Bitter-sweet
Changing global cereal prices are expected to influence FMCG product prices directly.
Changing global cereal prices are expected to influence FMCG product prices directly.
With a strategy which seeks to close the gaps left by the big players, India’s mid-sized FMCG companies have found their sweet spot.
Sector Macroscope
Rural India contributes around 36% (due to lower per-capita consumption) of consumer goods companies' revenue, but it accounts for two-thirds of India's population.
Volume growth, however, will be just 1-2% compared with 2.5% last fiscal, the ratings agency says.
FMCG companies were on a price-hike spree for the past two years. But the change in tactic is because there is a clear softening of rural demand, a big driver for FMCG revenues at 65-70%.