Leading FMCG makers expect a volume-led growth in 2024-25, with a revival in consumption supported by a lower inflationary environment, projections of a normal monsoon and good rabi crop.

Companies such as Britannia, Marico, Dabur, GCPL and HUL in their latest March quarter earnings also expect a revenue growth in the new financial year as the deflationary cycle is over.

The companies were forced to slash prices as prices of major commodities had fallen, which had in turn impacted their topline and value growth in the last two quarters of 2023-24.

Besides, they expect a gradual uptick from the rural market, which contributes over one-third FMCG sales in the country.

For Dabur “a volume growth will be the way forward” in this fiscal, said its CEO Mohit Malhotra in an investor call.

He remains optimistic about the gradual uptick in consumption trends in 2024-25 and expects a “mid-to-high single-digit volume growth”.

“Till last year, we were at least having some price increase anyway and now going forward it’s going to be mostly driven by volume across categories while we budget a 3 per cent price increase,” said Malhotra.

Britannia Industries vice-chairman and managing director Varun Berry said 2024-25 “is a year of topline growth” and expects a double-digit volume growth post-election and monsoon.

“Our outlook on this year is not deflationary. Our outlook on this year is slightly inflationary, which is a healthy inflation of 3 per cent,” he said during an investor call.

When asked about volume growth this year, Berry said he expects it to be “quite solid”.

Godrej Consumer Products Ltd (GCPL) expects a “high single-digit volume growth” this fiscal year from its India market and to step up profitability from its global markets.

In an investor presentation, GCPL MD & CEO Sudhir Sitapati said it has a three-pronged strategy for 2024 — premiumisation, efficiency and affordability.

The company, which owns brands such as HIT, Cinthol and Good Knight, has aspirations for a high single-digit growth in medium term and double-digit in the long
term.