Rural Market
Red marks in rural demand, but FMCG stocks reaping the harvest
Will folks in India’s villages and small towns, who account for nearly 70% of our consumers, finally begin buying?
Consumer goods firms in India have been waiting for a rural demand recovery since at least 2015. Will folks in India’s villages and small towns, who account for nearly 70% of our consumers, finally begin buying? If one believes equity analysts tracking the sector, FMCG stocks, already floating up in the cloud, are set to soar even further.But the reality
grow 11% Y-o-Y. With all three components of sales -- volumes, realisation and premiumisation -- now firing in tandem…”Over the last three years, FMCG firms’ revenues have been seeing declining growth rates. According to data from the HDFC Securities report quoted above, these revenue growth rates were at their lowest in FY17. But the investors and stock analysts are unperturbed. .
