July 5, 2024
2 mins read

India’s FMCG Sector Eyes 7-9% Revenue Rise

Higher minimum support prices, and increased government spending on rural infrastructure will also add to rural growth…reports Asian Lite News

The fast-moving consumer goods (FMCG) sector will see a revenue growth of 7-9 per cent in the current fiscal, says rating agency CRISIL in its report. The growth in the sector will be fuelled by higher volume, revival in rural demand and steady urban demand.

The report added that the product realisations are expected to grow modestly with slight increases in key raw material prices for the food and beverages (F&B) segment, while prices for personal care (PC) and home care (HC) segments will remain stable.

The rating agency further added that the Premiumisation and volume growth will expand operating margins by 50-75 basis points to 20-21 per cent, although rising marketing expenses due to intense competition will limit further expansion.

The product realisation combines market requirements, technological capabilities, and resources to define new product designs and the requisite manufacturing and field support processes.

The rating agency’s studied 77 FMCG companies, representing about a third of the sector’s Rs 5.6 lakh crore revenue last fiscal, highlights that the F&B segment accounts for nearly half the sector revenue, with Home and Personal Care segments, each accounting for a quarter.

Supported by better monsoon, rural consumer volume growth is expected at 6-7 per cent in fiscal 2025. Higher minimum support prices, and increased government spending on rural infrastructure will also add to rural growth.

Urban consumer volume growth is projected to remain steady at 7-8 per cent, driven by rising disposable incomes and a focus on premium products.

Expressing optimism on the overall outlook, the report added that the revenue will benefit from modest realisation growth of 1-2 per cent and a focus on enhancing premium offerings.

The F&B segment is expected to grow 8-9 per cent, the PC segment 6-7 per cent, and the HC segment 8-9 per cent saysAditya Jhaver, Director, CRISIL Ratings,”We expect volume growth of 6-7 per cent in fiscal 2025 from the rural consumers (40 per cent of overall revenue), supported by expectation of better monsoon benefitting agricultural production, and hike in minimum support price supporting farm incomes. Higher government spending on rural infrastructure, primarily through Pradhan Mantri Awaas Yojana-Grameen (PMAY-G) for affordable houses, will aid higher savings in rural India, supporting their ability to spend more.”(ANI)

ALSO READ: India Eyes Green Energy for Transport Boost

Previous Story

Women Entrepreneurs Get Govt Boost

Next Story

Amitabh Kant leads Indian delegation to G20 Sherpas meet

Latest from Economy

India’s Growth Defies West Asia Tensions

The deepening crisis in West Asia, particularly between Israel and Iran, has had little to no visible impact on India’s economic trajectory or its export performance….reports Asian Lite News The limited trade

UAE credit soars to the top

S&P Global, Moody’s Investors Service, and Fitch Ratings — have all assigned strong sovereign credit ratings to the UAE In a strong show of confidence in the United Arab Emirates’ economic resilience

Miliband shuns £25bn renewable energy project

Whitehall sources say the government will emphasise a desire to focus on “homegrown” energy in a statement explaining its rejection of the Xlinks project The government is snubbing a £25bn renewable energy

Oman Breaks Gulf Taboo on Income Tax

There is no other country in the 6-member Gulf Cooperation Council that imposes income tax….reports Asian Lite News Oman has officially become the first Gulf country to introduce a personal income tax,
Go toTop

Don't Miss

RBI to Keep Rates Steady, Say Experts

 The six-member committee began deliberations on interest rates and analysing

From Nigeria to Kenya, Indian Navy protects Africa coast

Nigeria remains a country of immense significance for India with