The strong volume growth in the FMCG sector continued throughout 2006. Rising income, demographics and rising aspirational levels led to rise in sales both in urban and rural area. Value added and higher margin products too witnessed an increase in demand.
The year was also witness to heightened consolidation activity in the sector, as companies acquired to spread their reach across the globe. However, on the margins front, they faced pressure due to higher input costs and inflationary pressure.
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