According to ORG-Marg figures for
the month of May, the fast moving consumer goods
sector recorded a marginal growth of 0.6 per cent.
Industry analysts do not expect recovery in the sector
till the fourth quarter of the current fiscal. The
sector witnessed a growth of 0.6 per cent in April
compared to a growth of 3.3 per cent in the Jan to
March period, with most companies recording negative
Barring Tata Tea, other companies
in the food products business recorded positive growth
in May. Britannia’s sales in May improved by 6.5 per
cent compared to the same period last year, as against
a growth of 3.7 per cent in April.
Tata Tea’s performance
deteriorated further in May, with a decline of 11.3
per cent, as compared to a decline of 9.1 per cent in
April. Cadbury improved its performance in the month
of May with a growth in sales of 6.1 per cent compared
to a growth of 5.4 per cent in April in value terms.
Indian Shaving Products continued
to improve its performance. The company has shown a
growth of 6.3 per cent in May compared to 3 per cent
The overall growth in the two
month period, April-May compared to the same period
last year is 4.7 per cent for ISPL.
The slowdown in the FMCG sector
has been across the board in comparison to the first
quarter of calender year 2001, all the major
categories (excluding washing powder, chocolates and
vermicelli) have showed deceleration of growth.
Toilet soaps, skin creams, beverages, hair oils,
mosquito repellents, milk foods, washing blues and
weaning foods have shown sharp deceleration of growth,
compared to the previous quarter.
Toilet soaps, packaged tea,
detergent cakes/bars, vanaspati and tooth powder
showed more than 5 per cent YoY decline in sales.
Shampoos, mosquito repellents, scourers, vermicelli
and sanitary napkins remain the fastest growing