The Finance Minister of India has recently announced the excise duty cut on petrol and diesel. It would lead to packaged consumer goods firms lower their transportation and freight costs which in turn will cool down the high costs of operations faced by businesses currently. It would also relax the FMCG companies from the pressure of Shrinkflation to cope up with higher input cost at the same time not passing the price burden to consumer. Export opportunities in agrochemical companies, industrial components are likely to find sustained earnings growth over the long-to-medium term.
This week’s edition of “Indian Retail at a glance” explains how IT, pharma, FMCG, telecom likely to attract institutional flows in near term post recent correction to find sustained growth in earnings? How is 'shrinkflation' helping FMCG companies tide over rising input costs?
FMCG Firms Expect freight costs to ease on account of duty cuts on fuel
The excise duty cut on petrol and diesel will help packaged consumer goods firms lower their transportation and freight costs which in turn will cool down the high costs of operations faced by businesses currently.
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Nestle India Ltd soars 1.33%, Gains for third straight session
Nestle India Ltd is quoting at Rs 17220.35, up 1.33% on the day as on 12:49 IST on the NSE. The stock is down 1.69% in last one year as compared to a 6.66% gain in NIFTY and a 9.99% gain in the Nifty FMCG index.
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How is 'shrinkflation' helping FMCG companies tide over rising input costs?
Just as consumers are trying to manage their budgets in the current high inflationary environment, FMCG companies too are resorting to both time-tested and innovative ways to mitigate unprecedented input cost rise. Companies are going for a mix of both direct price hikes and grammage cuts.
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IT, pharma, FMCG, telecom likely to attract institutional flows in near term post recent correction
May 2022 has been a highly volatile month for equities, with Nifty50 nearing to lows seen in July 2021. Unscheduled surprised rate hike by Reserve Bank of India and sharp rate hikes by the US Federal Reserve has led to muted sentiments across the global equities. High inflation continues to be the key concern around the globe for central banks, mainly fuelled by geo-political issues causing disruption in supply chain around the globe.
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Tata Consumer in acquisition talks with at least five consumer brands
Tata Consumer Products Ltd., the food and beverage arm of the $103 billion Indian conglomerate, wants to go on an acquisition spree to bolster its position in the country's competitive consumer goods sector, and is in discussions to buy up to five brands.
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Marico buys 54% stake in parent co of True Elements
FMCG major Marico has acquired an equity stake of about 54% n HW Wellness Solutions. Co-founded by Puru Gupta and Sreeji Moolayil, HW Wellness Solutions owns the True Elements healthy breakfast and snacks brand. The healthy breakfast and snacks segment in India is a rapidly growing market. Marico did not disclose the deal value.
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FMCG, paint companies feel the pain as rupee slides to an all-time low
A weak rupee is playing spoilsport for fast moving consumer goods (FMCG) companies even as they heave a sigh of relief over Indonesia lifting the ban on the export of palm oil, which is a key input for many of their products, and the government cutting taxes on transportation fuels.
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