FMCG firms expect demand to pick up

OVERALL IMPROVEMENT IN demand sentiment and green shoots of recovery visible in the urban areas are likely to ease the pains of FMCG companies from the January-March quarter, according to industry experts.

- RAGHAV AGGARWAL

However, they noted that commodities like coffee, tea, and cocoa continue to face inflationary pressures and will require close monitoring. "We expect the urban demand to at least start seeing green shoots, if not full recovery in Q4," said Ajay Thakur, Research Analyst at Anand Rathi Institutional Equities.

According to Kinjal Shah, senior vice-president and co-group head of Corporate Ratings at Icra, the urban demand would also be aided by the income-tax relief in the Union Budget 2025 and the monetary easing by the RBI.