Softening Domestic Demand A Bigger Threat Than Infation

摘要

Strong revenue reported by leading fast-moving consumer goodsn(FMCG) players in India continue to bear out the strength of do-nmestic demand. However, the margins of the Indian FMCG players were inevitably hit by commodity price infation. These infationary npressures should alleviate over the coming quarters, and we do not nsee commodity price infation posing a sustained threat to domestic nFMCG players in the near term. In our opinion, the waning strength nof domestic demand is realistically a bigger risk to the Indian FMCG