With higher consumption in rural markets to accelerate economic growth in India in the coming quarters, consumer durables maker Usha International plans to further strengthen product portfolios and distribution networks in these markets, contributing to their overall turnover of 25. Can increase by% next few years.
Ajay Sharma, SVP, Head – Rural Department, Usha International He said, “The primary drivers for economic growth in the next two-three quarters are expected to be high demand in rural India.” Ajay Sharma, SVP, Head – Rural Division, Usha International, told Morning Tidings.
Mr. Sharma said that while Usha already had a strong presence in rural India, the rapid growth in consumption in rural India led to rapid spending on distribution outreach, consumer incentives and new products to attract consumers in this market. Started offering.
Currently, rural markets contribute 18–20% to the overall business of the company, and Mr. Sharma stated that he expects to go up to 25% in the next 2-3 years, even as the company continues to grow its urban business The well was working
“There are a total of 6,50,000 villages and towns, and we are available in 15% of the towns covering 40-50% of the population,” he said. “We are expanding our footprint in smaller markets. The objective is very clear that we should be available closer to the consumer, ”he said.
While Mr. Sharma did not share the number of retail touch-points in the rural markets, he said that even during the epidemic their number grew by 18% and the company wants to double the touch-points by next year.
“Demand for branded goods and services has been increasing in rural India over the past few years, and it has seen a big boom in the months following the epidemic… Demand from rural markets to urban markets has increased over the past several quarters,” Mr. Sharma said.
He said that many FMCG / consumer durables firms were making a business case for the year 2021 on the basis of increasing consumption demand in rural areas to boost their sales.