GLIMS Journal of Management Review and Transformation

Assessing the Impact of Digital Transformation on India’s FMCG Sector: A Viewpoint

Yudhajit Roy¹ and Kanupriya¹

First Published 11 Nov 2025. https://doi.org/10.1177/jmrt.251394898

Article Information

Corresponding Author:

Kanupriya, Department of Economics, Indian Institute of Foreign Trade (IIFT), New Delhi 110016, India.
Email: Kanupriya@iift.edu

¹Department of Economics, Indian Institute of Foreign Trade (IIFT), New Delhi, India

Abstract

Digital transformation has impacted the profitability of India’s five leading FMCG firms, including Dabur, Hindustan Unilever Limited (HUL), Godrej Consumer Products Limited (GCPL), ITC and Nestlé. The study evaluates how these digital initiatives have improved financial resilience and efficiency, highlighting net cash flow growth, net profit margin, return on capital employed (ROCE), inventory turnover and gross profit margin. Companies that leverage AI, predictive analytics and digital-first strategies drive more profit and are more agile to market shifts. However, the effects differ due to investment, implementation and market positioning. Companies that adopt a data-driven approach have competitive advantages, while those slow to adopt a digital strategy face changing industry dynamics. Long-term digital success requires investment in scalable digital infrastructure, innovation and workforce upskilling. Policymakers should incentivise digital adoption, conduct research and establish rigorous data protection. Future research could focus on tracking digital performance, assessing the impact of sustainability-driven digital strategies and comparing across industries to improve best practices.

Keywords

Digital infrastructure, digital transformation, FMCG sector, innovation, profitability, workforce upskilling

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