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Inflation for FMCG segment cooling down, volume from rural markets going to improve, says ITC CMD Sanjiv Puri

Presently there is a "phenomenal" amount of inflation, hence FMCG volume growth in rural areas is "muted" and the bulk of the growth is inflation lead, he said in a panel discussion at an event organised by industry body CII.

December 09, 2022 / 02:27 PM IST

Inflationary pressure on the FMCG segment is "cooling off a little" and volume growth from the rural markets is going to be better, ITC Chairman & Managing Director Sanjiv Puri said on Thursday.

Presently there is a "phenomenal" amount of inflation, hence FMCG volume growth in rural areas is "muted" and the bulk of the growth is inflation lead, he said in a panel discussion at an event organised by industry body CII.

When asked about the consumption trends, Puri said, "In the FMCG segments, we are seeing both the trends of premiumization and at the same time there is a lot of value-seeking behaviour and stress at the lower price points." However, he also said that presently India is "much better" than the rest of the world, witnessing high inflation.

"As far as consumption is concerned, the main stress point is inflation induced because prices of lots of products have gone up at a percentage probably in the prior period that would have taken five years to go up," Puri added.