Key Points
Not just Hukkeri but the entire consumer goods sector is waiting to see how the monsoon season ends and impacts the revival of demand and sales, which have slowed down in the last few quarters due to persistent food inflation that has shrunk consumers wallets...
So much so that HUL, arguably the biggest FMCG player, which garners about 40 percent of its sales from the rural areas, reported about 6 percent year-on-year (YoY) decline in its net profit to Rs 2,406 crore in the last quarter (Q4) of the financial year 2024, the biggest since the Covid-impacted quarter of January-March 2020...
According to a report this month by consumer intelligence company NielsenIQ, FMCG sales volumes in India registered a low growth of 3.8 percent YoY in the April-June (Q2) quarter of the calendar year 2024 as compared to 7.5 percent witnessed in the same period last year..
An average consumer in the rural areas of India spends about 46.4 percent of their earnings on buying food, while one in the urban areas spends just 39.2 percent, according to the governments All India Household Consumption Expenditure Survey for 2022-2023, released this February...
Moderating inflation, improving agriculture terms of trade, an expectation of normal monsoons and the governments thrust on public infrastructure and the rural sector augur well for a pick-up in consumption demand, building on the green shoots of recovery that are visible in rural markets, ITC said in a statement while reporting its financials for the first quarter of FY25...
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