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<ul><li>FMCG giant HUL’s shares reported a decline of over 6% on Thursday.</li><li>This comes a day after the company reported a 2.33% decline in consolidated net profit in Q2.</li><li>The stock tanked 6.59% to ₹2,483.95 on the NSE.</li></ul>Shares of FMCG major <keyword id="20002610" type="General" weightage="20" keywordseo="Hindustan-Unilever" source="keywords">Hindustan Unilever</keyword> Ltd (HUL) on Thursday tumbled over 6% after the firm reported a 2.33% decline in consolidated net profit for the second quarter ended in September. The stock tanked 6.59% to ₹2,483.95 on the NSE. The stock emerged as the biggest laggard among the Sensex and Nifty firms during the morning trade. Hindustan Unilever Ltd on Wednesday reported a 2.33% decline in consolidated net profit at ₹2,595 crore for the second quarter ended in September 2024, impacted by moderation in demand from the urban market. The company had logged a net profit of ₹2,657 crore in the July-September quarter a year ago, HUL said in a regulatory filing. However, revenue from product sales was up 2.36% at ₹15,703 crore in the September quarter, from ₹15,340 crore in the year-ago period, HUL which owns power brands such as Surf, Rin, Lux, Pond's, Lifebuoy, Lakme, Brooke Bond, Lipton and Horlicks said. "In the September quarter, <keyword id="21419477" type="General" weightage="20" keywordseo="FMCG-demand" source="keywords">FMCG demand</keyword> witnessed moderating growth in urban markets, while rural continued to recover gradually. In this context, we delivered a competitive and profitable performance," HUL CEO and Managing Director Rohit Jawa said. HUL reported an underlying sales growth of 2% and underlying volume growth of 3%. Total expenses were at ₹12,581 crore in the September quarter, up 3.03% year-on-year. HUL's total income, which includes other income, was up 2.14% to ₹16,145 crore in the September quarter of FY25. Addressing an earnings call, HUL CFO Ritesh Tiwari said, "Two thirds of our business we do in urban areas, and one-third we do in rural areas … we are seeing growth in the urban market moderating. We are seeing rural growth recovery is gradual … it impacts all the categories that we have." On the outlook, he said, "In the near term, we expect demand trends to be stable with no further acceleration in pace of growth." In this context, Tiwari said, "Our focus remains on driving competitive volume-led growth, while continuing investments behind our brands and strategy priorities … If commodity prices remain where they are, we expect a low single digit price growth in the near-term." With inputs from PTI. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/webstories/afcons-infrastructure-ipo-gmp-risk-factors-and-all-you-need-to-know/slidelist/114490954.cms">Afcons Infrastructure IPO – GMP, risk factors and all you need to know</a> <a href="https://www.businessinsider.in/tech/news/upi-refund-scam-to-digital-arrest-scam-here-are-most-common-online-scams-in-india/articleshow/114428011.cms">UPI refund to digital arrest scam, here are some online scams you need to be aware of</a> <a href="https://www.businessinsider.in/stock-market/news/waaree-energies-ipo-allotment-how-to-check-allotment-ipo-gmp-listing-date-and-more/articleshow/114508632.cms">Waaree Energies IPO allotment – How to check allotment, IPO GMP, listing date and more</a>

Hindustan Unilever shares tumble over 6% post Q2 results

The net profit of <keyword id="20739295" type="General" weightage="100" keywordseo="Patanjali-foods" source="keywords">Patanjali Foods</keyword> surged to Rs 262.90 crore year-on-year during the first quarter of the financial year 2024-25 (<keyword id="22373996" type="General" weightage="20" keywordseo="Q1FY25" source="keywords">Q1FY25</keyword>), the company informed the exchange in a filing. The company reported a three-fold rise in profit year-on-year during the first quarter of this financial year, compared to Rs 88 crore in the same quarter of the previous fiscal year. The company also reported standalone revenue of Rs 7,173.06 crore during the first quarter of FY 2024-25. The EBITDA of the company registered a twofold growth to Rs 435.08 crore year on year, and a 4.08% increase on a quarter-on-quarter basis. The company also stated that in Q1FY25, the EBITDA margin was 6.07%, up from 5.08% in the previous quarter on revenue from operations. The Food &amp; <keyword id="19931572" type="General" weightage="20" keywordseo="FMCG" source="keywords">FMCG</keyword> segment's revenues remained flat at Rs 1,953.55 crore during the quarter. However, the proportion of revenue contributed by this segment to revenue from operations rose to 26.77% in Q1FY25, compared to 24.84% in the same quarter last year. The <keyword id="1058362" type="General" weightage="20" keywordseo="export-revenue" source="Orion">export revenue</keyword> of the company stood at Rs 53.33 crore in Q1FY25. The