FY 2027 has had a strong start. Despite geopolitical tensions, from April to June, sales of clothing grew by 12-14%, demand for air conditioners and refrigerators by 17-18%. Premium beauty products also registered double digit growth. However, geopolitical tensions arising out of the Iran war and high crude oil prices forced FMCG companies in the daily goods segment to increase prices. Prices of soap, detergent, toothpaste and edible oils increased by 4 to 11%. There was a price increase of 3-15% in packaged food, 5-12% in detergent and 5-10% in personal care. According to Anand Rathi Research, this price increase is not limited to any one segment, it is widespread. However, there is some relief on the input cost front. The price of crude oil has fallen by 29% in 3 months, coffee has become cheaper by 22% (in 6 months). But polypropylene has become costlier by 54% and packaging by 60%, which will keep packaging and logistics costs rising. Experts believe that this time there is a 60% chance of ‘weak monsoon’ and 24% chance of below normal rainfall. There has been 46% less rainfall in June alone. This may have a negative impact on Kharif production and food inflation, which may become a major challenge for rural consumption and FMCG companies. Better performance of retail sector, 7% growth recorded. According to analysts of ICICI Direct, the retail sector performed strongly in the first two and a half months of the financial year 2027. Apparel sales grew by 12-14%, while food and grocery grew by 9%, restaurant chains by 8%, footwear by 7% and overall retail sales by 7% in April 2026. There may be slowdown in the second quarter of the current financial year. But a strong rebound in discretionary spending is expected during the festive season. FMCG: Inflation hit, prices increased by 5-10% Input Commodity Change in 6 months Crude oil − 29%* Coffee − 22% Palm oil 15% Polypropylene 54% Packaging 60% Paints 18% (Crude price fluctuations in 3 months Source – Bloomberg, Anand Rathi Research) Record of AC sales; LG, Voltas sold 10 lakh units each this summer, despite 10-12% price increase, AC sales created a new history. LG India sold 10 lakh ACs in the first quarter of calendar year 2026 itself and aims to cross 20 lakh units for the entire year. Voltas touched the milestone of 10 lakh AC sales in the first three months of FY 2027 itself. LG Director Sanjay Chitkara says that AC has now become a necessity, but the penetration is still only 11%. That means 89% of the market potential is still there. Mukundan Menon, MD, Voltas, said this milestone is a testament to the trust consumers have on the brand and the capability of the team.
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Record sales of AC-clothes in summer; Monsoon increased concern: Despite geopolitical tension, 2027 started with a bang, AC sales increased by 18% and clothing sales by 14%.
