FMCG firms may pass on tax gains to consumers
Posted On : Saturday, September 21, 2019, 5:56 PM
Fast-moving consumer goods (FMCG) could witness a price reduction in select categories, which is likely to boost sagging volumes. The FMCG industry is reeling under a major slowdown. An increase in profits, following the corporate tax bonanza, could also go into product promotions and advertising spends, said experts. Marico MD & CEO Saugata Gupta said the move will boost consumption. He expects better pricing and greater investments in the medium term. The much-needed reduction in corporate taxes will enable more investments by firms — in consumers, in employees and in manufacturing capacity, said Godrej Consumer Products MD & CEO Vivek Gambhir. “For buyers, this could take the form of more promotions, selective price cuts and more spend on advertising to stimulate demand,” said Gambhir.