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There has been a slowdown in rural sales in the last few weeks with migrant labourers coming back to work and one needs to wait and watch whether the market bounces back quickly, said Kolkata-based FMCG major Emami.
Project ‘Khoj’
The company, which has embarked on project ‘Khoj’ in four States — Uttar Pradesh, Bihar, Maharashtra and Andhra Pradesh — with a view to enhancing its rural penetration, expects to end the ongoing fiscal year by adding close to 9,000 towns and villages to its network and will shorten the ‘entire coverage model’ to two years instead of the three years planned earlier.
“In the first half of the financial year, our rural presence was increased in an additional 5,200 towns through the Project Khoj,” said Mohan Goenka, Executive Director, Emami.
Winter demand
“I would not shy away from saying that over the last three to four weeks, there has been a slowdown in the rural areas across the board,” Goenka said in a second quarter earnings call.
When asked the reason for the slowdown, he said, “I would not be specific on why this sudden slowdown in the last few weeks. One of the only reasons, what I say, is migrant labourers coming back to work. But we would still have to wait and watch whether the market bounces back quickly.”
“We are entering peak winter season and at this point of time, we load our winter products. If winter goes well then, then we can see demand for Boroplus and other products,” he added.
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