FMCG companies preparing to increase prices?
Such information has come out from the major companies of the country's FMCG sector which may be a cause of concern for you. FMCG i.e. Fast Moving Consumer Goods products like household soap, shampoo, oil, coffee, chocolate or other household items like pulses-rice, spices etc. also come under this. If we tell you that the prices of FMCG products are going to increase in the near future, then obviously after this your household budget is going to become expensive.
Big companies of the FMCG sector have made up their mind
Big companies of the country's FMCG sector like HUL, Godrej Consumer Products Limited (GCPL) and Dabur, Nestle etc. have indicated to increase the prices of their products in the coming time. The reason given behind this is that the demand is low in urban areas at this time due to which their sales have decreased and the impact on profits and margins is being seen. Due to this, they will have to increase the prices to maintain the profit margin and this can happen soon.
Which companies gave clear indications?
HUL, GCPL, Marico, ITC, Tata Consumer Products Limited (TCPL) have now indicated that the prices of some products can be increased after the decrease in urban demand. Under this, Nestle has also clearly said that it may be forced to increase the prices of its products due to the increase in the prices of products like coffee and cocoa. HUL has also expressed concern over this and has not ruled out the possibility of mildly increasing the prices of FMCG products.
Urban demand has a large share in FMCG sales
In fact, the share of urban demand in the total sales of FMCG companies is between 65-68 percent. If there is a decline in it due to any reason, then its effect can be clearly seen on FMCG products. In the July-September quarter, the combined effect of high food inflation and falling demand was seen on these companies and its effect can be seen in the form of rising prices.