FMCG Firms Aim Ambitious Growth as GST Reforms Propel Consumer Spending

Fast-Moving Consumer Goods (FMCG) firms have begun setting more ambitious growth targets as consumers in both urban and rural areas show greater flexibility in spending, driven by GST reforms and ease of inflation. 

Firms want to utilise the enhanced consumer spending by developing products and solutions that align with evolving consumer preferences while contributing to a responsible and resilient supply chain.

"As we step into the next chapter, our focus remains on innovation, inclusivity, and sustainability, shaping a stronger, more future-ready FMCG business," said Salloni Ghodawat, CEO, Ghodawat Consumer Limited (GCL) as the firm set an ambitious goal to reach the INR 1,500 crore revenue milestone over the next three years. 

The company has already surpassed INR 1200 crore in revenue, maintaining consistent double-digit growth.

GCL, with its twenty-three years of operations, has solidified its presence in key markets, such as Maharashtra and Karnataka, backed by celebrity endorsements, regional campaigns, and a strong digital-first approach. With over INR 25 crore invested annually in marketing, GCL leverages data-driven insights and real-time performance tracking to maximise campaign impact.

The company further says that it is actively utilising e-commerce as the stream is showing impressive growth because consumers are making online purchases more than ever.

Observing the trend, the Union Bank of India, in its report, added that new GST reforms have set the stage for the consumption-led growth of India. GST 2.0 has been hailed as a "GST booster shot" for consumption-led growth, with major reliefs announced for sectors including FMCG, among other sectors.

Bank of Baroda, in a report, observed that the consumption in India is expected to register a net gain of nearly INR 1 lakh crore from September onwards, driven by the recent Goods and Services Tax (GST) rationalisation, which will help the firms.

The report estimated that the net gain to consumption would be in the range of INR 0.7-1 lakh crore, which amounts to around 0.2-0.3 per cent of the country's GDP.

Source: ANI