As inflation remains sticky and pricing power limited, fast moving consumer goods (FMCG) companies in India are adopting various measures to protect margins.

This includes input substitution, overhead management, rationalising personnel – all aimed at reining in expenditure.

For instance, it is not uncommon for soap-making companies to replace palm oil, a key input, with rice-bran oil, when prices of the former hit the roof. Currently, palm oil prices are up nearly 10-15 percent in comparison to the year-ago period. From January to now, palm oil prices have risen 17-20 percent and continue to remain volatile, despite some softening during the second quarter.