Latest news with #KRamakrishnan
Time of India
9 hours ago
- Business
- Time of India
Indians' grocery baskets grow bigger in FY25: Kantar report
Indians made 156 shopping trips to grocery stores in FY25, unchanged since a year ago but the basket size increased in both value and number of packs, said a new report by global research firm Kantar. While they made a purchase once in every 56 hours or close to once in every two days, the average pack sizes have risen by 16%, indicating a shift towards slightly larger quantities. Also, the number of packs rose 13% or by 26 pieces translating into nearly 226 FMCG packs purchased on average compared to 200 packs in FY24. "This indicates confidence returning to the shopper. In addition to this, premiumisation continues, with moderate consumption growth, which leads us to believe that we would see moderate to strong growth in urban FMCG building up in the next quarters," said K Ramakrishnan, managing director, South Asia, Worldpanel Division. "If the macroeconomic factors remain favourable, we should also see rural recovery as we head into the second half of the year." Demand for daily groceries, household and personal products worsened to a two-year low in the March quarter. FMCG volume sales growth in Jan-March quarter was 3.5%, slowest since March quarter 2023. A year ago, the market had grown 5.5% in the same quarter. But the slowdown is not universal. For instance, of the 22 stock- market listed companies that Kantar tracked, their volume growth rate was just 3.6%. However, the rest of the branded market is doing better at 3.9% and unbranded products have seen a significantly higher growth of 6.1% in the year. "Commentary for unlisted players, including Indian subsidiaries of multinational corporations, D2C players, and regional brands indicates a slightly better performance, underscoring broader demand resilience," said Saugata Gupta, managing director at Marico , at an earnings call. "Data of some of the D2C and unlisted players do not get captured and the growth could be a tad higher," he said. Kantar monitors branded and unorganised products, including unpackaged voluminous commodities and the numbers reflect slower sales across categories and markets in the last many quarters. For most listed companies, urban markets account for anywhere between 50% and 70% of their overall sales and over the past year, inflationary pressures, low wage growth and higher housing rentals weighed on urban demand for daily groceries and staples. Consumer goods companies have posted mixed volume growth trends. Hindustan Unilever posted a 2% volume growth, while Godrej Consumer Products volume was slightly higher at 4%. Tata Consumer's volume rose about 6% and Marico saw a 7% volume growth during the March quarter. While companies have flagged a softness in demand amid shrinking household budgets, most predicted a strong recovery in this fiscal year. "I am reasonably optimistic about the recovery happening. It's not going to be a hockey stick. We have seen gradual recovery, and this trend is going to continue into the next year as well," Varun Berry, vice-chairman, Britannia , told investors. INDIAN METROS South Delhi consumers consumed 240 kg of fast-moving consumer goods per year, double the national average while with '39,325 spent on FMCG, West Delhi consumers outpaced the entire country by twice as much. An average urban Indian household makes 128 visits to the shop to buy FMCG (excludes atta). The average Mumbai household visits 135 times for the same annually. But the households in the slum belt purchase FMCG in 233 visits. This corridor comprises localities such as Dharavi, Bandra East, Khar East, Santacruz East, Dawri Nagar, Prabhat Colony, etc., and purchases just 541 grams in every visit, the least among all metro clusters across India. With ₹227 spent on every kilo of FMCG on an average, Southwest Bengaluru comprising RR Nagar, Mysore Road, and Kengeri is the most premium FMCG cluster among top metros. Average city level spend-per-kg of FMCG itself is a strong ₹211 in Bengaluru, while no other city has a per-kg spend of more than ₹195.
Time of India
07-05-2025
- Business
- Time of India
Less to spend, India buys less of daily needs
Play Video Pause Skip Backward Skip Forward Unmute Current Time 0:00 / Duration 0:00 Loaded : 0% 0:00 Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 Picture-in-Picture Fullscreen This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Text Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Opaque Semi-Transparent Transparent Caption Area Background Color Black White Red Green Blue Yellow Magenta Cyan Opacity Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Drop shadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Live Events Mumbai: Demand for daily groceries, household and personal products worsened to a 2-year low during the March quarter, indicating delayed turnaround for the fast-moving consumer goods research firm Kantar said FMCG volume sales growth in the March quarter was 3.5%, slowest since the same period of 2023. A year ago, the market had grown 5.5% during the same quarter. Sales volume in rural markets rose 2.7%, significantly slower than 6.3% a year ago, while demand in cities remained largely unchanged at 4.4% from a year earlier, according to data from the research firm."At the household level, urban areas are driving the growth where smaller local brands are outperforming bigger brands. However, established companies are stronger in the rural markets, but the status quo is expected to continue in the next quarter also. The slower growth last quarter is perhaps indicative of a slower recovery of the FMCG sector ," said K Ramakrishnan, managing director, South Asia, Worldpanel monitors branded and unorganised products, including unpackaged voluminous commodities and the numbers reflect slower sales across categories and markets in the last many quarters. For most listed companies, urban markets account for anywhere between 50% and 70% of their overall sales and over the past year, inflationary pressures, low wage growth and higher housing rentals weighed on urban demand for daily groceries and staples."Commentary for unlisted players, including Indian subsidiaries of multinational corporations, D2C players, and regional brands indicates a slightly better performance, underscoring broader demand resilience," said Saugata Gupta, managing director at Marico , at an earnings call last week. "Data of some of the D2C and unlisted players does not get captured and the growth could be a tad higher," he far, consumer goods companies have posted mixed volume growth trends. HUL posted a 2% volume growth, while Godrej Consumer Products (GCPL) volume was slightly higher at 4%. Tata Consumer's volume rose about 6% and Marico saw a 7% volume growth during the March companies have flagged a softness in demand amid shrinking household budgets, most of them predicted a strong recovery in this fiscal year. GCPL managing director Sudhir Sitapati said he was bullish about consumer demand over the next 12 months."El Nino impacts food prices in India, and food inflation immediately has an impact on FMCG consumption. So now that El Nino has reversed, price inflation has come down in January, February, March, and we should see some kind of demand coming back," said Sitapati, adding income tax reduction and government's welfare schemes over the last year will start to bear market grew 4.2% in FY25, slower than 6.6% in FY24. While personal care has held on to its growth levels at 4.6%, food and beverages slowed significantly, down from a growth of 7.8% in FY24 to just 4.4% last fiscal as sales of categories such as atta, biscuits and salty snacks slowed down sharply in the year."Urban demand is compressed, but recently, we have started to see rural areas being quite robust, especially in the north-central and eastern regions. And with the expectation of a good monsoon and a good crop, there's clearly more positivity in the rural areas. We feel the macro situation is going to move more towards consumption, and consumption will start to play a greater part in the next few years of GDP growth," Rohit Jawa, MD at HUL, told ET last month.
