Consumption is sputtering across a range of products including cars, two-wheelers, air travel and fast-moving consumer goods (FMCG), with volumes dropping to multi-quarter lows. That’s the kind of shift that happens.”Passenger car volumes have dropped in nine of the past 10 months. Farm income growth has been weak for over two years with prices having stayed low, as reflected in the marginal rise in agricultural inflation. The company has guided for 4-8% volume growth for the current fiscal.The lower end of that range implies the slowest growth in five years. According to HUL, rural growth was 1.1 times urban demand in the March quarter compared with 1.3 times in the previous quarter.

Source: Economic Times May 07, 2019 02:03 UTC