Date:01/01/2008 URL: http://www.thehindubusinessline.com/2008/01/01/stories/2008010151030700.htm

Back ‘Strong challenge from higher commodity prices’

Mr Martial Rolland, CMD, Nestle India

Our Bureau

Chennai, Dec. 31 On the year gone by for the FMCG industry

In the year gone by, strong consumer confidence and rising income levels helped accelerate momentum in the FMCG industry.

It, however, faced a strong challenge from steep and continuing increase in commodity prices as well as increase in white collar overheads.

On significant milestones for the industry

A few milestones stand out. The economy again clocked a good growth rate whilst the high foreign inflows recorded reflect the continuing positive consumer sentiments and enthusiasm amongst entrepreneurs to invest in India.

It was also marked by the strong appreciation of the rupee.

On expectations for the FMCG industry in 2008

I do hope the positive trends in the economy will continue and that the FMCG industry will show a strong performance.

On a wishlist for the FMCG industry

I hope that the price spiral in commodities and other important cost elements will stabilise.

I also hope that the Government rapidly implements the reform agenda including implementation of the unified food law and simplification of the complex tax structure. Most importantly, it is key that consumer and investor confidence is maintained.