Weekly FMCG Update: Marico, PepsiCo, and Haldiram drive growth plans

Demand for FMCG items rebounds in urban markets
FMCG demand has seen a recovery in urban areas during the March quarter, driven by stocking of summer-related products. Retail inflation easing could support stabilised demand, but rising agricultural commodity costs may impact volumes and margins. FMCG stocking at stores rose 11.5% in value compared to 7% last year, with growth in key sectors like groceries and personal care.

Marico anticipates double-digit growth with strong demand and pricing strategies
Marico shares have risen by 8% in the last month, aided by expansion into high-growth sectors like value-added foods and premium personal care. The company expects double-digit revenue growth by FY26, with continued momentum from strong volume growth and stable pricing. Core brands like Parachute and Saffola remain strong contributors, while foods and premium personal care segments are forecasted to grow 20-25% annually.

Government launches weekly webinars to connect FPOs with corporates
The Indian government has started weekly webinars to link farmer producer organisations (FPOs) with corporates, aiming to boost farm-to-market connections. Mother Dairy shared its plans to support FPOs in selling mustard and soybean. The initiative aims to raise farmers' incomes and improve market access, with plans for a nationwide expansion by 2026.

PepsiCo to set up manufacturing plant at Manapparai, TN
PepsiCo India has been allotted 27.96 acres at the SIPCOT industrial park in Tamil Nadu to build a plant for manufacturing potato chips and other snack items. The new facility, slated to be operational by 2025 or early 2026, will bolster PepsiCo’s presence in the region. This investment strengthens PepsiCo’s industrial footprint and comes as part of the company’s broader growth strategy in India.

Haldiram partners with UAE investors to boost growth
Haldiram Snacks has onboarded UAE-based Alpha Wave and International Holding Company (IHC) as investors to fuel future growth. The deal’s financial specifics remain undisclosed, but the partnership follows Haldiram’s recent minority stake acquisition by global investment firm Temasek. The move is part of Haldiram’s strategy to expand and diversify its operations.

Varun Beverages stock sees recovery after early slump
Varun Beverages (VBL) shares have made a 24% recovery since March, following a 32% slump in early 2025. The earlier decline was linked to concerns over competition and slower volume growth in India. The stock is now trading at ₹539.6 a share, signalling investor confidence returning as the company stabilises and addresses market challenges.