The company also plans to increase its product availability to 10 lakh outlets soon in the domestic market, he said.
In an exclusive interaction, Sri Sri Tattva's MD Arvind Varchaswi tells Moneycontrol about the company's expansion plans and how they are planning for the next phase of growth.
Q. Do you think the Budget announcements will help improve consumption sentiment for the FMCG industry?
A. The focus on digital economy in the Budget would give a new meaning to the way the consumer of today spends his or her funds.
Consumers now get a cashbacks and offers the next second. This enables interaction between customer and the company and also make brands accessible faster and most importantly generate reorders.
This is going to be first steps to see how e-commerce and brick & mortar are going to work hand in hand.
Q. The previous quarter was the one where FMCG companies faced weak volumes. How do you see Q1 and rest of FY20 pan out in terms of sales and volumes for you?
A. Things are picking up fast for us in Q1. Export markets are welcoming the brand. We have increased our reach from 36 countries last year to 53 in the current year. We are hoping to reach 73 countries by the year-end.
Products like Sudanta, Ojasvita are being well accepted in the international markets.
Q. What does your launch pipeline look like?
A. We will be expanding our range of cookies this quarter. We launched our entire range of products in Mongolia last week in the presence of Ambassador of India to Mongolia, His Excellency MP Singh. We are launching our online store and app in Mongolia as well. We will also launch our entire apparel range of BYOGI in the Mongolian market in the coming month.
Q. Which geographical areas are you looking at expanding?
A. In India, our focus in on the Delhi, Punjab, Maharashtra, Karnataka and Gujarat markets for Q2 and Q3.
Some of the key markets for us internationally this year are Argentina, USA, Mongolia, UAE and Oman.
Our penetration strategy is in place and focusing on increasing our availability to at least 10 lakh outlets in the near future in the domestic market.
Q. What does the demand situation look like in both rural and urban areas?
A. While our demand is steadily increasing, the share of our rural demand is beating our urban demand as we are delivering quality at attractive price points and breaking the age old thought that quality cannot be offered at competitive price points.
Q. Which product segments are you focusing on?
A. The FMCG segment requires constant innovation and improvements in the product offerings to be beneficial for the end users.
We have a good balance between our food range like staples and masalas and our novel personal care range with key herbal actives. As for growth, we see an excellent response to our health drink Ojasvita, in the toothpaste segment our non flouride and
SLS free toothpaste Sudanta is showing excellent growth as are our herbal Face Wash variants.
Additionally, ghee, rock salt, organic brown sugar and jaggery, our natural juices, the range of Cookies all have wide and increasing demand.
Q. What is your growth outlook on FY20 ?
A. The new proposed budget is out which is a positive one. Certainly one which would contribute to the overall growth of the economy.
The growth depends on the smooth implementation of the initiatives and we would like to wait and watch as to how it pans out.
Digital and rural are our focus domestically this year and we see there is definitely good impetus given to both areas for small entrepreneurs to come in.We have been consistently clocking double digit year-on-year growth and would continue to do so.