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Business Standard
5 hours ago
- Business
- Business Standard
Indo-Pak conflict: FMCG sales soar, auto sector hit in border areas in May
The sale of fast-moving consumer goods (FMCG) surged, while the automobile sector saw a dip in May in the border states of Rajasthan, Punjab, Gujarat, and Jammu & Kashmir, as the fear of a potential war between India and Pakistan led to uneven consumer behaviour, according to available industry data and experts. While panic buying triggered a spike of up to 20 per cent in the FMCG segment, sales of automobiles were severely hit in these states, with market leader Maruti Suzuki being the worst-affected. Cinema halls saw a 50 per cent drop in footfall during the month, while fuel outlets too recorded a decline in sales. In the pharmaceutical sector, sales were almost flat in these areas. However, sources reveal that none of the above sectors witnessed any supply concerns despite disruption in logistics due to rising tensions in these states between April 22 and May 10 — the period from the Pahalgam terrorist attack to de-escalation of military action. 'During such tense times, people worry if they will be able to get their daily necessities. They generally stock up on items like oil, flour, sugar, among other daily needs items. We witnessed a spike in buying of these items at towns closer to the borders. We saw a spike of 8–10 per cent which then impacts later buying of these products once the situation normalised,' said Angshu Mallick, managing director and chief executive officer at AWL Agri Business (formerly known as Adani Wilmar). Parle Products, which is known for its biscuits, also saw a week of spike in sales of 15–20 per cent. 'Consumers resorted to pantry loading during the week of Operation Sindoor which then normalised,' a company source said. According to a Shriram Mobility report, freight movement in some parts of the areas along the India-Pakistan border was disrupted due to night-time blackouts during Operation Sindoor, temporarily halting logistics operations. Vehicle sales and rentals in the border states were also impacted. While motor car sales fell by 21 per cent month-on-month (M-o-M) in Jammu & Kashmir, 18 per cent in Rajasthan, and by 13 per cent in Gujarat. Maxi cabs fell by 43 per cent in Gujarat, by 50 per cent in Jammu & Kashmir, and by 20 per cent in Rajasthan, the Shriram report added. 'Operation Sindoor caused a minor blip in business activities, both in terms of goods movements and vehicle sales in border states, but it has since returned to normal,' said Y S Chakravarti, chief executive officer and managing director, Shriram Finance. In the passenger vehicle segment, market leader Maruti Suzuki has a 55 per cent market share in these four states. 'I would also like to highlight the recent military action along the borders of J&K, Punjab, Rajasthan, and Gujarat. These are markets where we enjoy very high market share. All these markets contribute close to 22 per cent of our sales, and the cities which were impacted — almost 9 per cent of our sales come from this market,' said Partho Banerjee, head of sales and marketing at Maruti Suzuki. The company witnessed a 5 per cent dip in its total domestic sales to 148,858 units in May. Commenting on the impact of border tensions on the pharmaceutical sector, Sheetal Sapale, vice-president (commercial) at market research firm Pharmarack, noted that while border states experienced a slight stagnation in sales in May compared to April, historical data shows that a minor dip during this period is typically observed. According to Pharmarack data, the grouping of northern states, including Punjab, Chandigarh, Jammu and Kashmir, and Himachal Pradesh, saw a 1 per cent rise in sales for May 2025 at ₹825 crore from ₹818 crore a month ago. On the other hand, border states such as Rajasthan and Gujarat witnessed a slight drop in sales figures. While the numbers for Rajasthan were ₹609 crore in May, compared to ₹701 crore in April, Gujarat saw a 2 per cent drop in sales, from ₹877 crore in April to ₹855 crore in May. Sapale added that the border tensions had eased during the final week of May, which coincides with the sales closing period for the pharma industry. 'This likely helped prevent any significant disruption in overall sector performance,' she said. Petrol and diesel sales were down by more than half in the region during the month, compared to a normal May. 'Our supplies were not affected but sales declined by more than 50 per cent when the crisis was at its peak. Anyway, we don't have any outlets near 20–30 kilometers of our border areas,' said Ajay Bansal, president of the All India Petroleum Dealers Association.
