Indian FMCG sectoral revenue to grow 7-9% in current and next fiscal - CRISIL
12/12/2022 10:09
** Indian fast-moving consumer goods (FMCG) revenue will
grow at 7-9% in the current and next fiscal year, driven by
easing inflation and higher rural demand, CRISIL Ratings said in
a note on Monday
** Current fiscal to see operating margins of 100-150 bps
growing 18-19% on higher input costs and sales and marketing
expenses, while second half of the fiscal would see easing raw
material costs profiting the sector, the ratings agency said
** Volume growth in the current fiscal to remain subdued on
sluggish rural demand due to inflation, while less impacted
urban demand will grow faster on higher D2C (direct to consumer)
and e-commerce sales - Anuj Sethi, CRISIL senior director
** Adds that next fiscal will see operating margins at 50-70
bps reaching pre-pandemic levels of ~20% on higher rural demand
and better volume driven growth and coverage of costs
** Food and beverages segment's revenue to grow at 8-10%,
personal care and home care segments to grow at 6-8%, says
Aditya Jhaver, CRISIL director
** CRISIL's findings are based on a study of 76 FMCG
companies accounting for ~35% of the sector
** Nifty FMCG index .NIFTYFMCG up ~22.61% so far this year
(Reporting by Biplob Kumar Das in Bengaluru)
((Biplobkumar.das@thomsonreuters.com))