The urban slowdown has put pressure on profits at corporate India during the third quarter of the current financial year
Nestle India is looking to take the price hike route by a small margin while maintaining sales at the same time as it is experiencing inflation in coffee, cocoa and edible oil, according to a report by Reuters. The company is trying to keep the hikes minimal to avoid an impact on volume growth.
The report added that consumers are cautiously spending due to inflation in large cities and high prices of commodities. The urban slowdown has put pressure on profits at corporate India during the third quarter of the current financial year.
The Reuters report quoted a top executive of the company who stated that they will be taking some pricing action wherever it is essential. However, the executive said that price increases are not the salvation for the industry as they impact the volume growth. Keeping this in mind, the company, which makes the Nescafe brand of instant coffee, is looking to keep the hike as low as possible, as per the Reuters report.
As India cut the personal income tax rates in fiscal 2026 to put more disposable income in the hands of the people, it is expected that this will result in consumption getting the much-needed revival. However, the report added that affluent consumers in the country are splurging, including on hyperfast delivery platforms such as Instamart, Blinkit and Zepto.
The Reuters report stated that Nestle India reported a smaller-than-expected quarterly profit last month. The company’s business was impacted by a slowdown in consumer spending in major cities and higher product prices. (With Reuters input)
