FMCG
Adani Enterprises’ profit more than doubles, board OKs demerger of food FMCG ops
The consolidated net profit of the Adani group’s flagship company rose 116% on year to Rs 1,458 crore. Total income for the quarter rose 13% on year to Rs 26,067 crore, while operating profit surged by 48% to Rs 4,300 crore.
Paper, packaging segment affected by cheap Chinese supplies: ITC
Moreover, the company further noted that performance remained impacted due to muted domestic demand as well as surging wood prices in the Indian market. The company said that structural weakness in the Chinese economy persists. ITC also observed strong growth in Value Added agricultural products that were mainly driven by coffee and spices.
Govt push will support rural growth in second half of the year and onwards: Dabur
Dabur India expects government initiatives to boost rural growth in the latter half of the year. In the January-March period, FMCG sales showed recovery, with rural growth surpassing urban areas for the first time in five quarters. Rural areas contribute 45%-50% to Dabur's revenue. The consumer care segment, making up 77% of Dabur’s revenue, grew by 7%, contributing to a 7% rise in total revenue.
Adani Ent to demerge food FMCG biz and transfer to Adani Wilmar
Adani Enterprises Limited has approved a Scheme of Arrangement to demerge its Food FMCG business and transfer it to Adani Wilmar Limited. The move aims to provide specialized management and enhanced focus for the business. The transaction will occur on a going concern basis, with Adani Wilmar issuing equity shares to Adani Enterprises shareholders as consideration. Adani Enterprises' shareholders will directly hold shares in Adani Wilmar.
India's dairy industry revenue to grow 13-14% this fiscal: CRISIL Ratings
India's dairy industry is projected to experience a healthy revenue growth of 13-14% this fiscal year, driven by strong consumer demand and increased raw milk supply. The rise in value-added product consumption and ample milk availability from good monsoon prospects are expected to support this growth. Despite higher working capital requirements and increased debt levels due to capital expenditure, credit profiles are forecasted to remain stable with strong balance sheets.
Marketing budgets leap: Slump-hit companies to spend up to 30% more on revival hopes
Companies are hopeful of a recovery in consumption by middle-income consumers, who may be encouraged to purchase premium products aided by income tax rate cuts in the July 23 budget. Another bump is expected from a near-50 auspicious days for weddings in the second half of the fiscal year, said the people cited above.
Colgate-Palmolive receives Rs 248.74 crore tax demand notice
Colgate-Palmolive India Ltd has received a tax demand notice of Rs 248.74 crore from the Income Tax Authority for the financial year 2020-21 due to transfer pricing issues. The company will appeal the order, which includes Rs 79.63 crore in interest, before the appellate tribunal. Financial operations remain unaffected.
Foods and Premium Personal Care portfolios to contribute 25 pc revenue by FY27: Marico
Marico's consolidated revenue growth has moved into "positive territory in Q4 and is expected to trend upwards during the course of FY25", said the company which owns brands such as Sffola, Parachute, Hair & Care, Nihar and Livon etc.
Emami likely to acquire 100% stake in The Man Company
Emami Ltd considered acquiring the remaining 49.6% stake in Helios Lifestyle, which owns The Man Company brand. Emami already had a 50.4% stake after previous investments. Analysts noted The Man Company boosted Emami's earnings, becoming EBITDA positive and growing by 86% last fiscal year. Don't miss full details on Emami's potential complete acquisition and its impact on their portfolio.
Rising population the biggest driver of rural demand
A new report by Kantar reveals that the demand for fast-moving consumer goods (FMCG) in rural India has been primarily driven by population growth rather than increased consumption. From 2004 to 2023, rural FMCG growth averaged 3.4% annually, surpassing urban growth of 2.8%.
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Global consumer firms single out India for its investment potential
Leaders of major global consumer companies, including Coca-Cola, Unilever, Reckitt Benckiser, Mondelez, PepsiCo, Domino's, Levi's, and AO Smith, have highlighted India as a key investment market, particularly for urban-centric and discretionary products.
Rural market likely to report 6.1 pc volume growth in FY25: Report
The FMCG sector reported a projected 6.1% volume growth in rural markets for this fiscal, driven by population but hindered by inflation and savings focus. Premium products are increasingly popular, especially via e-commerce.
Parle continues to be India's top FMCG brand at home, 12th time in a row
Parle, owned by Parle Products, remains India's top FMCG brand in the latest Brand Footprint ranking, with seven of the top 10 brands being homegrown. The study measures brands based on consumer reach points (CRPs), combining penetration and frequency of purchase. Parle leads with 7.98 billion CRPs, followed by Britannia. Hindustan Unilever's Clinic Plus is the only non-food brand in the top five. Consumer choice is crucial, with brands adapting to changing dynamics to stay relevant.
Jobs, real wages in rural India critical for recovery: Hindustan Unilever
The country's biggest consumer products company said it has gained 200 basis points (2 percentage points) of share since 2021 despite resurgence of local and regional players. Over the past two years, most consumer goods companies increased prices to offset rising raw material prices as well as supply chain and energy costs. That started with the Covid-19 pandemic and was exacerbated by Russia's invasion of Ukraine. However, in the past year, soap and tea have become cheaper due to falling commodity prices in these two categories.
Budget 2024: FMCG companies, retailers hope for improved sales
Proposed tax relief measures for the middle class are expected to increase disposable income and boost discretionary spending, benefiting retailers and FMCG companies. Emphasis on rural economy and job creation will drive consumption, particularly in non-metro markets. Industry experts anticipate a significant increase in demand for FMCG products due to the focus on infrastructure and employment generation in the budget announcements.
Spending gets rural springboard: More money in consumer’s hand will lead to a rise in demand for consumer goods
The Indian government's budget focuses on infrastructure, rural outlay, and tax savings, which are expected to boost rural demand for packaged consumer goods and two-wheelers. The budget also aims to create jobs, which will drive consumption in tier-2 and 3 cities. However, the increase in capital gains taxes could impede discretionary spending.
