Wednesday, August 26, 2009

ET: Biscuit prices to rise by 10%

ET has an article today on biscuits. Note that Parle - the industry leader - is still not increasing prices. It is the second tier players that are increasing prices. This seems to be a replay of 2007 - when sugar and wheat prices spiraled up - and Britannia's margins halved in a year. You are in a bad industry if the industry leader is not driven by the profit motive. I wouldn't be surprised if Britannia stock takes a heavy knock after next qtr numbers.

1 comment:

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