Consumer goods firms shrug off IIP growth choke
Even though growth in industrial output contracted in October, festive buying during the month eased some pressures for FMCG (fast-moving consumer goods) firms.business Updated: Dec 12, 2011 20:59 IST
Even though growth in industrial output contracted in October, festive buying during the month eased some pressures for FMCG (fast-moving consumer goods) firms.
“The IIP numbers are not much of a worry for the FMCG sector as there is no significant slowdown in mass consumption products,” said Saugata Gupta, CEO, consumer products business, Marico. “With a further slide on food inflation, pressures will further ease.”
Spiralling inflation has already forced FMCG players to raise prices, though demand has not seen any significant surge.
“There has been a price rise owing to inflation,” said a Britannia spokesperson. “Overall we are in a growing sector and there is not much impact.”
On the other hand, in electronics consumers are deferring high value purchases, forcing companies to re-look at their production strategies. The sector has seen worst November sales since 2008.
“October was a festival season and demand was moderate,” said YV Verma, chief operating officer, LG India. “We are looking at challenging times ahead. November sales were low and below expectations.”
“These are tough times but we are going ahead with our earlier plans,” said a Samsung spokesperson.