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.
MAM
Ad:tech honours 2026: Full list of winners announced
Expanded awards spotlight winners across 22 categories as industry doubles down on intelligent automation
NEW DELHI: Marketing’s tech elite took the spotlight as the ad:tech honours 2026 returned with a sharper focus on AI, data and immersive media, signalling how deeply technology now underpins brand strategy. Held at Yashobhoomi on March 17, the second edition drew industry leaders to celebrate innovation that is reshaping engagement and performance.
Presented with the International Advertising Association India chapter and new partner Huella, the awards expanded from 8 to 22 categories, tracking the rapid convergence of creativity, automation and analytics.
The winners’ list reads like a snapshot of marketing’s future. In affiliate and partner marketing, Lyxel & Flamingo – Boat and Paytm Ads – Giva took silver. Mobavenue Media Private Limited struck gold in AI-driven dynamic creative optimisation, alongside a silver for Laqshya Media Limited.
Creative AI collaboration saw Rediffusion Brand Solutions Private Limited win gold, with Saltinc Consulting Private Limited securing silver. Laqshya Media Limited continued its strong run, taking gold in AI conversation agents and adding multiple wins across categories, including silver in GenAI-led creative and both gold and silver in interactive DOOH campaigns for Tanishq and Tata Coffee.
Predictive AI honours went to Strong Metrics and Tyroo, both silver, while Orient Bell Limited picked up silver in immersive retail tech. In GenAI-led creative, Laqshya Media Limited, Salt – Kotak and Sumimoto each secured silver, reflecting the crowded race in generative creativity.
Publicis bagged silver in influencer management and gold in performance marketing, where it shared the stage with Arm Worldwide and The Trade Desk, both silver. Glad U Came Private Limited stood out with gold in influencer measurement and analytics.
Marketing automation saw CereOne Media Pvt. Ltd. and Globale Media win silver, while ADMOTT Private Limited claimed silver in OTT innovation.
Programmatic media categories highlighted the shift to advanced targeting and connected screens. Mobavenue Media Private Limited clinched gold in connected TV advertising, with Animmoov Digital Media Pvt Ltd – Asus and Lyxel and Flamingo taking silver. Cheggout Services Private Limited won silver in retail media advertising, while Paytm Ads – Versuni secured gold.
On social platforms, Vayner Media India took gold in community and UGC engagement, with Under 25 – Oppo winning silver. Segumento rounded off the list with silver in the innovation category.
Jaswant Singh, country managing director at ad:tech India, underscored the momentum, saying generative AI and data-driven decision-making are now central to marketing impact. Neena Dasgupta, IAA mancom member and chief executive and founder at The Salt Inc Consulting, added that the awards celebrate not just technology, but “the people, the creativity, and the relentless effort behind it.”
Backed by Comexposium Group, ad:tech New Delhi has long tracked digital disruption. Now, with the honours, it is rewarding those who are not just adapting to change but engineering it.
In an industry racing towards automation, the message from 2026 is unmistakable. The future of marketing will be written not just in ideas, but in algorithms.
