FMCG industry anticipates increased consumption with favorable budget announcements
Positive measures for self-sufficiency in oilseeds boost FMCG, particularly food, states Roosevelt Dsouza, Head of Customer Success – India, NielsenIQ (NIQ)
Sumit Rawat
In the face of challenges posed by inflation and rural economic slowdown, the FMCG sector has welcomed the Central government's budgetary initiatives, foreseeing inclusive and sustainable growth. Notably, measures targeting the rural economy are anticipated to stimulate consumer demand. Major companies like Dabur, Marico, and Godrej Consumer Products are optimistic about increased consumption as a result of these budget announcements.
Saugata Gupta, MD & CEO of Marico Ltd, highlighted the substantial increase in capital expenditure to Rs 11.11 lakh crore, emphasizing the government's commitment to fortify infrastructure, generate long-term employment, and drive overall economic growth.
Addressing subdued rural demand that led to a decline in sales volumes, the sector had sought government intervention to boost consumption. Mohit Malhotra, CEO of Dabur, praised the budget's strategic decisions to enhance incentives for the rural populace, particularly women, expecting a lasting positive impact.
Finance Minister's focus on job creation through initiatives like Pradhan Mantri Matsya Sampada Yojana and the extension of healthcare coverage garnered appreciation. Mayank Shah, Vice-President of Parle Products, sees the budget creating opportunities for the FMCG sector to enhance infrastructure and improve distribution, especially in rural markets.
The food segment of the FMCG sector, influenced positively by measures aimed at achieving self-sufficiency in oilseeds, is expected to see an impact on edible oil prices and consumption trends, according to Roosevelt Dsouza, Head of Customer Success – India, NielsenIQ.
Aasif Malbari, CFO of Godrej Consumer Products Limited (GCPL), noted that the focus on enhancing connectivity and infrastructure is favorable for India Inc, including the FMCG sector. The path of fiscal consolidation is seen as a positive sign for overall economic growth, potentially boosting consumption patterns in the long run.
