MAM
Soaps to sodas, GST clean sweep gives FMCG a bubbly new outlook
MUMBAI: The FMCG aisle just got a tax wash, and shoppers may finally come out smelling of roses. With the government’s GST 2.0 reform collapsing the maze of 5 per cent, 12 per cent, 18 per cent and 28 per cent slabs into a neat trio of 5 per cent, 18 per cent and a frothy 40 per cent, the everyday essentials that power India’s consumption story have been given a welcome scrub.
Soap, toothpaste, shampoos, toothbrushes and shaving cream once languishing at 18 per cent now gleam under the 5 per cent bracket, a move that analysts say could spark a volume surge of 8–12 per cent in FMCG sales in Q4 2025. For households tightening belts, and for rural India where every rupee pinches, that’s a tax break with real bite.
Food has also found its sweet spot. Ghee, nuts, bottled water, namkeen and dairy staples have been moved to 5 per cent, with paneer and UHT milk made entirely GST-free. The dairy sector alone is expected to lap up a Rs 11,400 crore boost, with giants like Amul and Britannia licking their lips. Even indulgences like ice-cream and butter now come with a lighter 5 per cent tag.
It isn’t just the kitchen basket that’s cheering. Tractors, pumps and fertilisers all at 5 per cent promise lower farm costs and higher rural income, feeding directly into FMCG consumption. Add cheaper packaging materials, and margins for companies like HUL, Dabur and Marico may fatten by 100–150 basis points.
But it isn’t all sugar and spice. Premium and discretionary products still find themselves in the bitter bracket. Aerated drinks, colas, energy beverages and luxury chocolates continue to fizz under 18 per cent or the punishing 40 per cent sin rate, leaving players like Coca-cola and Pepsi nursing flat outlooks. The GST Council may have thrown a party for soaps and shampoos, but sodas are still paying for the hangover.
On the compliance front, the industry is racing to reprint price tags and rejig invoices before the 22 September 2025 roll-out, with old stock adjustments threatening short-term headaches for distributors. Yet, with GST audits now mandatory only above Rs 10 crore turnover, smaller FMCG outfits can breathe easier.
The broader script is clear: this reset is pro-rural, pro-consumption and pro-MSME, even if it means the exchequer takes a knock – with the Global Trade Research Initiative warning of a Rs 10,664 crore revenue shortfall from import-linked IGST alone.
Still, for an industry fuelled by volume, the GST reboot couldn’t have been better timed. As festive season shelves stack up, FMCG finds itself freshly polished, priced to move, and perfectly poised to turn tax relief into a consumption carnival.
Brands
Primus Partners appoints Akasa Air co-founder Neelu Khatri as independent director
Veteran aviation and defence professional joins as independent director
NEW DELHI: Primus Partners has appointed Neelu Khatri, a founding member of Akasa Air, as an independent director, strengthening the consulting firm’s board as it prepares for its next phase of growth.
Khatri brings more than three decades of experience across defence, aviation, aerospace technology and consulting. She was part of the core team that helped build Akasa Air from concept to launch, contributing to what has been widely described as one of the fastest airline scale ups in recent aviation history.
At Primus Partners, she will provide strategic guidance on corporate governance and help steer the firm’s long term growth plans. Her experience of building a start up into a full scale organisation is expected to support the consulting firm as it expands its footprint.
Primus Partners co-founder and chairperson Davinder Sandhu, said the appointment brings valuable expertise to the board. “Neelu’s journey across defence, aviation and consulting brings a rare blend of operational insight and strategic thinking. Her experience in rapidly scaling Akasa Air will be invaluable as we continue to grow while maintaining a strong focus on corporate governance,” he said.
Primus Partners, an India headquartered management consulting and solutions firm, has emphasised governance and board oversight since its early days. The company has also taken an unconventional approach by inviting its Gen Z employees to attend board meetings so that younger perspectives can contribute to discussions.
Speaking on her appointment, Khatri said the consulting sector is entering a transformative period shaped by emerging technologies. “The industry is evolving rapidly with the rise of AI. This is an exciting moment for an Indian origin consulting firm like Primus Partners to expand its product offerings and strengthen its presence globally,” she said.
She added that as the firm pursues ambitious expansion plans, her focus will be on ensuring strong governance frameworks and effective risk management as the organisation scales.
