Marico CEO makes light of gloom over urban consumption, calls it a temporary blip
urban demand slump, Marico CEO Saugata Gupta has a sunny forecast to make, ToI reported on November 28. Urban consumer spending will rebound after a brief decline, Gupta told the Times of India's Asmita Dey.
According to Gupta, high food prices driven by food inflation are causing a temporary dip in urban demand for packaged consumer goods. He expects this trend to reverse in the next one or two quarters as food inflation stabilises.
«Whenever there are bouts of high food inflation, people tend to titrate or downgrade on FMCG consumption. That's what we are witnessing but this will smoothen out soon. In a quarter or two, things should be much better with respect to urban consumption as we expect inflation to stabilise soon,» Gupta told the newspaper.
Lower and middle-income urban households are most affected by rising food costs, while higher-income consumers remain unaffected. Gupta noted Marico’s premium brands, like Plix and True Elements, continue to perform well. These brands, along with other food and personal care products, make up 21% of Marico’s revenue, up from 6% in 2020. «Foods, premium personal care and digital business contribute about 21% to our top line (revenue). This part of the business was only 6% in 2020 and has been immune to any urban slowdown. The top end of the market is not impacted,» Gupta explained.
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