Market share of the companies in the FMCG sector
Current Status:
The Fast Moving Consumer Goods (FMCG) companies have shown one more quarter of good growth in December quarter. The growth was supported by the rise in spend, price hike and festive season. However the overall slowdown in the economy has began to affect the FMCG sector with companies posting deceleration in volume growth. Discretionary spending has been hit severely due to the ongoing slowdown. Volume has been impacted due to rising inflation, standard packaging norms, hike in prices and closures in some Modern trade stores. In the upcoming budget, the FMCG sector would be hoping for announcements that would boost demand Source: IBEF.org
News Date: 9 July 2014
FMCG Stock rise on railway budget report:
It provide major boost to ready to eat and food industry which was slow due to economic slowdown
Source: Business Line
The industry has witnessed healthy foreign direct investment (FDI) inflow, as the sector accounted for 3 per cent of the country’s total FDI inflow in the period April 2000 to October 2013. Organised retail share is expected to double to 14–18 per cent of the overall retail market by 2015.
The Government of India has approved 51 per cent FDI in multi-brand retail, which will boost the nascent organised retail market in the country. It has also allowed 100 per cent FDI in the cash and carry segment and in single-brand retail. The government has also amended the Sugarcane Control Order, 1966, and replaced the Statutory Minimum Price (SMP) of sugarcane with Fair and Remunerative Price (FRP) and the State Advised Price (SAP).
Industry Expectations:
• No hike in excise duty hike on FMCG products
• The rate of central excise duty on the 65 mm filter cigarette slab be reduced from the existing level of Rs 689 per thousand cigarettes to Rs 200 per thousand cigarettes
• The rates