look news india
Once again it is the turn of the common man to bear the brunt of inflation. Because inflation may still increase. Besides, the prices of everyday items like tea, biscuits, oil and shampoo may also increase. Margins of FMCG companies declined in the July-September quarter due to higher production costs and low inflation. Due to which companies will now be able to sell their products at higher prices. Some companies have also indicated to increase the prices of their products.
I am worried about this
From Hindustan Unilever Ltd to Godrej Consumer Products Ltd, Marico, ITC and Tata Consumer Products Ltd are worried about the decline in urban consumption in the second quarter of the current financial year. He believes that sales in urban areas during the September quarter have been below expectations. According to industry experts, urban consumption accounts for 65-68 per cent of the total sales of the FMCG sector. Rural areas witnessed better sales than urban areas during the September quarter.
According to Sudhir Sitapati, managing director and CEO of GCPL, the loss in the second quarter is a short-term setback and margins will be compensated by stabilizing costs. During this period, high food inflation and decline in urban demand are also a reason for the decline in margins.
Continuous development in this area
According to Sunil D'Souza, managing director and CEO of Tata Consumer Products Ltd, there has been a significant impact on consumer spending in urban areas. Food inflation is higher than we thought, which has impacted consumer spending. At the same time, market volume growth has been sluggish in this quarter. Urban growth has suffered a setback in recent quarters, while rural growth has remained slow.