Fertilisers have turned cheaper, so it’s easier for the government to ensure availability. Edible oils, which are largely imported, have become cheaper. That too could explain why the overall market’s sales are increasing.Įven in the decline in inflation, consider the mix. Their return means more cheaper products are now available for rural consumers to buy. If you add high interest rates to the mix, the credit periods they have to extend to the trade, then the inventory cost itself could have made their business unviable. They had exited the market due to high inflation. Their sales in categories such as tea and detergents were much higher than that of the larger players. For instance, in trying to explain why it did not do so well despite price cuts, HUL explained the return of smaller companies-could be regional, local players-to the market. Product availability may have improved, too. Second, the money saved in consuming essentials such as edible oils and soaps becomes available to spend on other items. The packets they buy for the same price now contain more volumes, because companies have increased the fill rate for fixed price packs (like the Rs 2/5/10 packs). Consumers switch back to their earlier consumption patterns, as products become more affordable. These are mainly on the back of a continued softening in the prices of edible oil and crude oil from their peak levels. Along with this, other less essential items have become cheaper too. What could be the reasons for rural India’s improved prospects? One reason, for sure, is the fall in prices of FMCG products ranging from edible oils to soaps to detergents, all daily items of consumption. It raises the prospect of whether FY24 could be the year of a rural recovery, for the FMCG sector surely but for other consumer sectors as well. While this growth may be partly due to a low base effect, as the year-ago quarter saw a decline, it’s still better than if the decline had continued unabated. It rose in the June quarter by around 2 percent, after declining in all of FY23. But a silver lining from its management commentary, not just for the company but for the industry and even the country, is a nascent recovery in India’s rural FMCG sales growth. Hindustan Unilever’s shares on Monday continued to underperform due to its disappointing June quarter results. It offers easy access to stories published on Moneycontrol Pro and gives a little extra by setting out a context or an event or trend that investors should keep track of. Enhanced reading experience through revamped Moneycontrol Pro where you can personalize what you want to read and also get news curated specially for you.The Panorama newsletter is sent to Moneycontrol Pro subscribers on market days. Pro subscribers will also be able to participate in periodic chats with editors, correspond with them through emails and also get exclusive invitations to events featuring experts and thought leaders Exclusive access to blogs written by high net worth individuals (HNIs) and market gurus, whose life and market lessons we would all love to emulate and help us make better investment decisions. Sharp commentary and opinion that will decode the news across markets, politics, policy and business. Investment ideas from our in-house equity research team and technical analysis trading ideas from a hand-picked team of experts Pro subscribers get an ad-free experience which promises more room for data on the screens with faster load times. As part of our anniversary offer, from April 21, benefits worth more than Rs 20,000 will be available to all our existing and new subscribers till May 7. The ad-free experience can be accessed on the desktop as well.Īnd there’s more. Update your app now, and visit the PRO section to experience the same. On the occasion of our first anniversary, we have unveiled an all-new look for Moneycontrol PRO. You can not only sample new content, but will have access to the premium articles archives as well. In other words, all articles and other content from Moneycontrol Pro are free to access for these three days.Īs subscribers of Moneycontrol Pro would be well aware, the product offers you a free, uninterrupted, ad-free experience to access, curated markets data, exclusive trading recommendations, independent equity analysis, nuanced takes on macro, corporate and policy actions, practical insights from market gurus and much more for the next three days. To mark its first anniversary, we are opening the paywall to the public for three days from April 18 to 20. Moneycontrol Pro, the premium financial content subscription service from Network18, turns one next week.
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