India, May 1 -- Imagine this scenario. A near-monopolist, which commands a 75 per cent market share in a segment that generates four-fifths of its annual profits, and a distant second player, decide to hike prices of their products again. The aim is to beat the negative

effect, which resulted due to earlier price

increases that were forced by the Government. In effect, the strategy seems to be to 'Rob Peter (Consumer), or make him pay more, despite the fear of changing consumption to aid Paul (Maker) to increase profits.' At first glance, it does not make sense.

If the higher prices, as per reports, led to shifts to lower-priced products, or moves from premium to semi-premium brands, even higher prices may force these trends further, a...