Global Giants Sing India's Praises
Global chief executives from multinationals like Coca-Cola and Harley-Davidson have spotlighted India as a key growth driver amid slowing demand in other regions. In recent earnings calls, leaders from companies such as Philip Morris International, Yum! Brands, Carlsberg Group, Pernod Ricard, Apple, Beiersdorf, and Skechers expressed optimism about India's market potential, particularly for the December quarter and fiscal year 2024.
Promising Market Dynamics
Most of these companies target mid- to high-income consumers in the discretionary space, while some, like Coca-Cola and Diageo, maintain a strong presence in the mass market. John Murphy, CFO of Coca-Cola, stated, "The Indian market has got a tremendous amount of runway ahead," noting a significant portion of their capital investments will focus on India and Africa in 2025.
Maaza recently became Coca-Cola's 30th billion-dollar brand, reflecting strong volume growth.
Yum! Brands reported a five-point swing in same-store sales for its operations in India last quarter, indicating a recovery in business.
Sales Trends and Future Investments
Despite a 18% decline in full-year sales for Harley-Davidson in the Asia Pacific due to weaknesses in Japan and China, India showed a modest increase in sales.
The Indian government plans to enhance household consumption through income tax rationalization in the FY26 budget, expecting a speedy rebound in the economy. The Reserve Bank of India projects economic growth at 6.7% for 2025-26, with an estimated 6.4% growth this fiscal year.
India vs. Other Markets
Vincent Warnery, CEO of Beiersdorf, emphasized that India is more important than China at present due to its booming market conditions and untapped opportunities in face care products. Apple, Skechers, and AO Smith reported high growth, with Apple achieving record quarterly sales, making the iPhone the top-selling smartphone in India.
Pernod Ricard and Carlsberg also credited India for their regional growth despite challenges in the spirits market. Carlsberg plans to increase capital expenditure and invest in sales and marketing to strengthen its presence in India.
Philip Morris International reported modest growth in cigarette shipments in India, attributing this to markets where smoke-free products are restricted.
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