Urban and rural FMCG sales growth data for the last five quarters show the latter outperformed the former consistently.
Tata Motors, Bharti, Coal India among key gainers.
The firms record robust 10-15% growth till September. However, despite the enhanced outlays for A&B, companies are looking at adopting cost -cutting measures.
With a growth rate of 10 to 12 per cent, pursuing a career in the FMCG sector promises you lots of opportunities to learn alongside a handsome pay package.
Adani Ports, NTPC, Infosys, Hindustan Unilever, HCL Technologies and Sun Pharma were among the other big gainers. However, Larsen & Toubro, Bajaj Finance, State Bank of India, Axis Bank and HDFC Bank were amonh the major laggards.
Two of these categories -- detergent cakes and washing powder - account for around 15 per cent of the overall FMCG market of Rs 80,000 crore (Rs 800 billion), according to estimates made by analysts. Leading market research firm A C Nielsen's data for November 2008 show an across-the-category drop in sales volumes compared to the preceding month.
'Food inflation is important and if that is controlled, then consumption will go up.'
This includes input substitution, overhead management, rationalising personnel - all aimed at reining in expenditure.
'In India, managers and the leadership almost glorify overworking.'
Stocks of fast moving consumer goods companies have been on a roll. From packaged food to personal care products, almost every category has been clocking robust growth over the last year.
With a gradual rise in temperature and the start of heatwave, FMCG and dairy firms selling cola-based fizz drinks, juices, mineral water, ice creams and milk-based beverages expect a spike in sales and have ramped up their production and stocks to meet the anticipated consumer demand. The makers are launching new products keeping in mind the evolving consumer preferences and also investing substantially on promotions and expansion of the channels this season, company executives of beverage and ice cream makers said. Beverages major PepsiCo said summer months are naturally the most favourable season for its category and it is "optimistic" that its portfolio of brands will continue to delight consumers during the period.
FMCG majors who have been advertising actively in the ongoing world cup are undeterred by India's uncertain position in the tournament and are ready to continue their aggressive marketing even if the team was unable to qualify to the next round.
Among the index heavyweights, Reliance Industries ended down 1.9% while mortage lender HDFC eased 0.2%. FMCG major ITC ended down 1.3%.
Price-led growth during the quarter is likely to stand at three to five per cent
Household consumption recovered in urban India in May-July but remains weak in rural.
If an entire business is constructed on the platform of one brand ambassador, there is inherent risk of life-after.
Sanjiv Puri, chairman and managing director of ITC, is looking to expand the conglomerate's play outside India by taking "strategic positions" in markets close to home in the non-cigarette fast-moving consumer goods (FMCG) and hospitality businesses. In a recent conversation with Business Standard, Puri revealed that ITC is setting sights beyond India's borders. "We already export to 100-odd countries. We want to scale that up and take some strategic positions in markets close to us," he said.
The 2012 'Campus Track' survey results by Nielsen suggests that majority of MBAs preferred to work with FMCG firms, followed by consulting and banking firms in that order.
The tobaccos-to-hospitality major ITC has earmarked an whopping Rs 23,000-crore (Rs 230 billion) investment over the next seven to ten years for its FMCG, paper and hospitality businesses.
'While every year presents new challenges, it also provides opportunities for better growth and performance.'
Experts point to the higher contribution of rural from the north for the growth reported by the region, a point endorsed by companies who've been pushing their presence aggressively there.
Among the Sensex firms, ITC, Kotak Mahindra Bank, ICICI Bank, Nestle, Axis Bank, IndusInd Bank, UltraTech Cement, Bajaj Finance, Maruti and HDFC Bank were the major laggards.
Among Sensex shares, Bajaj Finserve, ICICI Bank, Bharti Airtel, Bajaj Finance, Sun Pharma, Maruti Suzuki, ITC, and Nestle were the lead gainers. On the other hand, L&T Wipro, IndusInd Bank and TCS and Tata Motors were the lead losers.
The Mumbai-based Shah family of the diversified Anchor Group has decided to put its FMCG portfolio of oral care and personal care products on the block, according to two independent sources.
After demonetisation, sharp fall in PE valuation offers an attractive entry point into some quality names and these 3 FMCG companies are expected to see the fastest growth in earnings with at least 15 per cent upside potential
'Investors should consider small and midcaps only if they can handle volatility and have a longer investment horizon.'
Among the Sensex firms, Tata Steel, JSW Steel, Tata Motors, Bajaj Finserv, Bajaj Finance, Asian Paints, ITC and Nestle were the major gainers. Mahindra & Mahindra, Reliance Industries, Axis Bank, ICICI Bank and Power Grid were among the laggards.
The FMCG sector has the potential to deliver above-average growth over the long term
'Although currently, urban areas contribute more to growth than rural, there is no reason why rural areas should not contribute.'
As urban shoppers tighten their belts, companies are betting on rural consumers and smaller packs to fire up sales.
Some of the country's leading FMCG companies they include Nestle, Coca-Cola and Tata Coffee - are investing over Rs 1,800 crore (Rs 18 billion) in the next few months to expand capacity or for inorganic growth.
Markets pared early gains to end lower on Tuesday amid selling pressure in IT, FMCG and oil shares.
Having learnt their Maggi lessons hard way in 2015, the FMCG sector is desperately looking for a brighter new year with hopes pinned on revival in rural demand.
Increase in tax exemption limit by Rs 50000 is positive for the FMCG sector, as it will leave more discretionary income in the hands of consumers.
