Vol. 7, Issue 2, Part C (2025)

The COVID-19 pandemic accelerated the adoption of Artificial Intelligence (AI) in India’s Fast-Moving Consumer Goods (FMCG) sector as companies sought to enhance operational resilience, efficiency, and growth. This study examines the impact of AI-driven technologies on Working Capital Management (WCM), profitability, and operational growth across five leading FMCG companies namely Hindustan Unilever Limited (HUL), ITC Limited (ITCL), Britannia Industries Limited (BIL), Godrej Consumer Products Limited (GCPL), and Tata Consumer Products Limited (TCPL) using a pre- and post-COVID comparative framework. Secondary data from the years 2014-15 to 2023-24 were analysed through ratio analysis and paired sample t-tests, focusing on inventory turnover, current ratio, cash conversion cycle, Net Operating Profit After Tax (NOPAT), Economic Value Added (EVA), Return on Invested Capital (ROIC), and core operational revenue.

The findings indicated that AI adoption significantly enhanced operational growth in four of the five companies, particularly where AI tools were integrated into forecasting, supply chain, and procurement functions. TCPL and HUL recorded notable improvements in working capital efficiency, while HUL and Britannia achieved significant gains in NOPAT and EVA margins. However, all companies experienced declines in ROIC, suggesting a time lag between operational efficiency gains and capital returns. The study concluded that strategic AI integration can enhance both operational and financial performance, though long-term benefits depend on scaling adoption, improving data maturity, and strengthening talent capabilities.