FMCG,white goods makers pin hope on 2018 to erase woes of 2017
PTI|
Dec 19, 2017, 12.20 PM IST
Recovering from the double impact of demonetisation and GST implementation, FMCG companies and consumer durables firms are pining hopes on 2018 that improved market sentiments will bring them back to the growth path.
With the streamlining of the process after GST implementation behind them, the companies feel that prospects of good economic growth coupled with a revival in demand and consumption will help them overcome the hit they took on volumes and profits in 2017.
Interestingly, these firms believe the demand should be evenly distributed to urban and rural markets.
"With the market sentiments showing signs of improvement and stability returning post-GST implementation, we expect the demand scenario to move up, both in rural and urban markets," Whirlpool of India Managing Director Sunil D Souza told PTI.
Expressing similar views, Emami Ltd Director Harsha Vardhan Agarwal said retail and rural businesses have bounced back fully and are growing in healthy double digits while wholesale channel is yet to recover fully at about 80 per cent of the base.
"We believe that economic reforms like GST and demonetisation would help drive the economic growth in a structured way in the long term and we expect further improvement in our performance in the coming quarters," he said.
Sony India Head of Sales Satish Padmanabhan also said the industry is already seeing "positive comeback signs post the implementation of GST and expect 2018 to only be better".
Recollecting challenges faced in 2017, GCPL Business Head India and SAARC Sunil Kataria said, "Demonetisation was a black swan event for the Indian economy. Among many challenges, the biggest disruption was caused in the distribution network for FMCG companies."
With the streamlining of the process after GST implementation behind them, the companies feel that prospects of good economic growth coupled with a revival in demand and consumption will help them overcome the hit they took on volumes and profits in 2017.
Interestingly, these firms believe the demand should be evenly distributed to urban and rural markets.
"With the market sentiments showing signs of improvement and stability returning post-GST implementation, we expect the demand scenario to move up, both in rural and urban markets," Whirlpool of India Managing Director Sunil D Souza told PTI.
Expressing similar views, Emami Ltd Director Harsha Vardhan Agarwal said retail and rural businesses have bounced back fully and are growing in healthy double digits while wholesale channel is yet to recover fully at about 80 per cent of the base.
"We believe that economic reforms like GST and demonetisation would help drive the economic growth in a structured way in the long term and we expect further improvement in our performance in the coming quarters," he said.
Sony India Head of Sales Satish Padmanabhan also said the industry is already seeing "positive comeback signs post the implementation of GST and expect 2018 to only be better".
Recollecting challenges faced in 2017, GCPL Business Head India and SAARC Sunil Kataria said, "Demonetisation was a black swan event for the Indian economy. Among many challenges, the biggest disruption was caused in the distribution network for FMCG companies."