company has added new markets to its export portfolio, now reaching 22 countries. The company also stated that its products are also available on <keyword id="19990771" type="General" weightage="20" keywordseo="e-commerce" source="keywords">e-commerce</keyword> platforms in global markets. Patanjali Foods added that it reported a healthy quarter, with profitability metrics showing solid growth on a year-on-year basis. This growth was largely driven by reduced volatility in edible oil prices and stable performance in the Food &amp; FMCG portfolio. The company is also benefiting from new-age channels like e-commerce and <keyword id="19963428" type="General" weightage="20" keywordseo="quick-commerce" source="keywords">quick commerce</keyword>. In the <keyword id="19346576" type="General" weightage="20" keywordseo="Food-and-FMCG" source="Orion">Food and FMCG</keyword> business, the company recorded revenues of Rs 1,953.55 crore in Q1FY25, contributing to 26.77% of the company's revenue from operations. The company continued its focus on growing the biscuits division, registering a growth of 9.41% on a year-on-year basis. In Q1FY25, the <keyword id="10143315" type="General" weightage="20" keywordseo="biscuit-business" source="Orion">biscuit business</keyword> of the company has achieved revenue of Rs 417.03 crore. The company added that new launches of premium biscuits contributed to the growth of this portfolio. The 'Doodh' biscuit brand exceeded its previous performance by 6.97% on a year-on-year basis, with quarterly revenue of Rs 265.77 crore compared to Rs 248.46 crore in Q1FY24.

Patanjali Foods profit surges to Rs 262.90 crore on back of e-commerce and quick commerce channels

Expanding the scope of its hearing in the <keyword id="19980518" type="General" weightage="20" keywordseo="Patanjali" source="keywords">Patanjali</keyword> Ayurved case, the <keyword id="19895345" type="General" weightage="20" keywordseo="Supreme-Court" source="keywords" meta.keywordsubtype="org" meta.entityname="Supreme Court" meta.hostid="266" meta.entityid="Supreme Court">Supreme Court</keyword> on Tuesday took a stern view of <keyword id="20610549" type="General" weightage="20" keywordseo="misleading-advertisements" source="keywords">misleading advertisements</keyword> by FMCG firms and asked three Union ministries to inform it about the steps they have taken to curb the practice which takes "public for a ride" and adversely affects their health. The court passed the order after Yoga guru Ramdev and his aide Balkrishna of Patanjali Ayurved Ltd. told a bench of Justices Hima Kohli and Ahsanuddin Amanullah that they have issued unqualified public apology in as many as 67 newspapers over misleading advertisements and are willing to issue additional advertisements expressing their contrition. The bench said the public apology published in newspapers were not on record and asked those to be filed within two days. It posted the matter for April 30 for further consideration. While hearing the Patanjali case, the apex court said the implementation of the relevant provisions of the Drugs and Magic Remedies (Objectionable Advertisements) Act, the Drugs and Cosmetics Act and the Consumer Protection Act and the related rules also needed a closer examination. It said the issue was not limited to Patanjali but extended to all Fast-Moving Consumer Goods (FMCG) firms which have been issuing "misleading advertisements and taking the public for a ride, in particular affecting the health of babies, school-going children and senior citizens who have been consuming products on the basis of the said misrepresentation". "We must clarify that we are not here to gun for a particular party or a particular agency or a particular authority. This is a PIL, and in the larger interest of the consumers, public should know which way they are going and how and why they can be misled, and how authorities are acting to prevent it," the bench said. The court asked the Union ministries of consumer affairs, information and broadcasting, and information technology to explain what action they have taken to prevent the misuse of consumer laws. It also sought an explanation from the Centre over an August 2023 letter issued by the Ministry of Ayush to the licencing authorities of all states and Union Territories and drug controllers of Ayush asking them to not initiate any action under rule 170 of Drugs and Cosmetics Rules, 1945. The bench also asked the <keyword id="20083252" type="General" weightage="20" keywordseo="Indian-Medical-Association" source="keywords" meta.keywordsubtype="org" meta.entityname="Indian Medical Association" meta.hostid="266" meta.entityid="Indian Medical Association">Indian Medical Association</keyword> (IMA), the petitioner in the Patanjali advertisements case, to "put its house in order". It said several complaints have been made about alleged unethical acts by members of the IMA who prescribe highly expensive medicines