FMCG industry buries recession in fairness cream

NEW DELHI: As the global economic crisis consumed nearly every sphere of business, one industry held out against recession through 2009 by promising to help Indians look fairer, younger and their teeth whiter, kids stronger and taller, and toilets cleaner.

Looks-conscious consumers propped up sales of FMCG (fast moving consumer goods) companies, which in turn rewarded loyalty by not raising prices of fairness, anti-ageing creams, bathing bars and their likes, although input costs rose in an economy ravaged by drought and then floods.

Instead, they downsized the packaging to balance costs and margins.

"The sector has coped well with recent challenges and grew by 15 per cent over the last year," says industry chamber Ficci. The FMCG market in the country is worth $ 25 billion (Rs 1,20,000 crore).

Year 2009 also saw modern retail format stores and aggressive marketing helped home-grown FMCG firms wrest market share from leader Hindustan Unilever Ltd (HUL), according to market research firm AC Nielsen.

HUL's share in the estimated Rs 8,000-crore personal care market fell to 44.5 per cent from about half last year, as others like ITC, Godrej and Wipro fought for space in markets like Uttar Pradesh, Bihar and Gujarat with a rural push, says AC Nielsen.