FMCG companies and food service chains are actively flocking to Ayodhya ahead of the Ram temple consecration on January 22. They project an 8-10-fold surge in tourism and the visiting population of the city, contributing to its global branding and facelift.
“Anticipating a substantial surge in consumer demand following the consecration of the Ram temple, we are strategically setting up a greenfield plant in Ayodhya,” said Angelo George, CEO of India’s largest mineral water company Bisleri International.
He mentioned that the plant will cater to the demand from surrounding markets in Uttar Pradesh.
FMCG Companies Eyeing Ayodhya:
Although Ayodhya has been a relatively small market within Uttar Pradesh with a population of around 350,000, it has transformed into a pilgrim hotspot due to the Ram temple. This has created a significant captive market that companies are strategically leveraging, according to executives.
“FMCG companies are ramping up distribution in the city anticipating demand surge of daily essentials, since Ayodhya is coming up as the biggest tourism centre of New India,” said Dhairyashil Patil, national president of the All India Consumer Products Distributors Federation.
He estimated that the floating population of Ayodhya could increase 8 to 10 times, leading to higher demand for packaged water, soft drinks, snacking products, and other grocery items.
Locations with historical significance naturally draw demand, according to executives. Data from the UP Tourism Department reveals that after 325,000 tourists visited Ayodhya in 2021, the number skyrocketed to 23.9 million the subsequent year.
“The renovated Kashi Vishwanath corridor in Varanasi had led to significant surge in demand for us; Ayodhya is much bigger, so we are increasing distribution centres in Ayodhya, despite us already being strong in UP,” said Mayank Shah, senior category head at Parle Products, which makes Monaco and Fab biscuits brands.
Food service chains are also capitalizing on the captive demand.
Sanjeev Agrawal, chairman of McDonald’s India, north and east, said, “We are setting up a new outlet on the Lucknow-Ayodhya highway to cater to the anticipated surge in tourists.”
As per Kabir Jeet Singh, co-founder of Burger Singh backed by LetsVenture, which established its outlet in Civil Lines, Ayodhya, close to the Ram Mandir complex about nine months ago to seize the initial advantage in the city, Ayodhya currently ranks among his top 10 performing outlets.
A representative from a prominent food services consultancy mentioned that certain chains are establishing outlets exclusively serving vegetarian fare in Ayodhya to align with religious sentiments. Meanwhile, others, aiming to continue offering non-vegetarian options for a diverse international audience, are strategically placing outlets on the outskirts of the city to tap into the demand from travelers.
The construction of the Ram Janmabhoomi temple in Ayodhya has resulted in the city undergoing extensive redevelopment, including a revamped railway station with food plazas, a new airport, development projects with investments of over INR 15,700 crore, and the initiation of more than a dozen new hotel projects. Nripendra Mishra, the chairperson of the Ram Mandir construction committee, conveyed to the news agency PTI last year that the current population of Ayodhya, standing at 350,000, could potentially increase by 500,000 due to the influx of tourists and individuals migrating to the city following a surge in economic activity triggered by the temple’s inauguration.
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