Key Points
New Delhi: Packaged consumer goods such as soaps, detergents, and snacks saw tepid demand in rural India in the December quarter, triggering concerns over FMCG sales volumes, according to industry analysts..
Volume growth in rural markets is likely to be either flat or may see a minor dip year-on-year, lagging volumes in urban markets, they said..
Although moderating inflation in diesel and fertilizer costs augurs well for the rural segment, we forecast volume growth for most players shall remain challenging in Q3FY24 and possibly even Q4FY24," Abneesh Roy of Nuvama Institutional Equities said in a report on Tuesday. ..
An undemanding base coupled with continued momentum in construction activity and taming inflation should support consumption, particularly rural and bottom of the pyramid, through the course of the year," analysts at Jefferies said..
On Thursday consumer goods company Dabur India said December quarter witnessed sequential improvement in demand trends although rural growth was still lagging urban growth..
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