The government is looking to cap products that essentially fall in the FMCG basket of products. What next toothpaste? That is one of the most important personal hygiene product used in a day!!!
I wonder how would someone like Warren Buffett invest in a country like India? I always felt products within FMCG probably would be the last ones to be price regulated (if at all). Here goes that assumption down the drain. How will some of these companies now maintain their pricing power? One thing that WB harps upon so much.
Sorry, I’m invested in PGHH and I’m now wary of the adverse reaction that the business may experience due to this. Low penetration levels even in urban areas of a product that is so essential to women with almost limited chance of tech disruption was the reason I invested here. I clearly didn’t think the govt will mess with it either as for me it falls in the FMCG basket of products. I was wrong.
In all honesty, I intend do nothing in the light of these new developments. Acting on every news item, new piece of info and policy flip flop I’ve realized is very hazardous to one’s holdings / pf. I’d let the company figure this out, adapt as needed whilst doing the best they can for me as a minority shareholder. That’s the plan.
Cheers!