Nepal turmoil a minor hurdle, GST cuts to lift FMCG growth: Abneesh Roy
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Political unrest in Nepal has sparked concerns for FMCG companies with exposure in the region. However, recent GST cuts and easing pressures in the paints sector are expected to cushion the blow, according to Abneesh Roy. Nepal Unrest: Limited Impact Firms like ITC, Marico, HUL, Varun Beverages, and Bikaji have some presence in Nepal, but Roy sees the risk as manageable. "The GST rate cut will boost overall consumption. The Nepal issue and floods in parts of India may have a minor impact, but not on a full-quarter basis," he said in an interview with ET Now. He noted that Nepal accounts for just 2–3% of revenues for players like Varun Beverages, ITC, and Dabur. "The impact will be short-term. The bigger risk is political instability slowing GDP and supply chains, but it remains low single-digit exposure," Roy added. Domestic weather patterns are also weighing on summer-driven categories like aerated drinks, talcum powd...