Moderate demand dampens Q4 results for FMCG firms

New Delhi: A consumption slowdown dampened sales in the March quarter at some of India’s largest consumer goods firms, as a slow offtake of goods in rural markets and an elongated winter forced companies to report moderate volume growth. India’s largest FMCG firm Hindustan Unilever Ltd., biscuits maker Britannia Industries Ltd., along with Dabur India Ltd., Marico Ltd and Godrej Consumer Products Ltd., announced their fourth-quarter earnings earlier this month. India’s largest consumer goods firm, Hindustan Unilever Ltd on Friday reported 7% volume growth for the quarter ahead of its peers, but this was its slowest growth in six quarters. “Our India business remained soft on account of a general slowdown in staples consumption, on liquidity pressure that we saw in the channel, and the adverse impact of the delayed summer for much of our portfolio, particularly soaps and household insecticides.” These numbers come days after research and insights firm Nielsen had lowered its annual growth projection for India’s fast moving consumer goods market to 11-12% for 2019, a downward revision from its earlier projection of 13-14% after it observed a “significant softening of rural growth trends.” The trend was visible across categories.