With high inflation impacting the consumer demand, the Indian FMCG market is likely to witness a moderate volume growth this fiscal, according to market analysts and industry players.
A report by brokerage firm Enam Direct Equity Research said rising inflation has impacted the demand from urban India but the industry would still manage to post overall marginal growth in terms of value.
"The apprehension of rising inflation has impacted urban demand more than rural demand. This has dampened volume growth at the onset of FY2012. However, value growth led by calibrated price hikes, would aid to a tad improvement in revenue growth at 18 per cent in FY2012," the report said.