Mergers and acquisitions in the Indian FMCG sector reached $938 million in H1 2024

(MENAFN- IANS) New Delhi, July 5 (IANS) India’s fast-moving consumer goods (FMCG) sector has gained momentum with mergers and acquisitions (M&A) in the sector reaching $938 million in the first half of this year.

According to Venture Intelligence data, this is the highest result in the domestic FMCG sector in the last four years.

In January this year, Tata Consumer Products announced it would acquire up to 100% stake in Organic India, a Fabindia-owned business that sells teas, infusions, herbal supplements and packaged foods, for Rs 19 billion in an all-cash deal.

The announcement came shortly after the company announced it would buy a 100% stake in Capital Foods, which sells its products under the Ching’s Secret and Smith & Jones brands, for 51 billion rupees in an all-cash deal.

The value of private equity (PE) and venture capital (VC) transactions in the fast-growing fast-moving consumer goods (FMCG) sector reached USD 593 million in the first half of the year.

According to another report this week, revenues from the FMCG sector in India are forecast to grow by 7-9 per cent this fiscal year (FY25), driven by stronger volume growth, a revival in rural demand and steady growth in urban areas.

The growth in fiscal 2025 comes after an estimated 5-7 per cent growth in fiscal 2024, according to a CRISIL Ratings study of 77 FMCG companies, which accounted for about a third of the sector’s estimated Rs 5.6 lakh crore revenue in the last fiscal.

Higher government spending on rural infrastructure, mainly through the Pradhan Mantri Awaas Yojana-Grameen (PMAY-G) affordable housing programme, will help rural India achieve higher savings by supporting its ability to spend more.

MENAFN05072024000231011071ID1108409335