India’s big companies look to boost advertising spend

Advertising and promotion (A&P) budgets at some of India’s leading FMCG companies are increasing as they look to drive demand and grow business. 

That’s the conclusion reached by the Economic Times after analysis of recent earnings calls. 

Why it matters

It signals renewed confidence as brands shift away from a recent focus on cost management as a way of maintaining margins during the Covid period.

Who’s doing what

• Hindustan Unilever announced an intention to increase A&P spending from 8.4% of sales (for comparison it was at 12.2% pre-Covid).
• Dabur India reported A&P spend up 12.5% during the fourth quarter.
• Marico reported that A&P investment grew 8% on a four-year CAGR basis as it looks to drive long-term growth and brand equity.
• Shoppers Stop reported a 41% jump in marketing investment last quarter.