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New Delhi, Jan 21 () The FMCG industry is expected to be 'stable' in 2020 with a growth of around 9 to 10 per cent, helped by several macroeconomic factors, including expectations of inflation going down and proactive government policies, according to a report.
 The FMCG industry registered a growth of 9.7 per cent in 2019, which included e-commerce, said data analytics firm Nielsen in the report titled 'India FMCG Growth Snapshot'.
 The full year 2020 forecast is stable at 9-10 per cent, it added.
 "2019 has been a tough year for the FMCG industry with over four point decline, but we do see it stabilising in the last quarter of the year... However, 2020 offers a stable outlook for the industry arresting the 2019 decline," Nielsen Global Connect South Asia Zone President Prasun Basu said.
 In the fourth quarter (October-December) of 2019, the FMCG industry reported a sales growth of 6.6 per cent and it was 7.3 per cent with e-commerce channels, which according to the report indicates an "arrest" as against sharp slowdown witnessed in the previous quarters.
 For the full year 2019, FMCG growth slowed down to single digit in 2019. It was led by the rural market, and growth slipped to nearly half that in the previous year.
 Comparing zones over the one-year period, while northern and western regions were the most affected, the southern region sustained its growth levels, it added.
 Inflation in December 2019 touched a 5-year high of 7.3 per cent. The trajectory would be on a declining trend, and is expected to end in the 4-5 per cent range for this year, the report said.
 Additionally, rural inflation has touched and is at similar levels with urban inflation on account of rising food prices, it added.
 With new crops coming in and onions supply stabilising, inflation is expected to go down in coming months, the report said.
 Currently, continuing efforts to boost consumption and growth, the government has announced a USD 15-billion infrastructure pipeline for the next five years, it added.
 With the third and final tranches for the year of the Pradhan Mantri Kisan Yojana being released, USD 1.7 billion is expected to flow into the economy, the report said.
 "The Budget 2020 is also expected to bring respite to the masses through tax cuts and additional benefits and may be a reason for cheer," it added.
 Other factors that could impact trajectory of FMCG growth is improvement in India's global ranking in the World Bank's 'Ease of Doing Business' Index from 77 to 63, coupled with proposals to allow higher FDI in select sectors, may lead to higher amount of investments coming into the country, the report said.
 Disposable income, consumer sentiment and thereby the trajectory of FMCG growth would also be impacted by factors such as telecom sector having an overhang on the larger growth picture, it added.
 "With BS-VI norms coming into effect in 2020, the auto sector may start seeing greater stability," the report said.
 Macroeconomic policies coupled with inflation-GDP trajectory, manufacturer actions and consumer sentiment are expected to lead to money in the hands of consumers, thereby fuelling consumption, Nielsen South Asia Data Science Lead Nitya Bhalla said.
 "Our forecasts for Q1'20 is 8-9 per cent and for the full year 2020 is 9-10 per cent, similar to the year gone by," she added. AKT KRH HRS

FMCG industry to grow 9-10 pc in 2020: Nielsen

India’s <a href="http://www.businessinsider.in/yourmoney/your-money/india-fmcg-sector-has-lost-rs3840-crore-last-month-thanks-to-demonetization/articleshow/56155564.cms">FMCG industry </a>has emerged as the highest paying industry in the country, with an average annual CTC of Rs 11.3 lakh across all levels and functions. 
 
As per a survey, the industry actively seeks qualified personnel in sales, marketing and supply chain management, and around 30% of jobs being posted are over 10 lakh category; this makes for the primary reason behind <a href="http://www.businessinsider.in/small-business/fmcgs-are-banking-on-better-consumption-post-note-ban-start-hiring/articleshow/56663012.cms">FMCG </a>industry’s victory. 
 
Also read: <a href="http://www.businessinsider.in/FMCG-products-with-gold-in-their-names/articleshow/53298776.cms">Indians are so fond of gold that they don’t mind shelling extra money for FMCG products with ‘gold’ in their names</a> 
 
Next in the line are the power and <a href="http://www.businessinsider.in/careers/IT-employees-need-to-upgrade-to-avoid-being-washed-up-by-digital-wave/articleshow/50011834.cms">IT </a>sectors, with average annual salaries of Rs 9.8 lakh and Rs 9.3 lakh, respectively. 
 
This was revealed by the 2017 Salary Trends Study released by Randstad. 
 
Also read: <a href="http://www.businessinsider.in/Google-the-most-attractive-employer-in-India/articleshow/47026889.cms">Google is the 'most attractive employer in India'</a> 
 
The fourth and fifth positions are taken by Pharma and healthcare (Rs 8.8 lakh) and telecom (Rs 8.7 lakh). 
 
"Today employers are cognizant of the fact that the right salary structure is one of the key strategies to attract, engage and retain top talent in the organisation and hence it is important to closely analyse the prevalent salary trends and make course corrections wherever necessary," said Moorthy K Uppaluri, MD &amp; CEO, Randstad India. 
 
Talking of location-specific salary trends, Bangalore tops the list to become the highest paying city in the country, with an average annual CTC of Rs 14.6 lakh across all levels and functions. 
 
Second position is grabbed by Mumbai (Rs 14.2 lakh) followed by Hyderabad (Rs 13.6 lakh) and NCR (Rs 13.5 lakh). 
 
Next in the list are Chennai (Rs 13.4 lakh), Pune (Rs 13.2 lakh), and Kolkata (Rs 11.4 lakh). 
 
Talking of jobs in demand across industries in the 6-10 years experience bracket, Core Java professionals emerged as the winners with an average annual CTC of Rs 18.06 lakh, followed by Digital Marketing professionals (Rs 17.09 lakh) and Testing Automation Engineers (Rs 14.67 lakh). 
 
For the survey, Randstad analysed around 1 lakh jobs across 20 industry verticals and 15 core functions. 
 
(Image source The Indian Talks)

