Kolkata:ITC Ltd. opted for partial price increases for its dairy products as one of India’s biggest makers of fast-moving consumer goods seeks to limit pain for shoppers, a senior official said on Thursday.
Comments from Kolkata-based ITC, which derives 28% of its revenue from the sale of consumer products including crisps, biscuits and soaps, build on the bleak outlook of its smaller rival, Nestle India Ltd. , on rising input costs.
“Every category has seen inflationary headwinds,” said Sanjay Singal, chief operating officer of ITC’s diary and beverage segments. “ITC, as a responsible manufacturer, tries to limit the pressure on consumers,” he added.
The company is also a major cigarette manufacturer.
Inflation, based on retail prices, hit a 17-month high of nearly 7% as record energy costs, broken supply chains and war in Ukraine make everything from raw materials to grain expensive food. The businesses of the Indian units of Unilever Plc. and Suzuki Motor Corp. to local companies JSW Steel Ltd. and Dabur Ltd. have raised prices in response, posing a headache for monetary policymakers who are likely to raise interest rates in the coming months.
While the ITC recently passed on an increase in milk prices to consumers, it’s overall focus is on cutting costs by reducing manufacturing waste so the company “absorbs any inflation first in milk, plastic or gasoline through our own supply chains,” Singal said. . –Bloomberg
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