Product realisations during FY25 are expected to « grow in single digits with marginal rise in prices of key raw materials for the food and beverage (F&B) segment », however, prices of key raw materials for the personal care (PC) and home care (HC) segments are expected to be stable, it said.
The F&B segment accounts for almost half of the sector’s turnover, while the PC and HC segments each account for a quarter.
On revenue growth, the report added that the FMCG sector will also be supported by modest realisation growth of 1-2 per cent « primarily due to marginal price hike » of some key raw materials of the food and beverage industry, including sugar, wheat, edible oil and milk.
However, prices of most crude oil-based products, such as linear alkylbenzene and high-density polyethylene packaging, remain range-bound. « The focus on improving the supply of premium products, particularly in the food and beverage and personal computer segments, will also support the achievements, » he said.
Rabindra Verma, associate director, Crisil Ratings, said revenue growth will vary across product segments and companies.
« The F&B segment is expected to grow at 8-9 per cent this fiscal, aided by improving rural demand, while the personal care segment will grow at 6-7 per cent. The home care segment, which outperformed the other two segments last fiscal, is expected to grow at 8-9 per cent this fiscal, led by continued upscaling and steady urban demand, » he said.
Crisil has estimated that the FMCG sector growth for FY2024 will be around 5-7%.