Conglomeration for Consumer Goods Companies

Companies have already cut back on sales promotions in categories such as soaps, detergents and personal products, to prevent margin erosion.

There is no big difference in packaged foods as well, where the sustained food inflation has compelled most companies to increase the prices. In a recent analysts meet, Nestle India's managing director, Etienne Benet, said that the company would justify its chocolate and beverage portfolios, cutting down on low-margin products and focusing on health and wellness, it would also increase attention on noodles.

Subhashis Basu, Business Head (Dairy Products) of Mother Dairy, said, "The weather has been very hot, and if you compare it with last year, when the rainfall set in by June, the extended summer this year is giving our top line a boost."

As the company looked to make operations with entry into new segments such as water and pet foods, which is not expected to happen any time. Apart from this, companies are looking to cut down on distribution and other expenditures.

The MD of Hindustan Unilever, Sanjiv Mehta, recently highlighted that their attention would shift from expanding distribution to improve sales from existing stores, since the company had improved direct coverage of stores three and a half times in four years.

In the fourth quarter of 2013-14, it was the home-grown companies led by Dabur, Marico and Godrej Consumer that reported a stable set of numbers, in contrast to multinationals such as Hindustan Unilever and Nestle, whose performance was weak. Dabur, Marico and Godrej Consumer are trying to cover themselves from the slowdown by launching breakthrough products, by pushing small packs of all core brands and driving their presence in rural areas, where sales growth is still higher than in urban markets.

READ MORE: 10 Brands That Young Women Desire Most

India Seeks Extension of Its Flagship Projects in Nepal