“The Fssai has taken cognisance of the matter and has sought an explanation from Nestle India,” said a senior official from the national foods sector regulator. The authority held a meeting of its officials on Thursday to evaluate the matter.
The maker of Activia yoghurt, Evian water and Aptamil kept its goals for like-for-like 2024 sales growth at between 3% and 5%, with a moderate improvement in recurring operating margin.
Reliance Industries' fast-moving consumer goods (FMCG) company, Reliance Consumer Products (RCPL), clocked ₹3,000 crore sales in FY24, its first full year of operations. Beverage brand Campa Cola contributed ₹400 crore, according to a senior industry executive. The company aims to continue sales growth momentum driven by staples and beverages. RCPL may raise ₹500-₹700 crore this fiscal from its parent company to set up bottling plants for Campa Cola to boost capacity amid supply constraints.
"The new-generation portfolio, which we launched post covid accounts for 15-20% of our business. However, the conventional portfolio still dominates with 80%. This is for the simple reason that volumes come from mass products," Khambatta said.
The consumer goods maker said it bagged strong growth in both its edible oils and foods businesses, aided by strong demand during the festival of Holi and ongoing wedding season.
Consumer goods companies in India are increasing stocks of small packs of biscuits, bhujias, chips, packaged water, and beverages costing ₹5 and ₹10 each by up to 10% across the country, anticipating a short-term spurt in sales during rallies and meetings coinciding with the upcoming general election. Senior executives at several fast-moving consumer goods (FMCG) companies are bullish of robust sales of small packs of such food products till elections.
Indian company ITC has shifted its focus to premiumizing its personal care business, doubling its contribution to sales to 38% in the last four years. This has helped ITC break even in the personal care business, which now generates profit consistently quarter on quarter. The company operates in categories like body wash, deodorant, skin care, and floor cleanser, which is the second critical piece of its strategy to grow the non-cigarette fast-moving consumer goods (FMCG) segment.
The hype around livestreaming, which has become a major driving force of an e-commerce boom that has been sweeping China since the beginning of the COVID-19 pandemic, could help the British consumer goods group in its quest to drive growth in the world's second-biggest economy.
“In the significant per-capita income shift that’s expected to happen in the next few years, the top-tier income segment numbers are expected to grow faster than those income segments which are lower,” said Venkataraman, winner of the ET Business Leader of the Year award.
The growth rate of employee benefit expenses has decreased for large consumer companies in India. This is attributed to lower hiring and muted demand. However, some companies have seen an increase in expenses, indicating continued expansion and investment in talent for growth.
India's neighborhood grocery stores, numbering around 12 million, experienced a slowdown in sales in the last quarter of 2023, while quick-commerce firms gained market share. Companies like Marico, Dabur, and Parle noted challenges in profitability and liquidity for traditional kirana stores. Quick-commerce platforms like Swiggy Instamart and Zomato-owned Blinkit have contributed significantly to FMCG sales, accounting for 30-50% of e-commerce sales for these companies.
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