Raw advantage

Published: December 24, 2014 12:54:01 AM

Depending upon whether companies are operating in competitive markets or whether they have pricing power...

Depending upon whether companies are operating in competitive markets or whether they have pricing power, the recent collapse in commodity prices will either result in manufactured goods prices coming down significantly or in profit margins rising. Credit Suisse points out that since crude and crude-related inputs are an important part of raw material costs, many companies can see between 30% and 60% of their inputs basket becoming cheaper. Some of the biggest beneficiaries will be Asian Paints and Marico.

Raw-material

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