The FMCG industry in India is expecting low to mid-single-digit volume growth in the July-September quarter due to weak macroeconomic conditions and below-normal rainfall. Companies such as Marico, Dabur, and Godrej Consumer Products Ltd have reported a gradual recovery in consumption, with the festive season shifting to the third quarter. The companies expect improved gross margins due to moderating inflation and easing price growths. However, rural demand remains weak, and urban-focused companies are expected to have an advantage.
FMCG giants Marico, Dabur, and Godrej Consumer Products highlighted that the festive season has entirely shifted to Q3, thus delaying demand into the next quarter.
Over their gross margins, the companies said they expect it to be better sequentially, helped by moderating inflation and easing price growths. This also helped them to go for higher A&P (Advertisements and Promotions) spending.