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Upcoming budget needs to boost consumer income amid soft demand: Sudhanshu Vats

Pidilite Industries Managing Director Designate, Sudhanshu Vats, highlighted the ongoing softness in overall demand, attributing it to inflationary pressures on food, education, and telecom expenses, which are impacting the disposable income of the average Indian

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Sudhanshu Vats

Sudhanshu Vats

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New Delhi: Pidilite Industries Managing Director Designate, Sudhanshu Vats, highlighted the ongoing softness in overall demand, attributing it to inflationary pressures on food, education, and telecom expenses, which are impacting the disposable income of the average Indian. 

Vats expressed hope that the upcoming Union Budget would introduce measures to increase disposable income, providing much-needed relief to consumers.

Speaking during a virtual conference, Vats noted a slight uptick in rural markets but emphasised that demand remains weak across the board, a trend that has persisted for several quarters. He explained that inflation in the food, education, and telecom sectors has put additional strain on the income of most Indians, with wage growth failing to keep pace with rising costs.

"Inflation in essential categories like food, education, and telecom has reduced the disposable income of the average Indian," Vats said. "Wage growth has not kept up with the rising cost of daily necessities, which affects a large portion of consumers."

When asked about potential interventions from the government in the upcoming Budget, Vats urged for measures that would allow consumers to retain more of their income. "We are hopeful that the finance minister, through the Budget, will put more disposable income in the hands of Indian consumers. That would be a welcome move," he added.

While acknowledging the immediate challenges, Vats remained optimistic about the long-term prospects for India. "In the near term, it will be for individual companies and industries to navigate the current challenges. However, we remain very bullish on India in the medium to long term. The next couple of decades belong to our country," he stated.

Pidilite Industries, which manufactures adhesives, sealants, and construction chemicals, reported a 9% year-on-year increase in net sales for Q3 FY2025, reaching Rs 3,357 crore. The company’s profit after tax also grew by 9%, totalling Rs 557 crore for the quarter ending December 31, 2024.

Pidilite Industries budget Pidilite consumer Sudhanshu Vats
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