Nestle Price Hike: The country’s leading company Nestle India is considering increasing the share of its Dasi in the coming days. The company can take this decision due to the rise in the prices of Philippines, cocoa and edible oil. This report has come from Reuters’ warehouse. Nestle India’s Associate Director Suresh Narayanan told Reuters during an institute conference in Mumbai that whenever there is a need to increase the level, we will have to take a concrete decision in this direction. He said that the company is trying to increase the level gradually because increasing the price affects the volume.
Decline in profits and impact of ratio
Company India’s profit is estimated to decline during the third quarter (October-December) of FY 2024-25. The main reason for this is recession on one hand, and cost reduction by artwork on the other. In the budget for the financial year 2025-26, a big cut has been made in personal agriculture to increase consumer demand, so that the tax burden is reduced and people spend more, which will increase consumers.
Impact of declining demand
Last year too, the full CG company had expressed concern about demand and consumers. At that time Nestle India had also acknowledged the demand in the urban area. The middle class living in the urban area has cut down on their expenses, which has had the biggest impact on milk and chocolate mix. Suresh Narayanan, Superstar and MD of Nestle India, had then said that the premium class remains strong, but the demand of the mid-range segment, which includes most full CG manufacturers, is declining.
Nestle India’s initial price hike could be another shock from the marketplace. However, the company says it will try to maintain a limited exposure to minimize the rise so as not to put too much strain on capital. Now it remains to be seen what impact this decision will have on the market.
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