Driven by GST reforms, robust festive demand, and softening raw material prices, the FMCG industry expects volume-based growth, supported by a mid-single digit revenue rise and improved operating margins in the December quarter.
Dabur's business update for Q3FY26 indicated mid-single digit consolidated revenue growth. The guidance is that growth in operating and net profits will beat revenue growth. In the domestic business, home and personal care (HPC) revenue grew in double digits, while healthcare is likely to post a sequential growth in low-single digits.
Daily essentials and food products will be cheaper from Monday, as leading FMCG companies have slashed prices, extending GST cut benefits to consumers.
Initially, hair care products such as Vatika hair oil and shampoos, Meswak toothpaste, Chyawanprash and honey would be made available.
Colgate-Palmolive India is placing greater emphasis on freshness, whitening, therapeutic, and family toothpastes, as rivals such as Dabur and Patanjali dominate the growing naturals segment of the market. Once under 5 per cent of the Rs 10,000-crore domestic toothpaste market, the naturals segment, which includes ayurvedic and herbal variants, is now 25-30 per cent of the market, industry executives said. Growth rates of the naturals segment are estimated to be in the region of 8-9 per cent in volume terms. In value terms, the growth rate for naturals is around 10-12 per cent, sector experts said.
While both Dabur and HUL have been aggressive in the 'naturals' market with new launches across its portfolio, unchecked distribution expansion and inconsistent quality of products have also been at the heart of Patanjali's problems.
'Merely keeping low price may help in the lower segment initially but people have become much more aware and careful about their health and it will eventually determine value for money.'
The oralcare major has kept its ears firmly to the ground, pushing products into the hinterland and is holding fort in urban India with innovation for continued volume growth.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances