Historically, FMCG was considered a good defensive positioning for risk-adjusted returns, but this is no longer the case. While the DII’s & FII’s have been cutting exposure in FMCG names, at Itus “contra positioning” is held in staples/FMCG. Today, as we speak, we can see the rural inflation staggering down. This is significant because it allows FMCG companies to raise prices, providing them with pricing power and enabling margin expansion, which has been absent for nearly four years

We would like to highlight the key initiatives by two of the largest names in this space from our Portfolio – Marico & ITC. Marico over the last few years has diversified its product portfolio and focused on connecting directly through the general trade channel to circumvent quick commerce issues and is also building its digital channel. ITC has expanded its direct coverage by connecting directly to farmers through its ITCMAARS program, reaching 1.7 million farmers across 10 states today, up from near zero three years ago.