Consumer Sector Check - Indonesia Palm Oil Export Ban Can Exacerbate Margin Concerns: Prabhudas Lilladher

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Prabhudas Lilladher Report.Indonesia, the largest producer/exporter of palm oil, has announced a ban of palm oil exports. The ban comes as another blow after the surge in oils due to the Ukraine-Russia war. Given that plam oil is 60% of oil imports and Indonesia being the second largest seller, it will push up domestic prices in coming months. Palm oil is a key ingredient in major food processing industries, quick service restaurants etc. will impact costs and margins in several consumer companies. Fast moving consumer goods staples majors such as Britannia Industries Ltd., Hindustan Unilever Ltd., Nestle India Ltd. and ITC Ltd. would be amongst the key companies affected directly as a result of the ban and higher prices. We believe the impact would be seen most in categories such as biscuits, noodles, cakes, potato chips, frozen desserts etc. QSR’s like Westlife Development Ltd. and Reataurant Brands Asia Ltd. can also feel the pinch given edible oil usage to cook/fry their patties/fries..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Consumer Sector Check - Indonesia Palm Oil Export Ban Can Exacerbate Margin Concerns: Prabhudas Lilladher

Consumer Sector Check - Indonesia Palm Oil Export Ban Can Exacerbate Margin Concerns: Prabhudas Lilladher

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