India’s fast moving consumer goods (FMCG) sectors is moving fast northwards, it is expected to grow even further owing to strong economic growth, rise in rural and urban income and to support good monsoons.
The sector grew 11.4% in last quarter ending June and further mellowed the growth rate owing to high inflationary pressures and ever rising prices of raw materials.
In coming months the sector is poised to grow betting on expanding its rural footprints and overseas acquisitions.
Our in-house experts also highlighted the emergence of strong regional players across categories such as food, laundry and soaps, further highlighting the risks of increased competition eating into the market share of established players. But the biggest challenge to the growth story is posed by counterfeit products and increased multiple taxation, counterfeit products alone grossed an annual loss of Rs 2700 crores to the sector.
Despite all this the sector is truly following its core philosophy of Fast Moving northwards.
Source: Reuters/Multiple
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