Date:23/07/2005 URL: http://www.thehindubusinessline.com/2005/07/23/stories/2005072302810800.htm

Back F&B sector upbeat on rising urban demand: Assocham

Our Bureau

New Delhi , July 22

FOOD and Beverages sector is on the upturn after a sluggish growth, giving 50 per cent returns to investors in the current fiscal, thanks to the rising urban demand and well designed market strategies of companies, revealed the Associated Chamber of Commerce and Industry of India's (Assocham) `Eco Pulse Study'.

According to the study, the market capitalisation of the sector rose 44 per cent in the current fiscal as compared to last year.

The top ten companies in the sector have seen a 35 per cent rise in their market capitalisation.

The top ten companies in terms of market capitalisation, as tracked by the study are ITC Ltd, Nestle India, Tata Tea, Britannia Industries, GlaxoSmithKline Consumer Healthcare, Balrampur Chini Mills, Bajaj Hindustan, Marico, McDowell and Shaw Wallace & Co.

Huge spending on advertising campaigns, right mix of marketing strategies and innovative packaging and distribution channels has created awareness among the consumers, finds the study.

The rising incomes of middle income group is the main force behind the healthy financials and rising market cap as well as handsome returns.

The discontinuation of the price wars has also contributed to the healthy scene, the study says.