We have already seen inflation creep up in some key raw materials and this would accelerate in the event of any disruption in the mid-east, external triggers like that or internal issues like poor monsoon, maybe some other triggers.
FMCG industry expects growth driven by improving macro-indicators, good monsoon/rabi crops, rural demand pickup, and international business expansion despite currency challenges, aiming for sustainable profitable growth in medium term.
The market outlook remains dullish, show early trading updates, but companies are not letting that stop them from investing behind brands, advertising & promotions and distribution
During the quarter, the company said FMCG demand sentiment stayed consistent vis-à-vis the preceding quarters with trends in urban and rural consumption largely converging.
Rural markets grew 6.5% by volume in both December and January, and by 11.1% in February, according to executives citing NielsenIQ data. Urban markets, in comparison, grew 6.1% in December, 4.7% in January and 8.7% in February, data showed.