The demonetisation move by the government on November 8 seems to have put the buzzing FMCG sector on a pause mode.
Industry sources told CNBC-TV18 that top FMCG companies like HUL, Nestle India, ITC, as well as Dabur are adopting a ‘wait and watch’ mode with regards to new product launches and may defer new launches of high-end, premium products by one-two quarters.
They would look at geography specific launches to minimise the impact of demonetisation, say sources, adding that the worst hit categories are luxury chocolates, premium cookies and ice-creams.
Nestle, ITC may defer launches in premium chocolate, confectionery & cookies space, and HUL, Dabur may defer product launches in premium personal care space, say industry sources.
ITC told CNBC-TV18 that they are reviewing the situation on an ongoing basis, while HUL had no specific comments to offer and both Nestle and Dabur did not respond to the query.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
