Why FMCG giants in India faced sales-disruptions in September quarter
26 Oct 2025

Leading fast-moving consumer goods (FMCG) companies in India have reported disruptions impacting their sales for the September quarter.

These disruptions are mainly attributed to Goods and Services Tax (GST) reforms and unusually heavy rains in some parts of the country.

Despite these challenges, the companies remain optimistic about future growth due to favorable macro-economic conditions.

Unilever's emerging market performance improves
Corporate responses

In their earnings calls, global giants such as Unilever and Reckitt acknowledged the challenges posed by trade channel disruptions in September.

"Our emerging market performance is improving; India, in particular, is very well positioned over the medium term," said Unilever CEO Fernando Fernandez.

He added that while GST reform has impacted short-term performance, it bodes well for 40% of their portfolio with nearly a 10% price reduction.

Reckitt's revenue growth impacted by GST reforms
Revenue impact

British FMCG giant Reckitt also reported a hit to its net revenue growth in India for the September quarter, owing to new GST slabs.

However, the company did witness volume-led growth in its germ protection brand Dettol.

"The impact in Q3 of GST phasing being low to mid-single digits and that our India like-for-like was low single digit in Q3," said Reckitt CFO Shannon Eisenhardt during an earnings call.

Heineken, Coca-Cola, and PepsiCo report weather-related disruptions
Weather woes

Dutch brewing giant Heineken NV, which owns United Breweries Ltd (UBL), reported a "mid-single-digit" decline in its India beer volume for the September quarter.

The company attributed this decline to unusually heavy rains during the monsoon season.

Similarly, US cola giants Coca-Cola and PepsiCo also witnessed disruptions in their sales due to weather conditions during the same period.

Pernod Ricard and Nestle's take on India sales
Market resilience

French spirits giant Pernod Ricard reported a 3% rise in its India sales for the latest quarter. However, it was impacted by excise policy changes in Maharashtra.

"While enjoying strong underlying consumer demand dynamics, sales in India are negatively impacted by the excise policy changes in Maharashtra implemented in July," said Pernod Ricard CFO Helene de Tissot.

Swiss firm Nestle SA also noted "strong performance" and "good momentum" for India in its global earnings report.