As inflation is coming down with cooling of commodity prices, a slow volume recovery is happening in those markets, which is narrowing the difference between growth rate between rural and urban, he said.The recovery from therural market is likely to continue despite a disruption in rain in some parts of the country, led by factors such as hike in MSP, good sowing of winter crops, and election season.
India’s unemployment rate has decreased in the rural areas and the consumer confidence index is also at an all-time high, almost reaching the pre-Covid level.
“There are definite very good recovery signs, which actually I am seeing. The festive season should augur very well for us going forward . So, I am very hopeful,” Malhotra said. The company which owns power brands such as – Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, Real is enhancing its rural footprint with low unit price packs.
However, he added that the urban market is also driven by new-age channels such as modern trade and e-commerce, which are contributing around 20-25% of the FMCG business.
“So they are growing much ahead. For rural, which is mainly GT (general trade as Kirana), to grow at that percentage is very difficult because the rural market has a large base and for a large base to grow at that percentage is difficult. So urban, I think for some time it is going to drive the growth,” he said.
Pre-Covid, rural was growing ahead of urban, driving growth in the sector, while urban was lagging, he added. agencies