis of 10000 brands, Patanjali has been declared as the most attractive brand. Read the rest of this entry »

FMCG, auto products’ sales pick up pace in rural India, outsmart cities

download (4)MUMBAI/KOLKATA: Purchases of consumer products and automobiles in rural India picked up pace during July-September, outstripping the rate in cities, as a good monsoon lifted farm income. Rural sales of FMCG products by both value and volume — the number of products sold — increased 13% during the quarter from a year earlier, according to Kantar Worldpanel, the consumer insights arm of WPP, the world’s biggest advertising company. It was the fastest pace of growth in over three years.

In contrast, the urban market expanded 4% by value and 1% by volume during this period, the researcher said.

This is the second consecutive quarter of double-digit growth in the rural FMCG market, which helped to boost volumes in the overall fast-moving consumer goods sector by 7% compared with about 4% a year earlier. The rural market accounts for more than a third of all consumer goods sold. “In our case, rural growth has been very good.
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Post tax rate cut, FMCG firms set to reduce prices

index.jpgSource: The Economic Times, Nov 13, 2017

Manufacturers would need to strategise on passing on the GST reduction, depending on the extent of the stock with each intermediary in the supply chain and other factors.

Prices of shampoo, chocolates, nutrition drinks and condensed milk are set to drop 5-15% after the GST Council eased these from higher tax slabs.

Companies such as Hindustan Unilever, Dabur, Amul, GlaxoSmithKline, Procter & Gamble, Nestle and Perfetti Van Melle said they have either decided to reduce prices or are planning to do so after the GST Council cut tax on several consumer goods to 18% from 28%. They, in fact, are also bound by the anti-profiteering clause under the GST law to pass on any benefit from lower tax incidence to consumers.

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Sales of FMCG firms signal consumer demand revival

Source: LiveMint.comn, Nov. 03, 2017

A surprise increase in sales volumes of consumer packaged goods companies has boosted hopes of a recovery in consumption demand, indicating the possible end of the lingering effects of last year’s demonetisation and the fallout of the move to a goods and services tax (GST) regime in July.

Hindustan Unilever Ltd, India’s largest consumer packaged goods maker, reported a 4% volume growth in the three months to September compared with flat growth in the previous quarter. Read the rest of this entry »

Poor rains, global headwinds hinder FMCG growth

Source: The Hindu Business Line, Oct 08, 2017

Mumbai: The growth rate in India’s fast-moving consumer goods sector has slowed down in the past three years, hit by poor monsoons, global headwinds and buyers cutting down on discretionary spending.

The combined revenue of listed FMCG companies such as Hindustan Unilever, ITC, Nestle India, Dabur, Asian Paints, Tata Global Beverages, Britannia Industries, United Spirits, Radico Khaitan, United Breweries and Colgate-Palmolive, among others, has grown at a CAGR (compound annual growth rate) of 4.4 per cent in the last three years, sharply down from 13.6 per cent CAGR between FY12 and FY14.

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Britannia plans Rs 1,000 crore plant in Maharashtra

index.jpgSource: The Economic Times, Aug 08, 2017

KOLKATA: FMCG major Britannia Industries plans to set up its largest plant at Ranjangaon Food Park in Maharashtra with an investment of Rs 1,000 crore, a company official said on Monday.

“The company is planning to set up its largest plant at the Ranjangaon Food Park…,” company Chairman Nusli Wadia told shareholders at the 98th Annual General Meeting here.

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