and line of treatment. The bench also ordered impleading the National Medical Commission (NMC) as a respondent in the matter for effective assistance to the court. At the outset, senior advocate Mukul Rohatgi, appearing for Ramdev and Patanjali Ayurved Ltd managing director Balkrishna, told the bench they have issued on Monday unqualified apology for the "lapses" on their part. "Where? Why it is not filed?" the bench asked. Rohatgi said it was issued on Monday in 67 newspapers across the country. When the court asked the senior advocate why did the respondents wait for a whole week before publishing the public apology, Rohatgi said, "Its language had to be changed". The court also quizzed him about the size of advertisements. "Is it the same size of advertisements that you normally issue in newspapers?" it asked Rohatgi, who submitted "It costs tens of lakhs (of rupees)". The bench ordered that the apology published be filed on record and added it wanted to see the actual advertisement published in newspapers. "The said advertisements are not on record. It is submitted that the same have been collated and shall be filed in the course of the day with copies to counsel for the parties. Needful shall be done within two days with copies to counsel for the parties," it said. The counsel said additional advertisement shall be issued by Ramdev and Balkrishna tendering unqualified apology for the lapses on their part. The bench said it was necessary to implead the three central ministries in order to examine the steps taken to prevent the abuse of the Drugs and Magic Remedies (Objectionable Advertisements) Act and rules, the Drugs and Cosmetics Act and the Consumer Protection Act. It said these ministries shall file affidavits enunciating the action they have taken to prevent the misuse/abuse of these statutes along with the relevant data since 2018. The bench said licencing authorities of all states and UTs shall also be impleaded as co-respondents in the matter. The bench told the IMA's counsel that while they are pointing fingers at Patanjali, "the other four fingers are also pointing at you (IMA)". On April 16, the apex court had warned Ramdev and Balkrishna against any attempt to "degrade allopathy" and permitted them to tender a "public apology and show contrition" within a week in the contempt proceedings in the misleading advertisements case against Patanjali Ayurved Ltd. The apex court is hearing a plea filed in 2022 by the IMA alleging a smear campaign against the Covid vaccination drive and modern systems of medicine. Ramdev and Balkrishna had earlier tendered an "unconditional and unqualified apology" before the top court over advertisements issued by the firm making tall claims about the medicinal efficacy of its products. 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Supreme Court expands Patanjali misleading ads hearing to include FMCG companies

Encouraged by volume growth, margin improvement and recovery in rural sales, India's top fast-moving consumer goods (FMCG) companies are now back to their normal growth cycle as they step up investments as well as spending on advertising and marketing. <keyword id="84065" type="General" weightage="20" keywordseo="fmcg-companies" source="Orion">FMCG companies</keyword> are chasing volume growth again after a gap of a few quarters, offering higher grammage and price cuts thanks to inflationary pressures softening on key raw materials for everything from soaps to food items. Hindustan Unilever (HUL), Dabur, Marico, Godrej Consumer Products, ITC, Tata Consumer Products and Nestle reported volume recovery in the March quarter and said they expect a gradual pickup in consumption in FY24. "The prospects of a sustained recovery have strengthened. After five quarters of volume decline, the sector has posted volume growth," Marico MD and CEO Saugata Gupta said in the company's earnings conference call. "Urban consumption has been steady while rural is showing some convincing signs of having bottomed out." Foods continue to drive growth for the sector, while the home and personal care segment also entered positive territory after an extended slowdown. Marico, which owns popular brands like Saffola, Parachute and Livon, reported an 18.7 per cent increase in its consolidated net profit to Rs 305 crore for the fourth quarter ended March 2023 while sales rose 3.65 per cent to Rs 2,240 crore, driven by single-digit volume growth and moderation in commodity prices. HUL said rural areas have shown improvement with higher value growth sequentially. While HUL's volumes continue to fall, the extent of decline has reduced versus last quarter. "The slowdown in the FMCG market is bottoming out. This improvement was led by volumes, which have turned flat in this quarter, versus a mid-single-digit decline in the December quarter," said HUL CFO Ritesh Tiwari in its earnings call. The makers of popular brands such as Rin, Lux, Surf Excel and Pond's