Growth in FMCG sector
The demand for household products and groceries in the country has increased significantly in the second quarter. That means, tremendous growth has been seen in the FMCG sector of the country. Demand for these goods increased again in the second quarter and FMCG sales registered a year-on-year growth of 4.7%. The most interesting thing in this is that the increase has happened even before the GST cut i.e. 22nd September.
According to the latest data from Numerator, FMCG sales grew 4.7% year-on-year in July-September, up from 3.6% in the previous quarter and 4% growth a year earlier. This British research company maintains data on unpackaged bulk goods as well as branded and local products.
good signs for the market
Vineet Aggarwal, CEO of Wipro Consumer Care and Lighting, told ET that the prices of goods are coming down and the additional expenditure on petrol and diesel has also not increased. The job situation is still a bit weak, but the benefit of tax relief will be visible in the future and good monsoon combined with overall good conditions for the market.
These products sold well
The demand recovery began with home care products, which registered a growth of 6.1%. Sales of washing liquid increased by 61%, while sales of fabric conditioner increased by 15%. Washing powder also delivered a strong growth of 4% on the back of strong sales, thereby boosting the overall FMCG market. Personal care products also remained at a good pace. Skin cream increased by 14%, hair conditioner by 19% and hair dye by 11%. Food and beverages constitute about three-fourths of the FMCG market. Noodles and salty snacks saw a 6% rise, while edible oils saw a 3% rise.
Companies expect more growth
Due to changes in GST, the stock and sales situation in the entire consumer industry was disturbed. Now as the supply chain is coming back on track, most of the companies are expecting higher sales growth in the second half of the financial year.
Hindustan Unilever Managing Director Priya Nair told analysts that if it comes to how we see the business growing, then I would clearly say that our entire focus will be on growth. He said that when we do this, the company has the ability to earn profits properly and keep better operating margins.