Early rains throw a wet blanket over FMCG, AC, beauty sales

Weather gods have thrown the strategies of fast-moving consumer goods, air conditioner (AC) and cosmetic makers, who were relying on an early onset of summer to shore up their sales, into a tizzy.

- AKSHARA SRIVASTAVA

Typically, the summer season from April to June sees peak sales of cold beverages, including carbonated drinks, ice creams, ACs, and other edible and non-edible cooling products. This year, however, the early arrival of monsoon showers in the south and western disturbances in the north have dampened sales projections.

"With the early summer, we saw a spike in AC sales volumes from February to April, but the rains put a brake on that. The south, east, and west together have reported a 20-25 per cent decline in sales, likely due to the first 15 days of May," said Kamal Nandi, business head and executive vice-president, Godrej Appliances. He said high temperatures last week caused AC installations to rise again. "Our AC installation data shows demand is recovering, with 15-20 per cent growth in May compared to last year," he said, observing that the company has adjusted production levels to avoid inventory buildup.