Survey reveals FMCG to be India’s highest paying industry

<ul><li>E-commerce currently contributes 2% to the FMCG market.</li><li>Metros lead the <keyword id="8408593" type="UNKNOWN" weightage="20" keywordseo="e-commerce-fmcg">e-commerce FMCG</keyword> race with a 6% contribution from the channel to total FMCG sales. </li><li>Foods is the biggest contributor with 44%, then it is personal care (40%) and household care (13%). </li></ul><keyword id="6456080" type="ORGANIZATION" weightage="20" keywordseo="nielsen">Nielsen</keyword> India expects the Fast Moving Consumer Goods sales coming from the e-commerce channel to grow to $4 billion by 2022. The channel contributes 2% to the current FMCG market. These are insights were a part of Nielsen’s recently launched <keyword id="8408596" type="UNKNOWN" weightage="20" keywordseo="e-trak-index">E-Trak Index</keyword> - a measurement solution that tracks the FMCG e-commerce industry. The solution is created using aggregated ePOS (electronic point of sale) data from co-operating e-commerce players and data science backed estimation for non-cooperating e-commerce players in India. The index adds a crucial element to the Retail Measurement Services that Nielsen provides by adding a view of the FMCG E-commerce space for All India Metros currently - with monthly read for Total FMCG, Super-categories, Category level for about 20 categories and for 11 categories at a top manufacturer level. Manufacturers and marketers get data, information and insights that can be further used to hone their e-commerce channel sales strategy to help shape a smarter market. Metros lead the e-commerce FMCG race with a 6% contribution from the channel to total FMCG sales. Amongst these, Foods is the biggest contributor with 44%, followed by personal care (40%) and household care (13%). Narrowing in on the value contribution of e-commerce to Metro sales categories with the channel, diapers contribute 26% to the sales; followed by skin creams (12%) and shampoo (10%). <keyword id="3017476" type="PERSON" weightage="20" keywordseo="Prasun-Basu">Prasun Basu</keyword>, South Asia Zone President, Nielsen Global Connect, said, “Measurement is necessary. Measurement is difficult. Best possible measurement.” Explaining it further, Basu adds, “Data and insights from Nielsen’s Retail Measurement Services continue to provide an essential foundation for manufacturers and marketers to understand their market. In this rapidly evolving world of commerce, India’s FMCG industry is now making its presence felt in the E-Comm channel - appealing to consumers’ need for convenience, and in sync with increasing smartphone and internet penetration. To give a truly complete picture of the changing marketplace, we are happy to announce that Nielsen India has launched a specific E-Trak index that will now measure FMCG consumer offtake in the E-Comm space - marrying this with trends seen in modern and traditional trade to get a read on omnichannel in the country.” <keyword id="8408595" type="UNKNOWN" weightage="20" keywordseo="Sharang-Pant">Sharang Pant</keyword>, Head-Retail Measurement Services and Retailer Vertical, South Asia, Nielsen Global Connect said, “While the foundation is taking shape, E-comm’s dynamic nature has made it a disruptor in the marketplace. E-Comm has seen a transformative journey and is now a $1.2Bn Industry growing from 0.5% contribution in 2016 to a 2% contribution in 2019, and slated to be 5% in 2022 - this is in half the time that brick and mortar retail took to evolve. That said, these channels are not cannibalizing each other, and all continue to grow with E-Comm outpacing modern trade and traditional trade. The view that Nielsen presents on understanding channel, category and consumer trends will directly help players understand the right strategy in terms of assortment, pricing and positioning to win with the evolving consumer.” <keyword id="8408594" type="UNKNOWN" weightage="20" keywordseo="Nitya-Bhalla">Nitya Bhalla</keyword>, Head- Data Science, South Asia, Nielsen Global Connect, said, “Given the significance of the channel from both a current as well as future perspective, Nielsen has built a unique state of the art hybrid model for estimating this dynamic and growing channel. The methodology involves leveraging data from key collaborating E-tailers in the FMCG space. We then use crowd sourced data coupled with machine learning techniques from a panel of 200K+ consumers to estimate the Ecommerce sales for FMCG products.”

Nielsen expects FMCG e-commerce to grow at 44% CAGR to $4 Billion by 2022

New Delhi, Feb 1 () The FMCG industry, facing a consumption slowdown, on Saturday welcomed the Union Budget saying that proposed reduction in personal taxes would help drive consumption and the thrust on rural development would revive demand from the segment.
 Companies like Godrej Consumer, Dabur, Britannia Industries, Marico and Jyothy Labs said the special thrust on agriculture, irrigation and rural development should fuel growth in a struggling rural economy, where FMCG growth has slowed down.
 "The Union Budget attempts to activate multiple levers like rural, infrastructure, entrepreneurship and financial sectors to stimulate growth. It remains to be seen which of these will fire and to what extent. We are optimistic about the government's rural agenda and hope that it buoys consumer demand for the FMCG sector," Britannia Industries MD Varun Berry said.
 Terming it as "incremental budget", Dabur India CEO Mohit Malhotra said the government continues to focus on farmers' income and is offering significant sops at the lower end of the spectrum, which will enhance the purchasing power of the consuming class.
 "The big positive takeaways from this year's Budget would be the income-tax relief offered to lower income groups by slashing income tax rates and rejigging income tax slabs to reduce total tax payable by individuals. This would definitely put more disposable income in the pockets of the consuming class, particularly the middle class, which may help push demand for consumer staples," he said.
 However, Malhotra added that "big bold steps" needed to restart economic growth are missing.
 "That said, the fact remains that the government had little room for manoeuvre," he added.
 According to Godrej Consumer Products MD and CEO Vivek Gambhir, expectations from this budget were very high, and it has partially delivered.
 "The positive is that it recognises that spurring consumption is clearly the need of the hour. Some of the measures being introduced should help improve consumer demand incrementally this year in both rural and urban India," he said.
 Gambhir added:" Focused efforts to improve agricultural productivity, together with better target subsidies, are summed up in a 16-point action plan. This should relieve stress in the agrarian economy and boost rural growth prospects for FMCG."
 However, he added that it will take much more to achieve the target of USD 5 trillion economy and double farmer income by 2022.
 "The real litmus test will be the introduction of deeper structural reforms and the timely disbursement and effective on-ground translation of a clear roadmap of change," said Gambhir.
 Expressing similar views, Marico CFO Vivek Karve said, "Reduced personal taxes auger well for consumer goods companies as more disposable income will help drive consumption of branded goods."
 Jyothy Labs Joint Managing Director Ullas Kamath said the Budget seems to be a "sincere attempt" in boosting the much needed demand scenario in both rural and urban economy.
 "The announcements related to revising individual tax structure, proposed 16-point action plan for agriculture and farmers' welfare coupled with the strategy to doubling farmers' income by 2022 is the step in the right direction. We expect overall impact of the budget will boost consumption and revive consumer sentiments," he said.
 According to Parle Products Senior Category Head Mayank Shah, the budget was the "most anticipated one" due to last year's economic depression which burdened many sectors.
 "FMCG has been facing headwinds due to stagnating rural demand. This budget will surely increase the discretionary spending and FMCG will be one of the biggest beneficiaries. The provisions announced by Finance Minister on revision in direct taxation for lower personal income tax liabilities along with emphasis on targeted measures for boosting rural economy will have a twin positive impact on FMCG," he said.
 Emami CFO N H Bhansali said: "Expectation from the Union Budget were not very high, in view of the fact that few important steps have already been taken by the government like the reduction in corporate tax prior to the budget.
 "Looking at the current market scenario, where growth has slowed down, the focus is on stimulating growth rather than fiscal discipline. Accordingly, the Finance Minister has announced many steps for furtherance of agriculture, commerce, industry, services and exports," he said.
 CG Corp Global Executive Director Varun Chaudhary said that mass market brands will benefit post budget as the middle class will have more money in their hands post the income tax reduction.
 "Better agricultural output combined with urban middle class having more money in their pockets will help discretionary food categories," he said. KRH ABM

