Royalty costs for benefit of all shareholders, not just Unilever: HUL CEO

'Mom-and-pop stores will remain the most dominant channel even after a decade, and in a highly digitised form'

The FMCG sector is not only witnessing more competition, but also a shift in product distribution. SANJIV MEHTA, MD and CEO, Hindustan Unilever, speaks exclusively to Vishal Chhabria and Sharleen D’Souza about the firm’s strategy on acquisitions. Excerpts:

How is rural demand panning out? When do you expect volume growth to return?

In the first half, there will be price growth, albeit at lower levels. This will essentially be a carry-over from last year. Therefore, the rate of inflation will be lower. But we have still not reached a stage where commodity prices have started to deflate.

The next two years will be