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    MANISH TIWARY

    Caught between costly inputs and cautious buyers, India Inc takes a hit

    Companies in India's consumer goods, automobile, and paints sectors are increasing prices to offset rising costs. The West Asia conflict has severely impacted input and logistics expenses across various industries. While some companies have raised prices, they are still absorbing part of these costs to maintain demand. Consumer giants like Hindustan Unilever and Asian Paints report pressure on their margins despite price hikes.

    Front-of-pack labelling: Food CEOs rush taste tweaks as new rules loom

    Packaged food companies in India are responding to regulatory pressures by introducing no-added-sugar and low-salt alternatives. Executives recognize the challenge of maintaining taste while making these healthier options. The Food Safety and Standards Authority of India plans a major change in food packaging regulations. These changes could significantly impact the sale of everyday packaged products. Companies will likely expand their product variants to meet health demands.

    FMCG brands turn up the volume on ads as costs and scrutiny rise

    Multiple packaged goods companies are increasing their advertising expenditures to maintain consumer demand amid rising inflation. Nestle India reported a significant rise in ad spending during the September quarter to enhance brand trust. Regulatory scrutiny from the FSSAI has prompted brands to emphasize safety and integrity in their advertising. Influencer-led marketing efforts are expected to grow significantly during the upcoming festive season.

    FMCG firms grapple with input cost inflation in Q2, brace for margin pressure in H2

    FMCG companies are experiencing increased margin pressure as input costs continue to rise. Rising inflation is affecting profitability, forcing firms to consider price hikes after the festive season. Companies are currently absorbing some costs to maintain consumer demand in urban and rural markets. The expectations for the second half of FY27 remain cautious amidst fluctuating commodity prices. Consumer purchasing behavior may shift if food prices increase or rural incomes decline.

    Nestlé India says rising inflation, particularly food inflation, is a reality

    Nestlé India has reported a strong 20.5% increase in sales for the September quarter. Profit after tax rose significantly due to robust volume growth across its product categories. Despite challenges from rising food inflation and volatile commodity prices, the company aims to enhance operational efficiencies. Investment in advertising and marketing increased as brand growth remains a priority for the organization.

    Nestlé backs India’s front-of-pack labelling push, seeks science-based approach

    Nestlé's global CEO welcomed India's mandatory front-of-pack labelling proposal. He suggested manufacturers contribute to making the program more scientific. The company will share experiences from other countries with the government. Nestlé India has invested significantly in capacity expansion recently. The company's leaders also met with Prime Minister Narendra Modi.

    The Economic Times
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