A sharp rise in Indian sugar prices could push up input costs for consumer goods companies, according to international brokerage Goldman Sachs, as the commodity is a key raw material for several categories, including biscuits, confectionery, chocolates and carbonated soft drinks.
If prices remain elevated, companies with greater exposure to sugar-intensive products could face pressure on their margins. Britannia Industries is expected to be the most exposed among the consumer companies covered by Goldman Sachs.