said it expects the price-volume growth to rebalance further. "We expect volumes to recover gradually due to high levels of cumulative inflation and the fact that consumption habits typically recover with a lag," he said. For the March quarter, HUL reported an increase of 12.74 per cent in its consolidated net profit to Rs 2,601 crore. Net sales rose 10.83 per cent to Rs 14,926 crore. However, HUL warned the near-term operating environment is likely to remain volatile due to global slowdown risk and uncertainty related to weather phenomena like El Nino and heatwaves. Abneesh Roy, Nuvama Group Executive Director for Institutional Equities, said the outlook for the <keyword id="495979" type="General" weightage="20" keywordseo="fmcg-industry" source="Orion">FMCG industry</keyword> was "positive" with volume growth and improvement in margins for most companies in FY24. "As raw material prices are cooling off, companies shall start paring prices via grammage increase or gradual price reductions. Price growth shall ease while volume growth will improve," he said. Roy also cautioned about the impact of El Nino and the "aggression" from billionaire Mukesh Ambani-led Reliance Industries Ltd, a known disrupter, which aims to be a big player in the USD 110-billion FMCG segment. Meanwhile, Godrej Consumer reported an 11.47 per cent increase in its India revenue to Rs 1,822.92 crore in the March quarter. This was led by volume growth of 11 per cent. Its home care segment, which consists of household insecticides and air fresheners, grew 14 per cent and 17 per cent, respectively. "We expect to build on the current momentum and deliver volume-led growth along with upfront marketing investments and improvement in profitability," said its Managing Director and CEO Sudhir Sitapati. Britannia Executive Vice-Chairman and Managing Director Varun Berry also expressed optimism. "Volume growth will be certainly much better than this year," he said. On commodity prices, Berry said there is deflation in prices of palm oil, laminates and corrugated material for packing but flour and milk prices are soaring. "There are certain brands and certain packs where we have already initiated price reductions or promotions," he said. In the March quarter, Britannia reported a 47.53 per cent jump in consolidated net profit to Rs 557.60 crore. Its revenue from operations rose 10.93 per cent to Rs 3,892.02. Similarly, Dabur reported volume growth of 11 per cent during the March quarter and 14 per cent for FY23. Its quarterly net profit was Rs 292.76 crore and revenue from operations stood at Rs 2,677.8 crore. "Despite near-term concerns around inflationary pressures, we plan to accelerate the growth momentum by continuing to invest in brand building, innovation, and capabilities that will drive growth," said Dabur India CEO Mohit Malhotra. Other companies also recorded growth. ITC's revenue from the FMCG segment rose 19.34 per cent to Rs 4,951.17 crore from Rs 4,148.62 crore while EBITDA jumped 76 per cent. Nestle, the maker of Maggi, Kitkat and Nescafe, reported an increase of 24.69 per cent in its net profit to Rs 736.64 crore in the March quarter. Sales rose 20.43 per cent to Rs 4,808.40 crore. Tata Consumer reported a 21.12 per cent rise in its consolidated net profit to Rs 289.56 crore. Its revenue from operations was up 13.96 per cent at Rs 3,618.73 crore. Tata Consumer said it recorded growth in the India beverages business and food. It had a "strong margin growth and strong topline growth driven both by volume and price," the company said in its earnings call. "We have started seeing volume growth coming back. The impact of inflation and monetary tightening on economic growth and demand seems to be slowing down, but I would keep my fingers crossed and monitor it closely," said Tata Consumer MD and CEO Sunil D'Souza. "In the near term, we are seeing stability." SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/corporates/news/zomato-net-loss-narrows-to-188-crore-in-q4-revenue-rises-70-yoy/articleshow/100358894.cms">Zomato net loss narrows to ₹188 crore in Q4, revenue rises 70% YoY</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/mankind-pharma-pnb-among-stocks-to-become-largecap-from-midcap-mutibagger-rail-vikas-nigam-to-turn-midcap-from-smallcap/articleshow/100356527.cms">Mankind Pharma, PNB among stocks to become largecap from midcap; mutibagger Rail Vikas Nigam to turn midcap from smallcap</a>

FMCG makers expect sustained recovery in volume and margins with price reduction in FY24

