Key Points
Several large consumer goods companies including Nestle, Dabur, Coca-Cola, Mondelez and Procter & Gamble have lined up big investments in India to step up capacity and push more premium products despite an ongoing slowdown in demand, particularly for mass products...
"We are investing 7-8% of our turnover on capex, which is much higher than it ever was," Nestle chairman Suresh Narayanan said..
"We expect the demand situation to improve as we enter the new financial year; we are looking at both urban and rural markets to drive growth," Dabur's chief executive Mohit Malhotra said..
Research firm NielsenIQ said in a report last Tuesday that after two years of growth, the FMCG sector's value growth could halve to 4.5-6.5% this year, down from 9.3% in 2023 and 8.4% in 2022, impacted by inconsistent rains, extended rural slowdown and food inflation, which have led to a slowdown in sales across consumer staples and daily essentials...
The industry is pinning hopes on revival in the new fiscal, with infusion of incomes into the economy leading to likely uptick in mainstream volume and value growth, aided by the upcoming general elections, capex push and stabilising commodity prices...
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