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.
The FMCG industry hopes for a revival in consumption growth in 2025 with some 'green shoots' already visible, after having a challenging year amid escalating input costs and a double-digit rise in food inflation, which ultimately slowed down the pace of the urban market growth in the second half of 2024. Soaring prices of commodities such as palm oil, coffee, cocoa and wheat forced FMCG players to go for a hike of 3 to 5 per cent or resort to shrinkflation by reducing pack sizes and grammage to retain attractive price points, fearing a volume loss.
Leading FMCG companies reported a decline in margins in the September quarter on account of higher input costs and food inflation, which ultimately slowed down the pace of urban consumption. Rising prices of commodity inputs such as palm oil, coffee and cocoa were also accentuated and some FMCG firms have hinted at a price hike. HUL, Godrej Consumer Products Ltd (GCPL), Marico, ITC, and Tata Consumer Products Ltd (TCPL) have expressed concerns over squeezing urban consumption, which according to industry experts forms 65-68 per cent of FMCG total sales.
Godrej Consumer Products Ltd (GCPL) reported a 2 per cent year-on-year (Y-o-Y) increase in consolidated revenue to Rs 3,670 crore. Organic revenue growth in constant currency was up 14 per cent Y-o-Y. Consolidated operating profit was up 5 per cent to Rs 760 crore, profit before tax grew 10 per cent Y-o-Y to Rs 710 crore, and adjusted net profit grew 12 per cent Y-o-Y to Rs 490 crore.
Global consumer goods firm Sara Lee Corp is selling its 51 per cent stake in joint venture with Indian company Godrej to Godrej Consumer Products Ltd for 185 million euros (about 234 million dollars), as the US-based company focuses on growing its food and beverage businesses.
Jamshyd Naoroji Godrej and his sister Smita Crishna Godrej-controlled Godrej & Boyce will hold the exclusive construction rights over a vast land bank, including a prime 3,000 acre-property in Mumbai, they got as part of the family agreement that split the Godrej empire, as per sources and regulatory filing. According to the agreement reached late Tuesday, the 127-year-oldgets to keep what group will be split into two entities - one led by Adi Godrej and his brother Nadir and the other by their cousins Jamshyd and Smita.
Godrej Consumer Products Ltd declared interim dividend of Rs 2 per share for the financial year 2002-03.
The 79-year-old industrialist will continue to serve as chairman of the Godrej Group and chairman emeritus of GIL, said the statement. "Nadir Godrej, who is currently managing director of GIL, will take over as chairman and managing director of the company," it added.
PI Industries, GCPL, Colgate and HUL have delivered positive returns every year since 2008.
Strengthening its portfolio in personal and household care segment, FMCG major Godrej Consumer Products on Friday said it has acquired 'Swastik' and 'Genteel' brands for an undisclosed amount.
"Both domestic and international business grew well this quarter. Growth in net sales of the domestic business was close to 50 per cent, while the international business saw nearly a three-fold growth during the same period. Our international acquisitions have played a role in helping us register good numbers this quarter."
Godrej Consumer Products buyback soon Godrej Consumer Products Ltd has informed BSE that the buyback announced on January 16, 2003 will commence on or after January 24, 2003.
It is also planning to introduce some of its acquired overseas brands in India and evaluating a re-entry into air freshners.
After months of pursuing PT Megasari Mamsur, the Indonesian household product maker, Godrej Consumer Products Ltd on Tuesday announced it has sealed the deal to acquire Megasari, as well as its distribution arm, PT Intrasari Raya.
Asked about the possible size of acquisitions, GCPL said,"The company is open to deals which are valued up to Rs 1,000 crore."
"If at all Godrej plans to buy out the global household business of Sara Lee, there will be strong competition from multinationals like Unilever and P&G. So, it is unlikely that GCPL will go ahead with it," a research analyst from Religare Capital Markets said.
Godrej Consumer Products Ltd (GCPL), aiming to expand and double sales of its flagship brand Cinthol, has recently roped in actor Hrithik Roshan as brand ambassador.
Cinthol the flagship brand of Godrej Consumer Products Ltd has been recognised as a Superbrand by the Superbrands Council, UK.
Leading FMCG companies in the country are expecting their sales growth numbers in high double digit in the April-June quarter, a period when the broader market was severely impacted by the second wave of the COVID-19 pandemic. FMCG companies such as Godrej Consumer Products Ltd (GCPL) and Marico, in their quarterly updates to bourses, informed about double-digit sales growth. While Tata Consumer Products Ltd (TCPL) MD and CEO Sunil D'Souza in an interview had told PTI, the Tata Group FMCG firm expects higher growth in the Q1/FY'22 over Q4/FY'21.
After stepping down from the board with effect from September 30, he will remain as Chairman Emeritus of the FMCG firm, according to a statement issued on Wednesday. The 79-year-old industrialist passed on the baton of GCPL to his younger daughter Nisaba Godrej in 2017 after leading the company for 17 years.
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Sun Pharma was the top gainer after SPARC received Sebi nod to raise up to Rs.250 crore through a rights issue
The group's much-touted acquisitions in recent years follow a series of disappointments in joint ventures.
India was the flavour of the year, at least in the FMCG sector, as multinationals hiked stakes in their subsidiaries lured by long term potential of the country, while homegrown executives made their way to top hierarchy of global firms in 2013.
Vivek Gambhir revels in his two-city life between the Godrej-owned flagship in Mumbai and his own family in New Delhi.
Godrej and Big Bazaar have stood out in the consumer goods and service spaces by acing the challenge of aligning innovation with outcome.
As rural demand tapers, companies are back at the drawing board, firming up plans to beat the unexpected slowdown in sales.
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