FMCG
HUL gets Rs 963 cr Income Tax demand notice
Hindustan Unilever Limited (HUL) has received a Rs 962.75 crore tax demand from the Income Tax Department related to non-deduction of TDS on a Rs 3,045 crore payment made for acquiring intellectual property rights from GlaxoSmithKline Consumer Healthcare (GSKCH). The demand includes Rs 329.33 crore in interest.
GRM Overseas acquires 44% stake in Rage Coffee
GRM Overseas Limited has acquired a 44% stake in Rage Coffee through a combination of primary infusion and secondary buyouts. This strategic move aims to expand GRM's presence in the fast-growing Indian coffee market. The acquisition aligns with GRM's broader strategy to invest in digital-first, new-age D2C brands under its 10X Ventures platform.
Committed to double-digit growth in FY25, exploring inorganic, strategic opportunities: Emami
Emami aims for double-digit growth this fiscal year, focusing on expanding into new product categories through strategic acquisitions and inorganic opportunities. Chairman R.S. Goenka highlighted optimism due to favorable economic conditions and anticipated market recovery. Emami's recent acquisitions and direct-to-consumer initiatives are driving revenue growth and enhancing its market presence.
FMCG maker Emami's net profit grows 36% in Q1 despite challenges in Bangladesh
Emami Ltd chief executive NH Bhansali shared that the company faced challenges in Bangladesh due to geopolitical tensions but remains optimistic for future stability. Founder R.S. Goenka noted growth in international markets despite currency depreciation. Emami adapted to subdued rural market demand by expanding its consumer base and increasing revenue from non-seasonal brands. The company reported a 36.4% increase in net profit in the first quarter of June 2024.
HUL slapped with Rs 962 crore tax notice over TDS dispute in Rs 3,045 crore GlaxoSmithKline deal
Hindustan Unilever has received a tax demand of Rs 962.75 crore from the Income Tax Department over non-deduction of TDS for acquiring intellectual property rights from GlaxoSmithKline. The company intends to appeal the order and claims it has a right to recover the tax from relevant parties.
Top FMCG brands bet big on functional food market
Major food companies including ITC, Adani Wilmar, Tata Consumer, BigBasket, and Emami Agrotech are now prioritising functional foods tailored for health-conscious consumers. These products, ranging from low cholesterol ghee to low glycemic index foods, are sold at steep premiums. Limited supply and technology costs contribute to the higher prices.
Quick commerce market booming: FMCG distributors raise red flags, seek scrutiny
FMCG distributors in India have urged government scrutiny of quick commerce platforms, citing threats to small retailers and potential FDI violations. Their letter to Commerce Minister Piyush Goyal sought an immediate investigation into these platforms' operational models and protective measures for traditional distributors. The rapid expansion of platforms like Blinkit, Zepto, and Instamart was highlighted.
Dabur signs MoU with Tamil Nadu government to set up its first manufacturing unit in South India
Dabur India Limited signed an MoU with the Government of Tamil Nadu to establish a consumer goods manufacturing facility. The initial phase-1 investment is Rs 135 crore, with plans to increase to Rs 400 crore over five years. This initiative aims to meet demand in South India, create jobs, and boost economic development.
Dabur to set foot in South India: Co to set up Rs 400 cr manufacturing facility in Tamil Nadu
Dabur has announced a Rs 400 crore investment to set up its first manufacturing plant in South India, located in Tamil Nadu's SIPCOT Food Park. The project is anticipated to generate direct employment for 250 people and benefit local farmers. The new plant aims to meet growing demand in the southern market more effectively.
India delivering double-digit sales growth of FMCG, tech durables from modern trade channels: Report
India stands out as the sole market in the Asia-Pacific region showing consistent double-digit growth in FMCG and tech durable sectors through modern trade channels, driven by premiumisation and festive period sales, as per a report by NielsenIQ. The country holds a dominant position in modern trade sales, with premium-plus pricing segments representing a significant portion of both FMCG and tech durables sales.
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Rural demand in FMCG sector will grow more in the coming quarters: Axis Securities
In Q1FY25, India's FMCG sector saw significant growth, led by a strong recovery in rural demand. Companies faced headwinds like competitive intensity and rising raw material prices but managed to post revenue gains. Strategic rural distribution and marketing investments are expected to drive future success.
JM Financial PE invests Rs 40 cr in Zoff
JM Financial Private Equity has invested Rs 40 crore in spice brand Zoff, owned by Asquare Foods and Beverages. The company plans to use the funds for brand enhancement, capacity building, and strengthening offline distribution. With impressive revenue growth, Zoff aims to leverage this investment to accelerate its expansion plans and become a top food brand in India.
GRM Overseas ropes in Salman Khan as brand ambassador for its 10X basmati rice, atta
Atul Garg told ET “In FY24, our domestic branded business had generated a turnover of Rs 265 crore, out of our total turnover of Rs 1800 crore. In the current financial year, we are aiming to achieve a turnover of Rs 650 crore from our domestic branded business. And for 2026, we have kept a target of Rs 1,000 crore.”
'Green shoots' in FMCG: RBI says rural economy responsible for sector's revival
India's rural economy aided the FMCG sector's 6.6% volume growth in the first quarter of FY25, stated the RBI. Rising incomes, better infrastructure, and growing rural savings have contributed to this recovery, with further improvements anticipated from better monsoon conditions and increased government spending on rural development.
FMCG players expect volume trends to sustain amid rising demand in rural markets
FMCG firms reported rural demand resurgence and strong e-commerce growth, especially through quick commerce, in the June quarter. Companies like HUL, ITC, and Dabur, despite high food inflation, are optimistic about future growth due to favorable monsoons and government policies boosting the rural economy. Traditional urban channels showed some slowdown.
Nestle, PepsiCo in talks with Godrej Agrovet to buy palm oil
Nestle and PepsiCo discussed with Godrej Agrovet about sourcing refined palm oil locally for brands like Maggi and Lay’s. This shift comes due to rising global prices and logistics costs. Companies aim to shorten import cycles and avoid supply disruptions amidst geopolitical tensions. Currently, they import mainly from Indonesia and Malaysia but are now urged to increase local procurement. Trade analysts suggest that sourcing from India can help negotiate better prices, ensure quality, and reduce logistics expenses.
