New Delhi, July 5 : The Indian fast-moving consumer goods (FMCG) sector has gained momentum as in the first six months of this year, the Mergers and acquisitions (M&A) activity in the sector reached $938 million in terms of value.

According to data from Venture Intelligence, this is the highest figure in the domestic FMCG sector in the last four years.

In January this year, Tata Consumer Products announced to acquire up to 100 per cent stake in Organic India, a Fabindia-owned business that sells tea, infusions, herbal supplements and packaged foods, for Rs 1,900 crore in an all-cash deal.

The announcement came shortly after the company also announced to buy 100 per cent stake in Capital Foods, which markets its products under Ching's Secret and Smith & Jones brands, for Rs 5,100 crore in an all-cash deal.

The private equity (PE) and venture capital (VC) deals in the fast-growing FMCG sector touched $593 million in the first half of the year.

According to another report this week, the FMCG sector in India is projected to see revenue grow 7-9 per cent this fiscal (FY25), riding on higher volume growth, revival in rural demand and steady urban growth.

The growth in FY25 follows an estimated 5-7 per cent growth in fiscal 2024, according to a CRISIL Ratings study of 77 FMCG companies, which accounted for about a third of the estimated Rs 5.6 lakh crore sector revenue last fiscal.

Higher government spending on rural infrastructure, primarily through Pradhan Mantri Awaas Yojana-Grameen (PMAY-G) for affordable houses, will aid in higher savings in rural India, supporting their ability to spend more.

/IANS