Latest News | Inflation in Food, Commodity to Stay for a While, Cause of Concern: Nestle India CMD

New Delhi, Feb 17 (PTI) Food and commodity inflation is here to stay for a while and remains a cause of concern, said Nestle India Chairman and Managing Director Suresh Narayanan on Thursday.

He also stated that the company is trying to mitigate the impact but can look at some pricing actions in the future if inflation remains unrelenting.

Also Read | OnePlus TV Y1S, OnePlus TV Y1S Edge With Android TV 11 Launched; Check Prices & Other Details Here.

The FMCG maker, which owns power brands such as Maggi, Nescafe and Kitkat, has gone for a price hike recently.

"If the food inflation continues for a long time.. then it can be a cause of concern," said Narayanan in an earnings call with analysts.

Also Read | OnePlus Nord CE 2 5G Launched in India at Rs 23,999; First Sale on February 22, 2022.

However, he also added, "At the moment the pressure points are felt but it is not that house is collapsing."

The company has done selective price increases as the food inflation is almost 10 years high.

"We put the price at the last that we need to do. We look at efficiency, strategic buying, portfolio and capacity optimisation and then we come at the issue of pricing. But yes, the price increase has been taken," he said

Nestle has taken some selective price hikes of 1-2 per cent.

"This could also be a lever that we may need to press in the future, if indeed the level of inflation is unrelenting," he said.

On the overall sentiment, he said everything is not at sunshine as job losses and some kind of pressure on income, and seeking of value still continue, Narayanan added.

"At Nestle's portfolio, I have not seen any huge weakness. Consumers are continuing seeking value, good quality and trustworthy brands," he said.

Nestle India on Thursday reported a 3 per cent increase in its net profit to Rs 2,144.86 crore. Its revenue from operations in 2021 increased 10.18 per cent to Rs 14,709.41 crore.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)