Oil to Oats maker Marico says the transition to GST has been a positive move for the industry. “GST has helped in supply chain effectiveness and improved the ease of doing business,” said Saugata Gupta , CEO of the company, adding that “for any big transformation, there will be hiccups”.
Gupta said that the biggest relief for consumer goods companies is the positive momentum in sales coming in from rural India.
“Sales from smaller towns, cities and outskirts contribute significantly to revenue for FMCG companies … the monsoon has been good, the government has taken significant steps to boost rural income. we expect to see an uptake in rural consumption over the next couple of quarters,” said Gupta.
Marico recently signed a pledge with India’s food regulator FSSAI to work towards reducing high sugar salt and fat content in packaged food products.
Keeping this in mind and in a bid to promote healthy eating, Marico is working on a larger play in the foods space.