According to Neilsen, a market research firm, growth numbers of the regional FMCG firms for September (2018) are higher than those of the larger established players, as reported by Business Standard.

FMCG (Fast Moving Consumer Goods) category includes those products that are sold at relatively lower prices but in higher quantities. Toothbrush, soaps, cereals, beverages are some of the examples.

Despite the triple threat of GST (Goods and Services Tax), the entry of global firms and Demonetisation, small regional firms have posted their highest ever growth rate of 42 per cent in September. This isn’t a one-off record since these firms have been displaying increasingly positive results in the last few months.

“Many new firms, meanwhile, have joined the pool. This may have lifted the average growth rate since weaker players that dragged down the average rate of growth, are no more on the list,” Sameer Shukla, executive director, Nielsen India, said acknowledging that those firms which could adapt to the GST regime shut shop.

Rural India has also been welcoming of established brands. It was earlier reported that 58 per cent of the sales of organised retail outlets came from towns and villages with a population not exceeding 1 lakh. Rural India also accounts for 40 per cent of total FMCG sales in the country.