Union Budget 2019: As the economy reels under a rural slowdown, confectionery brands stand united and unanimously voiced their hope for rural growth and economic stimulus.
Union Budget 2019: Finance Minister Nirmala Sitharaman will soon be presenting her maiden budget and the industry hopes are high as the economy reels under a rural slowdown. Standing united on that front are confectionery brands, unanimously voicing their hope for rural growth and economic stimulus. While Mars Wrigley India said that the government can look to boost rural economy, the maker of Alpenliebe candy Perfetti Van Melle thinks big reforms to fuel long-term economic growth are needed at the moment. Mondelez India, the parent company of Cadbury, which believes that the industry can ride high on the economic growth, said that growth across the sectors agriculture and manufacturing will help the FMCG industry in general.
Mars Wrigley India
“A lot of consumer good companies will surely be looking at what the government will do as far as the rural sector is concerned. The rural has not seen a big jump in last 3-4 years. Between 2009-11, there were a lot of things happening. When rural economy takes a hit, it starts impacting the consumer offtakes directly. So, boosting rural economy is one so that the sales of consumer products start going up,” Ritesh Gauba, Sales Director at Mars Wrigley Confectionery told Financial Express Online.
Also, there must be something for the middle class as that is where most of the consumption is happening today. “All I would expect is something which increases the purchasing power of the middle class as well as rural which will help us drive the consumption,” Ritesh Gauba added.
Similar thoughts were resonated by Mondelez India as well, which said that there is a lot of focus in terms of what the new government is going to do in budget and how they are going to ensure that. “There is enough stimulus for growth and more stimulus for growth is definitely going to help. Industry, in general, is looking at stimulus. It is looking at more growth across the sectors agriculture and manufacturing. As long as there is overall macroeconomic growth, then I think we can ride that momentum, we can grow our categories,” Anil Viswanathan, Director, Marketing, Mondelez India told Financial Express earlier last week.
Perfetti Van Melle India
The ongoing rural slowdown has been a nuisance to the FMCG industry which recorded subpar sales in the last quarter and has brought the troubles faced by the agriculture sector to the limelight. “Given the massive majority that the Modi government has managed to secure, we would expect some big reforms to fuel long-term economic growth. This would then lead to increasing employment, consumption and investments. It would be good to have some specific focus on the agriculture sector on one hand, and on the new-age sectors on the other. And of course, any reduction in the corporate tax rate would help in further fuelling investments from the corporates,” Rajesh Ramakrishnan, Managing Director, Perfetti Van Melle India told Financial Express.