FMCG Giants Shift Focus to Volume Growth Amid Easing Inflation

Leading fast-moving consumer goods (FMCG) companies are shifting their strategies to focus on volume-driven growth for the next fiscal year, buoyed by easing inflation and stable commodity prices. Major players in the sector, such as Dabur, Marico, and Britannia, reported mid- to high single-digit volume growth in the December quarter.

Industry captains are optimistic about the future, citing a more favorable operating environment after enduring several quarters of volatility. Essential inputs, including edible oils and surfactants, have softened, while macroeconomic factors like GST rationalization and a healthy crop season support recovery.

As inflation cools and consumer sentiment improves, these companies expect their EBITDA margins to strengthen. They plan to maintain caution regarding pricing, with some benefits from lower input costs possibly being passed on to consumers through offers and discounts, bolstering their volume growth strategies.