FMCG companies experienced robust double-digit growth in the e-commerce sector during FY23, distinguishing themselves as exceptional performers. The e-commerce channel's contribution to overall sales has surged for consumer goods companies in the post-pandemic era, with some reaching a significant share of 9-10 percent.

During a previous conversation, Suresh Narayanan, Chairman & Managing Director of Nestle India, mentioned that the e-commerce channel's contribution to their domestic sales was less than 1 percent in 2016 but has now grown to approximately 7 percent. In the March quarter, the e-commerce channel witnessed a growth of about 40 percent, with more than half of this growth attributed to quick commerce. Nestle sees e-commerce as a promising channel, particularly for smaller categories, as it enhances product availability.

ITC reported a substantial increase in FMCG sales through the e-commerce channel, reaching 4.7 times the levels of FY 2019-20, thereby accounting for over 10 percent of their channel sales. Mohit Malhotra, CEO of Dabur India, stated during an earnings call that e-commerce stood out as a performer, with a 30 percent growth and contributing around 9 percent to their revenue. Tata Consumer Products Ltd experienced a 32 percent growth in the e-commerce channel during FY23, with its contribution to India revenues (excluding NourishCo) standing at 9 percent. Sunil D'Souza, MD and CEO of Tata Consumer Products Ltd, emphasized that the e-commerce channel allows them to test and evaluate innovations effectively.

In addition to relying on online marketplaces, companies like Nestle, ITC, and Tata Consumer Products have their own direct-to-consumer platforms. Marico also reported double-digit growth in e-commerce, with Modern Trade and E-commerce contributing to around 29 percent of their domestic sales in FY23.