FMCG major Nestle India on Wednesday downplayed concern over the slowdown, says the economy will revive on reforms taken by the Narendra Modi government.
In an interview to CNBC-TV18’s Priya Sheth, Suresh Narayanan, chairman and managing director, said, "In terms of published data, there has been a slowdown that has been indicated. The urban and rural rates where the rural rates used to outstrip the urban rates quite handsomely has reversed in the last quarter where the rural rates are below the urban rates, that has clearly led to pain points for some companies."
Narayanan said Nestle has had relatively smaller price increases, "There is a commodity headwind on milk. As a company with our size and scale, we can bring in economies of scale in terms of our procurement, efficiencies in terms of manufacturing and then we look at other elements of the profit and loss to see whether we can do some kind of trade-offs to try and avoid price increases of a very sharp nature."
In terms of price increases in certain products, he said, "Certainly, dairy would be one of them. At the moment, there is no particular quantum as we are still evaluating the full impact that is likely to come. However, I can assure you that whatever we do, will be the minimum amount that we need to keep the engine going."