“Commodity prices have cooled down and there is also no increase in fuel costs,” Wipro Consumer Care and Lighting CEO Vineet Agrawal told ET. “While job creation is still an issue, there will be income tax benefits that should kick in at some point and, combined with a good monsoon, these are cumulatively a good thing.”
The revival in demand was led by home care, which grew 6.1%, with sales of washing liquids rising 61%, while fabric softeners rose 15%. Washing powders delivered solid growth of 4% from a high base, lifting overall FMCG figures. Personal care has also strengthened, with skin creams up 14%, hair conditioners up 19% and hair dyes up 11%. Within the food and beverage sector, a category that accounts for three-quarters of the total FMCG market, sales of noodles and salty snacks rose 6% each, while edible oils grew 3%. FMCG has seen a turnaround this quarter. The city is accelerating with a growth of 5.2%, compared to 4.2% in the countryside. Both markets added one percentage point consecutively in the quarter, which is a good sign for the market. This growth is likely to continue in the last quarter of the calendar year,” said K Ramakrishnan, managing director for South Asia, Worldpanel by Numerator.
The GST transition disrupted trading supplies and sales for the entire consumer industry. As the supply chain normalizes, most companies expect volume-driven growth in the second half of the fiscal year.
“If I had to tell you how we will look at the business, it will look at growth without hesitation,” Priya Nair, MD at Hindustan Unilever, said during an earnings call with analysts. “If we do that, we will have the right financial leverage to deliver operating margin for the company.”
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