Berger Paints expects demand to bounce back as soon as coronavirus pandemic is under control

How does consumption change in a post COVID-19 world and does this crisis have the ability to slow down the great Indian consumption story? To answer this and more, MD and CEO of Berger Paints Abhijit Roy, and Consumer Economy expert Rama Bijapurkar, were on CNBC-TV18 on April 22.

First up, Bijapurkar spoke about consumption being dependent on income and said that earning has become fragile in India. So consumption is not safe. According to her, 50 percent of the total consumption expenditure comes from people who are in a bad condition -- casual labour, shopkeepers, traders, self-employed and the remaining 50 percent is probably salvageable in the worst case.

Next, Berger Paints' Roy said that only three plants of his company were operational while the rest had been shut due to the nationwide lockdown. Inventory has declined and the company may see replenishment demand. He candidly said, "Demand is expected to bounce back once COVID-19 is under control. However, it would be prudent to comment on demand only after shops open."