FMCG’s fast moving once again

The FMCG sector is living up to its 'fast moving' tag again, with the top 15 FMCG companies clocking sales and profit growth of 23% and 12% respectively for quarter ended September '06 compared with the previous corresponding period.

e4m by exchange4media Staff
Published: Nov 3, 2006 9:27 AM  | 3 min read
FMCG’s fast moving once again

The FMCG sector is living up to its 'fast moving' tag again, with the top 15 FMCG companies clocking sales and profit growth of 23% and 12% respectively for quarter ended September '06 compared with the previous corresponding period.

Double-digit volume growths across personal care, branded foods and beverage categories helped the industry register more than double the 10% topline growth recorded during Q2 FY06. Also picking up of export demand and growth in overseas subsidiaries added up significantly to the overall growth rate. However, increased input costs and price hikes in key commodities like vegetable oils, wheat, sugar and milk proved dampeners for the bottomline.

ITC continued its good run in both the tobacco and non-tobacco FMCG segments with topline growth rates of 14% and 53% respectively. Hindustan Lever too reported a healthy 12% net sales growth rate, backed up by 11% volume growth.

Ruchi Soya posted an impressive net sales growth rate of 62%, followed by Godrej consumer and Marico at 48% and 37% respectively. Tata Tea, Dabur India and Britannia Industries too notched up topline growth rates of more than 20%. Gillette India was the only FMCG major to report a net sales decline while Nestle, Colgate and GSK CHL all registered growth rates in 15-20% range.

The branded food segment was among the top movers with ITC and HLL's processed and packaged food segments growing at 54% and 20% respectively. While HLL's food division grew at 11% led by Kissan and Knorr brands, ITC expanded its market share under the Sunfeast and Ashirwaad brand umbrella. Dabur foods too posted an impressive growth of 27%. Britannia recorded an overall growth of 24% as compared to 4% in Q2 FY06.

The beverage category, however, moved slowly with HLL reporting just 6.5% growth. Nestle and Tata Tea's domestic sales grew 14% and 7% respectively. But they made up for it on the overseas front, with Nestle's exports and Tata Tea's overseas revenues both growing at around 35%.

Marico and Dabur's international business grew at 57% and 31% respectively while Godrej Consumer's subsidiaries Keyline and Rapidol added Rs 50 crore in turnover for the quarter.

In the personal care category, HLL's soap & detergent division grew at 12% as compared to 17% growth by Godrej Consumer while Nirma lagged behind with 8% overall growth rate. Colgate's toothpaste and toothbrush categories grew at 10% and 26% respectively, while Marico's hair oil franchise posted a 33% increase. Selective price hikes, innovative marketing campaigns and consumer promotions led the brand growths for most of them.

While higher input costs were offset by marginal growth in employee costs and check on overheads for most of the companies, Britannia and Nirma reported a decline in net profits for the quarter. However, it didn't deter the companies from pushing their ad spends with HLL and Colgate reporting hike of 42% and 57% respectively.

The overall operating margin came down to 18%, from around 19% last year. PAT margins too fell by 150 basis points due to firming up of interest costs.

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E4M Our strategy is to target younger audiences through Sports: Rajiv Dubey, Dabur

The Head of Media at Dabur India spoke exclusively to exchange4media on the World Cup, associating with Indian Idol, the company’s digital spending and much more

e4m by e4m Staff
Published: Oct 27, 2023 6:15 PM  | 1 min read
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With quirky campaigns, memes and moment marketing, timed with the ongoing World Cup and particularly the India-Pakistan matches, Dabur India has got considerable consumer attention for its popular brands – Red Paste, Cool King Hair Oil, Chyawanprash, Dabur Vita and the recently launched Bae Fresh Gel toothpaste.

The 140-year-old company is going big on key sporting events, World Television Premiere (WTP) movies and reality shows. It is now gearing up to become the title sponsor of popular talent show ‘Indian Idol’ on Sony TV for the first time, shared Rajiv Dubey, who leads the media strategy at Dabur.

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Swapan Seth's new book 'COOL' is out

The book is a reflection of the author's 'eclectic taste across categories'

e4m by e4m Staff
Published: Oct 27, 2023 6:07 PM  | 1 min read
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Advertising professional and art collector Swapan Seth has announced the launch of his new book COOL. The book is described as "a ready reckoner to the hip and the happening, of the known and the very unknown."

The book is a reflection of the author's "eclectic taste across categories: from boltholes to exotic hideaways."

COOL has been published by Simon & Schuster India and is available on Amazon.

Seth is an ad veteran with a long and illustrious career in the industry. He became the youngest-ever Creative Director at Clarion at age 24. He was VP at 26 at Trikaya Grey. Two years later, he started his agency Equus.

