Consumer goods companies are ramping up their inventory of small packs of biscuits, bhujias, chips, packaged water, and beverages priced at INR 5 and INR 10 each by as much as 10% nationwide. This move is in anticipation of a temporary surge in sales during rallies and meetings coinciding with the upcoming general election. Additionally, some companies are strengthening their manufacturing capabilities and distribution networks to meet the expected increase in demand.
Senior executives from multiple fast-moving consumer goods (FMCG) companies have noted a slight but noticeable increase in sales in politically significant markets like Uttar Pradesh, Rajasthan, Bihar, West Bengal, and Tamil Nadu. This uptick has instilled confidence in them, leading to expectations of strong sales for small packs of food products in these regions until the elections conclude.
“We are already seeing increased demand for small packs of biscuits and snacks in rally-intensive markets such as the Hindi heartland,” said Mayank Shah, senior category head at Parle Products. “Hence, we are increasing stocking of such packs by 8-10% more than usual since out-of-home consumption will definitely see a boost in the run-up to the elections,” he said.
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According to Anshul Gupta, head of sales at Dabur India, the company has increased the distribution of economical packs of beverages, hair oils, and shampoos across various markets. This strategic move aims to cater to the anticipated rise in demand for essential daily-use items and beverages during the election campaign period.
With the world’s largest democracy gearing up for polls in April/May, political parties have commenced public meetings and rallies nationwide. According to the Election Commission of India, approximately 970 million Indians will have the opportunity to cast their votes in this year’s Lok Sabha elections.
Companies anticipate a 6-8% increase in sales of small packs of mass-market products during the election period, mirroring trends from previous years. Consequently, they are intensifying efforts in manufacturing, distribution, and increasing visits to small kirana stores, particularly in rural areas and towns, to ensure stock replenishment.
Angelo George, the CEO of Bisleri International, the largest packaged water manufacturer in the country, anticipates a surge in sales not only during major rallies but also at smaller gatherings held on street corners.
“We have to use the opportunity and ramp up manufacturing and distribution by putting additional fleet and stock up at distributor level,” he said.
Chandu Virani, the founder of Balaji Wafers, stated that the company has decided to keep its manufacturing operations running throughout the week during the election period, departing from the standard five-day schedule. This adjustment aims to ensure a continuous supply to meet the heightened demand.
The anticipated surge in sales during the polling season brings a sigh of relief to FMCG companies amidst a subdued demand environment. According to Kantar, overall volumes, reflecting the number of products purchased by consumers, grew by 5.2% in the December quarter, down from 6.9% in the September quarter. Kantar predicts that consumption growth will remain modest, at least until the September quarter.
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