In response to higher-than-expected tax revenue and a record surplus transfer from the Reserve Bank of India (RBI), the Indian government is considering an 8-10% increase in <keyword id="20018917" type="General" weightage="20" keywordseo="capital-expenditure" source="keywords">capital expenditure</keyword> (capex) for the fiscal year 2025, according to Pantomath Group's quarterly report, "Market Kaleidoscope: Quarterly Market Insights." This adjustment could raise the capex from the previously allocated Rs 11.11 lakh crore, aiming to bolster infrastructure and economic growth. This fiscal boost comes as India reaches a historic financial milestone. The total market capitalization of all stocks listed on the Bombay Stock Exchange (<keyword id="19895774" type="General" weightage="20" keywordseo="BSE" source="keywords">BSE</keyword>) briefly surpassed $5 trillion for the first time, placing India among global giants such as the US, China, Japan, and Hong Kong. India's primary market is set for a dynamic period, with 55 companies planning to raise over Rs 68,000 crore through Initial Public Offerings (IPOs). The first half of FY2025 has already seen 35 mainboard IPOs, collectively raising around Rs 32,000 crore with an average subscription rate of 61 times. The Indian market maintained a positive outlook in the first quarter of FY2025, driven by strong Q4FY24 earnings, favorable economic data, and positive global cues. Despite early June volatility following the 2024 <keyword id="19895394" type="General" weightage="20" keywordseo="lok-sabha" source="keywords">Lok Sabha</keyword> election results, market sentiment improved with the BJP securing 272 seats and a total of 292 seats for the NDA with allied support. This political stability under Prime Minister Narendra Modi's leadership is expected to promote long-term economic growth, with a focus on infrastructure, electric mobility, startup support, power distribution, digital privacy, and healthcare initiatives. Corporate India's performance in the March quarter of FY2024 met expectations, showing double-digit growth in net profit and single-digit revenue increases. Non-lending companies experienced moderate operating margin expansion due to favorable commodity prices and cost controls. The peaking interest rates and continuity of <keyword id="19978691" type="General" weightage="20" keywordseo="government-policies" source="keywords">government policies</keyword> are anticipated to support healthy corporate growth in FY2025. <h2>Growth to continue</h2>The government's push for increased <keyword id="20068449" type="General" weightage="20" keywordseo="ethanol-production" source="keywords">ethanol production</keyword> targets a 20% blending by 2026, benefiting ethanol-heavy sugar companies and promoting biofuel goals. The real estate market is projected to grow significantly, requiring Rs 14 lakh crore in debt financing from 2024 to 2026. This growth will positively impact the banking and financial sectors. Major telecom operators have raised tariffs post-election, potentially improving sector financials and paving the way for sector re-rating. Major cement players are expanding through acquisitions, with an expected 6-7% compounded growth and market dominance by the top five players by March 2025. FMCG Companies expect recovery in rural business due to factors like a normal monsoon, robust crop yields, and government measures, maintaining robust rural demand. The potential roll-out of the FAME 3 Scheme to support <keyword id="19963112" type="General" weightage="20" keywordseo="electric-vehicle-sales" source="keywords">electric vehicle sales</keyword> is anticipated, with a budgetary allocation of around Rs 10,000 crore. Sectors such as auto, cement, defence, railways, consumer durables, energy, and banking are expected to outperform. Lagging sectors like IT and specialty chemicals offer value-buying opportunities at lower levels. The structural bull market for Indian equity is supported by strong domestic fundamentals and government reforms, with a positive medium- to long-term market outlook. Globally, the US market showed resilience, except for the Dow Jones. The Federal Reserve maintained interest rates at 5.25-5.50%, awaiting inflation to move towards the 2% target before considering rate cuts. The US GDP grew at 1.4% annually in Q1 2024, with mixed economic indicators highlighting both strengths and challenges. The Indian <keyword id="19926041" type="General" weightage="20" keywordseo="IPO-market" source="keywords">IPO market</keyword> has seen significant growth, with a surge in companies seeking to list shares and a rise in capital raised. The first half of 2025 saw strong retail investor participation, reflecting confidence in India's growth prospects. Mahavir Lunawat, Managing Director, Pantomath Capital Advisors Private Limited, said, "Favourable market conditions, high liquidity, a conducive growth environment with stable interest rates, and benign inflation have facilitated a boom in the IPO market. The IPO market will experience a stronger pull post-budget. India is set to become the new equity funding frontier for global corporations." He further added. "We are on the brink of sustained, long-term momentum in the IPO market, with this year potentially becoming the best for IPOs. India's solid macroeconomic environment and promising growth prospects create an ideal backdrop for this vibrant IPO market. Additionally, there is robust participation from both domestic institutional investors and retail investors." With the Indian government's potential capex increase and the robust primary market activity, the <keyword id="19948184" type="General" weightage="100" keywordseo="Indian-economy" source="keywords">Indian economy</keyword> is poised for sustained growth. The upcoming period is expected to see heightened market activity, further IPOs, and economic stability, creating a conducive environment for investment and development.

