The West Asia war has disrupted supply chains, causing Nestlé India to face packaging shortages and a stockpile of Maggi noodles at one production unit. Bisleri has raised its 1-litre bottle price from Rs 18 to Rs 20. Automakers including Maruti Suzuki plan price hikes for small cars amid rising costs.
The West Asia war is disrupting supply chains across India, leading to shortages in packaging materials. Nestlé India is facing a pile-up of Maggi instant noodles at least at one production unit due to these constraints, according to industry sources. A Nestlé India spokesperson declined to comment on the packaging shortage.
Constrained supplies and higher prices of materials like plastics have slowed offtake at FMCG production units. Bisleri has increased the price of its 1-litre bottle by 11.1% to Rs 20 amid rising packaging costs. A major Coca-Cola bottling franchisee has indicated potential price hikes, industry sources said.
Automakers are also responding with price adjustments. Maruti Suzuki sales chief Partho Banerjee told reporters, “We will be taking a call, but unfortunately the commodity prices are going very high, we need to pass it on, so we will come back very soon on that.” Tata Motors raised prices by 0.5% to 1.5% from April 1, while BMW Group India and Mercedes-Benz hiked up to 2%.
The Ministry of Heavy Industries urged companies in a March 25 advisory, reported by Reuters, to shift factory operations from oil-based fuels to electricity and use recycled aluminium. HSBC India Manufacturing PMI fell to 53.9 in March from 56.9 in February, the lowest in over four years, with cost inflation at a 43-month high.