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  • Tue. Apr 29th, 2025

Amid global headwinds, FMCG cos bet on India

Amid global headwinds, FMCG cos bet on India

MUMBAI: For global consumer giantsbattling business headwinds posed by tariffs and sluggish consumer spending in developed regions like the US, where an uncertain macro environment has nudged people to cut back on purchases, India is emerging as one of their key growth markets.

From P&G to Reckitt and PepsiCo, companies in their recent earnings calls said that consumption in India remains steady, even as some firms have lowered their full-year forecasts due to the global backdrop.
“If you look at markets like India, we are profitable, and India is driving mid-single-digit growth very nicely. We have local production on the ground, and we have R&D capability on the ground. The market gets better every time we look at it,” said Andre Schulten, chief financial officer at P&G.

The firm, however, did not rule out the possibility of volatility in emerging markets going ahead in line with the macro developments unfolding globally.

The maker of Pampers and Tide detergent, which expects current tariffs to have an impact of $1-$1.5 billion, said that currently the largest US tariff impacts are coming from raw and packaging materials and some finished products sourced from China.

Unilever’s acting CFO, Srinivas Phatak, said that in India, there are no new macroeconomic headwinds and that is an “important element to call out”.

Govt incentives, tax relief, and lower food and oil inflation are potential consumption tailwinds that set up the market for good growth,
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