Bharat dampens FMCG growth
Lacklustre rural demand has dampened festive spirits at consumer goods companies. For Hindustan Unilever (the maker of brands such as Dove and Pears), volume growth stayed at a two-year-low in Q2FY19, with no turnaround in sight, Economic Times reports. Chairman Sanjiv Mehta said rural growth – earlier nearly double of that in cities – has decelerated to half of urban growth. A liquidity crunch among traders and flooding in various parts of the country has dented demand further. But there are some green shoots, such as the government’s focus on doubling farmer incomes and a good monsoon.
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