Sustainability and the adoption of technologies are no more a choice, but a key driver of growth and resilience in FMCG companies. With India becoming ambitious about 2070 as net zero, it is time for the FMCG sector to take the nation toward a sustainable future. Strategic allotment of budgets in these priorities allows businesses to focus on consumer expectations, regulatory requirements, and national objectives.

Prioritising Sustainable Manufacturing

Sustainable manufacturing emphasises the reduction of environmental impact without compromising on operational efficiency. FMCG companies are investing in ‘green’ practices, including renewable energy adoption, waste reduction, and sustainable material use.

The budget allocated ₹10,222 crore for the renewable energy sector in 2024, with major emphasis on solar power. FMCG companies can bank upon this opportunity and pump their budgetary allocations towards including renewable energy sources such as solar and wind within their production houses. Not only does it cut down fossil fuel dependence, but it also comes in sync with the green energy incentives given by the government.

Some specific allocations may include:

• 20–30% renewable energy infrastructure: Solar panels, wind turbines, or biogas plants for operation of the factories.
• 10–15% on energy efficiency: Upgrading old machinery with smart energy management systems.
• 15–20% on sustainable packaging: Switch to biodegradable or fully recyclable materials, meeting consumer needs for green products.

Technology is a Key Enabler

Technology is a critical enabler for achieving sustainability goals and enhancing operational efficiency. From AI-driven inventory management to IoT-enabled smart factories, technology adoption helps FMCG companies cut costs, reduce waste, and optimise resource usage.

In 2025, companies should allocate a significant portion of their budgets toward technology-driven innovations, such as:

• 25–30% for automation and AI: Streamlining production processes and improving demand forecasting to minimize overproduction.
• 10–15% for Internet of Things: Smart sensors monitoring energy use, equipment health, and production efficiency will be installed for real-time viewing.
• 5–10% blockchain solutions: Transparent supply chains; raw materials and ethical sourcing transparency.

Assistance to models of Circular Economy

Such circular economy practices emphasize reuse, recycling, and reducing waste. FMCG companies can budget for this through material recovery programs, partnerships with recycling firms, and designing products keeping end-of-life management. This may include:

• 10–15% set for recycling infrastructure: Setting up collection and processing units for post-consumer waste.
• 5–10% set for product redesign: Creating reusable or refillable packaging to reduce single-use plastics.

The Role of Training and Collaboration

For sustainability and technology adoption to be successful, there is a need for skilled employees and strategic partnerships. 5–10% of the budget should be allocated for workforce training so employees can handle new technologies and sustainable practices. Strategic collaborations with government bodies, startups, and technology providers can amplify impact while reducing costs.

Budget priorities in 2025 for FMCG companies must necessarily be sustainable manufacturing and technology adaptation. Aligning investments with renewable energy goals and leveraging technology will reduce the carbon footprint and optimize operations that can enhance the brand value.

Only an effective budgetary plan can see the FMCG industry take the first step toward attaining a more environmentally friendly, technologically developed future that the earth and the economy might share. Sustainable growth is not merely a dream, but a liability that needs to be addressed soon.