Did You Know: FMCG special

Did You Know: Dabur announces a year-on-year increase and the establishment of Dabur Ventures
PackMan notes that Dabur India announced a 6.5% year-on-year increase in Consolidated Net Profit for Q2 2025-26, reaching INR 453-crore (which is up from INR 425-crore from the previous year). The second quarter saw steady growth with key verticals, including toothpaste, witnessing 14.3% growth, and the 100% Fruit Juice seeing over 45% growth. Other verticals, including Dabur’s food, shampoo, hair oil, skin and salon, and home care portfolio, also saw significant growth. 

In addition, Dabur announced the establishment of Dabur Ventures, dedicated to investing up to INR 500-crore in high-potential, digital-first businesses. Our in-house gyaani shares, “To put it simply, this means more and more and more packaging.”

Did You Know: ITC’s paper division shows it is not a paper tiger
PackMan took a peek into ITC’s report and found a standalone year-on-year 7.1% profit driven by cigarettes and FMCG. In addition, ITC’s consolidated Gross Revenue (ex-Agri Business) is up 7.9% year-on-year. What drew growth? Staples, dairy, premium personal wash, and agarbattis. PackMan noted that ITC’s notebook portfolio remains impacted on account of ‘low-priced paper imports and opportunistic play by local and regional players.’ 

However, ITC’s paper segment performance showed a 17% profit increase with margins up 90-bps quarter-on-quarter despite challenges from low-priced supplies, rising wood prices, and subdued realisations. In addition, the giant’s sustainable paperboard packaging portfolio has seen growth, increasing by 2.6x over the past four years. The packaging and print portfolio is witnessing domestic demand. Our in-house gyaani ji agrees: it is print and packaging festivities.

Did You Know: Godrej grows, in more ways than one
As for Godrej Consumer Products, PackMan spots consolidated sales growth of 4%, driven by a 3% underlying volume growth. The standalone business also reported a 3% volume increase, with sales growing by 4%. PackMan foresees that at the reader’s regular grocery shopping trip, the reader will soon spot Godrej’s new launch in the toilet cleaner category, Spic (in select Southern states of India). Godrej’s tarot reading also shows the company’s acquisition of the men’s grooming brand, Muuchstac. 

Did You Know: HUL faces short-term pressures, hindering its top-line growth
PackMan now turns to our friendly neighbourhood FMCG in Andheri East: Hindustan Unilever. The group reported a 2% consolidated Underlying Sales Growth (USG) and flat Underlying Volume Growth (UVG), impacted by GST changes and prolonged monsoons. 

In the home care portfolio, volume growth was mid-single digits, with notable performance in fabric wash. As for the beauty and well-being segment, it achieved 5% USG, driven by strong skin care growth, with GST-related declines in hair care. Personal care saw flat turnover growth, impacted by GST adjustments, while the foods portfolio recorded 3% USG, bolstered by double-digit growth in HUL’s beverages sector.

Did You Know: Tata Consumer Products is diversifying 
The consolidated results for Tata Consumer Products (TCPL) show significant growth, with a revenue from operations of INR 4,966-crore, up 18%. PackMan overheard that the Indian core business achieved double-digit growth in tea and salt for the second consecutive quarter. Consolidated EBITDA rose to INR 675-crore (up 7%), and net profit reached INR 407-crore (up 11%). 

PackMan notes that the packaged beverages segment grew 12%, with coffee revenue growing 56%. The foods division experienced a revenue increase of 19%, driven by a 40% growth in the Tata Sampann portfolio, which focused on innovation with new product launches. PackMan counted a total of 25 new products which were launched this quarter, emphasising health, wellness, and convenience.

PackMan unpacks what’s next for the packaging industry
PackMan believes the implication for the Indian packaging and printing industry is one of robust, high-volume demand driven by expansion, product diversification, and premiumisation. And the overall health of the FMCG giants signals a high and, in many areas, accelerating requirement for all avatars of packaging. 

With the launch of TCPL’s 25 new products and Godrej Consumer Products’ expansion into the toilet cleaner category, Spic, and the acquisition of the men's grooming brand, Muuchstac, all indicate an increase in the requirement for unique packaging, labels, and printed materials.

FMCG companies are laying the financial groundwork for years of continued packaging demand. Dabur’s establishment of Dabur Ventures is a direct pipeline to future packaging demand — as these digital brands scale, they will require fast, flexible, and sustainable packaging supply chains. While ITC’s paper segment results imply a push for sustainability, particularly for cartons and specialised food/FMCG packaging.

PackMan believes that the packaging industry is moving beyond survival volume to an era defined by the 3S: speed, suaveness, and sustainability; plus new product launches across all major consumer segments.