FMCG Giants Grapple with GST Disruption: A Shift in Consumer Trends

Leading FMCG companies like HUL, Dabur, and Marico reported disruptions in trade during September, attributing it to the implementation of new GST slabs. This change has affected their revenue and profitability in the second quarter.

Although these companies maintained stable demand in July and August, they faced the transitory impact of trade disruptions in September due to the Next-Generation (GST 2.0) reforms announced on September 4. The reduced duties on daily essentials prompted consumers to delay purchases.

FMCG companies, however, remain optimistic about growth in the latter half of the fiscal year, expecting price stabilization and demand stimulation from duty reductions. The sentiment is also anticipated to improve with factors like easing inflation, favorable monsoons, and policy incentives boosting consumer confidence.

(With inputs from agencies.)