The fast-moving consumer goods (FMCG) sector continued to witness healthy demand during the April-June quarter despite persistent inflationary pressures and rising input costs, according to Bajaj Consumer Care Managing Director Naveen Pandey.

Pandey said consumption remained resilient across both urban and rural markets, with consumers largely absorbing moderate price increases without significantly reducing purchases. He noted that overall FMCG demand remained healthy during the quarter, reflecting stable consumption trends despite higher food and fuel inflation.

Consumer goods manufacturers have been facing elevated raw material costs, particularly for edible oils and crude oil-linked inputs, amid geopolitical disruptions in West Asia. In response, several companies implemented price hikes of around 4-5 percent, primarily on larger product packs where consumers are relatively less sensitive to price increases.

Bajaj Consumer Care adopted a dual pricing strategy to manage inflationary pressures. The company increased prices of larger packs priced between Rs 100 and Rs 200 while reducing the quantity in lower-priced packs of Rs 10 and Rs 20 to preserve affordability for price-sensitive consumers. The company indicated that additional calibrated pricing actions could be considered if input costs remain elevated.

The company reported a strong financial performance for the June quarter, with standalone net profit rising 85 percent year-on-year to Rs 70 crore, while revenue from operations increased 25 percent to Rs 341.6 crore.

Pandey also highlighted an improvement in rural demand following distribution enhancements, with stronger traction in lower unit packs that have greater penetration in rural and semi-urban markets.

Bajaj Consumer Care derives nearly 80 percent of its revenue from its flagship Almond Drops hair oil brand, which commands more than 60 percent market share in the light hair oil segment. Going forward, the company plans to strengthen its market position through increased product penetration, new product launches, and strategic acquisitions.

In addition, the company aims to accelerate growth in its non-core portfolio, including the coconut oil and value-added hair oil segments, where it competes with established brands. It targets increasing revenue from this growth portfolio from approximately Rs 225 crore to Rs 500 crore over time. The company also plans to expand the national presence of its Banjaras brand by developing scalable flagship products.