Homegrown FMCG company Dabur India is planning to raise prices by up to 4% in some product categories and adjust the quantity in smaller packs due to escalating input costs linked to the ongoing conflict in West Asia. Dabur Global CEO Mohit Malhotra mentioned that inflationary pressures have surged in most segments of the Indian business, leading the company to implement slight price hikes to alleviate the impact on consumers.
Malhotra stated, “We are witnessing a 10% inflation in all our portfolios, except for home and personal care and healthcare. Hence, we have decided to introduce a 4% price hike in various segments to counter this effect.” Additionally, Dabur will be reducing the size of its Rs 10 and Rs 20 packs. These smaller packs had previously been increased in weight following revised GST rates last year, allowing the company room to readjust pack sizes.
In response to the price adjustments, Dabur also mentioned that the benefits from GST are anticipated to continue aiding growth in the upcoming quarter, particularly in smaller packs. The company recently posted a robust financial performance for the March quarter, with a 15% year-on-year increase in consolidated net profit to Rs 369 crore and a more than 7% rise in net sales to Rs 3,038.02 crore.
Furthermore, Dabur expressed concerns regarding weather patterns affecting its beverage business during the critical summer season. Malhotra highlighted the impact of unseasonal weather disturbances and thunderstorms in north India, a significant market for Dabur’s beverage products. Despite these challenges, he remains optimistic that the anticipated effects of El Nino weather conditions could enable the company to achieve double-digit growth in beverages and glucose products.
