Stocks

Godrej Consumer Products gains nearly 1.5%

BL Internet Desk Chennai | Updated on January 09, 2018 Published on November 23, 2017

Shares of Godrej Consumer Products jumped as much as 1.44 per cent in Thursday's trade as the company is reducing the prices of products such as hair colour, air fresheners, liquid detergents and deodorant by 7-10 per cent, post the announcement of rate cuts by the GST Council last week.

After opening strong at Rs 965 against the previous close of Rs 953.65, the scrip touched an intraday high of Rs 967.45 and a low of Rs 947.10. In terms of equity volume, 9,765 shares were traded on the BSE.

The company shares ended up by 0.06 per cent at Rs 954.25.

Sunil Kataria, Business Head, India and SAARC, Godrej Consumer Products, said that the company is working closely with its distributors and channel partners to monitor that the reduced MRPs are being passed on to the consumers.

After the announcement of rate cuts on around 200 items by the GST Council last week, FMCG companies are proactively looking at ways to pass on the benefits to consumers.

Nestle India had also said on Wednesday that it had reduced the prices of some products. Earlier this week, companies such as Marico and Dabur had also made similar announcements, and said they have asked trade partners to pass on the benefits to consumers on existing stocks immediately.

The companies will also be informing consumers via ads. FMCG companies have said that there could be a transition time of two-three weeks before the new stocks with new MRPs hit the retail shelves.

Published on November 23, 2017
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