The stock of Godrej Consumer Products Limited (GCPL) fell about 3.7 per cent in trade after its Q3FY24 earnings disappointed brokerages and led to downgrades. Further, the stock, after a 15 per cent run-up over the past month prior to Monday's correction, had already factored in the upside from the business front. Its peer in the consumer space, Marico, too, saw a 4 per cent drop in its stock price.
The FMCG sector has the potential to deliver above-average growth over the long term
Markets pared early gains to end lower on Tuesday amid selling pressure in IT, FMCG and oil shares.
National brands prefer the acquisition route since the southern market is culturally different, reports T E Narasimhan from Chennai.
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.
'We went from zero to about 10 million users in three months. Paytm came out with the wallet play and we came out with the UPI play.'
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.
FIIs have offloaded shares of Bajaj Corp, Nestle, Jyothy Laboratories and Britannia.
With the rains at unprecedented low in August, kiranas are thinking twice before stocking up on goods. "With August 2023 rain shortfall at almost a 100-year low, we are seeing kiranas stocking up very carefully," Akshay D'Souza, chief of growth and insights at Bizom. He added, "As we look ahead, it does seem that the impact of rains in September will be critical to the sowing season.
With a growing penetration of the Internet, which reaches to rural areas of the country, the retailers would be able to deepen their market
While the four largest listed paint companies have seen marginal negative returns, the S&P BSE Fast Moving Consumer Goods (FMCG) and the National Stock Exchange Nifty FMCG indices have delivered a solid 16 per cent return during the same period. Initially, volume growth and reduced costs bolstered the sector's sentiment, but brokerages have grown cautious due to increased competitive pressures.
Second quarter numbers hint at a rocky road ahead with a slowdown in discretionary categories set to continue.
Even as large fast moving consumer goods companies like Hindustan Unilever and ITC struggle with their volume growth, mid-tier FMCG companies like Godrej Consumer Products, Marico, Dabur and Nestle have reported strong spurts in volumes as they focus on inorganic growth and rural markets, according to industry experts.
Slowdown? If there is one, producers of colas, tea, biscuits and toiletries -- or fast moving consumer (FMCG) goods -- haven't noticed. All of them are reporting substantial growth in sales volumes in the first three months of 2009. A major reason for this surge in sales is changing income demographics -- newer buyers in small towns are opting for branded products. Also, price cuts have reduced differentials between premium and economy products, inducing consumers to
Other than ITC, other laggards include PowerGrid, Infosys, M&M, NTPC, SBI, HDFC, Kotak Bank, HDFC Bank, TCS, Hero MotoCorp, Coal India, ONGC, RIL, Asian Paint, IndusInd Bank, ICICI Bank, Maruti Suzuki, Bajaj Auto, Tata Motors, Bharti Airtel and Axis Bank.
Diversified entity ITC Ltd on Thursday reported a 22.66 per cent rise in consolidated net profit at Rs 5,225.02 crore in the fourth quarter ended March 2023, led by a strong growth momentum across operating segments. The company had posted a net profit of Rs 4,259.68 crore a year ago, ITC Ltd said in a regulatory filing. Its revenue from operations increased 7 per cent to Rs 18,799.18 crore in the period under review against Rs 17,754.02 crore in the year-ago period.
With 21 states having implemented value-added tax and eight states still to adopt it, the impact of the new tax regime is seen largely positive for sectors like FMCG, paper and pharmaceuticals.
Manufacturing companies have been outperformers on the bourses in the current year, leading to a rise in their weighting in the benchmark index. Companies in sectors such as FMCG, automobile, pharmaceuticals, metals, cement, and agrochemicals now account for 25.43 per cent of the Nifty 50 index, up 88 basis points from 24.55 per cent at the end of December last year and a record low of 23.1 per cent at the end of CY20. The manufacturing sector is now dominated by FMCG majors such as Hindustan Unilever, ITC, Asian Paints, Nestle, and Britannia, accounting for 45 per cent of the combined market cap of all manufacturing companies in the index.
Companies in the FMCG space are increasing their focus on herbal and ayurvedic category in India
The thrust on agriculture, removal of Fringe Benefit Tax etc should help improve the earnings of the FMCG sector
Despite a dull macro-economic environment almost all the FMCG companies posted a decent volume growth.
The booming recruitment environment that B-schools experienced in 2007 could be back on the campuses next year as the fast moving consumer goods (FMCG) sector is planning around 40 per cent increase in the number of pre-placement offers (PPOs).
A hotel in 1975, entry into paperboards in 1979, India's dominant cigarette maker, ITC, read the tea - or tobacco - leaves early, leveraged its enterprise strengths and stepped up the diversification agenda to create multiple drivers of growth. Some failed, some faltered, some were transformational, adding steadily to the top line. Now those efforts are making a difference: margins from non-cigarettes - FMCG, hotels, agri, paperboards, paper and packaging - are expanding and profits are kicking in more significantly than ever before.
Winds of change are blowing across the fast-moving consumer goods market.
Watchmaker Ajanta India Ltd has forayed into the fast-moving consumer goods sector with a gamut of consumer care products and expected to close the current fiscal with a turnover of Rs 120 crore.
ITC, Godrej Agrovet, DCM Shriram and other companies expanding in rural areas may eclipse the growth of their urban counterparts, including Reliance Fresh and the Future Group-owned Food Bazaar chain, helped by higher farm income that is spurring a boom in sales of fast moving consumer goods, consumer durables and apparel.
With Bharti Airtel making it to the list of top-ten advertisers of the year, cellular phone service providers as a category have overthrown fast moving consumer goods (FMCG) products such as toilet soaps and shampoos to emerge as the top advertising category on television in 2007.
Market research company, AC Nielsen, in its monthly retail sales audit of consumer goods, has identified 24 categories in the personal grooming space that are growing at an average rate of 13 per cent.
'In the next one-and-a-half, two months you'll get decent amount of opportunities in the mid-cap and small-cap sector at lower levels.'
Excise duty hike for cigarettes could be lower.
From the Sensex pack, Bharti Airtel, HDFC Bank, Titan, UltraTech Cement, ITC, Sun Pharma, Bajaj Finserv, Bajaj Finance, Hindustan Unilever and Kotak Mahindra Bank were among the major gainers. Tata Steel, Axis Bank, NTPC, ICICI Bank and IndusInd Bank were the major laggards.
The budget was negative for the FMCG sector.
After shampoos and oral care, fast-moving consumer goods (FMCG) companies are betting big on soaps this year.
FMCG import bill is bloated, Modi must do something to bring it down.
HUL has achieved few milestones in the fiscal gone by and hence is performing good on revenues front.
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