FMCG companies raise prices to offset the impact of rising commodity costs, Retail News, ET Retail

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New Delhi: Rising prices of key raw materials such as petroleum, packaging costs, etc. is forcing mass-market companies to raise prices. Recently, FMCG major HUL has increased the prices of soaps. Dabur India also followed suit, raising the price of its hair oils.

A spokesperson for Dabur said the company had raised the prices of its hair oil brands such as Amla, Vatika and Anmol Gold Coconut.

“We are seeing unprecedented raw material inflation for key raw materials and have undertaken weighted average price increases calibrated from mid to single digit on selected SKUs of our hair oil brands to mitigate some of this impact. “, did he declare.

Last month, HUL increased the prices of products in the laundry and skin cleansing categories. It raised the prices of popular detergent powders Wheel, Rin and Surf Excel as well as bars of soap like Lux and Lifebuoy.

However, the food company Parle Products is not currently raising prices but is monitoring the situation closely.

“Currently, we are not taking any price increases. We are monitoring the situation closely. We will take a call around Diwali time if the high prices continue like this,” said Mayank Shah, head of the main category of Parle. Products.

Asked about the inputs the company is facing inflationary pressures on, he said: “It is mainly edible oil, which is a major concern for us now and wheat prices as well as there is an increase. of the MSP by the government. ”

According to Edelweiss Financial Services Executive Director Abneesh Roy, FMCG companies face inflationary pressures on oil, packaging costs, and more.

“The price increases are happening because of the lag and the FMCG companies have high pricing power,” he said.

Recently, Kolkata-based Emami mentioned inflationary costs in their last annual report and said they would try to absorb input costs through higher operational efficiency and a judicious increase in prices.

“Going forward, the company intends to maintain decent margins through tight cost control and volume-driven growth. The increase in raw material costs could be absorbed by increased operational efficiency and judicious price increases, “he said.

On the other hand, FMCG companies like Dabur expect prices to moderate in the second half of the year.

“We expect inflationary pressures to subside gradually in the latter part of the second half of the year. We have also launched a cost optimization project across the entire company value chain with the Samriddhi project,” said the spokesperson for Dabur.


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