Nepal Crisis May Hurt Supply Chain Of Indian FMCG Companies, Says Nuvama Analyst

Abneesh Roy, Executive Director - Research, Nuvama Institutional Equities, said the situation in Nepal could lead to a near-term disruption in the supply chain for fast-moving consumer goods (FMCG) companies. Additionally, the tourism sector's struggles may hurt the country's GDP. Goenka also foresees a positive outcome for biscuit and snack companies from GST 2.0, as they are likely to increase product size (grammage) in response. He believes that this new GST will also boost demand for both discretionary and non-discretionary products, with all FMCG companies ultimately passing on the GST benefits to their customers.