India’s leading consumer goods and appliance makers expect volume growth to rebound next fiscal year, as easing inflation and GST rate cuts lower prices and revive household demand. After several quarters when revenue growth was driven largely by price hikes and premiumisation, companies now anticipate volumes to outpace value growth-a key signal of mass-market recovery.
“The next-year growth is going to be more volume-driven and not so much price-driven,” Dabur chief executive said, noting that volume-led expansion is harder to achieve compared with a combination of a value and volume growth.
At Hindustan Unilever, chief financial officer said the company is prioritising volume-led growth. The country’s largest consumer goods manufacturer posted 6% revenue growth in the December quarter, driven by 4% underlying volume expansion-the fastest in 12 quarters-and expects macro conditions to improve further next fiscal year.
Consumer Goods Cos Bet on Volume Revival
Expect volume growth to outpace value gains in FY27 due to lower prices from GST cuts, a signal for mass market recovery
Macroeconomic indicators, including consumer sentiment, are showing signs of improvement, with the next fiscal expected to be stronger than the current one, Gupta told analysts earlier this month. “We have prioritised growth over margins and margins will remain within the guided range.”
Industry data suggest the recovery has remained slow this fiscal year. FMCG volume growth moderated to 4.5% in the October-December quarter, compared with 4.6% in the year-ago period and 4.7% in July-September 2025, according to research firm Numerator. It expects momentum to strengthen through the calendar year and projects FMCG growth to accelerate to around 5% by mid-2026.
According to NielsenIQ, India’s FMCG industry posted 12.9% year-on-year value growth in the July-September quarter, driven by a 5.4% rise in volumes and a 7.1% increase in prices.
At Godrej Consumer Products, chief executive said GST cuts are expected to lift soap sales. The company’s India volume growth was 7% in FY24, largely led by soaps, but slowed to 5% in FY25 due to weak demand in the category. Growth is likely to recover to 6-7% this fiscal year. “FY27, soaps should hopefully be a little better,” he said.
Consumer durable makers including LG Electronics India, Blue Star, Voltas and Havells expect demand for cooling products such as air-conditioners and refrigerators to pick up this summer. The recovery, they said, would be aided by last year’s weak base, pent-up demand and a broader improvement in consumption.
“The AC season is very cyclical, and we saw a softer summer last year. We are hopeful this year will be a very hot summer,” co-chief sales and marketing officer at LG Electronics India said. “January sales have already shown better results compared with the same period last financial year.”
At Blue Star, managing director said demand appeared to have revived, supported by low penetration levels in the category. “People are not going to keep postponing forever,” he said, pointing to deferred purchases translating into pent-up demand.
For the past six years, growth in home appliances has been driven largely by premiumisation, with mid- and premium-segment products powering sales. Now, companies including LG are renewing their focus on entry-level models to expand volumes and tap price-sensitive consumers, signalling a shift from value-led to volume-led growth.
Source from: https://economictimes.indiatimes.com/news/company/corporate-trends/indias-consumer-goods-makers-bet-on-volume-led-growth-as-inflation-eases-gst-cuts-boost-demand/articleshow/128687670.cms?from=mdr
