However, the Hindi belt, especially these two states, are large contributors and impacted the overall growth in villages," said Krishnarao Buddha, senior category head at Parle Products, India's biggest food company.Ĭiting data from market research firm Nielsen, Hindustan Unilever said the FMCG market expanded 7% in value and fell 6% by volume, or the number of units sold, in the September quarter. "There are states like Maharashtra, Gujarat or Punjab that are not seeing any slowdown in rural markets. "Liquidity pressure is what we are seeing in these areas." UP and Bihar, which account for more than a quarter of the overall rural consumption in the country for fast-moving consumer goods (FMCG), saw either excess or scanty rainfall in several areas. The problem actually got exacerbated by the monsoon also being a little patchy in those areas," Mohit Malhotra, CEO of Dabur, told investors. "We have seen credit pressure, liquidity pressure coming in rural business and more so in the rural heartland, which is more UP and Bihar. Consumer goods companies said there is no uniform trend in slowdown in rural India and that it is largely driven by the Hindi belt, especially Uttar Pradesh and Bihar, which has dragged the overall growth.
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