FMCG in A Slump; But Revival on the Cards

On the contrary, companies like Nestle India witnessed an increase in the export sales, and the company registered net sales of `2,348.3 crore in 2013. “I am satisfied that we have maintained the double-digit growth in the current business environment. We would continue to focus on reinforcing the fundamentals of our growth drivers, further improve operational efficiencies, and keep rationalizing our stock-keeping units (SKUs). I am confident of our strategy to deliver long-term sustainable profitable growth, despite the short-term challenges,” says Etienne Benet, MD, Nestle India.

Apart from these figures, even international FMCG players are pretty optimistic about India, as PepsiCo has announced `33,000 crore investment by 2020, while Coca-Cola has committed `25,000 crore.

The reason behind these foreign investments is particularly because the middle class and the rural segments look very promising for FMCG companies. Penetration of international products like jams, toothpaste, skin care and hair products are still less and the rural people are significantly untapped, thus throwing open a huge opportunity. Availability of key raw materials and cheap labour costs are some of the added advantages for companies that are looking at bulk production and exports.

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