April brings good news: Consumer goods cos winning majority votes during polls
consumer goods manufacturers said demand for necessities has bucked the uncertain trend that's typical in an election season, growing at a record pace. However, retailers said the seven-phase, April 19-June 1 polls with voting days around weekends has led to some disruptions despite the solid recovery in March and April.
The heatwave, early summer vacations and political rallies have boosted sales of cooling appliances as well as out-of-home consumption of small packs of biscuits, juices and snacks, apart from packaged water, an absolute necessity. AC maker Blue Star managing director B Thiagarajan said on its earnings call last week that it can be difficult to anticipate demand during an election season.
From the fourth week of March, there was a surge in demand and AC sales shot up 70-90% in April from the year earlier. Leading biscuit maker Parle Products senior category head B Krishna Rao told ET there has been a 15-18% jump in sales of Rs 5 and Rs 10 packs of biscuits and snacks since April due to higher out-of-home consumption led by political rallies.
«These packs till March were struggling to grow at 4-5%,» he said. The company saw value brands like Parle G, Krack Jack and Monaco growing at a faster pace. The head of a leading packaged food FMCG firm said Rs 10-20 packs of traditional Indian snacks and chips have surged with sales growing at 12-13% in the last 45 days as compared to 6-7% sequentially due to higher out-of-home consumption.
Sales Hit in Politically Sensitive Localities
This year's general
