Customers continue to shy away, sales down 1.6 % over last year

The coming days also do not appear to be very rosy. The survey notes that with the dominance of sluggish demand growth and intense competition, recovery in demand growth in the second half of 2002 will remain slow and gradual.

With all large categories showing degrowth, Hindustan Lever (HLL) has further slipped into negative growth of 8.3 per cent in August after registering negative growth of 5.8 per cent in July and 4.6 per cent in June. Banking on the renewed thrust on Fair & Lovely and a 50 paise reduction in sachet price, HLL recorded three-four per cent growth in skin care and shampoo segment. But, volumes decreased by 13 per cent in soap, 17 per cent in tea and 11 per cent in toothpaste.

Among all companies, Nestle India continued to be the best performer with consistent growth of six per cent in August, 7.4 per cent in July and 6.8 per cent in June. Nestle’s chocolate, noodle and milk powder recorded volume growth ranging from 12-36 per cent. However, volume growth in weaning foods, milk food and coffee showed a decline of three-four per cent.

As per the survey, Britannia Industries also treaded in the path of decline with a growth of 3.7 per cent in August in comparison to 6.5 per cent and 6.6 per cent in June and July but it still remained positive. Britannia’s flagship brand Tiger continued to be the key driver with a 13.9 per cent volume increase in August.

Other companies’ decline in growth is further sharp ranging from two per cent to 11 per cent with Tata Tea showing 11 per cent negative growth, Colgate Palmolive (-6.8 per cent), GlaxoSmithKline Consumer (-5.5 per cent) and Dabur (-1.8 per cent).