FMCG Sector Update - Covid And Inflation; The Two Demons To Be Slayed: IDBI Capital

A man takes a bar of Hindustan Unilever Ltd. Lux soap off a shelf at a store in Mumbai. (Photographer: Kuni Takahashi/Bloomberg)

FMCG Sector Update - Covid And Inflation; The Two Demons To Be Slayed: IDBI Capital


BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

IDBI Capital Report

In this report we have attempted to analyse; raw material cost trend, price hikes, and impact of Covid uncertainty on Indian FMCG companies.

Our primary observations and conclusions are as follows;

(i) raw material cost for edible oil, packaging material and paint-related-products rose significantly during Q1 FY22; category leaders have taken larger price hikes compared to 2nd/3rd brand to protect margins

(ii) in international market; 88% of the regions, where Indian FMCG company has significant business presence, have already witnessed 3rd/4th wave and is now more stable; we observe that subsidiaries of Dabur India Ltd. are relatively more immune to Covid disruptions as most of the countries where the company has presence are witnessing significant decline in number of daily Covid cases.

Click on the attachment to read the full report:

IDBI Capital FMCG Sector Update.pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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