Major Indian FMCG companies face margin declines due to rising costs and urban consumption drop.

Major Indian FMCG companies, including HUL, Godrej, and ITC, have seen margin declines due to rising input costs and food inflation, which have dampened urban consumption—accounting for 65-68% of their sales. While rural markets continue to grow, some firms are considering price hikes to recover margins. Concerns about declining demand in the food and beverage sector persist, especially in urban areas. Overall, industry growth rates are expected to improve in the coming quarters.

November 03, 2024
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