No consumer goods at Paan shops: Biscuit, beverage, FMCG cos to bear brunt

These categories typically derive 10-30% sales from paan-plus shops; asking the shops to stop stocking these products could hit the segments hard

The directive of the Health Ministry asking paan-plus stores to desist from stocking non-tobacco products will hit categories such as confectionery, snacks and mosquito coils hard.

Typically, these segments derive between 10 and 30 per cent of their sales from these outlets, pushing them to seek alternative channels, experts tracking the market said.

"I am not sure how the small traders' bodies will react to this directive," says A Mahendran, chairman & managing director, Global Consumer Products, an FMCG start-up. "In recent years, these paan-plus stores have become important points of convenience for a number of consumers. An impact is