Business · Companies · 4 hrs ago
Large FMCG Firms Grow as Smaller Rivals Face Rising Costs
India’s fast-moving consumer goods market slowed in the July-September quarter, with sales volume up 3.6%, compared with 4.7% a year earlier.
Major listed companies reported stronger growth: Hindustan Unilever’s underlying volume rose 7%, Marico’s India business grew 10%, and Godrej Consumer Products reported an 8% increase.
That stronger performance does not mean spending has recovered across the market, as smaller regional manufacturers are losing ground to larger firms.
Rural sales volume grew 3.6%, just ahead of urban growth at 3.5%, but both were slower than a year earlier.
Rising costs and supply disruptions hit smaller firms harder, which often have less buying power and fewer resources to manage shortages.
Weaker rural demand adds to the strain, and a rainfall deficit could put rural sales at further risk.
Worldpanel’s director said overall volume growth could fall below last year’s level in the next quarter.
India’s FMCG sales volume grew 3.6% in the July-September quarter, down from 4.7% a year earlier.
Large listed companies reported stronger growth while smaller regional manufacturers faced rising costs and weaker demand.
Hindustan Unilever reported 7% underlying volume growth, Marico’s India business grew 10%, and Godrej Consumer Products reported an 8% year-on-year increase.
Rural volume growth was 3.6%, while urban growth was 3.5%; both were below their year-earlier rates.
Inflation, supply-chain disruptions and a rainfall deficit were cited as risks to smaller manufacturers and rural demand.
- Who
- Large listed FMCG companies and smaller regional manufacturers in India.
- What
- FMCG volume growth slowed, while large companies reported stronger growth than smaller rivals.
- When
- July-September quarter; the article was published on 2026-11-05.
- Where
- India.
- Why
- Rising costs, supply-chain disruptions and slower rural demand put pressure on smaller manufacturers.
Large listed FMCG companies
Smaller regional manufacturers
Costs and supply
Large listed FMCG companies
Larger firms have stronger procurement capabilities and national distribution networks, helping them manage cost increases and disruptions.
Smaller regional manufacturers
Smaller manufacturers have less capacity to absorb cost increases and are more affected by shortages of stocks, packaging materials and commercial gas.
Market growth
Large listed FMCG companies
Large companies reported strong volume growth during the quarter.
Smaller regional manufacturers
Smaller and regional competitors were described as losing ground amid weaker demand and rising costs.
FMCG sales volume grew 4.7%; urban growth was 5.2% and rural growth was 4.2%.
FMCG sales volume grew 3.6%; rural growth was 3.6% and urban growth was 3.5%.
- Overall FMCG volume growth
- 3.6% in July-September, down from 4.7% a year earlier
- Hindustan Unilever
- 7% underlying volume growth
- Marico India business
- 10% volume growth
- Godrej Consumer Products
- 8% year-on-year increase
- Nestle India
- Double-digit volume growth
- Rural and urban growth
- Rural 3.6%; urban 3.5%
1 source
What people are saying
Smaller players appear to be losing ground to larger organised companies across most categories
Usually, in tough times, it is the smaller players, regional players who get squeezed and the larger players controlling it
Rural FMCG volume growth marginally outpaced urban growth in the September quarter, but urban markets continued to lead on a 12-month basis. This could reverse in the next quarter, although a rainfall deficit remains a risk to rural demand