homebusiness Newscompanies NewsFMCG companies look to calibrate price hikes to support consumption ahead of festive season
FMCG companies look to calibrate price hikes to support consumption ahead of festive season
In an interview with CNBC-TV18, Anuj Poddar of Bajaj Electricals; Mayank Shah of Parle Industries and Lalit Agarwal of V-Mart Retail, CEOs from 3 categories – consumer goods, FMCG and retail respectively, spoke at length about how consumption is panning out in the first half of Q2FY23 and how they plan to calibrate price hikes to support demand revival.
Many fast-moving consumer goods (FMCG) companies catering to mass consumption items reported poor sales volumes in the April-May-June quarter. The companies have blamed it on inflation leaving less money in the hands of people for buying goods. Along with this, the delayed rabi harvest has also impacted the showing.
In an interview with CNBC-TV18, Anuj Poddar of Bajaj Electricals; Mayank Shah of Parle Industries and Lalit Agarwal of V-Mart Retail, CEOs from 3 categories – consumer goods, FMCG and retail respectively, spoke at length about how consumption is panning out in the first half of Q2FY23 and how they plan to calibrate price hikes to support demand revival.
V-Mart's Lalit Agarwal said that his company is trying to adjust price hikes to support consumption and trying to roll back some price hikes, which were taken earlier.
“We are trying to do some of the things so that we reduce the impact on the consumer so that he is able to consume. There still continues to be an impact. We expect this to go away by the festival,” he said.
The good news is that semi-urban and rural India has shown signs of a strong revival after slowing down in the summer.
“Biscuits, if I look at this category as a whole, is far more essential than discretionary... Premium items were affected a bit, but with the onset of the festive season we have started seeing recovery of premium items since last month,” said Mayank Shah of Parle.
Are the price hikes over for now? Anuj Poddar of Bajaj Electricals believes so. “Unless commodities go up, I see no further price hike for the next six months,” he said
For the entire discussion, watch the accompanying video
(Edited by : Abhishek Jha)
First Published: Aug 17, 2022 4:06 PM IST
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