FMCG industry welcomes Budget, says reduction in I-T slabs to drive consumption

<ul><li>After an unprecedented decline of -19% in the Jan-Mar quarter, FMCG industry displayed signs of recovery in Q3’20 with a 1.6% growth (versus Q3 ‘19).</li><li>FMCG witnessed a double digit growth of 10.6% in Q3’20 in Rural India, while the bigger cities (&gt;1 Lakh population including metros and Town Class 1) played catch-up. </li></ul>Nielsen India’s latest report gives us an insight into the consumers’ brains, <keyword id="34529" type="ORGANIZATION" weightage="20" keywordseo="fmcg-sector">FMCG sector</keyword>’s performance and how different parts of our countries are dealing with the current situation. With the pandemic achieving stability and markets and economy opening up, green shoots were visible in the July-August-September quarter for the year. There was an appreciable improvement in the performance of manufacturing, witnessed with an arrest of the declining Index of Industrial Production (IIP) from -57.3% in April’20 to +0.2% in Sep’20. Drop in unemployment rate from 23.7% at its peak in April’20 to 6.7% in Sep’20. Some of the macro variables still reflect the overall economic scenario with inflation rate continuing to rise and the Consumer Confidence Index (RBI) dropping to a low 49.9 in Sep’20 from a 85.6 in March’20 The above-mentioned positivity was reflected in the FMCG industry too. After an unprecedented decline of -19% in the Jan-Mar quarter, FMCG industry displayed signs of recovery in Q3’20 with a 1.6% growth (versus Q3 ‘19). Using proprietary Nielsen Retail Audit data, this note will further delve into the trends of Q3’20 and the outlook for 2020: FMCG INDUSTRY MOVES INTO A POSITIVE GROWTH SPACE The FMCG slowdown in Q2’20 saw a value decline of 19% as compared to the same period of 2019. This was fueled by massive disruptions in the production and supply chain, and low consumer confidence. The unlock from Q3’20, saw a revival in the industry with a growth of 1.6% versus a year ago. The revival was aided by businesses opening up with the pandemic reaching stable levels. Markets started opening up in a phase-wise manner and store closures came down to an average of 3 days a month in Q3’20 from an average of 9 days a month in Q2’20. After being cooped at home for a long time, consumers also started looking at resuming normal consumption levels. RURAL CONTINUES TO DRIVE GROWTH With easing of pandemic and markets unlocking in various phases in the third quarter of the year, we saw recovery across town classes with the rural and Rest of Urban (ROU) regions continuing to lead growth. FMCG witnessed a double digit growth of 10.6% in Q3’20 in Rural India, while the bigger cities (&gt;1 Lakh population including metros and Town Class 1) played catch-up. The rural markets have bounced back handsomely on the back of support provided by the government as well as good agriculture, reverse migration and a lower unemployment rate. Various favorable macro-environment factors have helped drive rural revival in Q3’20 <ol><li>Government dialing up on rural stimulus in the form of increased MGNREGA allocation- <ol><li>11% increase in average wages at an All India level (Sep vs Mar’20).</li><li>83L new households joined MGNREGA labour force </li></ol></li><li>'Garib Kalyan Rojgar Abhiyan’, support to agriculture and upskilling programs for migrant workers that returned to their villages.</li><li>A bountiful <a href="https://www.livemint.com/topic/indian-monsoon">monsoon </a>also brought cheer to farmers with a record output in the kharif crop season. </li></ol> HEALTH &amp; HYGIENE DOMINATES THE NEW LAUNCHES There have been a higher number of new launches per se during the Covid period and a higher number in the non-foods space. As Covid has prompted consumers to re-frame their habits into health and hygiene, more new launches have been made in the health &amp; hygiene basket including categories like hand sanitisers, floor cleaners, toilet cleaners, antiseptic liquids. New launches in the health &amp; hygiene space contributed to 37% (in value) of all new launches in the COVID period. The value contribution of new launches in the health &amp; hygiene category was higher during Covid period at 2.9% OUTLOOK 2020 (Including Traditional Trade, Modern Trade and E-Commerce) After the FMCG industry had a double digit drop in Q2’20 due to intense lockdown stressing the overall economy, it bounced back to positive +1.6% growth in Q3’20 which reflects the onset of green shoots. While the market has initiated a recovery, the demand and supply disruptions caused by the world’s severest lockdown from end-March have severely curtailed economic activity. It is gradually returning to normal as restrictions are relaxed. However, continued spread of the pandemic is keeping the economy watchful. Given the significant headwind built in the start of COVID-19 pandemic in March’20, <keyword id="10336754" type="UNKNOWN" weightage="20" keywordseo="Nielsen-forecast">Nielsen forecast</keyword> for 2020 to remain in the negative single digit (-3% to -1%). The key factors influencing the growth trajectory so far and the forecast for the future include: COVID-19 Impact On The Economy: Annual consumer price inflation in India increased to 7.5 percent in September of 2020 It is the highest rate since May 2014. Food inflation went up to 11.07 percent from 10.68 percent, the highest since January and ahead of the festival season impacting the overall expenditure and consumer confidence muted. The trajectory of the FMCG industry once again reinforces the inherent strength of the consumption story in India irrespective of the fact that we had a GDP which shrank 23.9% year-on-year in the second quarter of 2020. There are steps being actioned by the Government that can help counter these changes in the coming quarter in the farm sector and has sought to deliver labour market flexibility: <ul><li>The Interest-On-Interest waiver is expected to bring some relief and additional cash in hand for individuals and MSME businesses</li><li>The cash voucher scheme for central government employees is expected to boost spending in big proportions in upcoming months</li><li>About 83 lakh households enrolling from April to August under MNREGA saw an all time high providing livelihood in Rural</li></ul>A bountiful monsoon has brought cheer to farmers, with a record output expected in the kharif crop season. With reservoirs filled to the brim, output is expected to be high in the rabi season as well. Increasing purchasing power in the hands of farmers is expected to increase rural demand. There has also been an appreciable improvement in the performance of both manufacturing and service sectors in October. FMCG Q3’20- TO SUM UP <ul><li>AFTER A DISMAL PERFORMANCE IN Q2 (AMJ’20), FMCG INDUSTRY MOVES INTO A POSITIVE GROWTH SPACE</li><li>BHARAT (SMALL TOWNS &amp; RURAL), NORTH ZONE &amp; SMALL MANUFACTURERS DRIVING GROWTH</li><li>CONSUMER PREFERENCE FOR AFFORDABLE OFFERINGS CONTINUE</li><li>INNOVATION (NEW PRODUCTS LAUNCHED) DOMINATED BY HEALTH &amp; HYGIENE CATEGORY</li><li>NIELSEN OUTLOOK FOR FMCG INDUSTRY GROWTH FOR 2020 REVISED TO THE RANGE OF -1 TO -3%</li></ul>

