Green shoots visible after six quarters at
CII National FMCG Summit
News Desk, News Nation 360: India’s FMCG industry is showing signs of revival, industry stalwarts said at CII’s National FMCG Summit ‘Growth Wapsi: Revving Up FMCG Growth’ in Mumbai. Several companies have beaten the downturn. Bellwether companies like Nestle, HUL and few others showcased their experiences at the summit. Bharat Puri, Chairman, CII National Committee on FMCG and Managing Director, Pidilite Industries told, since liberalization, the FMCG sector has made significant contributions to India’s growth story and the sector has persistently maintained robust double-digit growth rates. Contrary to this stellar record, a recent slowdown that is driven by broader macroeconomic factors coupled with tepid consumer sentiment is noticeably impacting rates. Business leaders must quickly pivot to invest in strategies that will engineer getting back to double-digit growth through a rapid penetration increase, culminating in serving more consumers more completely. The FMCG industry employs close to three million directly and almost 10 million people indirectly. Sustainability is no longer a ‘nice to do’ thing, but has to be a core objective, he added. Suresh Narayanan, Chairman and Managing Director of Nestle India told, growth is an attitude, not a birthright. While the fundamentals of marketing have not changed, there have been a lot of other changes. National plans have given way to localization and clusterisation. Communication needs to be relevant and in the local context. This requires hard work, but those who did it well succeeded. Nikhil Prasad Ojha, Partner, Bain & Company, told, there is light at the end of the tunnel. We expect the FMCG industry to regain stronger growth sometime in 2020. Successful companies like Hindustan Unilever, however, did not cut advertising. Over a 15-year period, HUL reinvested the surplus partly into advertising and sales promotion, while the rest flowed into expanding EBITDA. HUL’s volumes are growing ahead of the category in almost all categories. The session “Low Impact High Growth on FMCG and Sustainability” focused on Sustainability gaining traction among the consumer's brands as a core value and how brands need to chart a more sustainable path while staying true to their shareholders by giving consumers the experience. The industry stalwarts also discussed how individually and collectively they need to collaborate with the government to work towards sustainability.
Pic : Courtesy
Report : Anustup Kundu