India should be open to reforms and FDI in retail: Rakesh Kapoor, CEO Reckitt Benckiser.

NEW DELHI: Consumption in India has not slowed but there is a tendency to over-estimate the potential of emerging markets in the short term, Rakesh Kapoor, the India-born chief executive officer of British consumer goods giant Reckitt Benckiser, told ET.

Kapoor, on a two-week visit to India with his nine-member executive committee, is hosting £9.5-billion Reckitt Benckiser's first global meet in the country.

"I don't think we should get too excited about how one quarter is doing... that's a myopic view," Kapoor, a 26-year-veteran at the company, said. "Most people overestimate the potential of emerging markets in the short term, and under estimate it in the long term."

Kapoor, who was named Reckitt Benckiser's global CEO in September last year, said having an Indian as CEO of a multinational company could be disadvantageous for its India team. "My expectations are over-ambitious for this country... you can ask my team here... I tend to become demanding," he said.

Reckitt Benckiser India, the over Rs 2,500-crore unlisted Indian arm of the maker of Dettol, floor cleaner Lizol and air-freshener Air Wick, has been clocking over 20% growth for the last two years.

Kapoor said India should be open to reforms and foreign direct investment in retail is the right thing for the country.

"I think we are overdoing the whole FDI story. Kirana stores will always find relevant space," Kapoor, who visited grocery stores in Gurgaon on Wednesday, said. FDI in retail is good for job creation, quality of products and better prices for all, the graduate from XLRI Jamshedpur added.

"Consumption is a matter of sentiment... consumption takes off only when people feel good about themselves. I can't blame people in Italy and Spain for feeling depressed because unemployment levels are at their peak and people are down-trading, but people in India are inherent optimists and a lot smarter than most marketers," Kapoor said.

Indians buy brands only if they believe the products are priced right, irrespective of a slowdown, he added.

Kapoor, who makes it a point to visit his mother in Bareilly every year, narrated his experience with Indian telecom officials when he tried sorting out a landline phone connection for her.

About 50% of the employees at the local telephone office had not turned up and the others were sunbathing, he said. "They were people with limited resources but they were still so happy.... It made me realise that deep down Indians are optimistic."


Source : economictimes.indiatimes.com