FMCG cos plot plans to fight dowturn

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FMCG cos plot plans to fight dowturn

The Indian FMCG sector saw subdued demand between 2001 and 2004 growing at a mere 0.4% on average. So companies shifted their attention overseas and have acquired more than 15 companies. But now with global markets slowing down amidst a financial crisis, they have had to rework their growth strategies.

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Indian personal care companies have made global headlines by acquiring over a dozen international companies and brands in the last few years. With signs of slowing demand worldwide, companies like Godrej Consumer Products, Tata Tea and Dabur are redrawing plans to shrug off the crisis. Nachiket Kelkar and Sandeep Srikanth trace what plans these companies have plotted to fight the crisis.

Here is a verbatim transcript of Nachiket Kelkar's comments on CNBC-TV18. Also watch the accompanying video.

The Indian FMCG (Fast Moving Consumer Goods) sector saw subdued demand between 2001 and 2004 growing at a mere 0.4% on average. So companies shifted their attention overseas and have acquired more than 15 companies. But now with global markets slowing down amidst a financial crisis, they have had to rework their growth strategies.

FMCG companies fight the crisis: 

Homegrown companies like Tata Tea , Godrej and Dabur are looking to invest aggressively into acquiring new brands, tweaking promotion spends and expanding distribution network especially in Europe to mop up more sales.

Hoshedar Press, ED, Godrej Consumer Products, said, "In UK we are using strategy of acquiring more brands within the current company, increasing distribution, going to more modern trade retailers, encouraging exports into Europe and a lot more things."

Tweaking global plans: 

Percy Siganporia, MD, Tata Tea, said, "In the last nine to ten months we have taken a different approach in Great Britain where we eliminated extreme promotions and decided to grow our margins and brands."