Thursday, May 2 2024 | Time 07:23 Hrs(IST)
image
Business EconomyPosted at: Apr 17 2019 9:05PM


FMCG starts 2019 on a robust note

Kolkata, Apr 17 (UNI) The FMCG Industry has kickstarted 2019 with another double-digit value growth of 13.6pc in Q1’19, in sync with the forecast in the last quarter.
This is at a slightly lower note than the last quarter of 2018 calendar year (-2.3 pc from the previous quarter).
Similar sentiments were witnessed in the economy with a 6.6 pc GDP growth in the December quarter of 2018 against an expected 6.8pc. Inflationary pressure is mounting in recent months from 2pc in Jan’19 to 2.9pc in March’19The FMCG Industry continues to be driven by volume growth which is at 9.4pc in Q1’19 contributing 69pc to the overall value growth.
Commenting on the report, Sunil Khiani, Head Retail Measurement Services, Nielsen South Asia said, “While the slight drop is witnessed in urban growths, there is a significant softening of growth trends in rural which is dampening the overall FMCG industry growth from Q3’18 to Q1’19. Historically, rural has grown 3-5pc points faster than urban and the recent slowdown in rural growth also brings the growth closer to the urban growth.”

Mr Khiyani added, “the overall drop witnessed in rural growth is majorly driven by a slow down in packaged food category. We see significant growth slow down among small players as compared to large manufacturers. The magnitude of the slowdown for small players is even greater in rural.”

FMCG INDUSTRY TRENDS

Macro-Economic Factors: Inflation is expected to inch up closer to the 4pc mark (2X) as the year progresses from a low of 2.1pc reported in Dec 2018. GDP hit a 6.6pc in Q4 2018 and the forecast for Q1 2019 is expected to be in the ~6.4pc range. The full year is expected to be stable and end at~7.2pc range similar to how FY 2018 panned out (7.1pc). Having said that, these metrics are still conducive and buoyant as compared to the rest of the world.

Rural Consumption Story: Rural consumption this year is healthy but softening. While there is a significant rural impetus in terms of various government schemes, disbursement of MNREGA, Minimum supplier price being raised for crops and including expected populist measures, surging non-farm income, rainfall could play the spoilsport! Forecasts of a 63below normal monsoon this year at 93 pc as against a normal range of 96-104% is another key area
to watch out for.

The Low Base Effect: The high base, especially in Q3 and Q4 of 2018 to the tune of ~16%, will have an impact on the Q3 and Q4 forecast for 2019 and we expect to be in the high single-digit range.
UNI PL RN
Please log in to get detailed story.
Tags: #FMCG starts 2019 on a robust note
More News

Jindal Stainless announces Rs 5,400 crore strategic investment

01 May 2024 | 8:06 PM

New Delhi, May 1 (UNI) Jindal Stainless on Wednesday announced a three-pronged investment strategy worth nearly Rs 5,400 crore to expand its capacity and become a key player globally in the stainless steel sector.

see more..

TVS register 25% sales growth in April

01 May 2024 | 5:45 PM

Chennai, May 1 (UNI) Two and three-wheeler makers TVS Motor Company registered a 25% growth
with sales increasing from 306,224 units in April 2023 to 383,615 units in April 2024.

see more..

Adani Wilmar Food & FMCG segment reaches milestone of almost INR 5,000 Cr in FY’24, and nearly doubles in 2 years

01 May 2024 | 5:44 PM

Ahmedabad, May 01 (UNI) Adani Wilmar’s sales volume continued to grow well, witnessing strong volume growth in both edible oils and foods businesses during the quarter and for the full year, driven by increased retail penetration.

see more..

TVS Motor Company registers sales growth of 25 pc in April 2024

01 May 2024 | 5:33 PM

Bengaluru, May 01 (UNI) TVS Motor Company has registered a growth of 25 per cent with sales increasing from 306,224 units in April 2023 to 383,615 units in April 2024.

see more..

Hyundai register sales of 63,701 units in April

01 May 2024 | 5:19 PM

Chennai, May 1 (UNI) Passenger car makers Hyundai Motor India registered a total sales
of 63,701 units (Domestic 50,201 units and exports 13,500 units) in April this year, posing
a YoY growth of 9.5 per cent.

see more..
image