Major FMCG cos are suffering the impact of rural distress. Sales growth of even basic products like atta, hair oil and toothpaste have declined.
Indians are buying less of everything as the economy is losing steam, slowing down for the third consecutive quarter. One indication of this is the changing commentary of managements, which are aimed at pacifying the shareholders at a time of unusual circumstances.
Major fast moving consumer goods (FMCG) companies are suffering the impact of rural distress. Sales growth of even basic products like atta, hair oil and toothpaste have declined.
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ITC, while announcing its latest quarterly results said: “The FMCG-Others segment delivered a resilient performance during the quarter amidst a marked slowdown in the FMCG industry across urban and rural markets”.
The well known coffee and Maggie maker Nestle India said: “We are proud of our strong performances in Maggi, Kitkat and Munch among others. However, environment continues to be challenging with headwinds in commodity prices and softer demand conditions”.
Source: Economic Times
