Why India’s FMCG giants are teaming up with upstarts looking to disrupt them—and why it makes sense

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Subscribe to enjoy similar stories. Some of India’s most prominent packaged consumer goods companies that spent decades finetuning their distribution and supply chain models are embracing the new bunch of upstarts looking to disrupt their operations. What could have been a battle pitting David versus Goliath—or fast-moving consumer goods companies versus quick-commerce startups—is playing out as a story of collaboration rather than competition.

Even FMCG giants such as Godrej Consumer Products Ltd, Marico Ltd, and Dabur Ltd are learning to adapt to what will work best on quick-commerce platforms, although these startups are yet to pose a major threat to their business or offer a significant opportunity. Godrej Consumer Products, for example, had designed Cinthol foam body wash and Park Avenue gift sets to be sold on quick-commerce platforms. It has also graduated from despatching small packs to be sold on these quick-delivery platforms to selling larger variants, such as 3-litre laundry liquid bottles rather than 1-litre packs.

“Compared to last year, Godrej Consumer Products has seen a 2 times increase in quick commerce (sales)," said Krishna Khatwani, head of sales (India), Godrej Consumer Products. “The company is testing new launches and innovations on these platforms and partnering with platforms to unlock events. For instance, gifting has seen an exponential growth in quick commerce," Khatwani said.

“In the initial days, quick commerce was more of a convenience and topup-led format. With the channel now scaling up, we sell a large part of our assortmenton these platforms." Khatwani, however, added that he expected growth on quick-commerce platforms “to taper once the rate of expansion stabilizes". To be sure, quick