December Sees Slowdown in India's FMCG Growth

07 February 2006

NEW DELHI - India's thriving FMCG sector failed to clear December's expansion hurdle, with growth falling to 3.5% compared to 4.4% in November. Overall, the sector reported an average 4.6% growth for the quarter ending December 31.    The deceleration, opines a Morgan Stanley report, is partly due to the high base in December 2004 - the only month in three years that witnessed double-digit sector growth.
   The report cites AC Nielsen data for December which fingers the Shampoo sector as the only silver lining amidst a lackluster performance across all categories.
    While shampoo recorded an impressive 19% value growth, others product sectors such as laundry power, laundry bar, tea, noodles, toothpastes, soaps, and chocolates all reported declining volumes during the quarter.