Indian fast moving consumer goods companies are expected to post a growth of 15-17% for the July-September 2008 quarter, said The Economic Times. It is understood that price hikes are the reason behind the fast moving consumer goods (FMCG) firms' growth during these difficult times. Volume growth is expected to be relatively slower.
Satish Kumar, managing director of Henkel India, said: "Consumption in the FMCG sector may get impacted if there is a prolonged liquidity crisis but as of now we are not witnessing any dip in sales. The current financial scenario does not have an immediate relevance to the FMCG sector, as the sector is, to some extent, insulated."
Although the consumer industry has not been significantly impacted by the current global crisis, in due course, financial chaos could have a bearing on the sector, said CavinKare's chief managing director Ranganathan. He added that to fuel growth companies need to bring about more innovation in products, packaging and price points.
