Consumer goods firms bank on festivals for urban revival

Fast-moving consumer goods (FMCG) companies, retail firms, and producers of consumer durables are witnessing stable urban demand.

- Sharleen D'Souza

However, people in the trade are waiting for clearer signs of revival closer to the festival season, starting in September. The first signs are expected in August.

While FMCG companies say that demand remains steady for urban, Colgate Palmolive India said in its earnings release that urban demand remained subdued in April-June.

An FMCG executive said demand in urban areas held steady. "Clarity would emerge only in mid-August."

However, Angshuman Mallick, managing director and chief executive officer, AWL Agri Business (formerly Adani Wilmar), told Business Standard that demand for staples in urban areas had started improving. "The monsoon has kicked in and schools have started. Consumers aren't stepping out much due to rain, so since June they are buying in larger quantities. Also, I expect demand to be better this month than in June."