What%20does%20healthy%20growth%20in%20sales%20of%20daily%20use%20items%20such%20as%20hair%20oil%2C%20biscuits%2C%20washing%20powder%2C%20fairness%20creams%20and%20tea%20tell%20us%20about%20the%20state%20of%20the%20Indian%20economy%3F%20As%20results%20of%20the%20country%u2019s%20biggest%20Fast%20Moving%20Consumer%20Goods%20%28FMCG%29%20companies%20came%20in%20for%20the%20September%20quarter%2C%20it%20became%20clear%20that%20for%20the%20first%20time%20since%20the%20pandemic%20arrived%20on%20Indian%20shores%2C%20growth%20has%20firmed%20up%20in%20rural%20markets%20and%20sales%20are%20picking%20up%20even%20in%20urban%20pockets.%26nbsp%3B
And%20such%20sales%20growth%20of%20these%20myriad%20products%20points%20to%20the%20emergence%20of%20green%20shoots%20in%20the%20country%u2019s%20economy.%20The%20worst%20of%20the%20pandemic%20lead%20economic%20slowdown%20is%20probably%20behind%20us.
The%20latest%20numbers%20to%20bring%20cheer%20come%20from%20Hindustan%20Unilever%20Ltd%20%28HUL%29%2C%20the%20country%u2019s%20biggest%20FMCG%20company.%20Sales%20increased%20by%203%25%20in%20the%20July-September%20quarter%20%28excluding%20the%20portfolio%20of%20Glaxo%20SmithKline%2C%20which%20includes%20mega%20brands%20like%20Horlicks%20and%20Boost%29%20against%20a%20-7%25%20number%20in%20the%20April-June%20quarter%20and%20-9%25%20in%20the%20January-March%20period.%26nbsp%3B
A%20swing%20from%20negative%20seven%20per%20cent%20to%20positive%20three%20per%20cent%20in%20a%20single%20quarter%20shows%20exemplary%20revival%20in%20certain%20product%20categories%20and%20by%20extension%2C%20in%20the%20Indian%20economy.
Analysts%20tracking%20HUL%20said%20sales%20growth%20in%20rural%20markets%20during%20the%20quarter%20was%2010%25%20in%20the%20company%u2019s%20biggest%20product%20category%20of%20health%20and%20hygiene.%20Also%2C%20the%20biggest%20upside%20was%20witnessed%20in%20the%20category%20%u2018discretionary%20portfolio%u2019%20which%20includes%20skin%20care%2C%20colour%20cosmetics%20and%20deodorants.%26nbsp%3B
Here%2C%20sales%20had%20declined%20by%20a%20whopping%2045%25%20%28year%20on%20year%29%20in%20April-June%20but%20in%20the%20September%20quarter%2C%20the%20decline%20was%20much%20lesser%20ay%20just%2025%25.%20The%20western%20markets%20have%20seen%20a%20rise%20in%20discretionary%20spends%20as%20more%20of%20the%20economy%20opened%20up%20during%20the%20quarter%20and%20the%20improved%20sales%20in%20this%20category%20point%20to%20an%20urban%20bounce%20back.
Then%2C%20all%20of%20HUL%u2019s%20tea%20brands%20including%20%28Brooke%20Bond%20and%20Taj%20Mahal%29%20grew%20in%20double%20digits.%20Analysts%20at%20brokerage%20Edelweiss%20noted%20that%20rural%20sales%20for%20HUL%20did%20better%20than%20urban%20due%20to%20good%20monsoon%2C%20higher%20MSPs%2C%20government%20support%20and%20demand%20relocation%20as%20migrants%20deserted%20cities.
Results%20for%20another%20FMCG%20major%2C%20Bajaj%20Consumer%20Care%2C%20also%20showcase%20recovery%20in%20rural%20markets.%20Overall%20hair%20oil%20offtake%20recovered%20as%20the%20lockdown%20eased.%20Rural%20markets%20continued%20to%20do%20well%20but%20urban%20stress%20may%20continue%20for%20some%20more%20time.%26nbsp%3B
Sporadic%20lockdowns%2C%20migration%20of%20labour%20away%20from%20town%20centres%20and%20drying%20up%20of%20upcountry%20customers%20at%20wholesale%20markets%20are%20some%20of%20the%20reasons%20for%20tepid%20urban%20consumption.
