Mirroring the sentiment about weak consumption, Emami Ltd., a cosmetics to healthcare conglomerate, said that the company was witnessing lower demand for its hair care products.
“We are doing some cost optimization,” Priti A. Sureka, a director at Emami said in an interview in Kolkata.
Earlier this month, the company reported earnings that missed estimates as revenues took a hit, highlighting similar struggles among consumer good makers including Hindustan Unilever Ltd. and Britannia Industries Ltd. This does not bode well for India’s overall growth rate, which has been hit by slowing public spending and a cutback in private consumption.
Official gross domestic numbers for the June quarter are due Aug. 30 and analysts forecast the economy to have expanded 6.1% from a year ago, which is higher than the five-year low of 5.8% seen in the January to March quarter, but well below the 7-8% pace seen in the past few years.
A shadow-banking crisis for the past one year has weighed on private consumption which contributes nearly 60% to the GDP. The latest consumer sentiment survey from the central bank highlighted worries about job losses with a subdued economy keeping many from spending.