FMCG hopes hinge on rains, polls & inflation: Britannia MD
Varun Berry, executive vice-chairman and managing director of Britannia Industries, India's largest biscuits maker. «We are closely monitoring input costs and competitive pricing activities to take appropriate actions,» said Berry in an interview.
On Tuesday, private forecaster Skymet predicted a normal monsoon for the year, lifting optimism for farm output and rural demand, crucial for sustained revival of the FMCG sector. Last year saw irregular monsoons with either below normal or erratic rains. India's villages contribute nearly 40% of annual FMCG sales.
«A normal monsoon will be a blessing for the rural economy, which has been trailing urban growth for over a year,» Berry said. He cautioned that rainfall variability across regions could impact crop output. Britannia's overall portfolio is urban-centric and 1.3 times that of its rural-focused products. In addition to Good Day, Jim Jam and NutriChoice biscuits, the Nusli Wadia-promoted company also makes cheese, croissants, cakes and breads.
Companies are also pinning hopes on the Lok Sabha elections starting next week to fuel demand, with expectations of more liquidity in the market.
«Political stability and the government's investment in both physical and digital infrastructure over the years augurs well for the economy. We expect to see improvement in consumption with elections around the corner,» Berry said. Britannia has made large capacity investments in recent quarters through a mix of greenfield plants and additional lines in existing plants, which
