FMCG companies are eagerly heading to Ayodhya in anticipation of the upcoming consecration of the Ram temple. This event is expected to bring about a significant surge in tourism and the floating population of the city. With Ayodhya gaining global branding and undergoing a facelift, companies are strategically setting up operations in the city to cater to the growing consumer demand.
Ayodhya, once a small market within Uttar Pradesh with a population of about 350,000, has now become a pilgrim hotspot due to the construction of the Ram temple. This transformation has created a large captive market that FMCG companies are keen to leverage.
Dhairyashil Patil, the national president of the All India Consumer Products Distributors Federation, mentioned that FMCG companies are expanding their distribution networks in anticipation of a significant increase in demand for essential goods in Ayodhya, which is emerging as one of the largest tourism hubs in New India. He projected that the transient population in Ayodhya might witness an increase of 8 to 10 times, resulting in heightened requirements for items such as bottled water, beverages, snacks, and various grocery products.
Recognizing the potential for increased consumer demand, Bisleri International, India’s largest mineral water company, is setting up a greenfield plant in Ayodhya to cater to the expected surge in demand. Other companies, such as Parle Products, are increasing their distribution centres in Ayodhya to capitalise on the growing market. The renovated Kashi Vishwanath corridor in Varanasi served as a precedent, leading to a significant surge in demand. The economic activity following the inauguration of the temple is expected to attract more people to Ayodhya, potentially increasing its population by 500,000.
RTM Watch’s Take
The surge in FMCG companies heading to Ayodhya ahead of the Ram temple consecration highlights the economic potential of religious tourism. Ayodhya’s transformation into a pilgrim hotspot presents a unique opportunity for businesses to tap into a growing consumer market. The strategic investments being made by brands indicate their confidence in Ayodhya’s future as a tourism centre. As the city undergoes further development and attracts more visitors, it is crucial for businesses to adapt and cater to the diverse needs of both domestic and international tourists.
