New Delhi, April 10 -- FMCG companies are currently navigating a tough business environment. They are dealing with rising competition from smaller regional brands and new-age direct-to-consumer (D2C) companies, according to a report by Axis Securities.

The report added that on top of that, there is pressure to clear old stock in traditional retail shops, which is adding to their challenges.

It said, "The operating environment remains challenging, as companies face stiff competition from regional players, the increasing presence of D2C brands, and inventory liquidation pressures in general trade channels".

Despite these issues, the report added that the beverage companies are expected to perform well this season. The summer heat is boos...