|
India continues to remain a structural growth market in global commentary, though the tone during the quarter remained mixed following an uneven CY25 performance for several global peers, according to a report by Investec Equities.
The report noted that despite short-term fluctuations, global companies continue to view India as a strategic market and are targeting faster growth in the country. However, increasing competition from Indian startups is also raising the bar for global players operating in the market. It stated, "India remains a structural growth market in global commentary" Among the key highlights, global beauty companies have reiterated their long-term commitment to India, emphasising the country's strong growth potential. The report said these companies are looking to accelerate their growth trajectories in India, even as domestic startups continue to intensify competition and reshape the market landscape. In the quick service restaurant (QSR) segment, Yum continues to view India as a structurally under-penetrated market. The company believes this provides strong support for the sustained expansion of its KFC store network in the country over the coming years. The report also highlighted commentary from Unilever, which pointed to improving fundamentals in India along with better market share performance. This trend is similar to the improvement being observed in Hindustan Unilever Ltd. (HUL), suggesting that demand conditions and competitive positioning in the sector are gradually strengthening. Meanwhile, the beverage segment also reflected some contrasting trends. According to the report, Coca-Cola's India-led decline in bottling investment volumes in the fourth quarter indicates weaker momentum compared to Varun Beverages Ltd. (VBL). This trend could potentially result in market share gains for VBL if the company continues to execute strongly. The report also emphasised the rapidly evolving quick commerce segment in India. Both Flipkart and Amazon have indicated plans to ramp up their quick commerce operations in the country. Amazon stated that its quick commerce initiative, Amazon Now, has exceeded the company's internal expectations, with consumer response stronger than anticipated. Flipkart, on the other hand, has expanded its quick commerce presence to more than 30 cities across India. However, the report noted that this footprint is still smaller compared to the top three players in the segment. (ANI)
|
