The Indian FMCG market is finally on the road to recovery after the double jolts of GST and Demonetisation. Emami, a major FMCG firm, in a statement, said that the demands from the rural markets are slowly gaining momentum. The growth trajectory for the future looks promising. However, wholesale channels will still require some time to regain pre GST state.
In the words of Emami director Mohan Goenka,”Retail and rural business have bounced back and growing in healthy double digits, though the wholesale channel is still continuing to be under pressure. International business has also done well”.
The transition effects from VAT to new GST regime seems to have subsided as of now. As per Harsha V Agarwal, market sentiments are improving both in rural and urban areas.
“We have delivered satisfactory performance in this quarter led by growth in winter skincare and wellness brands along with the pain management products. Our future growth path would be focused more on strong innovation, wider distribution and on future-ready areas such as modern trade and online marketplaces,”.
In addition to entering the male grooming market by acquiring 30% stake in Helios lifestyle, the chilly winter quarter has brought good sales for the company.The Company reported a growth of 10% in sales and profit in the domestic market during Oct-Dec 2017. The reported growth in the international market was 16% for the same period. Sales for the two big products of the company, Boroplus cream, and Navratna Hair oil, doubled during the quarter.
Recommended: Report: Report: Is GST Giving Extra Benefits to the Indian Consumers?
