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India remains a strong growth market for global consumer companies

Chief executives of greater than a dozen giant global consumer items companies mentioned their India enterprise continues to be resilient and was the brilliant spot within the Asia area within the April-June quarter regardless of the macroeconomic challenges.

Top companies Apple, Coca-Cola, Mondelez, Unilever, PepsiCo, Nike, Whirlpool Corp, AO Smith, Skechers, Domino’s Pizza and The Hershey Co mentioned in current earnings calls that their India enterprise grew at a excessive double-digits tempo, partly attributed to quantity growth attributable to decrease base of corresponding quarter of final yr, when the nation was underneath Covid restrictions, and pentup demand in classes like trend and summer season merchandise.

CEOs of Apple and Coca-Cola mentioned the final quarter gross sales in India had been a document excessive for them. Apple CEO Tim Cook, on Friday morning, advised analysts that there was “a near doubling of revenue in India” within the June quarter. Even within the companies enterprise, Apple posted all-time information final quarter in lots of international locations together with the US, Mexico, Brazil, Korea and India.

Beverage big The Coca-Cola Company CEO James Quincey earlier this week advised analysts that the corporate delivered its best-ever quarter and “added one billion incremental transactions in the quarter, led by affordable single-serve packs.” He mentioned the corporate reached its highest-ever outlet availability within the nation. The upswing in consumption final quarter can be mirrored in cost information of Visa. Payment quantity in India within the June quarter was up by 184% over 2019 with ecommerce above 300%, mentioned CEO Alfred F Kelly, Jr.

Mondelez grew June quarter gross sales in India by 30%, whereas AO Smith by 79%. Companies like and Skechers mentioned India enterprise drove total growth within the Asia-Pacific area final quarter.

Diageo mentioned India web gross sales grew 17%, pushed by strong consumer demand within the off-trade channel, restoration of the on-trade channel and strong premiumisation. Budweiser Brewing Co APAC, a unit of AB InBev, noticed its India enterprise outperform the trade as volumes recovered to above pre-pandemic ranges. Its mixed premium and tremendous premium portfolio doubled in quantity, helped by low base from final yr’s Covid outbreak.

Analysts mentioned India has been resilient amid slowing global growth. The IMF has slashed the 2022 global GDP growth forecast to three.6%. While India’s growth outlook has tempered too, at 8% expectation in 2022 and 7-8% growth forecast, India remains an outlier, ” mentioned a report by Emkay.

Not all growth for consumer items was pushed by precise demand. In India, constant worth hikes throughout classes proceed to squeeze family bills and affect demand for a number of FMCG classes. While this has led to larger worth for companies, volumes or variety of merchandise folks buy has fallen persistently over the previous three quarters. Pehal News

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