Key Points
The revival in rural demand is not dependent on the El Nino impact on monsoon; factors such as cooling of inflation, government spending on the agriculture sector, and deeper direct distribution will continue to fuel rural recovery, consumer goods company honchos said.. "There is no immediate impact of El Nino on rural demand," said Mohit Malhotra, chief executive of Dabur India..
"Rural demand, for us, has already started showing a recovery, and with inflation softening, we expect rural recovery to gain momentum in the coming quarters."..
"There are many positive factors at play like lower food inflation, low base, higher agri spending and minimum support prices...it is too early to conclude that El Nino will impact FMCG rural recovery," said Saugata Gupta, managing director of edible oils and personal care products maker Marico...
"Our direct distribution of outlets in rural markets has gone up by at least 10-15%; that is showing results and we expect the momentum to continue, despite the El Nino factor which is being talked about," said Mayank Shah, senior category head at biscuit maker Parle Products...
Nestle India, which expanded its direct distribution to 1.5 million outlets and overall distribution network to 5.1 million outlets last year, is continuing its rural coverage expansion, the maker of Maggi noodles and KitKat chocolate had said in its recent earnings call after March quarter results...
