'GST reforms to boost urban demand'

Homegrown fast-moving consumer goods (FMCG) major Marico Ltd expects India’s urban demand, especially in categories such as packaged foods, to perk up in the coming quarters aided by tailwinds from the recently-cut goods and services tax rates.

- Suneera Tandon

This sets up a more stable outlook for the company after a quarter marked by input cost rise and tax-related disruption.

“Whatever policies the government has taken have ensured that rural demand has been steady and consistent,” Saugata Gupta, managing director and chief executive officer (CEO) said in an interview on Monday. "Some of the GST benefits, especially in food, will benefit urban areas. So overall, I expect the demand situation to be stable.”