Archive · 9 Jan 2026
FMCG Companies Optimistic About Consumption Improvement
Big companies that make things like mosquito repellent, hair oil, and edible oil are feeling happy.
They think people will start buying more of their products soon.
This is because prices are going down, and some taxes on these products have been reduced.
One company, Dabur, saw that people in villages are buying more than people in cities.
Another company, Marico, thinks their profits will go up because some of their costs are going down.
Overall, these companies are hopeful that things will get better in the next few months.
Leading FMCG companies are optimistic about gradual improvement in consumption due to falling inflation and lower GST rates.
Godrej Consumer reported progressive strengthening of demand conditions in India during Q3.
Marico expects double-digit operating profit growth on a year-on-year basis, driven by lower copra prices and other factors.
Dabur observed early signs of demand recovery, with rural demand outperforming urban demand.
New GST rates implemented on September 22, 2025, reduced taxes on consumer products to 5% from 18%, causing inventory disruptions in Q3.
- Who
- Leading FMCG companies including Godrej Consumer, Marico, and Dabur
- What
- Optimism about gradual improvement in consumption due to falling inflation and lower GST rates
- When
- Coming quarters, with early signs observed in Q3 2025
- Where
- India
- Why
- Supported by falling inflation, lower GST rates, MSP hikes, and a healthy crop sowing season
- Companies Mentioned
- Godrej Consumer, Marico, Dabur
- GST Rate Reduction
- 5% from 18%
- Products Affected
- Toothpaste, hair oil, shampoo, soap, biscuits
- Demand Recovery
- Early signs observed by Dabur
- Rural vs Urban Demand
- Rural demand outperforming urban demand
- GST Implementation Date
- September 22, 2025
- Expected Growth
- Double-digit revenue growth for Godrej Consumer, double-digit operating profit growth for Marico
- Inventory Disruption
- Due to new GST rates in Q3