Leading FMCG companies like HUL, Nestle India, and Pidilite are struggling with weak demand from rural and urban consumers.
HUL's net profit for the September quarter fell by 12% to ₹2,448 crore, while sales growth slowed to 5.7%. Nestle India reported a 7.5% decline in net profit, down to ₹661 crore, as consumers cut back on discretionary spending. Pidilite saw its profit decrease by 14% to ₹315 crore. Experts point to rising inflation, which is affecting middle-class spending. Companies are now focusing on cost management and innovative product offerings to regain consumer interest.