Rural demand dips for FMCG segment

Weak rural demand has become a concern not just for the fast-moving consumer goods (FMCG) industry, but it has impacted sales of other consumer segments like consumer durables and apparels as well.

- SHARLEEN D'SOUZA

Sanjiv Mehta, chairman and managing director of Hindustan Unilever told Business Standard in a recent interview, “Value growth in rural areas is still positive. Negative growth is volume growth. That's very clearly a distinction because the headline growth is still positive. And, there are a couple of things which I would say. One is the unprecedented inflation, which has taken place in some of the big categories over the last two years.

He added, "Most notably in businesses like skincare, there you have palm oil as a feedstock."

Marico also told investors, post its earnings conference call, that rural markets have witnessed a slowdown compared to urban markets.

"Rural consumption has been slower of late. We are optimistic of a recovery with more stimulus in the upcoming Budget, a good monsoon season and a healthy sowing season," Saugata Gupta, managing director (MD) and chief executive officer (CEO) of Marico told investors.