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Mar 23, 2013

Asian Paints Tops FMCG Sector

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fmcg companies in indiaMutual Fund Franklin Templeton said, only Asian Paints reported an "impressive" performance.

A latest report from them said. "Quarterly data from the (FMCG) sector indicated that the fmcg companies in India continued to witness sluggish growth as rural income was impacted by delay in monsoons, however, the worst could be over for the sector as far as rural incomes are concerned given that the declining trend in food grain prices is abating” it said.


Mutual Fund Franklin Templeton said only Asian Paints managed to report an impressive performance due to is restructuring efforts and boom in the housing market, which led to the demand in exterior paints.

But Templeton, with a FMCG fund worth Rs 19.08 crore, had invested a mere Rs 1.62 crore in the paint company.

The fund said importance of rural demand for the sector could not be overstated and added that except for categories like soaps, detergents, edible oil and teas, the relatively low penetration level meant that rural demand was going to be the key driver of growth of FMCG companies.


Templeton said, quoting the National Readership Survey of 2002. That over 70 per cent of the Indian households resides in rural India and rural demand accounts for over 55 per cent of value sales for most of the major consumer non-durable products.

It said FMCG got fully invested during the quarter to take advantage of the attractive valuations and changing outlook for the FMCG companies.

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