India may boost FY25 capex by 8-10% amid surging revenues and record RBI surplus, says Market Kaleidoscope report

<ul><li>ITC stock is now trading at an attractive valuation after BAT’s stake sale, say analysts.</li><li>After the stake sale, there won’t be major uncertainties hovering around the stock.</li><li>The stock has been underperforming the index and should pick up, expect brokerages. </li></ul> <keyword id="20372001" type="General" weightage="20" keywordseo="cigarettes" source="keywords">Cigarettes</keyword> to <keyword id="19931572" type="General" weightage="20" keywordseo="fmcg" source="keywords">FMCG</keyword> major ITC’s stock corrected slightly ahead of British American Tobacco’s (BAT) stake sale. Now that the British tobacco giant’s 3.5% stake in the company has been offloaded via a block deal last week, there are few uncertainties around it. More so, after the correction, the stock is now looking attractive, say analysts. “The stock has corrected by around 12% from its recent high and is trading at an attractive valuation. Given that the uncertainties related to the stake sale are over, we believe it is the right time to enter into a quality large-cap company in the FMCG space with attractive valuations and a good dividend distribution policy,” said a recent report by <keyword id="19952951" type="General" weightage="20" keywordseo="sharekhan" source="keywords">Sharekhan</keyword>. A roller-coaster journey The ITC stock had been one of the top performers of 2023, as the stock hit a fresh high of ₹489 per share last July – facilitating its entry into the coveted ₹6 trillion club. However, in the last three months, ITC has shed 7% of its value as the uncertainties around the stake sale cast a shadow over the stock. Now, the uncertainty is gone, and the prospects seem better. After the stake sale, BAT’s stake in the company stands at 25.5%. Any further stake sale can only happen after 180 days of the locking period. “It is unlikely to reduce its stake below 25%. Post the stake sale by BAT, there will not be any major uncertainties hovering around the stock,” adds Sharekhan. <keyword id="19977638" type="General" weightage="20" keywordseo="morgan-stanley" source="keywords">Morgan Stanley</keyword> too believes that ITC, which has underperformed the index, will rise relative to the country index in the next one month. “In our view, BAT stake sell down of 3.5% in ITC clears the supply overhang on the stock, as seen recently. ITC stock has underperformed the market by 8%. We expect resumption in the stock's outperformance given our fundamental view of a moderate and infrequent cigarette tax environment and continued scale-up of non-cigarette businesses, important catalysts for the stock's re-rating,” opines Morgan Stanley. FMCG and other fundamentals Apart from the expectations of a stable tax environment for cigarettes, analysts believe that there are other triggers ahead for the stock. The company has been driving growth across its many business verticals — be it FMCG, hotels, paper and agriculture business. The contribution of the non-cigarette business has increased to 27% from around 17% in FY13. It has also been growing its FMCG business with M&amp;As, product diversification, a resilient supply chain as well as a smart omnichannel network. “Strong traction to product launches and increased e-commerce salience to around 10% will help the non-cigarette FMCG business’s revenue to consistently grow in mid-teens to high teens in the coming years,” says Sharekhan. Its hotels business however has been tracking well, with solid double-digit growth in the last few quarters. Most analysts expect the domestic demand for travel to continue and business travel to pick up an even faster pace going ahead. Added to that, they also see foreign travel picking up, and ITC with its high-end properties could gain. “Hotels and agribusiness should continue strong momentum while paper business seems to be bottoming out. Strong cash generation and a solid dividend yield should continue to provide downside support. The hotel business demerger is positive and we expect an accelerated re-rating if it is followed with similar actions in FMCG/IT businesses as well,” says a report by <keyword id="20489750" type="General" weightage="20" keywordseo="systematix" source="keywords">Systematix</keyword> in January.

