Small packs flood shelves as rural India defies slump

FMCG giants betting on hinterland to drive consumption as urban demand cools

- Suneera Tandon

Makers of packaged food to personal care products have ramped up supply of affordable packs and are launching specific brands for rural areas as India's hinterland drives consumption even as urban demand cools.

Zydus Wellness Ltd and Dabur India Ltd have intensified marketing in rural areas, prioritizing affordable hair colours, energy drinks and talcum powder.

Godrej Consumer Products Ltd has introduced smaller-sized products of Godrej Expert hair colour, Goodknight incense sticks, and KS deodorants to widen their availability in the rural markets.

"We have [also] increased our rural workforce, enabling us to double our outlet and village coverage," said Krishna Khatwani, head of sales (India) at Godrej Consumer Products.

"This is a strategic, long-term investment aligned with our goal of building and expanding key categories. We are continuously working to expand our distribution network as well as increase our consumer reach in both urban and rural markets."

Rural demand outpaced that in the urban areas for the third consecutive quarter in the three months ended September. India's fast-moving consumer goods (FMCG) sector registered a value growth of 5.7% during the quarter, according to data from consumer intelligence firm NielsenIQ (NIQ).