He writes for publications such as The Economic Times, Hindustan Times and India Today. This is his second book and he has previously published THIS IS ALL I HAVE TO SAY.

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Disney Star signs 9 sponsors for Asia Cup PAK

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up come on board

e4m by exchange4media Staff
Published: Aug 26, 2023 11:48 AM  | 1 min read
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e4m Staff Disney Star has signed nine broadcast and digital streaming sponsors for the upcoming Asia Cup.

Charged by Thums Up, Nerolac Paint+, Amazon Pay, Jindal Panther, My11Circle, MRF, Samsung Galaxy Z Flip5, Wild Stone and Thums Up have come on board for the upcoming tournament.
As reported earlier by exchange4media, Disney Star has sought Rs 26 crore for the co-presenting sponsorship on TV and Rs 30 crore for Disney+ Hotstar.

According to industry sources, the associate sponsorship on Star Sports has been priced at Rs 19.66 crore, whereas for the ‘powered by’ sponsorship on Disney+ Hotstar, the broadcaster is seeking Rs 18 crore.

As per the information available with exchange4media, Disney+ Hotstar has three sponsorship tiers-- co-presenting (Rs 30 crore), powered by (Rs 18 crore) and associate sponsorship (Rs 12 crore). The broadcaster is offering an estimated reach of 120-140 million for co-presenting sponsors, 90-100 million for powered by and 60-70 million for associate sponsorship.

A spot buy for 10 seconds has been priced at Rs 25 lakh for the India vs Pakistan matches, while for the non-India matches, the ad rate for 10 second is Rs 2.3 lakh. The India matches plus the final for ODIs has been priced at Rs 17 lakh per 10 seconds.

Asia Cup is scheduled to be held from 30 August, 2023, to September 17, 2023.

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Sorted 360 wins creative & social media mandate of Reliance Mall

The agency will manage offline and online campaigns for Reliance Mall

e4m by exchange4media Staff
Published: Aug 26, 2023 10:54 AM  | 1 min read
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Sorted 360, an integrated creative and social media agency, has won the mandate to providing brand solutions for Reliance Malls across India.

“Sorted 360 is set to enhance Reliance Malls' market presence with their unparalleled creative prowess and strategic thinking,” read a press release.

“Sorted 360's commitment to pushing the boundaries of creative communication aligns perfectly with Reliance Malls' ethos. With a pan-India presence spanning across 19 cities and growing, Reliance Malls has consistently captivated customers by offering an array of Reliance brands and third-party fashion & lifestyle brands. The mall has established an unparalleled connection with its patrons through superior quality, a remarkable value proposition, and an unmatched shopping experience,” it read further.

"We are thrilled to welcome Sorted 360 as our trusted partner in advancing our brand presence across the nation," said the Head of Marketing at Relaice Malls. "Their proven expertise in retail, shopping center management, and innovative creative strategies make them the perfect fit for our vision."

"Partnering with Reliance Malls is a testament to our commitment to shaping extraordinary brand experiences," remarked Prerana Anatharam, Co-founder of Sorted 360. "We are excited to leverage our strategic and creative acumen to further elevate Reliance Malls as the epitome of convenience, choice, and excellence."

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:39 PM  | 1 min read

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e4m by exchange4media Staff
Published: Aug 25, 2023 4:38 PM  | 1 min read

KlugKlug onboards Hemang Mehta as Country Manager for Indias

Mehta was most recently Head of Agency Relationships at Network 18 Media & Investments

e4m by exchange4media Staff
Published: Aug 24, 2023 3:35 PM  | 1 min read
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KlugKlug has appointed Hemang Mehta as its Country Manager for India.

Mehta will play a pivotal role in driving KlugKlug's growth and expansion within the Indian market and be responsible for Sales & GTM Strategy

Prior to that, he has also represented organisations like Exponential (now VDX.tv), India Today Digital and Rediff.com. His expertise spans various domains including digital media sales, mobile marketing, media planning, and buying, social media marketing, and more.

Hemang Mehta expressed his enthusiasm about joining KlugKlug, saying, "I am thrilled to be a part of KlugKlug, a forward-thinking platform that is reshaping the influencer marketing landscape. As much as I look forward to collaborating with the exuberant team at KlugKlug, I am super excited to interact with the brands to deliver powerful data-backed Influencer solutions that will guarantee business outcomes."

Commenting on the appointment, Kalyan Kumar, Co-Founder and CEO of KlugKlug, stated, "We are excited to welcome Hemang Mehta to our team as the Country Manager for India. His extensive experience in digital media sales and marketing will be instrumental in driving our efforts to provide influencer marketing solutions to our clients. We believe Hemang's leadership will be key in scaling our operations and expanding our reach within the Indian market."

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