%3Cstrong%3ESeptember%20boost%3A%3C/strong%3E%20India%u2019s%20economic%20activity%20has%20bounced%20back%20in%20September%20and%20this%20becomes%20clear%20through%20some%20macro-economic%20indicators.%20%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//pib.gov.in/PressReleasePage.aspx%3FPRID%3D1664831%22%3EExports%3C/a%3E%20led%20the%20way%20as%20they%20rose%20for%20the%20first%20time%20this%20fiscal%2C%20by%20nearly%206%25%20in%20dollar%20terms%20in%20September.%20This%20is%20a%20marked%20contrast%20from%20August%2C%20when%20exports%20had%20declined%20by%20nearly%2013%25.
Again%2C%20for%20the%20first%20time%20this%20fiscal%2C%20%3Ca%20target%3D%22_blank%22%20rel%3D%22noopener%20noreferrer%22%20href%3D%22https%3A//www.pib.gov.in/PressReleasePage.aspx%3FPRID%3D1660608%22%3EGST%20collections%20in%20September%3C/a%3E%20showed%20positive%20growth%20of%204%25%20against%20a%20negative%2012%25%20in%20August.
Sales%20of%20cars%20and%20two%20wheelers%20turned%20positive%20for%20the%20first%20time%20this%20fiscal.%20Vinkesh%20Gulati%2C%20President%20of%20the%20Federation%20of%20Automobile%20Dealers%20Association%2C%20said%20that%20sales%20of%20passenger%20vehicles%20surpassed%20last%20year%u2019s%20number%20for%20the%20first%20time%20this%20fiscal%20in%20September.%26nbsp%3B
%u201CWhile%20recently%2C%20the%20economic%20revival%20was%20mostly%20limited%20to%20rural%20India%20and%20impact%20of%20Covid-19%20was%20still%20felt%20on%20larger%20states%20and%20urban%20centres%2C%20the%20top%20states%20which%20makes%20up%20half%20of%20India%u2019s%20economic%20output%20%28Maharashtra%2C%20Tamil%20Nadu%2C%20Uttar%20Pradesh%2C%20Karnataka%2C%20Gujarat%20and%20West%20Bengal%29%20are%20now%20showing%20signs%20of%20revival%20as%20economic%20activities%20in%20these%20states%20are%20at%20its%20peak%20since%20lockdown%20began%20in%20March.%20This%20has%20also%20helped%20in%20creating%20a%20demand%20for%20automobile%20sales.%u201D
That%20said%2C%20India%u2019s%20fiscal%20push%20is%20among%20the%20weakest%20and%20it%20is%20among%20the%20few%20countries%20to%20see%20growth%20downgrade%20in%20IMF%u2019s%20latest%20forecasts.%20So%20while%20the%20economy%20is%20picking%20up%20steam%2C%20the%20revival%20would%20be%20aided%20and%20sustained%20through%20a%20sustained%20fiscal%20push.%26nbsp%3B
The%20Centre%20has%20unveiled%20two%20rounds%20of%20fiscal%20stimuli%20and%20Finance%20Minister%20Nirmala%20Sitharaman%20has%20indicated%20that%20the%20government%20is%20not%20averse%20to%20more%20such%20measures.%20That%20should%20be%20seen%20as%20positive%20news%20and%20any%20more%20such%20announcements%20may%20help%20hasten%20economic%20recovery.
%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23Finance%22%20data-user-id%3D%22vdfCkTLQAVNK%22%20href%3D%22/topic/finance%22%3E%23Finance%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23Business%22%20data-user-id%3D%221hd39Bl2AdAV%22%20href%3D%22/topic/business%22%3E%23Business%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23Economics%22%20data-user-id%3D%22qrCP2UqtKqa4%22%20href%3D%22/topic/economics%22%3E%23Economics%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23IndianEconomy%22%20data-user-id%3D%22oibP8XaaqR0K%22%20href%3D%22/topic/indian-economy%22%3E%23IndianEconomy%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23GST%22%20data-user-id%3D%22dBpvncc0ghAz%22%20href%3D%22/topic/gst%22%3E%23GST%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23FinanceMinister%22%20data-user-id%3D%22EkqVCNetJJgD%22%20href%3D%22/topic/finance-minister%22%3E%23FinanceMinister%3C/a%3E%20%3Ca%20class%3D%22mention%22%20data-mention%3D%22%23NirmalaSitharaman%22%20data-user-id%3D%22pblzqX86Ztpc%22%20href%3D%22/topic/nirmala-sitharaman%22%3E%23NirmalaSitharaman%3C/a%3E%20%26nbsp%3B
