8/7/2019 FMCG Growth in rural India
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FMCG industry set for 20-30% growth on increased ruraldemand
Shobha Kannan
Divya Trivedi
Kolkata/Ahmedabad, June 19 The FMCG industry is set to grow
20-30 per cent in 2009-10, up 10-20 per cent in 2008-09. The growth
would be driven by the launch of new products and incrrural
consumption, according to industry experts.
By definition, FMCG addresses a very core need in the consumers
life and so it is less prone economic swings than high ticket items
such as television or even apparel, said Mr Hemant KaPrincipal, AT
Kearney. Price increases on products by the companies have also
been well-absby the market, and so there is no reason to question
the growth rate projections, he added.
The beverage industry in India is being estimated to grow at 17
per cent this year, according toexperts. Food and beverages segment
has not suffered despite the slowdown in the economyin our stores
has done very well. In fact, we registered 10-15 per cent growth in
this segment layear, said a spokesperson at Spencers Retail
Ltd.
The hot summer helped spur sales of beverages so far this year,
according to senior officials.
Coca Cola India Ltd, for instance, continued to report growth
for an eleventh straight quarter. CCola in India reported solid
first quarter 2009 results despite a challenging economic
environmeunit case volume increasing 31 per cent with eight
quarters out of the 11 quarters delivering do
digit growth, a Coca Cola India spokesperson told Business
Line.
Emami Ltd posted 20 per cent growth in 2008-09 and achieved a
consolidated turnover of abou750 crore.
The company expects to maintain a growth rate of 25-30 per cent
during this fiscal, said Mr AdAgarwal, Director, Emami group.
There has not been any drop in demand for consumer products at
popular price points. Howevthere may have been some narrowing in
demand at the top-end of the market; in the mass ma
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8/7/2019 FMCG Growth in rural India
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demand continues to be strong, both from rural and urban
markets, he said.
The extensions of brands such as Navratna cool oil and Boroplus
would act as key growth drivthe company this year. We are also
looking at penetrating deeper into rural and semi-urban mWe will
also enter into new categories such as baby range and mens care
range this fiscal. Nelaunches and geographical extensions of
various brands will add impetus to growth, he added
CavinKare registered 23 per cent sales growth in 2008-09 and
anticipates 30 per cent growth tsaid Mr Vineet Trakroo,
Vice-President (Marketing), CavinKare. The company has lined up
varmarketing and branding.
On the personal care front, deodorants, shampoos and talcum
powders could see double-digit Mr Trakroo said. Sales in the rural
areas comprised 65-68 per cent of the companys total
salespenetration in rural areas is set to grow, thereby increasing
the sales in the segment, he said.
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FMCGVolume growth holds the key for FMCGs next fiscal
More Stories on :Personal Products |Rural Marketing | Brands
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