Ratna Bhushan

FMCG industry growth is slowing down. Urban demand is weakening. Food inflation is impacting consumer spending. Cash-strapped distributors are facing challenges. Quick commerce is growing, putting pressure on traditional stores. Rural demand remains strong due to good monsoons and harvest. IPL valuations continue to rise.

Alpha Wave Global has offered over $1 billion for a minority stake in Haldiram Snacks Food, joining competing bids from Blackstone and Bain Capital consortiums. The snack food giant is valued at $8.8 billion to $9.4 billion. The Agarwal family, founders of Haldiram, are considering selling a 15-20% stake after previously exploring a majority sale.

The Bhartia family of Jubilant Bhartia Group is set to acquire a 40% stake in Hindustan Coca-Cola Beverages (HCCB) for Rs 12,500 crore, with Goldman Sachs financing the deal. This marks the family's largest acquisition to date, and they will contribute around Rs 5,000 crore themselves.

Hindustan Coca-Cola Beverages (HCCB) has sold its Jharkhand bottling operations to Moon Beverages, a major franchisee bottler. This move aligns with Coca-Cola's global asset-light strategy. Moon Beverages, owned by the MMG Group, already handles bottling in several other regions and operates McDonald's in North and East India. HCCB aims to ensure appropriate investments across its business through this divestment.

PepsiCo bets big on India for future growth. The company is restructuring its international beverages business. India is one of 13 key markets for PepsiCo. The snack and beverage giant faces competition in India. PepsiCo's India operations reported double-digit growth. The company aims to strengthen its beverage business globally.

Indians are rediscovering the charm of analogue watches. Smartwatch sales are declining. Consumers want simpler, more elegant timepieces. Excessive notifications and health tracking contribute to this shift. Titan, a major watch seller, sees strong analogue watch sales growth. Timex Group also reports record sales. The trend suggests a move away from digital overload.

The company's two promoters, Amit Burman of the Dabur family and co-founder Rohit Aggarwal, will continue to hold significant majority stake in the business, according to the executives. "Lite Bite Foods is exploring multiple options to bring in either private equity players or a strategic investor onboard. The talks are in exploratory stages," according to one executive.

Synopsis Brace yourselves for higher grocery bills. FMCG companies are hiking prices on everyday essentials. Tea, edible oil, soap, and more will cost 5-20% more. Companies blame rising commodity costs and import duties. This marks the biggest price jump in a year. Analysts worry about the impact on consumer demand. Companies hope consumers can absorb the increases. New Delhi|Mumbai: Inflationary pressures are set to upend household budgets , potentially worsening stressed urban demand. Starting this month, fast-moving consumer goods (FMCG) companies such as Hindustan Unilever , Godrej Consumer, Dabur , Tata Consumer, Parle Products, Wipro Consumer, Marico Nestle and Adani Wilmar are rolling out price hikes to offset higher commodity costs and increased customs duty, said executives at companies and FMCG distributors. The entire basket - from tea and edible oil to soap and skin cream-will be 5-20% more expensive, marking the biggest price hike in 12 months. Companies' production costs have swelled due to 22% increase in import duty on edible oil this September, and up to 40% in calendar year 2024. In 2023 too, the cost of key commodities such as sugar, wheat flour and coffee had surged. "We are increasing prices across our brands as we speak," said Mayank Shah, vice-president at Parle Products, which makes Hide & Seek and Fab biscuits. "Such a price increase is happening after one year; we are hopeful it won't impact demand, which is already under pressure." Parle is set to introduce packs reflecting the revised prices across its entire portfolio. According to latest data by retail intelligence platform Bizom, India's FMCG market grew 4.3% year-on-year in October led by rural demand, but November sales worsened, declining 4.8% -with both urban and rural sales falling from a year earlier. Hoping for Less Impact on Volumes HUL has raised prices of soaps and tea. Dabur too has increased healthcare and oral care product prices, while Nestle has adjusted prices for its Nescafe coffee brand. Ankush Jain, chief financial officer at Dabur , which makes toothpaste and honey, said the company has raised prices in select categories to mitigate the impact of higher commodity prices. Executives at companies said they are hopeful the price increases won't significantly hurt urban demand in the next two quarters and that consumers would be able to absorb them. "While these hikes might impact volumes to some extent, the effect is typically less pronounced in consumer staples and essential categories. With rising commodity prices, price increases are necessary to partially offset margin pressures," said Neeraj Khatri, chief executive at Wipro Consumer Care, which makes Santoor soap and Yardley fragrances. "Pricing adjustments remain essential to ensure value growth and long-term sustainability." Analysts, though, are circumspect about near-term growth prospects in the prevailing scenario of higher prices and tepid demand. Antique Broking highlighted that raw material inflation may further delay FMCG recovery. "A weak demand environment, coupled with the rise in inflation, continued to impact offtake growth. The weaker-than-expected winter season is impacting offtake growth of the winter portfolio. The rise in raw material prices (edible oil, agri commodities, etc) has resulted in an increase in product prices, which may further impact recovery in volume growth momentum," the brokerage said in a report. Executives said price increases are being scattered across products to minimise any pushback on consumption. "We have four vectors for managing commodity inflation-buying efficiencies, economies of scale, recipe efficiencies and appropriate pricing. Pricing is always a last option," said a spokesperson for Nestle India. The spokesperson added that the price of green coffee, the core ingredient in Nescafe, has increased three times in the past three years. Coffee makers, including Nestle, have pushed up prices by 20% in recent months. FMCG distributors noted that the current round of price hikes are being implemented uniformly across all pack sizes, and not limited to larger packs as in previous instances. Nominations for ET MSME Awards are now open. The last day to apply is December 15, 2024. Click here to submit your entry for any one or more of the 22 categories and stand a chance to win a prestigious award.

Reliance Retail is testing sales of Shein's casual women's westernwear on its Ajio platform. Despite Shein's ban in 2020, a partnership allows sales to resume domestically, abiding by government regulations. Shein will rival brands like Zudio and Myntra in the lucrative, growing Indian fast fashion market.

Parle Biscuits posted a revenue of Rs 15,086 crore for FY 2023-24, with a net profit of Rs 1,607 crore, marking a 115% increase from the previous year. The company noted an increase in advertising and promotional expenses by 3.23%. FMCG firms expect demand revival amid inflation-led price hikes.