Global consumer giants are facing challenges. They are lowering forecasts due to tariffs and spending cuts. India is a key growth market for P&G, Reckitt, and PepsiCo. These companies report steady consumption in India. Government incentives and tax relief aid growth. Small, regional players are growing faster. High inflation and cost of living pose challenges.
The FMCG sector anticipates another subdued quarter due to persistent weak urban demand and elevated input costs. While rural demand shows slight improvement, overall consumption remains tepid. Companies like HUL face flat volume growth, while ITC expects moderate cigarette volume increase. Varun Beverages projects strong revenue growth, but Britannia's profitability may be affected by high commodity costs.
The acquisition reinforces ITC’s commitment to build a portfolio of future-facing winning brands that addresses the evolving needs of Indian consumers, and will unlock value creation opportunities by leveraging ITC’s institutional strengths to drive synergies in areas such as product development and innovations, sourcing, manufacturing, supply chain and distribution.
ITC Chairman Sanjiv Puri believes India is well-positioned to handle potential disruptions from US tariffs, especially with ongoing FTA discussions. He anticipates FTAs with the US, EU, and UK, potentially boosting India's economic standing. While acknowledging short-term uncertainties, Puri emphasizes India's competitiveness, digitization, and future-ready portfolio, alongside ITC's strategies for resilience and growth.
Prior to his current role, Raina served as CEO of Nerofix, a Kansai Nerolac Paints company.
The Supreme Court has directed packaged food companies to display ingredient information. This follows a decade of resistance to front-of-pack labeling. Nutrition experts welcome the decision, anticipating healthier consumer choices. The Food Safety and Standards Authority of India has until July 2025 to finalize rules. Companies express concerns about increased costs and potential slowdowns.
The Indian government plans to introduce strict quality norms for beauty products to curb imports of substandard cosmetics. This move will impact the $21-billion beauty and personal care market, which is growing fast. Industry leaders support the objective but want to avoid overlaps with existing standards. Major beauty brands are making presentations to the government for better regulatory alignment.
ITC’s Aashirvaad Masalas has named Tollywood actor Nani as its brand ambassador for Andhra Pradesh and Telangana. Aashirvaad Masalas aims to strengthen its connection with Telugu homemakers through a new TV commercial campaign 'Dammu Meede, Star Meere,' celebrating their culinary expertise. Nani expressed his happiness and looks forward to the collaboration.
Small consumer firms in urban India have grown at double the rate of their larger counterparts over the past year, according to Kantar data. Big companies' sales volume rose by 2-3%, while smaller brands saw 5-7% growth. Inflation, low wage growth, and increased housing costs affected urban purchasing power, with many consumers opting for lower-priced brands.
FMCG companies are increasing their rural distribution networks and offering smaller, affordable packs to cater to growing rural consumption. ITC, Zydus Wellness, and Dabur are among those expanding product availability and variety in rural markets to drive growth. With rural consumption growing faster than urban, the focus on rural development and demand for branded products continues to rise.
Even the most conservative estimates suggest that over 40 crore devotees flocked to the Mahakumbh, far eclipsing the 12 million who attended the 2024 Paris Olympics or the millions who watched the FIFA World Cup Qatar in 2022. Given these immense numbers, you can assume that just being present on-ground could give brands a huge fillip in visibility. But did the mega congregations help the ad biz hit pay dirt or was it a washout? Prasad Sangameshwaran finds out if brands emerged immortal from the experience.
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