Less stress on ITC stock after BAT’s stake sale, say analysts

<ul><li><keyword id="10926" type="General" weightage="100" keywordseo="reliance" source="Orion">Reliance</keyword> has launched indigenous consumer packaged goods brand ‘Independence’ that will offer products under several categories, including staples, processed foods, and daily essentials. </li><li>The company aims to start the national rollout of the brand with Gujarat. </li><li>In India, packaged goods volume took a hit at the start of 2022</li></ul><keyword id="15793795" type="General" weightage="20" keywordseo="Reliance-consumer-products" source="Orion">Reliance Consumer Products</keyword>, the FMCG arm of Reliance Ventures, launched its indigenous consumer packaged goods (CPG) brand ‘Independence’, on Thursday. The company said that under this brand, it will offer a wide range of products like staples, processed foods and other daily essentials. The company is preparing for a national roll-out, but launched on Thursday in Ahmedabad, Gujarat. Reliance said that it will develop Gujarat as a ‘go-to-market’ state. “I am happy to announce the launch of our own <keyword id="1559409" type="General" weightage="20" keywordseo="FMCG-brand" source="Orion">FMCG brand</keyword> Independence which brings a wide choice of high quality and affordable products including edible oils, pulses, grains, packaged foods and other daily need products,” said <keyword id="617730" type="General" weightage="80" keywordseo="isha-ambani" source="Orion">Isha Ambani</keyword>, director, Reliance Retail Ventures. Reliance Retail has <a href="https://www.ril.com/OurBusinesses/Retail.aspx#:~:text=As%20of%20March%2031%2C%202021,over%2033%20million%20sq%20ft.">over 12,000 stores </a>across the country, and is one of India’s largest retailers. However, the company said that it is collaborating with trade partners including manufacturers and kirana for the same. The FMCG industry in India is currently dominated by Hindustan Unilever, Nestle in addition to ITC and Godrej. A 2021 research by <a href="https://www.mckinsey.com/featured-insights/future-of-asia/the-shifting-consumer-packaged-goods-market-in-a-diversifying-asia">McKinsey Global Institute (MGI)</a> stated that Asia represents a $10 trillion consumption growth opportunity over the next decade. While the long term growth levers are firm, this calendar year has not been very profitable for the sector which had many drag factors like rising inflation that affected the purchasing power of many of its consumers and also increased the input costs of the producers. “Revenue growth was driven by price hikes, with volumes remaining subdued across categories. The volume contraction was more pronounced in rural areas. Companies expect rural demand to recover in the second half of FY23, on the back of government interventions, a good monsoon and higher crop realisations,” says a <a href="https://www.businessinsider.in/business/news/india-fmcg-sector-profits-may-be-weighed-by-ad-spend-hikes-price-cuts-bnp-paribas/articleshow/95903391.cms">recent report BNP Paribas</a>. Godrej Consumer Products <a href="https://www.livemint.com/industry/retail/packagedgoods-volumes-seen-taking-a-hit-11649273148601.html">said </a>in its March quarter update that “the sector continued to be hit hard by higher inflation levels, leading to successive price increases, and impacting volumes.” SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/careers/news/a-quarter-of-indian-gig-workers-salaries-grew-by-50-in-the-last-one-year/articleshow/96253213.cms">A quarter of Indian gig workers’ salaries grew by 50% in the last one year</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/stock-market/news/sensex-nifty50-fall-over-1-as-us-fed-commentary-disappoints/articleshow/96253271.cms">Sensex, Nifty50 fall over 1% as US Fed commentary disappoints</a>

Isha Ambani announces the launch of Reliance's new FMCG brand, Independence

