FMCG Sector Faces Growth Challenges Amid Inflation and Unseasonal Rains

The FMCG sector in India anticipates lower topline growth in the June quarter due to unseasonal rains and inflation pressures. Despite this, brands like Dabur, Marico, and Godrej show strong urban demand and expect modest volume expansions. Margin improvements are anticipated as rural demand and inflationary conditions stabilize.

The fast-moving consumer goods (FMCG) sector in India is bracing for subdued topline growth in the June quarter as companies grapple with unseasonal rains and inflation pressures affecting key inputs.

Despite these challenges, the sector experienced a sequential recovery in demand, with urban markets boosting volume growth. Major players like Dabur, Marico, and Godrej anticipate low-single-digit volume increases.

Dabur reported strengths in its home and personal care division and expects its key brands to drive robust growth. Marico predicts a modest operating profit as it faces raw material price fluctuations, while Godrej foresees competitive growth in its standalone business.

(With inputs from agencies.)