BSE‘s fast-moving consumer goods (FMCG) and consumer durables indices, on Wednesday stood 9.8 per cent and 18.4 per cent lower, compared to their pre-demonetisation levels. The two indices have together lost Rs 1.2 lakh crore or 10.6 per cent of their market capital, the newspaper says.
On demonetisation Vivek Gambhir, MD, Godrej Consumer Products Limited, had said that the India business is impacted by liquidity crunch more than demand crunch. Now, he is of the opinion that there will be pickup in demand in December and the company will grow in double digits.
The hopes of FMCG companies on the back of a good monsoon and the Seventh Pay Panel award came partially unstuck after the government's sudden move to pull back currency notes upset the applecart towards the end of 2016.
Having set a target of Rs 1 lakh crore revenue from its FMCG business by 2030, diversified ITC is looking to create "world-class Indian brands" by leveraging on its enterprise strengths.
Hindustan Foods said, "This marks the entry of Hindustan Foods Ltd in the leather shoes exports space with a global clientele".
Equity benchmarks continued to consolidate after pricing in Federal Reserve event. FMCG, private banks, healthcare and telecom stocks were under pressure while technology stocks continued to support the market.
Speaking to CNBC-TV18‘s, Sanjiv Puri, COO of ITC said that the company is looking to diversify into fruits, vegetables and seafood business soon. ITC has launched 25 products this year and may launch another few in last month.
Equity benchmarks extended losses in morning trade with the Nifty breaking 8200 level, weighed by auto, private banks, FMCG and technology stocks. However, the buying in Reliance Industries, HDFC and L&T limited downside.
The FMCG industry, which was looking forward to good sales following a robust monsoon this year, has been impacted by demonetisation, according to Godrej Consumer Products.
The NSE 50-share index remained marginally higher, up 14 points to end at a new 1-month record high of 8261.75 amid consolidation in mainly PSU banks, media, realty, IT and FMCG sectors on the back higher global cues.
FMCG firm Jyothy Laboratories today said its board has approved raising Rs 400 crore through issuance of Non-Convertible Debentures (NCDs) on private placement basis.
Rajeev Thakkar, Chief Investment Officer, PPFAS Mutual Fund, says FMCG sector offers staples which are essentials in consumers' lives and thus the segment will lead the recovery in demonetisation-hit economy.
Equity benchmarks continued to gain amid consolidation, especially ahead of outcome of monetary policy committee that will be announced on Wednesday.
FMCG firm Dabur today said the demonetisation of high value currency notes would have beneficial impact on organised players in the segment.
Equity benchmarks recouped losses in afternoon trade with the Nifty climbing above 8100 level, tracking recovery in European peers. FMCG, auto and telecom stocks led the market higher.
"The board of directors of the company at its meeting held on December 5, 2016, has declared third interim dividend of Rs 16 per share for 2016 on the entire issued, subscribed and paid-up share capital of the company," Nestle said in a BSE filing.
FMCG major Procter and Gamble Hygiene and Health Care Ltd (P&G) today reported a 50.14 per cent jump in the net profit to Rs 104.44 crore for the quarter ended September 30, helped by lower expenses.
Sources tell CNBC-TV18 that advertising revenue worth Rs 2,000 crore may be lost on an industry-wide basis. Ad spends on TV was the most hit, while digital platforms proved to be more resilient.
Post demonetisation the market was expecting an earnings growth of 15 percent for this fiscal, which has now been toned down and one can look at mid single digit growth for FY17, says Hemant Kanawala, Head of Equity at Kotak Life Insurance.
Buying continued in equity benchmarks as well as broader markets in noon trade with the Sensex rising nearly 200 points, aided by auto, banking & financials and telecom stocks.
FMCG major Hindustan Unilever Ltd (HUL) today said market growth would be "adversely impacted" in short term due to the ongoing demonetisation scheme of the government and GST but in the long term it would be "win-win for everyone".
Speaking to CNBC-TV18 Prashant Pandey, MD & CEO ENIL said that impact has been severe. The hit on revenues has been around 10 percent, he said. He added that the media industry is expecting a turbulent December.
About 67 percent stores reported that they were facing difficulty in purchasing stock for their stores and 70 percent stores reported that due to cash crunch on both purchase as well as sales side, their business has come down in the last few days, reports Nielsen.
Although the company has cut down ad spends by around 50 percent in November, promotion intensity would continue as normal, said Sunil Duggar, CEO, Dabur.
It has outlined growth in mature and emerging markets as its "key strategic priority", the firm said in its vision 'Henkel 2020+, new strategic priorities and financial ambition for the company'.