Fairval

Notes on Indian equities, sectors and economy

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 90 other followers

  • Top Posts & Pages

Rising business costs

Posted by fairval on May 9, 2008

A recent Citi report makes coins this concept of cost of doing business and how it has risen very rapidly in India. It points out that for distribution heavy sectors like retail and banking, cost of new outlet has risen almost 30% p.a.

Clearly this has to bite at some point. So long as businesses can pass on inflation, profits can be insulated. While govt will focus on breaking inflation in basic foods, inflation in other items cannot be controlled till there is atleast some growth slowdown

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: