Can FMCG Be A Go-To Sector In The Medium Term?
India’s FMCG industry continues to be one of the biggest long-term sustainable business opportunities in the country. However, despite being one of the fastest growing markets globally for FMCG products, India’s per capita FMCG consumption is still amongst the lowest in the world. Armaan Madhani sheds light on the sector’s strong scope for growth in the near future
Over the last three trading weeks i.e. from June 20 to July 8, 2022, the BSE FMCG index gained traction to significantly outperform the broader markets. The sectoral index recorded more than double the gains of BSE Sensex, captivating the attention of investors. Godrej Consumer Products, Hindustan Unilever, Britannia and Emami posted high-teen returns. The FMCG sector is the fourth-largest sector in the country and is growing at an unprecedented rate. The sector is expected to increase at a CAGR of 14.9 per cent to reach USD 220 billion by 2025 from USD 110 billion in 2020. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector.
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