Business · Companies · 2 hrs ago
Analyst says Nestle is better placed than rural-focused consumer rivals
Inflation and weak monsoons are weighing on Indian consumer businesses and raising concerns about household spending.
Manoj Menon of ICICI Securities says Nestle may be better insulated by steady urban demand because it has a diversified, premium-focused business.
Nestle India shares fell 8% on Thursday amid worries about rising costs.
Menon says Dabur and Emami face greater risk from weak rural incomes.
DMart is also under pressure as quick-commerce services attract shoppers making frequent, small purchases, while new stores take time to reach full sales potential.
Menon says DMart should protect its price advantage rather than copy quick-commerce delivery models.
The retailer plans to add about 15% more stores each year and uses DMart Ready for scheduled delivery of larger orders in selected areas.
ICICI Securities analyst Manoj Menon said Nestle India is better insulated from cost inflation than rural-focused consumer companies.
He said diversified, premium-focused businesses such as Nestle could benefit from steady urban demand.
Menon said Dabur India and Emami face risks from weak rural incomes.
Nestle India shares fell 8% on Thursday amid concerns about cost inflation.
Inflation concerns and weak monsoons are weighing on India’s consumption outlook.
- Who
- Manoj Menon, head of research and consumer analyst at ICICI Securities, gave the assessment.
- What
- He said Nestle is better insulated from cost inflation than rural-focused rivals such as Dabur India and Emami.
- When
- Mint published the article on 16 October 2026. Nestle shares fell on Thursday; the article does not give the date.
- Where
- India.
- Why
- Menon said Nestle could benefit from steady urban demand, while weak rural incomes pose a risk to Dabur and Emami.
This story does not have two clearly opposing sides.
This story does not have a timeline yet.
- Nestle share fall
- 8% on Thursday
- Analyst
- Manoj Menon of ICICI Securities
- Rural-focused companies
- Dabur India and Emami
- Article publication
- 16 October 2026
- Analysis setting
- India’s consumption outlook is under pressure from inflation concerns and weak monsoons
1 source
What people are saying
Instead of changing its core business model to copy 10-minute delivery services, DMart’s strongest defence is to increase its price advantage in areas where quick-commerce companies cannot compete profitably.
These services are taking away frequent, small top-up purchases because they are more convenient.