As per the Ministry of Statistics and Programme Implementation (MOSPI), Index of Industrial Production (IIP) contracted for the third month in a row in December 2013. IIP declined by 0.6% YoY for the month mainly on account of slowdown in manufacturing that shrank by 1.6% YoY. Eight out of 22 industries in manufacturing have shown negative growth during the month. However, mining and electricity sectors reported growth of 0.4% and 7.5%, respectively during the month. Consumer durables posted a steep fall of 16.2% YoY whereas consumer non-durables grew by 1.6% in December 2013. IIP for the cumulative period April-December 2013 was lower by 0.1% YoY.
Majority of the FMCG stocks are trading in the red with Emami and Dabur being among major losers and Godrej Consumer and Jyothy Consumer being the biggest gainers. As per a leading financial daily, regional companies in the oral care industry such as Vicco, Anchor, Smyle, Baidyanath have been reduced to inconsequential players. Reportedly, regional companies enjoyed market share of over 15% a decade ago. But their market share in the last two years has slipped to 5% and finally marginalized to 2% in CY13. With big players such as Colgate, Dabur and HUL widening reach to rural and urban markets as well as introducing entry-level products in price segments of Rs 5 and Rs 10, the local brands have been hit hard. Even the entry of Procter & Gamble and Glaxo SmithKline Consumer Healthcare (GSKCH) in oral care space has further intensified competition in the segment.