Category — Consumer Goods

Mondelez, Colgate Upbeat about India in 2018

Reporting significant sales growth in the latest quarter, global companies such as Mondelez, ColgatePalmolive and Unilever are upbeat about opportunities in India and said the country remains a bright spot. Several companies posted a double digit year-on-year volume growth for the December quarter.

“India is very strong, we had a 27 percent growth in Q4, but that’s of course lapping the demonetization. Still, we grew double-digits without that, and overall for the year India is up 12%,” Brian Gladden, CFO at Mondelez, said in an earnings call. “We see a growing middle class, we still have a low per capita consumption of chocolates, and the GDP growth rates are pretty strong. So we are overall very bullish on India,” he added.

Toblerone by Mondelez

Companies expect a volume boost from price-cuts that started in July last year and were further accelerated after the GST Council dropped tax rates on 200 products, including chocolates, toothpaste, shampoo, washing powder, and shaving creams, to 18 percent from 28 percent.

February 17, 2018   No Comments

Nestle India’s Revenue Crosses $1 Billion

Nestle India announced that it had crossed $1 billion  in revenue in 2017, and that the company’s net profit grew 22.3 percent. For the quarter ended December 31, 2017, total sales grew 10.9 percent and the company posted a 60% greater net profit compared to the corresponding quarter of the previous fiscal.

Suresh Narayanan, chairman and managing director, Nestle India, said, “It is extremely pleasing that we ended year 2017 on a strong note  in revenue, in a year where we had to adapt to significant changes in the external environment,” refering toe new goods and services tax.

For Valentine’s Day, the company  introduced a new two finger Kit Kat Strawberry Duo — a combination of chocolate and strawberry — priced at 15 cents.

Valentine Day Kit Kat

February 17, 2018   No Comments

P&G Champions Gender Equality in India

Cincinnati, Ohio-based Procter & Gamble announced that it will source as much as $30 million from women-owned businesses across India in the coming three years. The move aligns the company’s global commitment to building greater gender equality with the United Nations’ sustainable development goals.

Working in partnership with WEConnect International in India, a non-profit that allows qualified buyers to connect with women-owned businesses, the companies hopes to  develop capability among women entrepreneurs through training and workshops.

woman entrepreneur

P&G India sub-continent managing director and CEO Al Rajwani said, “The impact of our spending with women-owned businesses helps to stimulate economic growth in communities who are often overlooked, which in turn promotes job creation and further opportunities.”

February 17, 2018   No Comments

India Simplifies Licensing for Medical Device Manufacturing

Per India’s Medical Device Rules, 2017 that came into effect in January this year, new licenses awarded for manufacturing and import of medical devices will not need periodical renewal and will remain valid until they are either suspended, cancelled, or surrendered. The licensee will need to pay a retention fee once every five years for the license to remain valid.

India’s federal regulator, the Central Drugs Standard Control Organization has launched Sugam, an online portal, to facilitate granting licenses for manufacturing, import, clinical investigation, sale and distribution of medical as well as in vitro diagnostics devices.

Authorities will inspect manufacturing sites  annually ensure compliance to the terms and conditions stipulated in the licenses. Manufacturers are required to follow a quality management system for manufacturing medical devices.

Blood pressure monitor

February 15, 2018   No Comments

Amazon India May Launch In-House Beauty Products

Amazon India has increased focus on the high margin cosmetics category and might be in talks with local manufacturers to launch Amazon branded personal care products in India, according to a report in the Economic Times, which has been widely re-circulated by others.

Amazon LogoIndia’s online beauty and personal care market is expected to cross $3.5 billion by 2022 from about $300 million now. Sales of both international and Indian beauty brands are increasing. Ananth Narayanan, chief executive of Myntra and Jabong, both fashion and lifestyle e-commerce portals owned by Amazon’s competitor Flipkart said, “We are looking at a contribution of about 8% [from the beauty segment] to our overall revenue by 2020, from the current 1%.”  Shalini Raghavan, chief marketing officer, consumer products division, at L’Oreal India said, “We have definitely added consumers (from tier 2 and 3 towns) through our online presence. With our retail footprint alone, [we] would not have had the same access earlier.”

Amazon India is reportedly talking to contract manufacturers in a few categories within skincare and makeup. The company’s recent partnership with the Shoppers Stop chain of stores will build a steady distribution channel for its beauty products.

February 14, 2018   No Comments