FMCG companies have expectations from rural areas, revenue growth may be 7-9% in the financial year
Crisil Ratings Director Rabindra Verma says that revenue growth may vary depending on the product category and companies. Due to improvement in rural demand, the revenue of the Food and Beverages (F&B) category may grow by 8-9 percent in the current financial year. Similarly, the revenue of the personal care category may increase by 6-7 percent.
Rating agency Crisil Ratings's report on Saturday said the revenue of FMCG may grow by 7-9 percent during the current financial year 2024-25. The improvement in demand from rural areas and stable demand from urban areas will help improve the revenue, the agency said. Revenue for the FMCG sector is likely to grow by 5-7 percent in FY24.
Revenue growth may be variation across product categories and companies," says Rabindra Verma, Director, Crisil Ratings. "Improvement in rural demand will see F&B category revenues rise 8-9% this fiscal year. In the personal care category, revenue will grow by 6-7%, while for the home care segment it will be about 8-9%.".
A report by ICICI Lombard General Insurance earlier estimated that the FMCG sector's growth could be 7-9 percent in the year 2024. It said, "Due to strong government policies, consumption is increasing and employment opportunities are being created." However, the report has expressed concern that FMCG may face inflationary pressure.
ICICI Lombard General Insurance has also said that Consumer confidence is a bit weak at this point. Avoiding consumer expenditure types on items considered non-essential is what it would mean. In many ways, good growth could still be posted by the FMCG sector since the government is looking to ramp up its infrastructure-related spending. This is going to bring money into the hands of people.
