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The Economic Times
Consumers usually use Diwali as an opportunity for redoing up their homes and buying new things etc. tell us whether or not businesses already picked up for you this festival season?
Consumers usually use Diwali as an opportunity for redoing up their homes and buying new things etc. tell us whether or not businesses already picked up for you this festival season?
Sandip Sikka: If you see this festival season when we talk about the overall building products company including the consumer products which we do there is definitely a growth which is coming up in the last few months. When you talk about this growth this growth is both coming from tier one, tier two and even the lower strata of the cities wherein on account of the good monsoon and you see the per capita income historically has increased in India.
People more aspire towards branded value addition to their homes now so that is why when you talk about our sanitaryware and the faucets people are walking up the path in terms of buying a branded product and they do want to upscale inside the house of furnishing including bathroom areas, kitchen areas and I feel that is giving us good growth which was evident in our quarter one results also and as we move forward we feel that this growth should continue on the sanitaryware and the faucets side and the other consumer building and consumer product side.
ET Now: When this government came into power the talk was that every house to have a sauchalaya so on so forth that will be the big growth trigger for companies in this basket now while that may have tone down a bit is there anticipation that the festive season and the increase in the discretionary expenditure at the hand of rural Indian because of various schemes like OROP and a few others will certainly help the growth rates, what are the rates that you are working with personally?
Sandip Sikka: So when we talk about our industry the overall industry growth is still around 12% I am talking about sanitaryware industry here because we deal in two industries one is a sanitaryware and other is a faucet. Faucet is a slightly higher growth of around 15% because the replacement time cycle for the faucet is much higher as compared to the sanitaryware.
Definitely government has done a very good initiative of doing the Swachh Bharat but right now the focus at the Swachh Bharat level is more on the utility function than the branding function so if you see in India this 40% of people use sanitation, they have access to sanitation and even in the urban areas only 80% of people has access to the sanitation so this initiative is wonderful from the government of India side and definitely it is going to help as we move forward because people right now will start using, they will start using community toilets or a public toilets...inside their house...and then the whole effect of the growth and the branding comes into the picture.
As far as this season is concerned we see a good growth both on the sales number and the bottom line number for the company because of the replacement which is there and this year we are observing that the replacement time cycle also has slightly shortening as a result of which people are planning to go for higher level of replacements of their old utilities and bathrooms to a more branded products.
Keywords: semi-urban and rural market