Nielsen predicts degrowth in the FMCG sector by 1 to 3% in Q3’20

New Delhi, Apr 30 () Market insight firm Nielsen has slashed the growth forecast for FMCG sector by almost half to 5 to 6 per cent for 2020, citing impact of coronavirus pandemic and subsequent lockdown. Earlier, on January 21 , Nielsen had projected the FMCG industry's growth forecast of around 9 to 10 per cent for 2020, with a "stable" outlook on the back of favourable several macroeconomic factors. Revising its outlook, Nielsen - which follows January to December calendar - said the sector will have to face several macro-economic challenges such as lower GDP growth rate, rise in number of unemployment besides impact of the pandemic."Given the significant headwind built in the start of COVID-19 pandemic in March'20, Nielsen revises the Full Year Industry growth forecast for 2020 to mid single digits (5-6 per cent)," the firm said in a report.FMCG growth for Q1 20 (January-March) stands at 6.3 per cent against the Nielsen forecast of 8-9 per cent, and this quarter is turning out to be the lowest first quarter in the past three years, it added.Going forward, Nielsen said, "We expect FMCG industry growth for the second half (July-December) of 2020 to be in the range of 5-6 per cent, marginally higher than H1 2020".According to Nielsen, the FMCG sector witnessed an average growth of 7.5 per cent in January and February, however, March was impacted due to uncertainties around COVID-19 and subsequent lockdown.In March, volumes grew by a mere 0.5 per cent, while the sector clocked value growth of 4 per cent.While in the first quarter, 6.3 per cent growth of FMCG, traditional channels as kirana and neighbourhood stores had 3.3 per cent growth, while the modern trade and e-commerce had contributed 1.9 per cent and 1.1 per cent growth, respectively.In the corresponding quarter in 2019, FMCG sector has reported 13.8 per cent growth in which 12 per cent growth was from the traditional channels, and modern trade and e-commerce had contributed only 1.2 per cent and 0.6 per cent.More drastic changes were observed in the metro markets, where out of 7.4 per cent growth in January-March, tradition channel contributed only 0.4 per cent. Share of modern trade and ecommerce channels has gone up to 4.2 per cent and 2.8 per cent, respectively. KRH RKL BAL

Lockdown: Nielsen slashes FMCG growth forecast by half to 5-6 pc for 2020

<ul><li>The year 2020 was a roller coaster ride for businesses of all kinds and sizes and negatively impacted <keyword id="47276" type="PERSON" weightage="20" keywordseo="Economic-growth">economic growth</keyword> worldwide. </li><li>However, after June 2020, one industry that continued to see stable cash flow and income was FMCG. </li><li>In today’s feature, we speak to leading FMCG brands on their outlook for 2021 as we move forward. </li></ul>The pandemic has taught the brandverse to be prepared for the unexpected. Owing to the fear of contracting the virus by going out, brands had to rethink and realign their strategies to reach out to consumers in new ways. Online shopping platforms opened up their services to deliver 24*7 and people started hoarding daily essentials, including FMCG products. So, many FMCG brands partnered with e-commerce platforms like Dunzo, Flipkart, Grofers, BigBasket, etc to deliver within the comfort of consumers’ homes. Consumer habits also evolved with COVID and ‘immunity’ became the buzzword in the FMCG industry. Marketers reverted by launching ready-to-eat meal options and immunity-based packaged goods. However, with COVID vaccine now a reality, consumer sentiment is already picking up and the economy is in revival mode. Going by the latest reports, 2021 will augur well for small retailers leading to an increased sales from local markets and <keyword id="6513856" type="COMPANY" weightage="20" keywordseo="kirana-stores">kirana stores</keyword>. According to <keyword id="346535" type="COMPANY" weightage="20" keywordseo="Nielsen-India">Nielsen India</keyword>, after an unprecedented decline of -19% in the Jan-Mar quarter, FMCG industry displayed signs of recovery in Q3’20 with a 1.6% growth (versus Q3 ‘19). In 2020, rural markets outperformed urban India and became critical for FMCG giants. Brands relied on rural markets to drive growth during the trying times. FMCG witnessed a double digit growth of 10.6% in Q3’20 in Rural India, while the bigger cities (&gt;1 Lakh population including metros and Town Class 1) played catch-up. The rural markets bounced back in Q3 handsomely on the back of support provided by the government as well as good agriculture, reverse migration and a lower unemployment rate. With immunity being the focus in the ‘new normal’, new launches have been made in the health and hygiene basket including categories like hand sanitisers, floor cleaners, toilet cleaners, antiseptic liquids. These new launches contributed to 37% (in value) of all new launches in the COVID period (Nielsen India). According to Kantar Worldpane, FMCG sector in India is expected to report a 4-5% volume growth in FY21, driven by rural areas that are expected to grow two percentage points ahead of the urban regions that are hit harder by COVID-19 pandemic. While COVID-19 has curtailed economic growth in the FMCG sector, experts are now optimistic that the industry will see an appreciable improvement this year. Here are some of the trends they expect to see in 2021: R S Sodhi, MD, GCMMF (AMUL): <cmsannotation type="cmsannotation" annotationid="The biggest impact i" comment="inlineshare" text="The biggest impact in FMCG food is the shift among the consumers from loose and unbranded to trusting packed food and affordable brands in Tier II and III. There, people have come from loose to smaller packs and brands.">The biggest impact in FMCG food is the shift among the consumers from loose and unbranded to trusting packed food and affordable brands in Tier II and III. There, people have come from loose to smaller packs and brands.</cmsannotation> I don't think the demand in high end consumer products will grow as much now. There'll be a tremendous increase in demand for branded FMCG products that are affordable, available in smaller packs and mainly cater to Tier II III cities. For the past two years, at Amul, we have been trying to ensure we reach the towns that have over 10,000 population, which helps us cover the 15 to 20 bigger villages around those towns. Currently, we are working with 10,000 distributors. We have already covered 50% of these 10,000 population towns in India and in another one year, we'll cover all the towns. We're mainly investing in Tier II and III cities, opening our own branches and depots all over India. We recently opened a centre in Leh. Anil Viswanathan, senior director, marketing (chocolates), insights and analytics, <keyword id="2200852" type="COMPANY" weightage="20" keywordseo="Mondelez-India">Mondelez India</keyword>: The pandemic has accelerated the growth of snacking. As per Mondelēz International’s recently released second annual State of Snacking report, 9 in 10 Indian adults (88%) say they are snacking more or the same (22%) during the pandemic than before it, with millennials being especially likely to say they prefer snacks over meals (85%). A majority expect this trend to continue, saying they plan to continue eating small snacks throughout the day, as opposed to fewer large meals (82%), and that snacking will be part of their “new normal” even after the pandemic ends (81%). Ultimately, 8 in 10 believe “the current pandemic will have a long-term impact on how we consume snacks as a society” (81%). This unprecedented year has also brought about a significant behavioral change especially on how consumers are purchasing snacks. A majority say they have started to buy snacks online more often than they do in-store or offline (74%), with 8 in 10 planning to continue shopping for snacks online once the pandemic is over (81%). A similar percentage also say the pandemic has opened their eyes to so many more ways to get snacks than they knew existed before (80%), including half who have discovered snacks to try on social media (50%). It was also very heartening to note that, even while at home this year, Indians are social snackers. With health and safety continuing to be a priority, consumers are trying to strike a balance between indulging and being mindful (80%), and in doing so; they (80%) are relying on trusted snacking brands like Cadbury, OREO, and Bournvita, seeking assurance of safety and superior quality. At Mondelez India, we understand the role our products play in our consumers’ life and the aim is to leverage these trends to empower them with more choice, creating greater shopping opportunities and innovating, while keeping our promise of consumer-centricity intact, throughout our growth journey. Sudhir Langer, CEO, Raymond Consumer Care: Conscious Communication Today’s young ‘woke’ consumers were already moving away from the excesses of consumerism and leaning towards sustainable conscious brands before the pandemic and lockdowns hit their lives. The all-round strain of the pandemic from volatile job markets and a possible looming global recession to health and environment concerns; along with the way lockdowns were framed as health versus economy predicaments—as if one has to be sacrificed for the other—has left many questioning the very basis of our consumer-driven economy. I feel, the months in lockdown have only strengthened that introspection and has further fueled the young consumers’ move towards purpose and value, making them think-twice before buying by taking in to consideration the long-term impact of their spends not only on their finances, but on their own beliefs, on society and on the planet. So, with conscious consumption here to stay, when consumers buy, it is going to be as much for brand values as it is for product payoff. Keeping this in mind a big communication trend I see emerging as we move into 2021 is brands engaging more purposefully with deeper more sentient conversations. These could include brands talking about their environmental and sustainability efforts, community initiatives, health impact and most importantly value addition. Fortunately for us this is not a shift to adapt to; but a way of operating. We have always believed in empowering, enabling and operating consciously. Hence, it’s not only our communication like our recent Park Avenue Germ Protect soap film about our protagonist helping his community but at every level we are constantly taking steps to enhance efficiencies for a better world like our soon to be launched sustainable and eco-friendly packaging. Sumit Mathur, Director Marketing Kellogg South Asia: The pandemic is a black swan event that brought several changes at the economic and societal levels. Consumers had to face economic stress which made them more discretionary in their consumption choices. Our virtual connects with over 450 consumers amidst the lockdown made it clear that items which they do not deem to be too essential are unlikely to find a place in their shopping carts. Come 2021, only brands solving a real consumer problem or adding value to their lives will be on top of their minds. It has become increasingly important for brands to feel the pulse of the consumer and provide authentic solutions to stay relevant. Kellogg’s has paid attention to the consumer’s shifting needs and adapted with agility to ensure it solves consumers’ nutritional demands in the most convenient manner and this will continue to be our focus in the coming year.

