FMCG giants expect mid-to-high-single-digit value/volume growth between Jan-March [Video]

Delhi: Leading industry players expect improving macro-indicators and expectations of good monsoon and rabi crops to drive consumer demand for FMCG in the current fiscal.

Consumer demand for FMCG (fast-moving consumer goods) remained sluggish amid a subdued operating condition in the March quarter.

The industry expects a mid-to-high-single-digit growth in value/volume in the January-March period, along with a continuation of the gross margins expansion trend, helped by deflation in input cost.

The rural demand, which was sluggish in the last few quarters, has picked up pace from the January-March period, and some FMCG makers have reported a narrowing down of the gap with the urban market.

Rural India contributes nearly 35 to 38% of the FMCG sales in the country.

Besides, further expansion of margins will help the companies to amplify their A&P (advertising and promotional) spending behind their brands, leading listed FMCG firms like Dabur, Marico and Godrej Consumer …