From HUL to Godrej Consumer, FMCG firms to benefit from easing input costs

Low crude and palm oil prices would give them the flexibility to improve volumes and margins

After the July-September 2018 quarter results, some fast-moving consumer goods (FMCG) companies had indicated price hikes amid high inflationary pressure, mainly crude oil and lower value of the Indian rupee against the greenback. Investors were disappointed by the commentary, especially for segments such as paints and adhesives, among others.

What will, however, come as a relief for the companies in the consumer space – already grappling with higher raw material costs - is the sharp correction in crude oil prices (20.4 per cent down) and also in palm oil (12.7 per cent down) over the last month.

The S&P BSE