FMCG companies to take price hike of 10-15%

News: FMCG companies are mulling another round of price hike to offset the impact of an unprecedented level of inflation in commodity prices such as wheat, palm oil and packaging materials. While HUL & Nestle have increased the price of food products last week, Dabur & Parle are still watching the situation and intend to take a price increase in the near future.

Views: After a steep increase in crude & palm prices, it has become essential to take price hikes to protect margins. However, we believe some discretionary categories could witness slower volume growth due to down-trading by consumers.

Impact:Neutral