Companies focusing on value for money to drive India's growth: Milind Karmarkar
«Any company which basically focuses not only on the top end, but something that is value for money, significant value for money, for the bottom 60%, those will be the companies which will survive and do exceedingly well as our per capita income goes up,» says Milind Karmarkar, Dalal & Broacha Portfolio Manager
Nikunj Dalmia: So, what is looking good for next three to five years? What is the big picture?
Milind Karmarkar: So, frankly, as I have always said that for me the mega trend continues to be consumption. And when I say consumption, as you know that it encompasses a lot of sectors. But within that, what looks interesting is that if you divide the Indian population into different quartiles, one realises that at least 70% or at least 65% of the families are such who do not have any money after their day-to-day expenses. So, any company which basically focuses not only on the top end, but something that is value for money, significant value for money, for the bottom 60%, those will be the companies which will survive and do exceedingly well as our per capita income goes up.
Nikunj Dalmia: So, you bet on consumption and you are betting on companies which are servicing or addressing the bottom end of the pyramid.
Milind Karmarkar: Yes. Ideally, from the top end to the bottom end, but at least the bottom, definitely the bottom end. Those will be the companies which should do very well.
Nikunj Dalmia: Even a mobile company is addressing top to bottom.
Milind Karmarkar: Correct.
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