FMCG: The trends to watch out for in 2021

One of the strongest pillars of the <keyword id="6356076" type="UNKNOWN" weightage="20" keywordseo="indian-economy">Indian economy</keyword> - the Consumer industry - may not have shown exponential growth in the past 3-4 years, but this one has managed to keep itself insulated from the vagaries of the global macro-economic environment unlike few other vulnerable sectors. And guess who is watching this closely? It's the IIM and IIT students who have got their eyes on this sector. 
 Yes, despite the startup era, it's the <keyword id="34523" type="CITY" weightage="20" keywordseo="fmcg">FMCG</keyword> companies which are the top choice of these students even today. The Campus placement season has been seeing a promising response from this sector for years now. The sector has been stable, and in terms of salary, it hasn't dissapointed students at all. 
 
"Isn't it better to get a lesser package in a company/sector whicg guarantees job security than a one which gives more, except that it may ditch us even before we are to begin work with them," says an IIM-Calcutta student who recently picked up a 18,ooo lakh offer with a FMCG company of repute. 
 
Many B school students like him therefore have put their faith in the FMCG sector over any other offer that is coming their way. We spoke to two experts to understand this, and here are the reasons that have settled the recruitment game in the facour of the big daddies: 
 
What recent salary projections say 
 
“Even in the future, the sector is likely to be stable in terms of salary projections,” says Gaurav Gupta - Sr. Consultant, Rewards, Aon Hewitt. 
 
"With an uptake in consumer sentiments, we will see double digit growth in FMCG in the next 4-5 years. So, you can say that we are seeing a neutral to positive environment for this sector in the short to medium term. This is largely reflected in terms of the salary increases. FMCG was leading the pack in terms of salary increases unlike the service industries and financial institutions who are suffering as a result of the global economic turmoil," he said. 
 Notably, the <keyword id="1048517" type="ORGANIZATION" weightage="20" keywordseo="consumer-sector">consumer sector</keyword> overall has largely two sections - the foreign MNC firms and the Indian companies. For the foreign MNCs, Gaurav says, India has been a very lucrative destination. 
 
"It has been a investment destination which is seen as an engine for growth in future. Hence, you see them investing a lot in terms of their plants, production activities and hiring top talent from the market. That's why we have seen growth in salary increases by them. On the Indian side, the picture is very different. These companies have seen aggressive growth in their top line and market capitalisation. The talent catchment area has increased as they now have competitors operating even in local markets who are also hiring their employees. From that perspective, the large Indian companies in this sector are competing with these local businesses which may be strong in the area they operate, and therefore have been looking to bridge the gap in pay levels,” he says. 
 
Moreover, there has been critical focus on ring fencing of talent in this sector. This is because talent movement across sectors has been worrisome. A lot of service firms banking, telecom, insurance and e-commerce are hiring these talent. This is why consumer industry is trying to give higher increases and bringing in sincere key talent while also retaining existing ones. 
 
Attrition: 
 
Meanwhile, Gurdit, who is also Sr. Consultant, Rewards at Aon Hewitt, informed that even as the FMCG sector has traditionally seen lower attrition rates than India average (13.5- 14% over the last 5 years consistently against an India average in the 16-18% range, and on 13.7% currently), there has been no clear trend whether it has been increasing or decreasing. 
 
Key talent: 
 
Moreover, the key talent attrition is extremely low in this sector. In the last 4-5 years, it has been below 5% and this is both voluntary as well as involuntary. Notably, the way key talent is defined is it’s a combination of high performance, high potential as well as business critical skills which are difficult to find in the market. Typically organisations earmark about 10-15% of employee base as key talent, however, it varies with different organisations. Also, key talent is differentiated on a set of factors. 
 
Gurdit explains further: “Firstly, from salary increase perspective, what we found is that over the last 3-4 years the differentiation in the salary increases given out to key talent v/s an average performer has been increasing. This is not just in FMCG, but across sectors. However the amount of differentiation in the consumer space is slightly higher. The ratio of salary increases shows that a key talent employee would typically be paid 1.5-1.8 times higher of what an average performer would be paid. Now, if you keep aside the compensation increases, the other ways companies are differentiating key talent is - they take a call to benchmark key talent at a position slightly higher than others. From the perspective of non-monetary rewards, these employees get accelerated growth opportunities, better exposure to leadership, more meaningful roles and rotation of roles in order to develop their skills faster.” 
 
