Consumption revival to boost FMCG biz

FY25 is a year of topline growth and expects a double-digit volume growth post election and monsoon - Varun Berry, MD, Britannia Industries

New Delhi: Leading FMCG makers expect a volume-led growth in FY25, with a revival in consumption supported by a lower inflationary environment, projections of a normal monsoon and good Rabi crop.

Companies such as Britannia, Marico, Dabur, GCPL and HUL in their latest March quarter earnings also expect a revenue growth in the new financial year as the deflationary cycle is over. The companies were forced to slash prices as prices of major commodities had fallen, which had in turn impacted their topline and value growth in the last two quarters of FY24. Besides, they expect a gradual uptick from the rural market, which contributes over one-third FMCG sales in the country. For Dabur ‘a volume growth will be the way forward’ in this fiscal, said its CEO Mohit Malhotra in an investor call. He remains optimistic of the gradual uptick in consumption trends in FY25 and expects a ‘mid-to-high single digit volume growth’ considering a normal monsoon, improving macroeconomic indicators, government spending and lower inflation.

“Till last year, we were at least having some price increase anyway and now going forward it’s going to be mostly driven by volume across categories while we budget a 3 per cent price increase, but price increase will be fairly limited in some parts of the portfolio while the rest will be driven by volume only for us. So we feel it will be mid-to-high single digit volume grow,” said Malhotra. Britannia Industries Vice Chairman and Managing Director Varun Berry said FY25 “is a year of topline growth” and expects a double-digit volume growth post election and monsoon.