Indonesia, Nepal Protests: Godrej Consumer, ITC, Dabur Among Companies Exposed To Unrest, Says Macquarie
While the situation in Indonesia has 'largely abated,' Macquarie cautioned that the situation in Nepal 'remains fluid.'
Godrej Consumer Products Ltd., Dabur India Ltd., ITC are among other companies which are staring at fresh challenges in their international business as political unrest in Indonesia and Nepal threatens to derail growth, according to a brokerage note by Macquarie.
The brokerage noted that Godrej Consumer had 14% of the sales during the financial year ending March 2025 were from Indonesia through its acquired entity, Megasari, and the firm has the largest exposure to Indonesia in their coverage universe, with a presence in the categories of air fresheners, baby care and hair colours.
Dabur's sales from Nepal accounted for 8% of its FY25 sales, Macquarie noted. That's among the largest exposures to Nepal in Macquarie's coverage universe, with a presence primarily in the juices and foods segment.
The brokerage noted that the company also has a presence in home care, personal care and healthcare segments. Sales salience of Nepal has steadily increased over the years, reaching 8% in FY25 from 5% in FY21.
Meanwhile, "ITC saw 3% of FY25 sales from Nepal through its Nepal subsidiary." The company has a presence in cigarettes, confectionery, matches and incense sticks (agarbattis).
Berger Paints, on the other hand, saw "2% of FY25 sales from Nepal". The company has a leading position in Nepal through its operations across the decorative coatings space. Nepal accounts for 2% of consolidated sales and consolidated profit in FY25, the brokerage noted.
Asian Paints, Kansai Nerolac and Hindustan Unilever see around 1% of FY25 sales through their subsidiaries. However, salience in sales and profit is relatively lower at 16.
Meanwhile, Britannia and Nestle have operations in Nepal through the listed entities, albeit sales and profit are not material.
While the situation in Indonesia has "largely abated", Macquarie cautioned that "the situation in Nepal remains fluid." However, the brokerage remains optimistic about a quick recovery. "The relatively quicker return to normalisation seen post the Bangladesh disruption makes us hopeful of limited impact," it said.
Looking ahead, Macquarie emphasised that macroeconomic recovery will be crucial for restoring growth momentum in these geographies. Among consumer stocks, the brokerage expressed preference for Titan Ltd., Trent Ltd. (both rated as "Marquee Buy"), Hindustan Unilever Ltd., and Marico Ltd.