Time of India
19-05-2025
- Business
- Time of India
Quick commerce sprints ahead but still a small slice for FMCG giants
Kolkata|Bengaluru: Quick commerce may have been the fastest-growing channel for consumer goods manufacturers for the past two fiscal years —led by the top seven to eight cities—yet its contribution to overall sales is still a modest 2-4% for most large companies, according to their latest disclosures. Six of the largest companies — Hindustan Unilever , Britannia , AWL Agri Business (formerly Adani Wilmar), Dabur , Tata Consumer Products and Marico — posted cumulative quick commerce sales of over Rs 4,400 crore in FY25. Most of them shared the percentage contribution of quick commerce to overall sales for the first time in recent earnings calls. Demand Expanding at 50-100% Industry executives said this indicates the exact scale of the shift of consumption in large cities from kiranas and modern trade to the newer channel. In FY25, quick commerce sales led by Blinkit, Swiggy Instamart, Zepto and BigBasket have grown at 50-100% year-on-year for most of the large fastmoving consumer goods (FMCG) companies. The platform is fast expanding to new locations. For HUL, quick commerce accounted for 2% of business, translating to Rs 1,214 crore in FY25. For Britannia, it was about 4% (Rs 675 crore), 7% of Tata Consumer Products' domestic sales (Rs 900 crore) and 3% for Marico (Rs 244 crore). Company and industry executives said it accounted for 4% at Dabur (Rs 500 crore). Unlisted Parle Products also had a 4% share from quick commerce, they said. The company is yet to file financials for FY25 with the Registrar of Companies. Quick commerce revenue in FY25 has grown to Rs 900 crore, having doubled over the previous fiscal, said Angshu Mallick, chief executive of AWL Agri Business, India's largest packaged edible oil company. 'Quick commerce business has grown at 100% last fiscal as the platforms added several new towns,' he told ET. 'They have made life simple for consumers by giving them ease of buying at no extra cost with price comparison of the full range, which is not possible with next-door grocers.' Companies such as HUL and AWL Agri Business said in their earnings calls that margins are better in ecommerce and, more specifically, quick commerce due to the higher share of premium products sold through these platforms. However, there might be an increased cost on sales promotion to ensure products feature high up on the list during searches on the quick commerce apps, AWL Agri said. Quick commerce has been gaining share in the top eight to 10 cities at the cost of general trade and modern retail, according to companies and the latest data from researcher NielsenIQ.
Economic Times
19-05-2025
- Business
- Economic Times
Quick commerce sprints ahead but still a small slice for FMCG giants
Kolkata|Bengaluru: Quick commerce may have been the fastest-growing channel for consumer goods manufacturers for the past two fiscal years —led by the top seven to eight cities—yet its contribution to overall sales is still a modest 2-4% for most large companies, according to their latest disclosures. Six of the largest companies — Hindustan Unilever, Britannia, AWL Agri Business (formerly Adani Wilmar), Dabur, Tata Consumer Products and Marico — posted cumulative quick commerce sales of over Rs 4,400 crore in FY25. Most of them shared the percentage contribution of quick commerce to overall sales for the first time in recent earnings calls. Demand Expanding at 50-100%Industry executives said this indicates the exact scale of the shift of consumption in large cities from kiranas and modern trade to the newer FY25, quick commerce sales led by Blinkit, Swiggy Instamart, Zepto and BigBasket have grown at 50-100% year-on-year for most of the large fastmoving consumer goods (FMCG) companies. The platform is fast expanding to new locations. For HUL, quick commerce accounted for 2% of business, translating to Rs 1,214 crore in FY25. For Britannia, it was about 4% (Rs 675 crore), 7% of Tata Consumer Products' domestic sales (Rs 900 crore) and 3% for Marico (Rs 244 crore). Company and industry executives said it accounted for 4% at Dabur (Rs 500 crore). Unlisted Parle Products also had a 4% share from quick commerce, they said. The company is yet to file financials for FY25 with the Registrar of commerce revenue in FY25 has grown to Rs 900 crore, having doubled over the previous fiscal, said Angshu Mallick, chief executive of AWL Agri Business, India's largest packaged edible oil company.'Quick commerce business has grown at 100% last fiscal as the platforms added several new towns,' he told ET. 'They have made life simple for consumers by giving them ease of buying at no extra cost with price comparison of the full range, which is not possible with next-door grocers.' Companies such as HUL and AWL Agri Business said in their earnings calls that margins are better in ecommerce and, more specifically, quick commerce due to the higher share of premium products sold through these platforms. However, there might be an increased cost on sales promotion to ensure products feature high up on the list during searches on the quick commerce apps, AWL Agri said. Quick commerce has been gaining share in the top eight to 10 cities at the cost of general trade and modern retail, according to companies and the latest data from researcher NielsenIQ.
