Dabur India to hike prices by up to 4 pc, cut pack sizes amid rising input costs

New Delhi, May 7 (IANS) Homegrown FMCG major Dabur India is set to raise prices by up to 4 per cent across parts of its portfolio and reduce grammage in smaller packs as the company grapples with rising input costs triggered by the ongoing conflict in West Asia.

Speaking to analysts after the company’s quarterly earnings announcement, Dabur Global Chief Executive Officer Mohit Malhotra said inflationary pressures have intensified across most categories of the India business, prompting the company to pass on part of the burden to consumers through calibrated price hikes.

“We are seeing an inflation of 10 per cent hitting us across all our portfolios, barring home and personal and healthcare. Therefore, we have announced a 4 per cent price increase across different parts of the business to mitigate this impact,” Malhotra said.

Alongside the price revision, Dabur will also reduce the quantity offered in its Rs 10 and Rs 20 packs. According to the company, these smaller packs had earlier seen higher grammage after revised GST rates were introduced last year, leaving enough room for the company to now recalibrate pack sizes.

“We are reducing grammage across all Rs 10 and Rs 20 packs, which we had increased after revised GST rates were announced. There’s some headroom available and it’s an easier call for us to make,” Malhotra added.

The company also said GST-related benefits are expected to continue supporting growth in the June quarter, particularly in smaller packs.

Dabur reported a strong financial performance for the March quarter, with consolidated net profit rising 15 percent year-on-year to Rs 369 crore, compared with Rs 320 crore in the same period last year. Net sales increased more than 7 percent to Rs 3,038.02 crore from Rs 2,830.14 crore a year ago.

The maker of Hajmola and Real juices also highlighted concerns around weather patterns that could affect its beverages business during the crucial summer season.

Malhotra said unseasonal western disturbances and thunderstorms in north India — a key market for Dabur’s beverage products — are creating uncertainty for demand. However, he added that the expected impact of El Nino weather conditions could still help the company achieve double-digit growth in beverages and glucose products.

–IANS

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