MAM
Inflation bites FMCG consumption, demand remains low
Mumbai: The major players in the FMCG sector, Marico and Godrej Consumer Products Ltd, hint that inflation continued to ‘hit hard’ FMCG industry and demand remained soft in the June quarter.
According to Marico, current trends indicate that consumers “titrated consumption” in some non-essential categories and either “downtraded among brands or switched to smaller packs” in the essential categories.
In its quarterly update for Q1 FY23 Marico said, “In the given context, India business volumes declined in mid-single digits. The performance was particularly dragged by a sharp drop in Saffola Oils. Excluding Saffola Oils, the India business posted marginal volume growth. Parachute Coconut Oil recorded a minor volume decline.”
Marico said it maintains its aspiration of “delivering sustainable and profitable volume-led growth over the medium term”.
According to Godrej Consumer Products Ltd (GCPL), the country’s FMCG industry continued to be “hit hard by inflation levels” leading to successive price hikes as well as impacting volumes during the three months ended June.
A recent update revealed that in the first quarter of the current fiscal, the leading FMCG player said that the rural markets witnessed slower growth compared to urban markets during the period.
GCPL expects to deliver early double-digit sales growth on a high base in India and the growth will be mostly “price-driven”. The company would have “mid-single-digit volumes drop on a high base, with a three-year volume compound annual growth rate (CAGR) close to mid-single digits,” in the domestic market.
“The Indian FMCG industry continued to remain soft during the quarter. It continued to be hit hard by inflation levels aggravating due to geopolitical tensions, leading to successive price increases and impacting volumes,” GCPL said.
Inflation impacts markets worldwide
In recent months, inflation has been on the rise in most markets worldwide.
Among the international markets, GCPL said that Indonesia, which is the company’s second-largest market after India, also faced an impact on consumption and margins.
“In Indonesia, with hygiene performance waning after COVID-19 and a large hygiene comparator in base, we expect a high single-digit sales decline. The sales performance excluding hygiene was largely flat,” it said.
GCPL said that it is putting building blocks in place to drive category development and general trade distribution to ensure gradual recovery in the medium term.
“In Godrej Africa, USA, and the Middle East, we continued our growth momentum across most of our key countries of operations. We expect to deliver double-digit sales growth, with a continued focus on driving sustainable, profitable sales growth,” it said.
Further, it expects constant currency sales growth in the high teens in Latin America business.
“At a consolidated level, we continue to leverage our category and geographic portfolio. We expect to deliver high single-digit sales growth and a three-year CAGR in double-digits,” the company said.
With respect to profitability in the June quarter, GCPL expects lower year-on-year EBITDA (Earnings Before Interest Tax Depreciation and Amortisation) margins.
“This is due to input inflation, upfront marketing investments to drive category development and weak performance in Indonesia,” GCPL said.
On the other hand, Marico’s international business maintained “strong momentum, delivering high-teen constant currency growth.” It experienced growth in all markets and managed to remain on the path of sustained profitable growth.
The company expects “consolidated revenue in the quarter ended marginally higher on a year-on-year basis.”
Dabur’s international business is expected to register a “high single-digit revenue growth” during the April-June quarter in constant currency.
“Overall, the consolidated revenue is expected to grow in the mid to high single digits. We continue to grow ahead of category growths and gain market share in most of our segments,” Dabur said.
Mixed performance in the domestic market
In the domestic market, GCPL witnessed a mixed performance in its personal care and home care categories.
“Personal care sustained its strong double-digit growth trajectory with a two-year CAGR also in double-digits, led by both personal wash and hair colours. Home care witnessed a low single-digit sales drop on a high base. However, the two-year CAGR remained at a high single-digit figure,” it said.
Brands
YES Bank hands the keys to SBI veteran Vinay Tonse as it bets on a new era
Former SBI managing director appointed as YES Bank’s new MD and CEO
MUMBAI: YES Bank is done rebuilding. Now it wants to grow. The private sector lender has appointed Vinay Muralidhar Tonse as managing director and chief executive officer-designate, with RBI approval secured and a start date of April 6, 2026 confirmed. The three-year term signals the bank’s intent to shift gears from crisis recovery to full-throttle expansion.
Tonse, 60, is no stranger to scale. Most recently managing director at State Bank of India, he oversaw a retail book of roughly $800bn in deposits and advances, one of the largest in the country. Before that, he ran SBI Mutual Fund from August 2020 to December 2022, a stint that saw assets under management surge from Rs 4.32 lakh crore to Rs 7.32 lakh crore across market cycles. Add stints in Singapore and four years leading SBI’s overseas operations in Osaka, and the incoming chief arrives with a genuinely global CV.
His academic grounding is equally solid: a commerce degree from St Joseph’s College of Commerce, Bengaluru, and a master’s in commerce from Bangalore University.
The appointment follows an extensive search and evaluation process by the bank’s Nomination and Remuneration Committee. NRC chairperson Nandita Gurjar said the committee unanimously backed Tonse, citing his leadership track record, governance credentials and ability to drive the bank’s next phase of transformation.
Non-executive chairman Rama Subramaniam Gandhi was unequivocal. “I am certain that Vinay Tonse, with his vast experience as a senior banker, will propel YES Bank to its next phase of growth,” Gandhi said, adding that the bank remains focused on strengthening its retail and corporate banking franchises and expanding its branch network.
Rajeev Kannan, non-executive director and senior executive at Sumitomo Mitsui Banking Corporation, the bank’s largest shareholder, said Tonse’s experience across retail, corporate banking, global markets and asset management positioned him well to lead the lender. SMBC said it looks forward to working with Tonse and the board as YES Bank pursues its ambition of becoming a top-tier private sector lender anchored in strong governance and sustainable growth.
Tonse succeeds Prashant Kumar, who took the helm in March 2020 when YES Bank was in freefall following a severe financial crisis, and spent six years painstakingly stabilising the institution, rebuilding governance and restoring operational scale. Gandhi was generous: “The bank remains indebted to Prashant Kumar, who is responsible for much of what a strong financial powerhouse YES Bank is today.”
Tonse, for his part, struck a purposeful note. “Together with the board and my colleagues, I remain deeply committed to creating long-term value for all our stakeholders,” he said, pledging to build on Kumar’s foundation guided by his personal motto: Make A Difference.
Beyond the balance sheet, Tonse played cricket at college and club level and represented Karnataka in archery at the national championships — sports he credits with teaching him teamwork, situational leadership, discipline and focus. In quieter moments, he reaches for retro Kannada music, classic Hindi songs, and the crooning of Engelbert Humperdinck, Mukesh and Kishore Kumar.
YES Bank has its steady-handed rebuilder in Kumar to thank for survival. Now it has a scale-obsessed growth banker at the wheel. The next chapter starts April 6.
