Ayodhya Tourism Surge: FMCG & Food Service Chains Capitalise

EE News Desk Jan 08, 2024

In anticipation of an imminent 8 to 10-fold surge in tourism and the influx of visitors, FMCG companies and food service chains are strategically positioning themselves in Ayodhya ahead of the Ram temple consecration scheduled for 22 January. Data from the UP Tourism Department reveals a notable increase in tourist numbers, from 3,25,000 in 2021 to a 23.9 million the following year. With the global branding and facelift of the city, companies are eyeing Ayodhya as a significant market. Angelo George, CEO of Bisleri International, states that the consecration is expected to boost consumer demand, prompting the establishment of a greenfield plant in Ayodhya to cater to the growing demand in Uttar Pradesh's surrounding markets.

As the city emerges as a key tourism centre, companies are increasing their distribution networks in anticipation of a surge in demand for essential products. Dhairyashil Patil, National President, All India Consumer Products Distributors Federation told ET that he predicts an 8 to 10-fold increase in the floating population of Ayodhya, leading to higher demand for various consumer goods, including packaged water, soft drinks, snacks, and grocery items.

Historically significant places naturally draw increased demand, and Ayodhya is no exception. The UP Tourism Department's data underscores this trend, showing a remarkable rise in tourist numbers. Companies like Parle Products are expanding their distribution centres in Ayodhya to meet the growing demand, acknowledging the city's potential as a major tourism hub. Food service chains, including McDonald's and Burger Singh, are also capitalising on the captive demand, setting up new outlets to cater to the expected surge in tourists.

The redevelopment spurred by the Ram Janmabhoomi temple includes a revamped railway station, a new airport, projects with investments exceeding Rs. 15,700 crores, and over a dozen hotel projects. With the city's economic activity predicted to surge after the temple's inauguration, Ayodhya's population could potentially increase by 500,000, according to Ram Mandir construction committee chairperson Nripendra Mishra. The FMCG and food industry's strategic moves in Ayodhya reflect a broader trend of aligning with evolving consumer dynamics in burgeoning tourist destinations.