To this, Gaurav adds: “With regard to foreign MNCs, we have seen a lot of global mobility programs as well, especially for key talent.” 
 
Challenges: 
 
Meanwhile, citing a few challenges the sector faces, Gurdit says: “Traditionally FMCG is known to have the best talent in the market. Therefore, war for talent in this sector is pretty high. That's the reason why most FMCG companies will typically have really good policies and from total rewards perspective, they are well placed to retain best talent. However, one of the challenges is the new lot – startups - which is absorbing the best talent and paying high salaries. For this reason, FMCGs have started focusing on how to retain younger talent. Companies are bringing in programs to cater to the Gen Y employees, they are bringing in more flexibility work arrangements to take on this challenge.” 
 
Also, Gaurav points out that the emergence of tier 2-3 FMCG players pose a huge threat to the bigger players. They are locally strong and are pulling talent. FMCG industry may have to look at curbing this in future.

Here's why B-school students ultimately opt for FMCG companies over startups during placement season

New Delhi, Dec 24 () Markets regulator Sebi has imposed a total penalty of Rs 5 lakh on ICICI Prudential Trust and ICICI Prudential Asset Management Company for not exercising due diligence while making investment decisions.
 The matter relates to ICICI MF's scheme -- ICICI Prudential FMCG Fund -- which was launched in March 1999 and as per the scheme information document (SID), the objective of the scheme was to generate long-term capital appreciation through investments made primarily in equities of select group of companies in the fast-moving consumer goods (FMCG) sector.
 The regulator noted that investments were made in companies other than those in the FMCG industry which was against the mandate of the scheme and in violation of Sebi's rules and thereby ICICI Prudential AMC violated regulations.
 Further, Sebi said ICICI Prudential Trust delegated the responsibility of the trustees to the asset management company (AMC) for declaring dividend and fixing the record date for distribution of dividend declaring dividend.
 Sebi noted that trustees, being under such trust obligation ought to ensure that the timing and the quantum of distribution of dividend is in the best interest of investors and to prevent the AMC from giving benefit to select investors at the cost of maximum number of investors. "If the timing of declaration of dividend as well as quantum of dividend are decided by another entity i.e. the AMC, it will compromise the regulatory framework prescribed in this regard," it added.
 "The noticees (ICICI Prudential Trust and ICICI Prudential AMC) have not exercised due diligence in the manner as expected from them while taking decision to make investments in companies not forming part of the FMCG industry and while delegating responsibility of the trustees to AMC for declaring dividend and fixing the record date for distribution of dividend declaring dividend," Sebi said in an order passed on Monday.
 By such activities, the entities have not exercised proper due diligence and also have not exercised independent professional judgement while discharging their responsibilities at the relevant times, it added.
 Accordingly, the Securities and Exchange Board of India (Sebi) has levied a total fine of Rs 5 lakh on them. SP HRS

Sebi slaps Rs 5 lakh on ICICI Pru Trust, ICICI Pru AMC for not exercising due diligence

In the coming years, macro-economic trends are expected to make India the fifth largest <keyword id="34526" type="UNKNOWN" weightage="100" keywordseo="consumer-market">consumer market</keyword> in the world by 2030, providing a big opportunity for retail and consumer goods sectors, especially FMCG, as per a recent KPMG-FICCI report. The growth in India's FMCG and retail sector has been primarily driven by the increase in consumption brought about by economic prosperity, as a result of strong <keyword id="35050" type="CITY" weightage="100" keywordseo="gdp">GDP</keyword> growth post liberalization in 1991. A combination of growing income levels and rising urbanisation among over 1.29 billion consumers in India is expected to continue driving the increase in overall spending in the country. 
	 
	 
	 
	However, the industry is making a few mistakes too. The report cites that despite being one of the world's largest agricultural producers for years, the level of food processing in India is among the lowest in the world. 
	 
	 
	There is also 40 per cent loss of food grain is reported annually due to inefficiencies in the agricultural procurement and supply; there is large demand potential but FMCG hasn't made inroads into rural India; and modern retail is absent out of tier 1 cities. 
	 Let's just hope that with a new wave of consumerism, the cons will get diluted. The <keyword id="50041" type="CITY" weightage="100" keywordseo="KPMG">KPMG</keyword> report signals a three-fold opportunity for the FMCG and retail sectors through Modi's 'Make In India' program, by reducing burden on imports and creating opportunity for exports, bringing about cost efficiencies in manufacturing and supply chain, and availability of skilled manpower. 
	 

	 
	The report also highlights the challenges in realizing 'Make in India'. It states that manufacturing for consumer goods sector can be revived on three pillars- raw material availability, Labour availability and cost competitiveness - three things India has, but lack of adequate infrastructure and a complex regulatory business environment can cost it dearly. 
	 In a global survey conducted by the <keyword id="6354424" type="ORGANIZATION" weightage="100" keywordseo="World-Bank">World Bank</keyword>, India had dismal ratings on most of the key determinants of investment attractiveness such as starting a business, acquiring land, getting construction permits etc. In addition, India's perception in terms of corruption is also very poor, ranked at a low 85 out of 175 countries. 
	 
	If these challenges are met in near future, export-oriented food and agri parks, as well as incentives for global FMCG companies to set up greenfield projects in India would help in making the country a regional FMCG manufacturing hub for South Asia, Middle East and Africa.

India to become world's 5th largest consumer market by 2030

Mumbai, Jan 21 () The Rs 4-lakh crore FMCG sector will close fiscal 2020 with a 9 per cent growth, down 4 percentage points and a jump in rural buying will lift the same to 11 per cent in fiscal 2021, a report said on Tuesday.
 The recovery in growth for the fast moving consumer goods (FMCG) sector will begin playing out from March-April 2020 riding on a jump in farm incomes, Crisil Ratings said in its report.
 The estimate comes amid reports of a sharp fall in overall consumption, with one media report also claiming that there has been a de-growth in the activity for the first time in four decades. This dip in consumption is one of the most important factors dragging down the GDP growth.
 Better storage levels in reservoirs, which are over 40 per cent higher than the year-ago period due to better rains, an 8 per cent increase in winter crop output and better visibility for the upcoming seasons will lift the rural consumption, it said.
 "Higher spending by the government on rural infrastructure could benefit rural incomes and thereby demand for FMCG products," its senior director Anuj Sethi said.
 He added that urban areas growth for the FMCG sector is unlikely to improve over the 8 per cent level due to a growth in modern retail.
 However, the growth will not be uniform across companies, the rating agency said after an analysis of 57 companies which account for half of the industry's revenues.
 Packaged food segment, which accounts for 50 per cent of the industry's revenues will continue to grow at up to 10 per cent in fiscal 2020 and inch up to 12 per cent in fiscal 2021 on a shift to branded products and deeper penetration of product segments, it said.
 The personal and home care segment, which accounts for a third of FMCG revenue, is also likely to see recovery in growth to 8-9 per cent in fiscal 2021 from 6-7 per cent in fiscal 2020 it said, attributing the slower growth to a focus on discretionary spend-driven products in the segment.
 The agency said it expects the operating profits of companies to remain healthy at up to 20 per cent level despite a hit of up to 1.5 percentage points on raw material costs and promotional expenses.
 "The credit profiles of FMCG companies are likely to remain stable, supported by well-capitalised balance sheets," Sushant Sarode, its associate director, said. AA SHW
SHW

