Recent news of the sector:

 FMCG sector to expand at 9% in FY20, growth to improve in FY21;

The Rs 4-lakh crore FMCG sector will close fiscal 2020 with a 9 per cent growth, down
4 percentage points and a jump in rural buying will lift the same to 11 per cent in
fiscal 2021. The recovery in growth for the fast moving consumer goods (FMCG)
sector will begin playing out from March-April 2020 riding on a jump in farm incomes,
Crisil NSE 2.57 % Ratings said in its report.
 India Inc top guns could see big dip in profit & revenue;
India’s top listed companies may post a sharp fall in revenue and profit for the fourth
quarter of FY20 due to large scale shutdown of factories, offices and public places in
the second half of March.
 FMCG companies tweak sales mix in slow market;
To de-tangle growth from the grip of a slowdown, fast-moving consumer goods
(FMCG) companies are redefining their product and marketing strategies, depending
on their stage of evolution.
 FMCG stocks edge lower on CS slowdown bugle;
Most of the Fast Moving Consumer Goods (FMCG) stocks were trading lower on
Thursday after Credit Suisse sounded the bugle of slowdown in the sector. BSE FMCG
index was trading over 0.3 per cent lower intraday.
 Quality FMCG, Parma stocks will withstand lockdown;
All have been working from home since last one week; so it is not forced. We had
already taken steps earlier and almost 95% of our employees were working from
home. From now on, almost 99% of people will be working from home; the 1% would
be the IT people and some back office and RMS guys who need to be present in the
office. Else, we have made arrangements for almost 99% of the people to work from
home.
Recent news of the company
 ITC extends fall on heavy volumes; stock slips 12% in 3 days
Shares of ITC were trading lower for the third straight day, falling 8 per cent to Rs 161
on the BSE on Wednesday on heavy volumes. The stock of cigarette manufacturer has
slipped 12 per cent in the past three trading days on reports that the Health Ministry
has notified new health warnings for tobacco products. The counter has seen huge
trading volume, with a combined 22.4 million equity shares changing hands on the NSE
and BSE.
 Covid-19 impact: Restrictions on movement still a pain point for FMCG firms
Logistics and movement of goods continue to be the pain point for FMCG companies
who are considering improving operations this month after May 17.
 ITC, workers' unions face-off over work, pay cuts during Covid-19:
Indian consumer goods giant ITC has warned some workers of disciplinary action and
pay cuts for missing work during the coronavirus epidemic, leading to a showdown
with at least two unions, according to letters from both sides seen by Reuters.The
workforce problems at two ITC food plants - one in Pune in Maharashtra and another
in Karnataka - show how labour issues weigh on Indian firms after a
nationwide coronavirus lockdown forced thousands of workers to go back to their
villages.
 Reasonable capacity utilisation may take a quarter: ITC's Sanjiv Puri
ITC has about 120 manufacturing locations including third-party owned. Of these, 70-
80 are currently operational, but at capacity utilisation ranging between 20 per cent
and 60 per cent.
 ITC evaluating inorganic expansion, aims to boost non-cigarette verticals
In a filing with the BSE, ITC said, “The Company, as part of its business strategy, is
always exploring inorganic growth opportunities, and enquiries received from market
participants are suitably evaluated.” The company was responding to a clarification
sought from the stock exchange over the acquisition of Kolkata-based spices major.
 Coronavirus: ITC repurposes Himachal perfume plant to produce sanitizers
Cigarettes-to-hotels major ITC has repurposed its recently commissioned perfume
manufacturing plant in Himachal Pradesh to make Savlon- branded hand sanitizer.
This is to cater to the surging demand for hygiene products. It will help ITC produce
an additional 125,000 litres of sanitizer. The firm said it has reduced prices of its
sanitiser and is working round-the-clock to ensure that the new stocks with revised
prices reach the market.
Various strategies adopted by company to survive:
 The company has been launching new products and brand extension with investment
being made towards brand building and increasing its market share.
 ITC is focusing on delivering value at competitive prices. They believe in customer
friendly products with major emphasis on low cost overall without compromising on
the quality of the product.
 They have adopted both forward and backward integration.
 They have adopted conglomerate diversification strategies. ITC’s diverse strengths
were being leveraged across three product groups- lifestyle retailing, greeting cards
and gifts and branded packaged foods.
 Tie up with leading portals to promote snack range, Online advertising and can order
snack on toll free number, E-commerce activities for ready to eat snack brand KOI.

Future plans:
 Company will attempt to reinforce the existing Categories in the FMCG segment.
 ITC’s FMCG business to include newer acquisitions.
 The move is in line with ITC’s efforts to reduce its dependence on the tobacco
business riddled with excessive taxing and regulation.
 The company is looking to build a large stable of consumer goods brands to compete
with the likes of Hindustan Unilever, PepsiCo and Britannia.