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Moii Chavate made post

How do you see COVID impacting the demand for FMCG stocks like HUL, ITC and Britannia?

Answer
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Sam Eswaran answered.
6 days ago


Nielsen, one of the world’s leading market research firms has painted a bleak outlook for FMCG sector. It has projected flat growth in the coming quarters. Earlier, FMCG sector used to grow at an average rate of 5-6%. This year, Nielsen does not expect FMCG growth to even top 0% due to the combination of lockdowns, erratic factory output, weak logistic links, disrupted supply chains and weak demand.

Nielsen expects the consumption uptick to begin only in the Dec-20 quarter and pick up steam after that. Rural FMCG consumption has seen lesser damage in the Jun-20 quarter compared to urban consumption. However, a pick-up in urban consumption may still be required to drive quick volumes and that looks like it will take time to come back.


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6 days ago


HUL is in diversified sectors but sales in Premium segment may be affected. ITC could get hurt with lower tobacco sales.Britannia may not be affected much as people still need food products