ICICI Direct: FMCG Sector Q2 Preview - Supply Restored; Demand Slack In Urban India 

BQ Blue's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages. These reports offer BloombergQuint's subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Fast moving consumer goods companies have restored distribution supplies completely to the pre Covid-19 levels.

However, demand remained slack in discretionary categories, specifically in urban regions, largely due to reverse migration of workers in the last six months.

According to Nielsen data, rural growth was 17%, 4% in July, August, respectively, compared to pre-Covid levels.

However, metro cities are still struggling to return to pre-Covid level demand and witnessing 10-15% lower sales.

Though, we believe new product launches in health and hygiene space has created opportunities for companies to drive growth in newer categories, some discretionary categories like skin care, cosmetics, ice-creams and juices continue to see subdued demand conditions.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.