Consumer corporations unlikely to hike costs for now

Automobile and FMCG corporations dealing with the prospect of escalating enter costs within the aftermath of the Ukraine disaster are more likely to placed on maintain any value hike, a minimum of until the primary quarter of FY23, to gauge how the geopolitical scenario pans out. Even air carriers, who’re reeling below excessive aviation turbine gas costs however have lately witnessed an uptick in visitors, are unlikely to boost fares anytime quickly.

Industry executives mentioned that FMCG firms have already hiked product charges in current instances as a consequence of elevated commodity costs to the extent doable with out risking demand and are lined a minimum of for the subsequent three months as a consequence of long-term contracts.

Similarly, most auto corporations within the passenger car (PV) class raised costs in January itself, and subsequently, the earliest they’re more likely to take inventory for one more spherical of hike could be in April. “There’s no clarity at the moment as to how the Ukraine crisis will pan out, so we will have to wait and watch,” RC Bhargava, chairman, Maruti Suzuki India, instructed FE.

So far throughout the present fiscal, Maruti Suzuki and most different PV producers have already hiked costs 4 instances. Normally, they accomplish that twice a yr.

Analysts mentioned that the present geopolitical disaster as a consequence of tensions between Russia and Ukraine is predicted to lead to additional inflation in commodity costs, which have remained excessive over the previous few quarters as a consequence of world provide chain disruptions. However, with demand returning with the Covid-led restrictions being eased, the businesses wish to tread cautiously.

Inflationary pressures impacted rural demand of HUL throughout the third quarter as 30 per cent of its enterprise comes from price-sensitive packs. fe