Page 14 - Fmcg

FMCG margins get a leg up on lower input costs, higher product prices

Even as consumption demand in rural as well as urban markets remains under pressure, fast moving consumer goods (FMCG) companies have some reason to cheer. With crude oil as well as palm oil prices near their three-month and five-month lows, respectively the input cost inflation for companies making paints and soaps such as Asian Paints, Hindustan Unilever (HUL), Godrej Consumer Products, Pidilite, amongst others could come down. Interestingly, most of these companies have already reduced the promotional intensity and/or taken price hikes in these products to reflect the increase seen earlier in input costs on a year-on-year basis. Both these factors will aid their margins in the near term. In fact, price hikes could also aid realisations and compensate for continued weakness in volumes to some extent, believe analysts. The rupee, too, has strengthened in recent times and is hovering around its year high now. This also benefits consumer companies as it further reduces the cost of ...

FMCG, healthcare sectors beat market return over 10yr period: Ambit Capital

One year horizon has 7.4 times the risk involved in a 10-year investment horizon

FMCG companies streamline supply chains ahead of roll-out

Currently, consumer goods cos have warehouses in every state to avoid paying a 2% CST for goods sale

FMCGs in investment mode

Firms are planning to push up brand-building effort and increase product prices in the future

FMCG to get a major push via govt's common service centres

Branching out from just providing digital services, education and online transaction, the government is now tying up with major FMCG players to push their products via 2.5 lakh common service centres (CSCs).The government is in talks with companies including Proctor and Gamble, Hindustan Unilever and Patanjali among other major players. "The government is focused on expansion of CSCs because it can transform rural India. With the sale of Patanjali products door has been opened for popularizing e- commerce through CSCs," Ravi Shankar Prasad, Minister for IT and Law said.Common service centres are points in villages where government provides a host of governmentservices such as ration card, birth certificates, railway tickets and also facilitate transfer money, fill forms online and also train people in using digital services."With the demand for FMCG products in villages increasing, it was decided to use the vast network of CSCs to sell these products. People in villages can come to ...

FMCG industry likely to grow by over 15% in 2-3 years

The fast moving consumer goods industry, that witnessed a slowdown for the past three years, has a potential to grow by more than 15 per cent over the next 2-3 years if players in the sector focus on improving brand penetration, a recent study revealed. "India is at the cusp of the FMCG S-curve and there is significant room to grow over the next 5-10 years. A nominal GDP growth rate of roughly 12 per cent over the next three years could signal an FMCG growth by over 15 per cent, depending on player action," the CII-Bain & Company said. The industry's growth rate compared to GDP has fallen to 0.8 from a historical ratio of 1.2, it said. "This slowdown is perplexing; it cannot be fully explained either by changes in consumer spending power-which have only marginally decelerated in growth or any significant shifts to non-FMCG categories, including the rise of e-tailing," the report said. During the slowdown, FMCG companies scaled back growth-oriented investments and shifted focus

Costly summer: You'll have to shell out more for snacks, ice-creams, soaps

Rising input costs cited as the reason by major household names like Britannia and Amul

Prospects brighten for FMCG in Q4

Consumer goods sales may rise as note ban effect wears off and Budget gives boost to rural India

FMCG players expect growth to return in FY18: GCPL

Last week, GCPL had reported 4.34% fall in third quarter consolidated profit to Rs 351.78 crore

FMCG expects demand recovery in FY18

Poor volume growth in the sector has been a major roadblock for most consumer goods company

FMCG looks beyond 'temporary blip', keeps faith in GST

Organised players believe demonetisation, GST will stand them in good stead vis-a-vis unorganised players

National FMCG brands prefer M&A route to south

Examples in 2015 were Hindustan Unilever, Godrej Agrovet and Future Consumer Enterprises

FMCG sales growth declines further in September quarter

FMCG sales volume growth declined nearly 75% from 7% during the same period a year ago

Future Group forays into cash and carry with UK's Booker Group

The company, with a stated goal of Rs 1 lakh crore in annual turnover by 2021, made this announcement in a BSE filing

FMCG firms brace for retailer backlash

E-commerce majors & airline operators rejoice

FMCG companies feel slowdown heat

September quarter results till now of consumer goods companies show most faced a tough time in the period

Indian FMCG firms outpace MNCs in growth, revenue: Study

Highest profit after tax margin is maintained at 25.48% by ITC during 2015-16

Marico, Colgate see low volume growth; Nestle sales surge on lower base

Marico's volume sales grew 3.4% (in India); Colgate-Palmolive posted 4% growth

FMCG: Focus shifts to rural India

In the past four quarters, for instance, volume and value growth have fallen from 7.2 per cent and 9.7 per cent, respectively, to 3.2 per cent and 4.4 per cent, according to Nielsen data

India's FMCG sector to reach $104 bn by 2020: Study

FMCG is the fourth largest sector in the Indian economy and provides employment to around three million people