Leading consumer goods companies like Dabur and Godrej are planning to boost their advertising budgets by 10-15% in the coming quarters. This strategic move, fueled by lower commodity costs and benign inflation, aims to capitalize on anticipated sales growth driven by improving demand, upcoming sporting events, and the summer season.
Dabur India is set to appoint Herjit S Bhalla from The Hershey Company as its new India CEO. Bhalla will report to Mohit Malhotra, who is moving to a higher role. This leadership change occurs amid sector-wide transitions and challenging growth. Dabur anticipates favorable growth in upcoming quarters following recent tax reforms.
Consumer goods companies in India are seeing normalised inventory levels after GST disruptions, with production now at full capacity. Companies anticipate a strong sales rebound starting next quarter as operational adjustments are complete and GST benefits are passed on to consumers, driving demand.
Life Insurance Corporation (LIC) increased its holdings in Tata Consumer Products to 8.65% and in Dabur India to 6.99%. The purchases, made between February and October 2025, signal renewed confidence in India’s FMCG sector amid steady consumption trends.
The Delhi High Court has restricted Patanjali Ayurved from broadcasting derogatory advertisements against Dabur India. This decision follows Dabur India's petition concerning television commercials about Chyawanprash. Dabur India alleges that these commercials disparage its products. The court has granted Dabur's request for an injunction. Dabur India claims Patanjali's advertisements contain misinformation regarding the number of herbs used.
Religare Enterprises' board is conducting a governance review and has sought funding from the Burman family, who took control after a takeover battle. The review aims to identify misconduct and suggest improvements. The company needs immediate financial support to address a cash-flow gap.
Hamid Ahmed has resigned as an independent director of Religare Enterprises due to increasing responsibilities in his family business. His resignation follows a Rs 2,116-crore open offer made by the Burman family to acquire a stake in Religare. The situation has led to complaints and regulatory scrutiny involving potential breaches by both sides.
Urban demand in the FMCG sector is expected to recover by mid-2025. Companies are focusing on premium products to drive growth despite current inflation. Categories like liquid beauty products and instant coffee are gaining popularity. However, rising debt and lower disposable incomes in urban areas remain challenges. Policy measures might be needed to boost consumption.
India's FMCG sector expects a 2025 rebound. 2024 brought high costs and inflation, slowing growth. Easing food prices and government spending offer hope. Premium products and quick commerce are gaining traction. Companies are innovating and adapting to changing consumer behavior. Rural demand is steady, and urban demand is projected to recover.
Consumer goods companies are ramping up capital expenditures and R&D investments to prioritize sustainability. Driven by consumer demand and investor pressure, these companies are developing eco-friendly products and manufacturing processes. This includes using recycled materials, reducing emissions, and innovating with recyclable packaging. Automakers are heavily investing in electric vehicle technology.
Dabur India faces a confirmed GST demand of ₹320.6 crore plus interest from the CGST Commissionerate, Chandigarh. While the penalty has been dropped, the company is reviewing the order and exploring legal options. Dabur assures this won't affect operations and the financial impact is limited to the final tax liability.
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