Celebrating its 18th birthday week and day, CNBC-TV18 spoke to eminent industrialist Adi Godrej, Chairman, Godrej Group to gauge the consumer sentiment on ground, the outlook for their various business and the economy going forward.
Godrej said the Indian economy is on a very strong footing and expected it to be the fastest growing economy going forward. The government has taken some good reforms which will be very valuable in the long-term, he said.
The country is poised to see a lot of entrepreneurs going forward, said Godrej.
When asked about the outlook for realty estate sector and their realty business in wake of RERA. He said it will difficult for weak companies to survive, adding that several realty companies had approached them with whom they do joint ventures and control operation but clarified they do not buy land parcels.
In terms of pricing, he said they have witnessed price hikes and good demand for their Vikhroli project and also for some of their other projects. This is true with all good projects in the country and it is expected to continue as the economy starts picking up, says Godrej.
With regards to the progress of goods and services tax (GST), he said it has done well for economy. The GDP growth in Q2 improved and with the statistics department likely to revise the numbers upwards, Q3 GDP growth would be huge, especially on a lower base.
According to him, the complaints about GST are mainly coming from people who used to evade taxes in the past.
Talking about their FMCG business, he said Q3 would see a strong growth on a low base and it should continue doing excellent going forward as well.
It is possible to maintain a volume growth of 10 percent going forward as well, he said.
The agro business also has a strong future, he said, adding that it is a R&D based organization and with government giving tremendous emphasis on agri sector, the sector will also do well in terms of production. However, prices for the farmers is a bit of a worry but the government is taking initiative to double farm incomes as well, he said.There is a visibility of farm distress but that is more in terms of prices than outcome of a drought like situation. So rural demand for FMCG products is good.