There is a nascent recovery in the Indian economy led by the consumption sector. Fast moving consumer good giants Hindustan Unilever Ltd. and Nestle India Ltd. are gearing up to meet higher demand with accelerated launches and inorganic expansions, and likely to lead the growth path for the sector, Ankur Bisen, senior vice president at business solutions provider KSA Technopak, told BloombergQuint.
The NSE FMCG Index has increased 15.9 percent in the last one year, with Nestle India and HUL rising by 37.5 percent and 53.6 percent, respectively.
Here are the key highlights from the interaction and top picks of KSA Technopak:
- Seeing heterogeneity in FMCG consumption needs.
- Nestle and Hindustan Unilever bellwethers in packaged food sector in India.
- 67 percent of retail consumption comes from food.
- Macros of QSR (quick space restaurant) space continue to be strong.
- Expect momentum to continue for Jubilant Foodworks, McDonald’s for next three to four quarters.
- Expect Avenue Supermart-owned D-Mart's bullish story to continue.
- Not undermining Future Retail Ltd.’s potential, as it’s the lone-standing warrior in the retail segment.
Watch the full conversation here: