Despite the impact of the second wave, the FMCG sector did not see any major setback. The sector, in fact, continued to largely remain at similar levels as the pre-COVID times, states a NielsenIQ report
Synopsis
. In April, sales had shrunk 16%. About a fourth of all kirana outlets were shut during the month while month-on-month orders dropped 8%.
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India s fast-moving consumer goods (FMCG) market contracted by a third in May from the preceding month due to lockdowns and restrictions in most states that led to a significant drop in orders from local grocers.
FMCG sales declined 32%, the second consecutive drop in a row for the segment, according to Bizom, which tracks sales of 7.5 million retail stores across the country. In April, sales had shrunk 16%. About a fourth of all kirana outlets were shut during the month while month-on-month orders dropped 8%. This was despite neighbourhood stores, which account for nearly 85% of all consumer product sales, being allowed to operate, albeit with restricted timings.
Read more about FMCG sales up 9.4% in March qtr, but June qtr remains volatile: Nielsen on Business Standard. If e-commerce sales are excluded, the sector growth stood at 9.3 per cent in the March quarter, 7.1 per cent in the December quarter, and 0.8 per cent in the September quarter
FMCG companies queue up before chemists to ease lockdown pain
Several state governments and local administrations have imposed curfews and restrictions on the movement of people and operating timings of shops as part of efforts to curb the rising number of Covid-19 cases.
Synopsis
Companies are resorting to minimising response time of replenishing stocks at channels including pharmacy to meet demand, which is resulting in incremental week-on-week sales.
Companies selling packaged water, juices, oral care products, hand wash, face washes, chocolates and even instant noodles are accelerating supplies and distribution to chemist channels on an immediate basis, since these retailers are allowed to function through the day despite the restrictions in the wake of the new pandemic wave.
April 16, 2021
Funds will be used to expand business
AnKa SumMor, a sales and distribution (S&D) platform for FMCG sector, has raised ₹3 crore in a pre-Series A round led by angel investment platform Inflection Point Ventures (IPV).
The funds raised will be used towards scaling business in Hyderabad and Chennai with improved infrastructure, coverage and branding. It will be also used for expanding operations to Bengaluru, the company said in a press statement.
Fund usage
Ashok George, Founder & CEO, AnKa SumMor, said: “This investment will predominantly go into building the tech stack, critical to manage complexity at scale efficiently and effectively, enhance predictive capabilities and provide market insights to brand partners. We will also invest in increasing S&D infrastructure and resources to increase the number of outlets serviced to deliver growth for existing brand partners, and capacity to add more brands on our platform.”