Dabur India Ltd. is betting on the central bank's move to put more money in the hands of people to achieve growth.
The second half of the current financial year will be better than the first if the benefit of interest rate cuts by the Reserve Bank of India reaches people, said Lalit Malik, chief financial officer of the consumer goods maker. The central bank has cut interest rates thrice so far this year.
“Since the RBI has reduced the rate recently, if the benefit of that goes down and overall sentiment of investment, and economic growth, increases, I think we do see a gradual growth coming,” Malik told BloombergQuint in an interaction.
Malik said factors such as delayed monsoons will decide the company's growth trajectory. “If we have a normal monsoon, we'll have a positive impact.”
He expects the upcoming budget—the first by the Narendra Modi administration in its second term—to stimulate the rural market. Dabur, Malik said, is heavily dependent on the rural market.
“Currently the economy needs a boost,” Malik said. The minimum selling price of crops should accelerate the rural market along with the Skill India programme, which will generate more employment and increase disposable incomes and swell demand, he said.
Watch the full interaction here:
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