Leading <keyword id="34523" type="General" weightage="20" keywordseo="fmcg" source="Orion">FMCG</keyword> and ayurvedic products maker <keyword id="62997" type="General" weightage="20" keywordseo="dabur" source="Orion">Dabur</keyword> is planning to set up a new <keyword id="6368585" type="General" weightage="20" keywordseo="factory" source="Orion">factory</keyword> in <keyword id="6355466" type="General" weightage="20" keywordseo="south-india" source="Orion">South India</keyword> in less than a year's time, as its <keyword id="6355515" type="General" weightage="20" keywordseo="business" source="Orion">business</keyword> scales in the region, according to company's CEO Mohit Malhotra. Dabur, which now gets 20 per cent of its domestic sales from South India with its business there doubling in the last 5-6 years, is identifying gaps and usages to launch products customised to the markets, he told PTI in an interview. The company, having 13 manufacturing units across the country, is augmenting its capacity further to meet the demand and is diversifying its manufacturing activities by adding new lines, he added. Dabur India, which has an annual capex of around Rs 350-450 crore, also plans to expand its manufacturing activities in the international markets catering to regions such as the Middle East and Europe. Besides, the company is consolidating its manufacturing operations and has shut down some units where tax sunsets are coming in, and opening new units where GST regime is coming in, Malhotra added. On Dabur's business in South India, Malhotra said,"We have made substantial progress in South India... it now contributes 19 to 20 per cent of Dabur's domestic business. This was not even 10 per cent around seven to eight years back and thus contribution from the Southern region has doubled." When asked about the new plant in South India, Malhotra said,"I do not think it's a few years away. Maybe it is a year away .Within a year, we might plan something for South of India as business scales up." Dabur's last investment to open a new unit was at Indore, where it had invested around Rs 350 crore. In the southern market, several FMCG makers, including Wipro have jumped into the food segment with relevant regional offerings. Dabur is identifying gaps there to launch customised products. "We are creating a framework in the company where we can create products which are exclusively meant for the South of India for which we have got this framework called RISE, which is regional insights, speed and execution," said Malhotra. Some brands such as Dabur Red, contribute 40 per cent of its business in South India and Dabur Honey and Odonil are very salient there, he added. "So we are looking at a lot of pollination of products in South of India to increase our saliency," he said. However, Malhotra also added that in comparison with other FMCG makers having a saliency of 30 per cent, Dabur's salience is in the range of 20 per cent. "So there is a huge gap of 10 to 15 per cent to be covered in the South. That is an area that will be our focus for geographical growth," he added. Talking on international markets, he said MENA (Middle East &amp; North Africa) is the largest market and a "growth frontier". It has a manufacturing facility in the UAE and uses the Greater Arab Free Trade Area Agreement (GAFTA) to cater to Saudi Arabia. "If Saudi Arabia opens up and scales up, we might look at a manufacturing unit even in Saudi Arabia. We have another second unit in Egypt, which is the second largest market after Saudi Arabia," he said. Dabur uses Common Market for Eastern and Southern Africa (COMESA) while manufacturing in Egypt and supplying to East Africa. Dabur also has a factory in Turkiye, which ships to European markets. It also has a factory in South Africa which caters to SADC (Country / Southern African Development Community) markets of 12 countries. While in the US, it has a contract manufacturer, which also caters to the Canadian market. "Business is doing well in international markets. There is a recovery after Covid but geopolitical issues are always there," said Malhotra while referring to trouble brewing in the Middle East, and the Russia-Ukraine War.

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