Nestle India Update: Corporate India’s profits have seen a decline during the October-December quarter. The major reason for this is inflation on one hand and a decrease in spending by consumers on the other.
Nestle Price Hike: Leading FMCG company Nestle India may consider increasing the prices of its products in the coming days. Due to the rise in the prices of coffee, cocoa and edible oil, the company may decide to increase the prices due to the increase in costs.
This report has come to the fore quoting Reuters. Speaking to Reuters during an industry conference in Mumbai, Nestle India Managing Director Suresh Narayanan said, whenever it becomes necessary to increase prices, we have to take a firm decision in this direction. Suresh Narayanan said, the company will try to increase prices as little as possible. He said that increasing prices is not a matter of relief for the industry as it affects volume growth.
Corporate India’s profits have seen a decline during the third quarter of October-December of FY 2024-25. The major reason for this is inflation on one hand and the reduction in spending by consumers. While presenting the budget for the financial year 2025-26, a big cut has been made in the personal income tax to boost the consumption demand in the country so that the tax burden is reduced and people can spend more, which will increase consumption.
Last year also FMCG companies had talked about demand and consumption. Then Nestle India also accepted the decrease in demand in urban areas. The middle-class living in urban areas has cut down their expenses. Its biggest impact has been seen on the milk and chocolate segment. Nestle India Chairman and MD Suresh Narayan had then said that the consumption of premium items remains strong but the demand in the middle segment in which most FMCG companies are present is decreasing.