Expect rural to contribute 35-36% by FY22, says GCPL

“There are commodity inflation happening across and a lot of products across many Indian fast moving consumer goods (FMCG) companies get – the raw materials do get imported. So the first impact that we are experiencing is obviously with the dollar and crude both going on a higher end. So there is an impact which is happening on the crude oil basis which forms an input into many raw materials that is happening. There is an inflation which we are seeing on the commodity end and we are just waiting for some time, we have not taken a call of price increases, we are going to do staggered price increases,” said Kataria.

“Last year we had done a double-digit value growth and a very strong volume growth of around 8-9 percent last year as well. So we are just carrying that trend forward. Q1 has been phenomenal in terms of 14 percent volume growth. So I think we clearly see that the consumption growth story to continue, economy has come back very strongly especially in the FMCG and within FMCG, rural space and I expect volume growth to continue in double digits. Roughly around 30 percent of our business comes from rural and that has changed over the last two-three years as well. This percentage is changing gradually. The percentage does not change suddenly in a year’s time but we expect that by 2022, we want this to be around 35-36 percent of our business,” he further mentioned.