FMCG sector to expand at 9 pc in FY20, growth to improve in FY21: Report

<ul><li>Globally, a third of FMCG businesses said their most successful influencer campaign increased sales by $250,000-$500,000.</li><li>Nearly half of fast-moving consumer goods (FMCG) companies will spend up to 50% of their marketing budget on <keyword id="3361533" type="PERSON" weightage="20" keywordseo="Social-Media-Influencers">social media influencers</keyword> post-COVID-19.</li><li>Less than a third of FMCG firms (27%) use third-party influencer verification services.</li></ul>According to a report released today by Duff &amp; Phelps and Kroll, 25% of companies have suffered a $100,000-$250,000 loss from a negative influencer experience. The Face Value Report highlights results of a survey of over 900 marketing and brand managers within the FMCG sector and provides insights into the value of <keyword id="2540701" type="PERSON" weightage="20" keywordseo="Influencer-marketing">influencer marketing</keyword>, as well as the financial and reputational impact of negative influencer experiences. Consumer devotion to digital devices during the pandemic has supercharged the influencer industry. During lockdown, two-thirds of <keyword id="84065" type="COMPANY" weightage="20" keywordseo="FMCG-companies">FMCG companies</keyword> have either maintained their influencer spending at pre-COVID-19 levels or increased it slightly, while nearly a fifth (19%) upped it significantly. By 2021, nearly half of FMCG companies (46%) expect to spend 31-50% of their total marketing budget on influencers—up one-fifth compared to the average spent between 2018-2020—while nearly one in 10 (8%)will spend more than 70%. Clear winners across countries emerge when comparing how much companies make from their influencer campaigns against what they spend running them. The average amount spent per influencer among FMCG companies globally is $22,151 per year. However, the UK spends on average $18,602 and boasts a high sales increase to expense ratio at 73%--comfortably above the ‘all countries’ average of 46%. FMCG companies will typically spread their spending across dozens of influencers; 45% of companies stated they usually work with 51-100 at a time, and this could rise as the influencer method of marketing becomes more entrenched. UK companies appear to use the fewest number of influencers than other countries at around 66, compared to the global average of 81. Michael Weaver, Managing Director Valuation Advisory Services at Duff &amp; Phelps, said, “Marketing teams once relied on securing the most expensive celebrity they could afford for a television campaign or billboard, but this strategy is increasingly obsolete in the digital age. FMCG companies are satisfied with the return on investment from influencers and are diverting marketing spend away from other traditional advertising and marketing tactics to keep the momentum going. We can’t deny that the lockdown and subsequent restriction measures have also played a part in boosting the industry. But regardless, we don’t expect influencer marketing to slow down post-COVID-19 either.” Influencer marketing also comes with certain risks—85% of FMCG companies have had their brand negatively impacted due to an association with an influencer, with almost a quarter (24%) of these companies claiming to have been adversely affected multiple times. Shockingly, 25% of FMCG companies report losses between $100,00-$250,000 from a negative influencer experience. The survey found that over two-thirds of FMCG companies (69%) had doubted an influencer’s follower count on one or multiple occasions compared to just a quarter (26%) who had never had any concerns. It is noteworthy that in the UK, where just over half of businesses (51%) had never had such doubts about followers, the use of third-party influencer verification specialists was among the highest at 32%, compared to the global average of 27%. Benedict Hamilton, Managing Director in Kroll’s Business Intelligence and Investigations practice, said, “Companies spend years creating brands built on trust and loyalty, characteristics which are hard-won but can be quickly lost, and are difficult to regain. When a negative incident with an influencer occurs, the reputational damage that follows can have long-term commercial impacts. Companies need to do their due diligence and not just take an influencer at “face value.” We are seeing increasing demand from brands to investigate influencers’ online activity and identify potentially sensitive issues, including those posted many years ago, to allow brands to establish whether or not an influencer’s values match their own, and ensure they are making informed decisions about their influencer programmes.”

85% FMCG companies have had a negative influencer experience but half of these companies will spend up to 50% of marketing budget on influencers post-COVID-19: Report

As the impact of <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation&amp;sortorder=effectivedate">demonetisation</a> fades away, the consumer goods companies are looking at a better consumption to bounce back as early as next quarter. 
 <keyword id="3862921" type="UNKNOWN" weightage="100" keywordseo="Post-demonetisation">Post demonetisation</keyword>, the cash crunch faced by the entire nation did hurt them. According to industry experts, they don’t expect it to last long or cause job losses. In fact, some of them have even started stepping up hiring in anticipation of a demand revival. 
 
“We have seen headwinds on demand, but there is no freeze on hiring or bonuses as growth will be back in the second and third quarters (of calendar 2017), and we have to be ready for that,” Varun Berry, managing director at biscuit maker Britannia, told ET. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=PepsiCo+India&amp;sortorder=effectivedate">PepsiCo India</a> chairman D Shivakumar also acknowledged the impact of demonetisation on the consumer goods industry. 
 
“But we are hiring in expectation of a consumption revival,” he told ET. 
 
<a href="http://www.businessinsider.in/searchresult.cms?query=Nestle&amp;sortorder=effectivedate">Nestle</a>, <a href="http://www.businessinsider.in/searchresult.cms?query=Procter+%26+Gamble&amp;sortorder=effectivedate">Procter &amp; Gamble</a> and <a href="http://www.businessinsider.in/searchresult.cms?query=Dabur&amp;sortorder=effectivedate">Dabur</a> also made similar views. <keyword id="6365619" type="CITY" weightage="100" keywordseo="Hindustan-UniLever">Hindustan Unilever</keyword> said it is business as usual for the company. 
 
Headhunters from Transearch, GlobalHunt and Korn Ferry said there was a slowdown in hiring at junior or middle levels in the FMCG sector after the November 8 demonetisation announcement, but that has changed now. In senior positions, there wasn’t any impact, they said. 
 The most fatal casualties face ddue to demonetisation were by neighbourhood stores that transact mostly in cash. Even as consumers visited modern retail outlets more frequently and paid electronically, cushioning the impact for the <keyword id="495979" type="UNKNOWN" weightage="100" keywordseo="FMCG-industry">FMCG industry</keyword>. 
 
According to an expert, across channels, the hit was mostly on non-premium categories targeting consumers with least purchasing power, but the highermargin premium products remained mostly insulated from the demand slowdown. 
 
While the situation is improving for both kirana stores and the organised ones in cities and big towns with easing money supply, rural markets remain a concern. 
 
