Question unanswered

Even though the IIP data released today shows a major increase in production of consumer non-durables (FMCG) ....... the FMCG index at Nifty lost 26.27 points or 1.32%. Tata Tea, Nestle, UB and HUL were the losers.

This raises a question-mark on the sustainability of this kind of growth currently experienced. Common sense dictates that if the downturn were to persist, which it will for many months at least, the price-hikes and the efficiency generation initiatives would not be able to bring in the same amount of growth. Rather we stand at the danger of end of growth and the beginning of a decline.

Technopak Advisors, a retail consultancy, had predicted that the FMCG sales have a danger of declining at about 10%.

Lets just say that ....... only Time will tell !