"Given the good monsoon this year, rural sales had begun picking up post harvest from October onwards. This has, however, been significantly impacted in the last few weeks due to demonetisation," GCPL managing director Vivek Gambhir told PTI.
"Since the rural economy is largely cash based and wholesaler dependent, the large cash crunch has led to a slowdown in rural sales. We believe though that the slowdown is temporary. We expect that as the liquidity situation improves, rural (segment) will start showing better growth," he added.
However, GCPL said that it has been able to perform better than the industry.
"We delivered over nine per cent volume growth in five of the last six quarters," Mr Gambhir said, adding that the impact of demonetisation "could be relatively lower" on the company in the ongoing quarter.
According him, this is a temporary phase.
The situation should normalise from the last quarter of fiscal year 2017, as the liquidity crunch eases.
Mr Gambhir further said that as half of GCPL's business comes from outside India, the impact on demonetisation on the company's overall performance will not be huge.
"Our dependence on the wholesaler channel, which has been significantly impacted, is relatively less than some other players," he said.
Get Breaking news, live coverage, and Latest News from India and around the world on NDTV.com. Catch all the Live TV action on NDTV 24x7 and NDTV India. Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.