Consumer goods cos dial up rural hiring

India's consumer goods companies are on a hiring spree to cater to the emerging clout of the rural buyer, who has been the sector's saving grace this year amid rising material costs, shrinking margins, and increasing competition.

- Devina Sengupta & Suneera Tandon

MUMBAI/NEW DELHI:

Companies such as Godrej Consumer Products Ltd, Dabur India Ltd and ITC Ltd are expanding their workforce in rural markets to align with their revamped marketing and distribution strategies. Rural consumer demand has outpaced urban markets this year, with good monsoon showers and rich harvests allowing rural shoppers to indulge in their fondness for packaged foods, energy drinks, and hair dyes.

Mumbai-based Godrej Consumer Products, for instance, has increased hiring in rural areas alongside introducing smaller and more affordable packs across key consumer goods categories to drive deeper penetration in rural markets. "To support this initiative, we have increased our rural workforce, enabling us to double our outlet and village coverage," said Krishna Khatwani, head of sales (India), Godrej Consumer Products, which has warned of weaker margin and volumes for the December quarter chiefly because of higher input costs.

Delhi-based Dabur is deploying more on-ground sales force, particularly for its foods business, which the company said has "significant rural potential and high penetration opportunities".