**Title:** Marico Anticipates Growth in India’s FMCG Sector for 2025-26
**Meta Description:** Marico’s CEO predicts a slight increase in volume growth for India’s FMCG sector this fiscal year, driven by easing food prices and strong rural demand.
**URL Slug:** marico-fmcg-growth-2025-26
**Headline:** Marico’s CEO Forecasts Positive Trends in India’s FMCG Sector for 2025-26
Marico Ltd, known for its popular products like Parachute hair oil and Saffola cooking oil, is optimistic about the recovery of India’s fast-moving consumer goods (FMCG) sector in the upcoming financial year. Saugata Gupta, the managing director and CEO of Marico, shared insights on the expected growth during an interview, highlighting that while a dramatic recovery may not be immediate, overall volume growth is anticipated to be slightly higher in 2025-26.
Gupta noted that the FMCG sector is experiencing a steady demand, particularly as food prices show signs of easing and rural consumption remains strong. “The consumption is a tad better than what gets reported as a summation of the listed companies,” Gupta stated. With inflation rates slowing and urban consumption expected to improve, the overall volume growth for the sector is projected to surpass last year’s figures.
India’s retail inflation recorded a year-on-year increase of 3.16% in April, marking its slowest pace in over six years, largely due to declining food prices. Economists are optimistic that the Reserve Bank of India may lower interest rates in June, which could further stimulate consumption and economic growth. Food inflation has also decreased significantly, dropping to 1.78% in April from higher rates in previous months.
Gupta expressed confidence that favorable monsoon rains, government initiatives focused on rural infrastructure, and minimum support prices for crops will positively impact rural demand. “We expect rural demand to be steady. If there is a slight improvement in urban demand, which I foresee, overall volume growth for the FMCG sector this year will definitely be better than what it was last year,” he added.
Marico is also targeting double-digit revenue growth in the current fiscal year, supported by improving demand and distribution in both rural and urban markets. The company remains open to acquisitions that align with its strategic goals, particularly in the wellness sector.
In the March quarter, India’s FMCG industry reported an 11% year-on-year value growth, driven by a 5.1% increase in volume, indicating a positive trend for the sector as it moves forward.
**FAQ:**
**Q: What factors are contributing to the expected growth in India’s FMCG sector?**
A: Key factors include easing food prices, strong rural demand, and anticipated improvements in urban consumption, alongside favorable government policies and economic conditions.