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India's Proposed Standard-Pack Sizes Rule Poses Threat To Consumer Goods Companies' Profits

June 10, 2012: 08:59 PM EST
Consumer goods companies said the Indian Ministry of Consumer Affairs' plan to implement standard pack sizes will adversely affect their profitability and could bring about higher prices. Standard sizes may lead to higher consumer inflation, according to a report by brokerage firm Kotak Institutional Equities. Consumer goods most likely to be affected by the proposed rule include Hindustan Unilever, Nestlé, and Britannia.
"Consumer goods companies: Standard pack sizes extended but prices, profitability may still be impacted", The Economic Times, June 10, 2012, © Bennett, Coleman & Co. Ltd
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