“There was impact on demand and it was severe across consumer staples, considering that almost 90% of the sales traditionally happen across mom-and-pop stores. But a demand and consumption recovery phase is kicking in and banks are returning to a level of normalcy. However, demand recovery in rural markets will take more time as transactions have been almost entirely cash dependent,” Deloitte India partner Anil Talreja told ET.

FMCGs are banking on better consumption post note ban, start hiring

<ul><li>Finance Minister of India Nirmala Sitharaman presented the Union Budget on February 1, 2022.</li><li>Struggling with high inflation and tepid rural demand, FMCG companies were hopeful for some positive news, steps and reforms that would help boost consumption in the economy.</li><li>However, with no changes in personal tax, there isn’t for hope for a drastic change in consumption and demand.</li><li>At the same time, there are enough subsidies to support the rural areas of the country.</li><li>Here’s what leading FMCG companies have to say about the Union Budget 2022-2023.</li></ul>The Union Finance and Corporate Affairs Minister Nirmala Sitaraman presented the Union Budget for 2022-2023 on February 01, 2022. The government announced that 5% of the annual collections under the Universal Service Obligation Fund will be allocated to improve broadband and mobile service penetration in rural India. This move will allow Fast Moving Consumer Goods (FMCG) brands and all businesses to cast their net a little wider in rural areas via mobile services. The government’s plan to expand the National Highway network by 25,000 KM, the Gati Shakti plan to strengthen seven engines of infrastructure, the launch of 100 new cargo terminals, will further open up new roads for brands and improve logistics efficiency. It will also create new job opportunities in rural areas, improving consumption and demand. The finance minister also mentioned that the government intends to pay ₹2.7 lakh crore worth of minimum support price (MSP) direct payments to wheat and paddy farmers. The government is also looking to deploy drones for agriculture monitoring, crop assessment, digitisation of land records and spraying of insect pesticides. These initiatives will help boost rural incomes and aid the growth of FMCG companies. The Union Budget aims to facilitate ease of doing business and give a push to consumption by providing employment opportunities, improving infrastructure, focusing on technological advancement and accessibility. Here’s how these subsidies for rural India will pave the way for FMCG growth: Mayank Shah, Senior Category Head, Parle Products: First of all, putting money in the hands of consumers really helps, so they go out and buy products. So that was more on the front of ensuring that the demand remained robust given that we have gone through two years of pandemic. That was something that industry expected, either by tax cut, or by increasing the slabs tax brackets or by probably increasing the standard deduction limit. Those were the things that we expected but not much has been done there. However, on the second front of job creation, the government has done a lot. The budget talks about seven engines driven by PM GatiShakti that will definitely boost employment and increase the number of jobs. The budget also talked about 60 new jobs to be created in the next five years. That is relatively a longer process compared to the first expectation which was putting money in the hands of consumers, which would have yielded immediate results. A 20,000 crore boost in transportation infrastructure will definitely help in terms of job creation going forward. Another thing the government would have ensured on the rural front was increased allocation to MGNREGA or direct benefit transfer. In Fact they chose the other way. In terms of rural demand, when you're talking about putting money in the hands of rural consumers by increased MSP and increased MSP allocation, it is also going to have an impact on the inflation because if you increase the MSP, that eventually is going to increase the cost of agri products, primary inputs in food processing. So procurement is going to be increased. The current challenge ahead of most FMCG companies, which is managing inflation, probably would be aggravated, so I consider it to be neutral. Probably placing this money in the hands of consumers through MGNREGA or DBT would have ensured demand to remain robust. Ahmed ElSheikh, President, PepsiCo India: Reviving economic growth, increasing consumption, and fostering investment to fuel post-pandemic growth have been key objectives for the government, and the <keyword id="12134566" type="General" weightage="20" keywordseo="union-budget-2022" source="Orion">Union Budget 2022</keyword> reflects this very intent. This year's Union Budget lays forth a vision for India at 100 years. The Government is leading from the front by raising public sector spending to keep the economic recovery on track. Digitization combined with infrastructural creation will accelerate economic development, stimulate innovation and entrepreneurship enhance living standards while keeping sustainability at its core. The increased outlay for PM Gati Shakti projects for multi-modal connectivity including 100 new railways logistics hubs coupled with steps like enhancing local oilseed production, extending the last date for starting production for new manufacturing units, encouraging alternate cropping will aid growth of the FMCG sector and further strengthen Govt’s vision of an Atmanirbhar Bharat. Saugata Gupta, MD and CEO, Marico Limited: With this Union Budget, the government has laid out a growth oriented, future focused blueprint for India. By prioritising job creation, infrastructure growth and strengthening digital capabilities while making ‘inclusive development’ and ‘financing of investments’ two of the key focal points of the Budget, the government is successfully laying the groundwork for faster financial inclusion and expansion of the credit ecosystem. It has undertaken some key initiatives targeted towards credit growth, farmer welfare, improving the health and education infrastructure, digital currencies and start-ups which will benefit young aspirational Indians. If executed well, the budget will trigger the virtuous cycle of economic growth and employment creation, leading to momentum in growth. I believe that the budget has several inclusive measures and policies that balance consumer needs with industry requirements. It encapsulates the spirit of an Atmanirbhar Bharat and takes strong steps towards fulfilling that vision. Venkatesh Vijaraghavan, Director &amp; CEO - FMCG, CavinKare: We welcome the futuristic, investment-led, growth-oriented Budget with a strong impetus to infrastructure and capability building, which would boost GDP, Atmanirbartha, economic stability and job creation, thereby reaping demographic dividend. Ghanshyam Khandelwal, Chairman, BL Agro: The budget was as expected. We didn't anticipate the industry to take centre stage because several schemes for the FMCG sector have already been implemented in recent years. However, the mention of a rationalised strategy to improve domestic oilseed production and minimise reliance on imports was welcomed. A more promising statement was the package that centers on farmers adopting appropriate fruits and vegetables, as well as proper harvesting practices. The move will go a long way towards uplifting the food processing sector. Harsha V. Agarwal, Director, Emami: A very forward-looking budget with focus on capital expenditure which should drive growth. The ease of business in India has also been prioritised. So over all the budget pulls no surprises and focuses on growth of the Indian economy. Amrinder Singh, Director, Bonn Group of Industries: As the social security benefit of state and central government employees has been enhanced in this Union budget 2022, we are expecting that it will spur the consumption. The government has put money in consumer’s hands and ensured that the demand is not getting affected by increasing the tax deduction limit by 14 percent of the state government employees. Vikram Agarwal, Managing Director, Cornitos: The Union Budget 2022-23 is a progressive budget, our Government is concentrating on infrastructure, employment generation, and future developments. This appears to be a growth-oriented budget as efforts are being made to reduce compliance burdens and improve ease of doing business. The Budget has given an extension of the ECLGS Scheme which would provide much-needed help to the MSME sector especially the hospitality and related food processing segments. The past few years have been tumultuous for the hospitality segment and I am hopeful that this initiative gives the industry a much-needed boost.

You Searched For "fmcg industry" and got 14 results

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