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As inflation soars, sale of low-unit price packs jumps; FMCG companies go for grammage cut, bridge packs

-PTI/ Financial Express Downtrading refers to the practice of switching from expensive products to cheaper alternatives by customers in a bid to conserve cash. FMCG manufacturers are opting to reduce product weight rather than price of items targeted at lower-end consumers, while resorting to single-digit price increase on some large packs and launching ‘bridge packs’, as they seek to overcome the impact of commodity price rise and unprecedented inflation. Besides, they are also...

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FMCG CEOs flag rural slowdown

-Livemint.com Top packaged consumer goods companies had also flagged slowing rural demand in the December quarter, citing inflationary pressures NEW DELHI: Top honchos of large fast moving consumer goods companies have flagged slowdown in rural demand in the March quarter, citing high inflation across products and commodities. Analysts Manoj Menon, Aniket Sethi, and Karan Bhuwania at brokerage ICICI Securities interviewed chief executive officers of companies such as Marico Ltd., Dabur India, and Tata...

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Rural Distress Makes India Inc. Call for Higher MGNREGA Allocation -Rabindra Nath Sinha

-Newsclick.in By doing so, the corporate sector seems to have cautioned the government against expecting a fast rebound in industrial activity, as there is sizeable idle capacity in the absence of consumption demand. Kolkata: Rural stress and funds for the rural job guarantee scheme were surprise additions in the organised corporate sector’s listed points for the post-Budget interaction with the Union government held on February 5 under the aegis of the Confederation...

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Rising prices are singeing Covid-battered India, Madame Finance Minister

-The New Indian Express An analysis by The New Indian Express shows that it is not just petrol and diesel prices that are scalding you. Prices of edible oil, tea, and pulses have seen a double-digit growth in the last year. When the April 2021 retail inflation came down to a modest 4.29%, an attempt might have been made to communicate a false sense of relief. The real picture, though, is very...

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Why are FMCG majors chasing growth in rural India?

-Livemint.com * Demand in rural markets has outstripped sales growth in urban markets over the last several quarters. * Companies are betting on consumers in rural India switching from unbranded, loose products to branded ones. Top FMCG makers are back to chasing growth in India's villages and are ramping up their reach in those markets. To be sure, companies are betting on large swathes of consumers in rural India switching from unbranded, loose products...

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