New Delhi: Fast Moving Consumer Goods (FMCG) companies expect good growth in their sales in the coming quarters. Food inflation is an area of ​​concern, but FMCG companies believe that improved demand in rural markets and good monsoon will have a positive impact on sales. Companies like Hindustan Unilever, ITC, Dabur, Britannia, Emami and Nestle manufacture everyday consumer goods and this is good news for them.

How the sales of FMCG companies are increasing

Good news has come from rural markets for FMCG companies and their sales have also increased through e-commerce platforms. In the first quarter of the current financial year, the industry's volume growth was around 6.6 percent. Marico's Managing Director Saugata Gupta said, 'We hope that stable retail inflation and good monsoon will have a positive impact on our sales. The measures taken by the government to boost the rural economy in the budget are likely to increase sales.'

Demand is expected to increase

FMCG companies are undoubtedly worried about rising food inflation. There has been a sharp rise in the prices of coffee and cocoa. The prices of grains have also increased and some companies have also indicated to increase the prices of their products accordingly. Dabur CEO Mohit Malhotra said, "Our sales will increase in rural areas in the future. Therefore, I hope that the next quarters will be better. " He expressed hope that with a good monsoon, improving macroeconomic indicators and rural-focused government spending, FMCG demand will gradually increase.

What will be the impact on the shares?

Experts had already expressed hope that FMCG companies will benefit from a good monsoon. Now, with the signs of revival of sales in rural areas, the shares of FMCG companies may rise. There has been an atmosphere of instability in the stock market for some time. Even in such an environment, investors increase the purchase of FMCG shares. Now it remains to be seen how they react when the market opens on Monday.