FMCG Sector

India’s wholesale price inflation (WPI) decelerated to 0.39% in May 2025, marking a significant slowdown from 0.85% in April and 2.74% during the same period last year. The drop was driven by widespread deflation in food articles—particularly vegetables—and a notable decline in fuel and power prices. While certain sectors like chemicals, electricity, and transport equipment saw marginal price increases, overall inflationary pressures remained subdued.

In response to soaring food inflation, India’s Ministry of Food and Public Distribution has instructed edible oil industry associations to pass on the benefits of recent import duty reductions to consumers. This directive comes after the government slashed customs duties on crude edible oils—such as sunflower, soybean, and palm oils—from 20% to 10%. The aim is to alleviate pressure on food prices and enhance domestic refining capacities, while also addressing inflationary concerns that have plagued consumers.

India's tea export volumes surged by nearly 10% in 2024, with total exports reaching 254.67 million kg, compared to 231.69 million kg the previous year. The increase reflects strong production growth, particularly in North and South India, which saw year-on-year rises of 9.79% and 10.11%, respectively. However, early data for 2025 suggests regional production disparities, with North India's output continuing to grow, while South India's tea production has experienced a decline in the first quarter.

Britannia Industries, a cornerstone of India’s fast-moving consumer goods (FMCG) sector, has projected a cautiously optimistic outlook for FY26, signaling expectations of a measured demand recovery. Vice Chairman and Managing Director Varun Berry outlined the company’s strategy to manage inflationary pressures while pursuing revenue and volume growth. With sales up 9% year-over-year to Rs. 4,375.57 crore in the March quarter, driven by pricing actions, Britannia plans to continue leveraging digital platforms, particularly e-commerce and Quick Commerce, to fuel its future expansion.

Procter & Gamble (P&G), the global FMCG leader behind brands such as Tide, Pampers, and Bounty, has announced plans to reduce its global office workforce by approximately 7,000 employees over the next two years. This downsizing, representing around 15% of its non-manufacturing staff, coincides with P&G's strategic initiative to streamline its product portfolio by exiting select categories and divesting smaller brands in targeted markets.

Nestlé India witnessed a 3.8% reduction in its permanent workforce during the fiscal year 2024-25, despite significantly increasing its capital expenditure to 10% of sales, up from 1.8% a decade ago. With total on-roll employees falling to 8,419 from 8,736 the previous year, the company simultaneously boosted median employee remuneration by nearly 5%.

In a bid to combat rising cooking oil prices and ease the strain on household budgets, the Indian government has slashed the basic customs duty on crude palm oil, crude soyabean oil, and crude sunflower oil from 20% to 10%. This move, effective immediately, aims to reduce retail oil prices that surged by 17.4% in April. It will also benefit the domestic edible oil processing industry by lowering raw material costs. Additionally, the government has introduced stock limits on wheat to combat hoarding and curb inflationary pressures.

India has made notable strides in sugar exports during the ongoing 2024-25 marketing year, shipping 4.24 lakh tonnes of sugar by April 2025. The largest share of exports has gone to Somalia, followed by other countries like Afghanistan and Sri Lanka. With a total export limit of 10 lakh tonnes for the year, the All India Sugar Trade Association (AISTA) is optimistic about meeting the target. The association has also called for an increase in the minimum selling price of sugar and a rise in ethanol procurement prices to match the increased cost of sugarcane.

PepsiCo India Holdings Pvt Ltd demonstrated resilient financial performance in 2024, reporting consolidated revenue from operations of Rs 9,096.62 crore and a profit of Rs 883.39 crore. This marks a significant expansion from the previous reporting period, despite a challenging economic environment marked by inflationary pressures and slowing urban consumption. The company’s diversified portfolio, spanning snacks and beverages, supported steady growth, while strategic marketing and innovation fueled market penetration.

Sugar manufacturer EID Parry (India) Ltd has reported a robust financial performance for the fiscal year ending March 31, 2025, buoyed by growth in its distillery and consumer products divisions. The company posted a consolidated net profit of Rs. 1,772.54 crore for the year, up from Rs. 1,617.37 crore in the previous fiscal. For the fourth quarter alone, profit surged to Rs. 539.44 crore, a significant rise from Rs. 294.30 crore a year earlier.