FMCG major Emami Ltd is hopeful of rural consumption bouncing back in the next few months, on the back of the government’s investment on infrastructure. The company said it is also open to opportunities for making more strategic investments in the D2C space.

Speaking at the sidelines of a FICCI event, Harsh V Agarwal, Vice-Chairman and Managing Director, Emami Ltd said, “We are very hopeful that the government spending on infrastructure will boost rural consumption. Hopefully, with the inflation coming down, we will see a positive effect on rural consumption in the next few months.”

He added that the government has taken various measures to boost the rural economy and enhance the purchasing power of rural consumers, which is a significant consumer base for the FMCG industry.

Responding to a query on product prices, he said inflationary pressures have been cooling off and sees prices of some products coming down. “But it is not yet back to where it was earlier,” Agarwal added.

Strategic investments

Over the past few years, the FMCG major has been actively making strategic investments in new-age D2C brands. It is the majority stakeholder in the Man Company and Brillare. It also has stake in Tru Nativ, a D2C brand.

“We will continue to partner and invest in D2C space. We keep exploring such opportunities in personal care, health care and other future-agnostic categories, “ he added.

“There is a tremendous headroom for growth for the FMCG industry in India. FMCG will continue to evolve and thrive, driven by innovation, technology, and a deep commitment to sustainability and social responsibility,” he stated in his address at the event. 

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