Managing Director Suresh Narayanan said on Monday that Nestlé India is considering a small price rise to balance steady sales with increasing costs of coffee, cocoa, and edible oil.
In major cities, and in rising commodity costs, consumer cutbacks brought on by inflation have depressed profits across corporate India. Many businesses were struggling with increased input costs in the October-December quarter, which had an important effect on them.
Minimal-Price-Increase Approach
Speaking on the sidelines of an industry conference in Mumbai, Narayanan stressed that price rises would be undertaken only where totally needed. He told Reuters, “Wherever (price increase) is absolutely essential, we will have to take some pricing action. He did reassure customers, however, that the business will keep these increases ” as low as feasible.”
Narayanan went on to underline Nestlé India’s emphasis on maintaining market demand despite price pressures as price rises do not save the sector since they affect volume growth.
Effects of Changes in Consumer Spending on the Market
By lowering personal income tax rates in fiscal 2026, India is anticipated to boost disposable income and stimulate spending. Rich consumers continue to spend on fast-commerce websites such as Swiggy’s Instamart, Zomato’s Blinkit, and Zepto, while urban consumers are becoming more frugal with their spending due to inflation.
Although these websites are capturing market share from customary retail channels in metropolitan areas, Narayanan pointed out their long-term growth as they have not yet become profitable is iffy.
Profit Performance of Nestlé India
Nestlé India, the Indian unit of the Swiss multinational, last month posted a quarterly income above expectation. The company related the fall to deteriorating consumer spending in big cities and rising product costs affecting general sales performance.
Nestlé India’s strategic approach will help balance required price changes with cycles of inflation and make sure affordability for customers is maintained as well as growth in a difficult market.
