Dabur India announced a 4 percent price increase across parts of its portfolio and will cut pack sizes in smaller formats to offset rising input costs, CEO Mohit Malhotra said after the company's quarterly earnings announcement.
The company is grappling with inflation hitting 10 percent across most categories of its India business, barring home and personal care and healthcare. Malhotra said the price hike is designed to pass on part of this burden to consumers in a calibrated manner.
Alongside the price revision, Dabur will reduce the quantity offered in its Rs 10 and Rs 20 packs. The company increased grammage in these smaller packs after revised GST rates were introduced last year, creating what it describes as available headroom to recalibrate sizes now. Malhotra noted that GST-related benefits are expected to continue supporting growth in smaller packs in the June quarter.
Dabur reported strong March quarter results, with consolidated net profit rising 15 percent year-on-year to Rs 369 crore from 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 company also flagged weather risks to its beverages business. Malhotra cited unseasonal western disturbances and thunderstorms in north India, a key market for Dabur's beverage products, as sources of demand uncertainty. However, he added that El Nino weather conditions could still support double-digit growth in beverages and glucose products.