FMCG Sector Check - Value Pack Drives Growth; Volume Recovery On The Horizon: Motilal Oswal

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Fmcg is a sizable and profitable sector, with total spending of nearly Rs 5.4 trillion in the last five years and Ebitda margin of ~20%. Over the last 15 years (FY08-23), India's real GDP has seen a compound annual growth rate of 5.9% and household consumption has increased at a CAGR of 6.1%, whereas the fmcg industry has seen volume growth of 3.4%.In 15 years, the first half (FY08-FY16) saw 3.5% growth, while the second half (FY17-23) saw 2.9% due to disruptions caused by demonetization, GST implementation and Covid. In India, people in the middle-income group account for the majority of fmcg consumption. Affluent segments, such as aviation, have also grown, reflecting higher incomes. In the last 15 years, income distribution has widened, and rural and urban households have expanded.In the last few years, there has been a shift in the retail landscape, as the channel mix is evolving, consumer spending is moving from offline to online, and multiple new formats are emerging in both the offline and online channels. Many of these new formats have also driven significant changes in consumer shopping behavior by making it more convenient and faster and providing access to large varieties. Despite stable consumption, volume is decreasing due to factors like distribution, media spending, and pricing, all moving in the upward direction. In the next 10 years, volume growth is expected to be driven by category development, expansion in distribution, innovation, customer education initiatives, and improvements in supply-side constraints..Click on the attachment to read the full report:.ITC - Runway For Growth Remains High: Nirmal Bang.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

FMCG Sector Check - Value Pack Drives Growth; Volume Recovery On The Horizon: Motilal Oswal

Fmcg is a sizable and profitable sector, with total spending of nearly Rs 5.4 trillion in the last five years and Ebitda margin of ~20%.

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FMCG Sector Check - Value Pack Drives Growth; Volume Recovery On The Horizon: Motilal Oswal

Fmcg is a sizable and profitable sector, with total spending of nearly Rs 5.4 trillion in the last five years and Ebitda margin of ~20%.

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