In an interview with CNBC-TV18, Dabur CEO Sunil Duggal said there is a liquidity issue and we do not see that kind of pre-poll spending as we did in the earlier elections.
In an interview with CNBC-TV18, Sunil Duggal, CEO of Dabur, spoke at length about the pick-up in demand.
Duggal said there is a fall in demand and there is no doubt that it's in both urban as well as rural markets. Duggal blamed tighter liquidity, agrarian distress and joblessness for the reduction in demand. However, he said this is a temporary phenomenon.
"The stimulus which was promised by the government has not yet flown in but it will over the next few weeks and that should mean that there will be some pickup in demand," he said.
Talking about election spending, Duggal said, "The spending seems to be comparatively muted this year. There is a liquidity issue and we do not see that kind of pre-poll spending as we did in the earlier elections. So overall, there is a serious liquidity issue which is impacting our trade."
On the business front, he said, "If the monsoon is good, the economy picks up and stimulus happens to the level which is promised, then the growth could trend back into double digits. But at the moment, high single digit is something which we are looking at ..."Source: CNBC-TV18