Fast moving consumer goods (FMCG) companies faced a series of googlies in the year gone by.
Right about the time consumer spending was recovering from COVID-induced lockdowns, high commodity prices, spurred by the Ukraine-Russia war, rammed them head on.
Then, inflation reared its ugly head. Rural spending and non-food categories took a hit as India struggled to keep up with soaring prices. The consumer price index (CPI)-based retail inflation remained above the Reserve Bank of India's 6 percent target for 10 consecutive months.
Meanwhile, for FMCG companies, the top-line growth continued. They passed on raw material inflation by taking calibrated price hikes over a few quarters. According to NielsenIQ, the industry in value terms grew 10.9 percent year-on-year and 8.9 percent YoY over the past two quarters.