Consumer firms eye govt’s tax largesse with aggressive ad spends to boost sales

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Subscribe to enjoy similar stories. New Delhi: Makers of consumer goods spanning packaged items, food services and home appliances are considering stepping up their advertising expenditure and promotion schemes over the next two quarters to target households that will benefit from the government’s recently announced personal income tax relief worth about ₹1 trillion.

Companies such as Parle Products said they will step up distribution activities in urban markets as well as marketing spends in the upcoming quarter. Similarly, restaurant chain Wow! Momo will activate more digital campaigns and run promotions in high footfalls areas, the company’s marketing head said.

Godrej Enterprises, maker of home appliances, is looking to boost sales through attractive EMI (equated monthly installment) schemes. Also read | Small but big: FMCG records best quarter in a year amid consumption slowdown Earlier this month, finance minister Nirmala Sitharaman announced relief on personal income taxes for those with an annual income up to ₹12 lakh.

The move is set to put additional money in the hands of consumers, potentially boosting consumption. Last week, the Reserve Bank of India (RBI) also slashed its benchmark repo rate for the first time in five years, giving some breather to retail borrowers.

This is likely to benefit discretionary categories that are hoping the shrug off a slump in urban consumption that has hurt demand for goods such as apparel, mass-market consumer products as well as fast food. “We are particularly bullish about the September quarter; consumer spends could be the best we have seen in the last four years as the benefits of the newly announced budget kick in," said Murali Krishnan, co-founder and chief marketing