Havells CMD Warns Commodity Price Surge to Impact Short-Term Demand

• Havells India CMD Anil Rai Gupta stated that a sharp rally in commodity prices, particularly Copper, could negatively affect near-term demand.
• Copper prices surged 25% in one month, raising concerns about passing increased costs to buyers and impacting short-term margins.
• Rai Gupta expects a short-term demand hit due to channel overstocking in Q3, which should normalize in January.
• The switchgear business margins may also be affected by rising silver prices, necessitating cost pass-through in the medium term.
• While demand in brand and distribution-oriented businesses is less price-elastic, sustained cost increases can eventually impact demand.

Why It Matters: Havells India warns that surging commodity prices will hurt short-term demand and margins, requiring price adjustments.