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Fast-moving consumer goods (FMCG) players are anticipating subdued growth in the domestic market for the quarter that ended on March 31, 2024.
The sector during the quarter saw price cuts by FMCG companies leading to an uptick in demand in rural markets.
“Demand trends remained sluggish during the quarter. Rural growth picked up fuelled by price rollbacks in staples which led to the gap between rural and urban narrowing. With a positive outlook for the rabi crop harvest and monsoon forecast to be normal we expect consumption to pick up in the coming months,” FMCG major Dabur stated in an exchange filing.
- Also read: To boost consumption in rural markets, FMCG players need to offer the right value: BCG’s Namit Puri
Marico saw growth in its core categories. Parachute Coconut oil posted low single-digit volume growth while Saffola oil delivered mid single-digit volume growth.
Godrej Consumer Products witnessed broad-based growth in Home and Personal care and subdued demand in household insecticide.
“Our India organic business continued to deliver strong underlying volume growth at high single-digit. While demand for Household Insecticides has been subdued due to an extended winter in the North and East. Park Avenue and KamaSutra brands delivered in line with category seasonality. At a Consolidated level (organic), we expect to deliver underlying volume growth of high single-digits and sales growth of mid single-digits driven largely by currency volatility. Reported underlying volume growth continues to be in double-digit,” stated Godrej Consumer in an exchange filing.
International business
International businesses for FMCG players delivered high single to double-digit growth during the quarter.
“The GAUM (Godrej Africa, USA, and Middle East) organic business delivered high single-digit volume growth along with double-digit constant currency sales growth. However, due to the Naira devaluation in January, sales in INR terms will see a double-digit decline,” Godrej Consumer stated.
Marico stated that the growth in the international business was led by Bangladesh bouncing back from transient headwinds. Dabur stated that double-digit growth in the international business was led by good momentum in the MENA region, Egypt and Turkey.
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