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FMCG sales record marginal growth

07-July-2001
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FMCG sales record marginal growth

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 growth.

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 in April.

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 segments.

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