No more sweet spot: How Cadbury India looks at future

Like most FMCG companies, Cadbury India too is bracing multiple economic headwinds, which has caused demand to slide to a two-year low. In an exclusive chat with CNBC-TV18's Farah Bookwala, Cadbury's India MD Manu Anand elaborates on the strategies for future growth and why it has been slow in its rural expansion plan.

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Below is the edited transcript of Manu Anand's interview with CNBC-TV18's Farha Bookwala

Q: Why have you been slow in rural expansion plan? 

A: Every company is feeling a slowdown in demand; here I have got to say it is a slowdown in the growth that people are really feeling. The factors are pretty obvious. The slowing GDP growth, high inflation, the weakening rupee, high commodity prices all of which contributing to that. Certainly the demand is slower than it would have been say two years ago.

Q: You are largely operating today in discretionary categories. Given the fact that there is a slowdown which is quite evident and even staples are today being impacted how are you looking to mitigate yourself in this scenario? Will you be looking at panning out or stretching your business into other categories which may perhaps be of a more essential nature?

A: What we are going to do during this period is really focus on the basics. We have got very strong brands and we are going to continue to build those brands. The second is going to be around innovation, provide consumers with new products, new innovations, new things to try out at affordable price points.

The third is going to be around expanding our distribution not just numeric reach but also what we do in store at the point of sale. To put it in context we have now put over hundred thousand visi coolers in the market place which allows us to take our full range of products to all the stores that are out there. The last is continuing to invest behind capacity because that is there for the long term, it takes it time and a cycle to add that capacity and we believe that we will have it well in time for continued growth of the market.

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