FMCG Firms See Green Shoots in Rural Demand Revival

ENA Sectors 2024-05-06 14:32:42 New Delhi, May 6 (KNN) The fast-moving consumer goods (FMCG) industry is witnessing signs of a rural demand recovery after a prolonged slowdown, buoyed by expectations of a normal monsoon season and easing inflationary pressures. In recent earnings calls, major FMCG players like Dabur, Hindustan Unilever, and Adani Wilmar expressed optimism about improving rural consumption in the coming months. Dabur CEO Mohit Malhotra noted that rural growth has started outpacing urban growth after a three-year lag, driven by factors like normal monsoon forecasts, improving macroeconomic conditions, continued government spending, and lower inflation, reported BL. Dabur reported an 8 per cent growth in rural markets compared to 5 per cent in urban areas in the March quarter, marking the second consecutive quarter of higher rural demand. Similarly, Hindustan Unilever's CEO Rohit Jawa stated that the worst is likely behind them, and they expect a gradual recovery in rural consumption. Adani Wilmar's MD and CEO, Angshu Mallick, expressed confidence in a rural market revival by July, citing cooling inflation rates, expectations of a good monsoon, and a robust Kharif crop. He added that the company's rural market share had grown by 1 per cent to 32 per cent in FY24, and they anticipate further growth driven by monsoon performance and distribution expansion. Rural markets had witnessed a sequential slowdown in the December quarter, with rural volume growth lagging behind urban growth, according to data from NIQ. However, with favourable monsoon predictions and softening inflationary pressures, FMCG players are optimistic about a turnaround in rural demand in the coming months. (KNN Bureau) 37686 https://knnindia.co.in/news/newsdetails/sectors/fmcg-firms-see-green-shoots-in-rural-demand-revival 2024-05-06 14:32:42 knnindia.co.in FMCG Firms See Green Shoots in Rural Demand Revival