Indian FMCG products gaining traction in global markets
What's the story
Indian fast-moving consumer goods (FMCG) such as biscuits, noodles, and soaps are winning over international markets. Companies like Hindustan Unilever (HUL), Marico, ITC, Godrej Consumer Products, and Dabur have reported faster growth in export revenue compared to domestic sales. The trend is driven by the global popularity of Indian cuisine and government initiatives like the Production-Linked Incentive (PLI) scheme.
Revenue shift
Exports growing faster for these companies
Despite international business accounting for only a small portion of their turnover, companies like Dabur, Emami, and Marico are seeing over 20% of their revenue coming from exports. HUL's wholly-owned export subsidiary Unilever India Exports Ltd posted an 8% increase in sales to ₹1,258 crore in the last fiscal year. This was largely driven by skin care and hair care products under popular brands such as Dove, Horlicks, Vaseline, Lifebuoy, and Sunsilk.
Culinary influence
Mustard oil, gram flour, and soya nuggets in demand
Angshu Mallick, CEO of AWL Agri Business, India's largest packaged edible oil company, said that the growing number of Indian restaurants and the popularity of Indian cuisines in the West are driving exports. He noted that products like mustard oil, gram flour (besan), soya nuggets, and flattened rice (poha) are also in high demand globally. Mallick predicts a 50-80% increase in exports this fiscal year.
Policy impact
PLI scheme boosting shipments
The Indian government's export-focused programs such as PLI schemes for the food processing industry and millet-based products are also boosting shipments. In December, the government announced that it had selected 73 companies for benefits under the PLI scheme to market Indian-branded food products globally. AWL's branded export business has grown threefold in three years, crossing ₹250 crore in FY25.
Profit growth
International business operating margin expands to 17% for Godrej
Godrej Consumer Products saw its international business operating margin expand to 17% in FY25 from 10% two years earlier. Marico said its export business is scaling up fast with a 14% growth in constant currency terms (excluding the impact of currency movements) in FY25, than to the overall growth of 12%. Dabur's exports grew by an impressive 17%, against a mere 1.3% expansion in consolidated revenue during the same period.
Strategic expansion
ITC looking at strategic opportunities in proximal markets
ITC Ltd's annual report noted "green shoots" in the export of biscuits, noodles, and snacks. The company's Aashirvaad Atta is already a market leader in several countries. Despite agri-commodities driving most of its foreign exchange earnings from exports, ITC is looking at strategic opportunities in proximal markets as a potential growth vector going forward.