Do Not See Consumption Issue, Need To Evolve As Per Market Conditions: Amul MD

Amid concerns over a slowdown in demand in the FMCG sector, Amul Managing Director Jayen Mehta encouraged companies to adapt to the changing market scenario.

Consumers are not missing from the market, but consumer goods' firms need to cater to the changing demand scenario, Mehta told NDTV Profit.

“Consumers are very much there, and consuming more and more. How we as brands adapt to this change is an internal call. But the market is very much there, consumers are very much there,” he said.

“If I am asked to look at the general lens of the market, there is continuous demand for all product categories,” the Amul MD said.

Mehta’s comments come at a time when several big FMCG companies, including Nestle India Ltd. and Hindustan Unilever Ltd., have pointed to a dip in the consumption graph in urban markets.

Mehta said Amul was witnessing strong demand across product categories.

“Being in the milk and dairy industry, and with the range of food products we have, we have seen good traction, particularly this Diwali season,” he said.

The top executive also claimed Amul was growing at a record rate.

“In fact, October was the best in the history of the 50-year-old organisation. Growth was in high double digits over the previous festive season,” Mehta said.

On the changed market scenario, he said, “The market scenario has changed. Every company must evolve, and also understand the aspirations of small retailers, large retailers, modern format stores, quick commerce and e-commerce."

He explained that the traditional distribution model, which large companies have historically relied on, might not be effective moving forward.

Earlier, multiple top-tier firms had hinted at a decline in demand during or after their Q2 earnings.

"There used to be a middle segment, the middle class, where most of us used to operate, but now that seems to be shrinking," Suresh Narayanan, chairman and managing director of Nestle India Ltd., said during the company’s post-earnings commentaries.

Many economists have suggested the consumption slowdown is a result of the squeeze in the middle-class income, rather than outright decline of the middle class.