FMCG major Godrej Consumer Products Ltd is tapping rural markets to grow its household insecticides business and expects up to 35 per cent of sales to come from there in the next two years.
In the first half of the year, the company clocked 14 per cent growth.
The mosquito repellent brand Good Knight crossed Rs 1,500 crore sales last fiscal and the company is also looking to boost sales of other products like Hit too.
"The two tasks which we have is, penetration and growth through rural areas and consumption growth through urban area," GCPL Business Head India and SAARC Sunil Kataria told PTI.
He said at present the estimated Rs 3,500-crore household insecticides industry is getting 70 per cent sales from urban area and rest from rural areas.
"However, in the next two years, sales ratio of non-metro markets would increase to 40 per cent and at that time we will have around 35 per cent of the business coming from rural markets," Kataria said.
At present, GCPL's rural markets account for 25 per cent of its total sales of household insecticides.
With availability of electricity posing a problem to sale of electric mosquito repellents in rural market, Kataria said the company is focusing on non-electric products like Good Knight Fast which can be burnt.
"Now we are promoting Fast cards through huge amount of sampling, which is a new format in the country," he said adding the non-electric repellent category has been clocking "early double-digit" growth without specifying details.
On opportunities in overseas markets, Kataria said exports from India contributes only a small percentage but this is an 'area of opportunity' for GCPL in various African markets to be tapped through local presence.
"We see a good opportunity in the African markets apart from India and Indonesia obviously. We also see more opportunity to SAARC countries. We would expand our network in Bangladesh and Myanmar," he said.