Time of India
19-05-2025
- Business
- Time of India
Quick commerce sprints ahead but still a small slice for FMCG giants
Kolkata|Bengaluru: Quick commerce may have been the fastest-growing channel for consumer goods manufacturers for the past two fiscal years —led by the top seven to eight cities—yet its contribution to overall sales is still a modest 2-4% for most large companies, according to their latest disclosures. Six of the largest companies — Hindustan Unilever , Britannia , AWL Agri Business (formerly Adani Wilmar), Dabur , Tata Consumer Products and Marico — posted cumulative quick commerce sales of over Rs 4,400 crore in FY25. Most of them shared the percentage contribution of quick commerce to overall sales for the first time in recent earnings calls. Demand Expanding at 50-100% Industry executives said this indicates the exact scale of the shift of consumption in large cities from kiranas and modern trade to the newer channel. Agencies In FY25, quick commerce sales led by Blinkit, Swiggy Instamart, Zepto and BigBasket have grown at 50-100% year-on-year for most of the large fastmoving consumer goods (FMCG) companies. The platform is fast expanding to new locations. For HUL, quick commerce accounted for 2% of business, translating to Rs 1,214 crore in FY25. For Britannia, it was about 4% (Rs 675 crore), 7% of Tata Consumer Products' domestic sales (Rs 900 crore) and 3% for Marico (Rs 244 crore). Company and industry executives said it accounted for 4% at Dabur (Rs 500 crore). Unlisted Parle Products also had a 4% share from quick commerce, they said. The company is yet to file financials for FY25 with the Registrar of Companies. Quick commerce revenue in FY25 has grown to Rs 900 crore, having doubled over the previous fiscal, said Angshu Mallick, chief executive of AWL Agri Business, India's largest packaged edible oil company. 'Quick commerce business has grown at 100% last fiscal as the platforms added several new towns,' he told ET. 'They have made life simple for consumers by giving them ease of buying at no extra cost with price comparison of the full range, which is not possible with next-door grocers.' Companies such as HUL and AWL Agri Business said in their earnings calls that margins are better in ecommerce and, more specifically, quick commerce due to the higher share of premium products sold through these platforms. However, there might be an increased cost on sales promotion to ensure products feature high up on the list during searches on the quick commerce apps, AWL Agri said. Quick commerce has been gaining share in the top eight to 10 cities at the cost of general trade and modern retail, according to companies and the latest data from researcher NielsenIQ.
Time of India
10-05-2025
- Business
- Time of India
Border tensions spark a pantry rush
Residents of border areas in Punjab , Jammu and Kashmir , Rajasthan and Gujarat have started stocking up essentials, fearing disruption in supplies with the India-Pakistan tensions escalating in the past three days, companies and traders said. Meanwhile, Union minister for consumer affairs, food and public distribution Pralhad Joshi advised people not to fall prey to misleading reports on food stocks, assuring that the country has stocks many times higher than the normal requirement, whether it is rice, wheat, or pulses such as chana, tur, masoor, or moong. "There is absolutely no shortage, and citizens are advised not to panic or rush to the markets to purchase food grains," he wrote in a post on X. Companies like ITC , Parle Products, Amul and AWL Agri Business are ramping up supplies of atta, pulses, edible oil, biscuits and packaged foods such instant noodles in these markets, as distributors and retailers are buying 15-20% more stock than usual to meet increased demand, industry executives said. Demand has gone up in the north-eastern border states as well. For staples like wheat and pulses, traders have started stocking for 2-3 months instead of the usual 15-30 days. Wholesale prices of imported commodities such as pulses have already increased by '1-2 per kg as traders fear supply disruptions, industry executives said. "We have seen some surge in demand in the border states, especially in Punjab for fresh and packaged items. People are making advance purchases of essential items," said Jayen Mehta, MD, Amul. He said consumers should not panic as the company has capabilities to provide milk round the clock. AWL Agri Business, India's largest packaged edible oil manufacturer, has 15 warehouses in North from where it can easily move stock to other places if there are shortages, said chief executive Angshu Mallick. Parle Products vice president Mayank Shah said there is almost 15% increased order from distributors from the border states, especially the markets close to the borders, for its products like biscuits. "Distributors are saying consumers are stocking up fearing disruption in supplies in case the tension further escalates," he said. In his post, minister Joshi warned that anyone indulging in hoarding or stockpiling would be prosecuted under the Essential Commodities Act . He asked traders, wholesalers, retailers or business entities which engage in the trading of essential commodities to cooperate with law enforcement agencies. In Chandigarh, the administration on Friday issued an order prohibiting hoarding of essential commodities like food items and fuel by retailers, traders, wholesalers and business entities, since there is an "artificial scarcity, abnormal price rise and potential law and order issues." After India's Operation Sindoor striking terrorist camps in Pakistan and Pakistan-occupied Kashmir on May 7, Islamabad attempted to engage a number of military targets in northern and western India in past two days, including in Srinagar, Jammu, Pathankot, Amritsar, Kapurthala, Jalandhar, Ludhiana, Bhatinda, Chandigarh and Bhuj using drones and missiles, as per a defence ministry release. While India neutralised these attempts, the development has affected normal life in these places, pushing people to stock up. Some of the pantry buying is also fuelled by unscrupulous social media posts which appeal to stock up on daily essentials such as food, medicines and cash. "There is huge demand for staples like atta and suji from the affected places. Usually, people buy one 5 kg or 10 kg pack of atta, but now they are buying 2-3 packs," said Navneet Chitlangia, president of the Roller Flour Millers Federation of India. A senior executive of a leading food and grocery retail chain said panic buying is also happening in north-eastern states.
