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FMCG sales show a negative growth

01-December-2001
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FMCG sales show a negative growth

The FMCG sector has shown a negative growth of 4.9 per cent in October, compared to a drop of 3.6 per cent in September. The decline continues to be on account of negative growth in personal wash, detergent, toothpaste, beverages, packet tea and milk food; while shampoos, vermicelli, refined oil, chocolate and biscuits maintained their positive growth.

FMCG major, Hindustan Lever, reported a 8.3 per cent decline in October; dragged down by a 13.4 per cent drop in personal wash, a 4.5 per cent drop in fabric wash and a negative growth of 16.8 per cent in the packet tea segment.

According to ORG data, the shampoo segment, however, showed a 5.4 per cent growth. In the personal care segment, Pepsodent and Fair & Lovely recorded a better performance than the industry.

Britannia reported a positive growth of 5.2 per cent, compared to 4.1 per cent in September. Volumes of its Tiger range of biscuit grew 13.1 per cent, against the overall segment’s growth of 2.5 per cent, the report said. Cadbury recorded a 0.4 per cent decline in October, which was marginally better than September.

Among other companies, Colgate witnessed a significant decline in its flagship brand Colgate Dental Cream, which showed a negative growth of 10.4 per cent compared to a decline of 4 per cent in the segment.

Nestle showed a decline of 2 per cent, compared to 0.9 per cent in September. The company reported a 4.8 per cent growth in coffee, 21 per cent growth in noodles and a 10.3 per cent growth in milk powder. However, the company experienced negative growth in the weaning food, milk food and chocolate segments.

Stiff competition and falling sales is prompting companies to focus on offering value for money to the consumer to ensure higher volumes. A few categories such as hair dyes, shampoos and convenience food products — such as salt and atta — continue to record good growth, according to analysts.

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