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Dabur India to Raise Prices Up to 4% Amid Rising Input Costs

Dabur India will raise prices by up to 4% and reduce pack sizes for smaller packs due to a 10% inflation in input costs driven by the West Asia conflict. CEO Mohit Malhotra announced the price hike across parts of the portfolio and grammage reduction for Rs 10 and Rs 20 packs. The company reported a 15% rise in Q4 net profit to Rs 369 crore and a 7% increase in net sales to Rs 3,038 crore. Dabur also flagged weather-related concerns for its beverages business during the summer season.

Key Points: Dabur Hikes Prices 4%, Cuts Pack Sizes on Input Cost Surge

  • Dabur to hike prices up to 4% across portfolio
  • Reduces grammage in Rs 10 and Rs 20 packs
  • Q4 net profit rises 15% to Rs 369 crore
  • Net sales up 7% to Rs 3,038 crore
2 min read

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

Dabur India announces up to 4% price hike and grammage reduction in Rs 10/20 packs due to 10% inflation from West Asia conflict. Q4 profit up 15%.

"We are seeing an inflation of 10 per cent hitting us across all our portfolios - Mohit Malhotra"

New Delhi, May 7

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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Reader Comments

J
James A
As a Dabur consumer in the US, it's interesting to see how global supply chain issues are affecting prices everywhere. I understand the input cost pressures, but reducing grammage in small packs like Rs 10 and Rs 20 really hurts the low-income households. Hope they reconsider this strategy.
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Priya S
Dil ki baat bata rahi hoon - every time I buy a Real juice pack now, I feel cheated. Price up, quantity down! 😤 Aur phir Dabur ne profit bhi badhaya hai. It's like they're making us pay for their success. I might switch to local alternatives if this continues.
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Neha E
Honestly, aack sheesh! Dabur is one of the most trusted brands in India, but this move is disappointing. The Rs 10 and Rs 20 packs are what millions of lower-middle-class families rely on for their daily needs. Reducing grammage there is a double whammy - you're charging more for less. While I understand global pressures, there must be a better way than pinching the common man.
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Rahul R
Mathematically, 10% inflation on their end justifies 4% price hike? Aur bhi kuch? GST benefits ke baad bhi yeh log customers ko loot rahe hain! I read that smaller packs had higher grammage after GST revision; now they're taking that back. Yaar, it's like ek haat se lo, doosre se do!
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Robert G
From a UK perspective, this seems to mimic what's happening globally with FMCG brands. But I appreciate Dab

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