The Hindu Business Line : Cos told to use bank networks to tap rural markets

Corporates must utilise bank networks to make their products accessible in rural areas, according to Mr M.S. Sundara Rajan, Chairman and Managing Director, Indian Bank.

Inaugurating a two-day seminar on ‘Strategies for the bottom of the pyramid’, organised by the Madras Management Association, he stressed on the need for innovative schemes to tap the rural market. He mentioned the case of EID Parry tying up with Indian Bank branches in Cuddalore district to set up information kiosks within the branch for the rural public.

Sharing Indian Bank’s experience of extending loans to rural and semi-urban areas, he said the credit extended by the bank to such areas was growing by at least 20 per cent every year.

Mr Ramesh Viswanathan, Executive Director, CavinKare Pvt Ltd, said marketers must think of innovative products to break into rural markets. He shared examples of how products such as Chik shampoo, Chinni’s pickles and UB Export beer were launched in rural markets. While the shampoo and pickles were made available in 50 paise sachets, the beer brand was made available at less than half its original price with some portion of cost refunded if the empty beer bottle was returned.

The seminar, also being the sixth All India Management Students’ Convention, consists of sessions made up of guest and student presentations.

The event will also host a business plan competition for students tomorrow.

About 1,000 management students attended the event.

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