Major FMCG firms observed a comeback in home and personal care items in the quarter that ended in September, despite inflation and weak growth having an impact on the Fast-Moving Consumer Goods (FMCG) industry.
FMCG companies including Hindustan Unilever Ltd (HUL) and ITC Ltd. reported volume growth in personal care and home care goods but comparatively muted growth in hygiene products.
HUL reported a revenue increase of 11% in the personal care and beauty sectors and 34% in the home care sector. Dove, Lifebuoy, Lakme, Lux, Close up, Vaseline, and Sunsilk is among the personal care products it offers. The homecare line includes Active Wheel, Vim, Rin, Comfort, and Surf Excel.
ITC Limited claimed that personal care products performed well, but convenience foods and luxury goods were the driving forces behind FMCG company growth. “Personal wash products from the Fiama and Vivel lines drove a significant increase in fragrance sales. After publishing the results for the quarter, the company noted that the hygiene category had remained muted but was nonetheless better than pre-pandemic levels. The company’s personal care product line includes Engage, Vivel, and Fiama, while its portfolio of home care goods includes Savlon and Nimeasy.
During Q2, the beverage segment experienced negative growth. The largest FMCG company in the world, Tata Consumer, reported a 1% volume loss and a 2% decline in beverage revenue growth. Tea and other packaged beverages saw a 7% fall in revenue for the quarter, while coffee saw a good performance gain of 39%. The company stated: “The tea business in India remains sluggish due to category downturn.”
HUL posted that the performance of tea was muted as price cuts impacted overall value growth, while the health food drinks category remained subdued during the quarter due to the impact of inflation on discretionary consumption.
“In the tea business, we have taken a price reduction,” Sanjiv Mehta, CEO and Managing Director, HUL, stated while answering a media query during the quarter. Home and personal care products bounce back in the second quarter