Home / Knowledge / News / Textiles / Double Whammy Inflation hitting FMCG sector with low sales
Double Whammy Inflation hitting FMCG sector with low sales
19
May '08
With the prices of key raw materials touching new highs, FMCG companies registered a 16.2 per cent rise in their cost of raw material within three months ending March even though its sales growth stagnated to mere five per cent, the ASSOCHAM Eco Pulse (AEP) has stated.

According to ASSOCHAM Paper on “Inflation hit FMCG sector”, the sales of major FMCG players have been considerably low as the inflation across the commodities has affected the consumer goods segment.

The net sales registered a marginal increase of 5.76 per cent for the period January-March 2008 on sequential quarter basis.

FMCG majors Godrej and Marico registered a decline of 0.88 per cent and 8.28 per cent, while HUL and Dabur posted a 15.72 per cent and 16.47 per cent increase in their total income on sequential quarter basis.

In a statement, the ASSOCHAM President, Mr. Venugopal N. Dhoot said, “the spiraling prices of essential commodities have impacted the companies' bottom line.

The sector witnessed a decline of 15.38 per cent in their net profits on sequential q-o-q basis putting pressures on their volume growth, which grew by only 5.76 per cent in Q4 2007-08.

The big dampener, rising input costs of wheat and milk, has shown no sign of relief. Price rise of key inputs in FMCG sector like wheat and milk rose to 1.13 per cent and 9.13 per cent in Q4 from 0.38 per cent and 8.84 per cent in Q3 respectively”.

The rise in the prices of fuel and power cost from 0.65 per cent in Q3 to 5.06 per cent in Q4 in 2007-08 have also contributed to the increased input costs.

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

New Pashmina Dehairing Plant to come up in Leh

A new Pashmina Dehairing Plant will be installed at Leh to increase...

Apparel/Garments | On 25th Mar 2017

Net sales at Christopher & Banks fall 10% in Q4

Net sales totalled $85.0 million for the fourth quarter ended January ...

Interviews View All

Viral Desai
Zenitex Mill Pvt Ltd

Full of green energy

Anvita Mehra
Confidential Couture

‘It is going to take some time for Indian buyers to get accustomed to...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search