• TOP NEWS
  • CITY & TOWNS
  • LOCAL
  • BUSINESS
  • NATION
  • WORLD
  • SPORTS
  • OPINION
    • EDITORIAL
    • ON HERITAGE
    • CREATIVE BEATS
    • INTERALIA
    • WIDE ANGLE
    • OTHER VIEW
    • ART SPACE
  • Photo Gallery
  • CARTOON
  • EPAPER
Monday, July 7, 2025
Kashmir Images - Latest News Update
Epaper
  • TOP NEWS
  • CITY & TOWNS
  • LOCAL
  • BUSINESS
  • NATION
  • WORLD
  • SPORTS
  • OPINION
    • EDITORIAL
    • ON HERITAGE
    • CREATIVE BEATS
    • INTERALIA
    • WIDE ANGLE
    • OTHER VIEW
    • ART SPACE
  • Photo Gallery
  • CARTOON
  • EPAPER
No Result
View All Result
Kashmir Images - Latest News Update
No Result
View All Result
Home BUSINESS

FMCG cos look to hike prices to offset inflationary pressure on raw material inputs

Press Trust of india by Press Trust of india
January 11, 2021
in BUSINESS
A A
0
FMCG cos look to hike prices to offset inflationary pressure on raw material inputs
FacebookTwitterWhatsapp

New Delhi: Consumers may have to shell out more money for their daily use products as FMCG firms, which are facing inflationary pressure on their key raw material inputs, are considering marginal hike on their products price to offset it.

Some FMCG companies like Marico and others have already gone for price hike, while some which include Dabur, Parle and Patanjali are closely monitoring the situation.

Related posts

Cong accuses Amit Shah of hiding liabilities in RS poll affidavit; BJP terms allegations ‘fake’

Make tech and people’s interest integral to ‘work culture’ of cooperative sector: Amit Shah

July 6, 2025

FM discusses issues of bilateral cooperation with Russian, Chinese counterparts

July 6, 2025

FMCG players have been trying to absorb the price increase of raw material inputs such as coconut oil, edible oil and palm oil, but they are unlikely to hold the prices of their commodities for a long time as that will impact their gross margins.

“We have seen a significant rise in input cost and especially edible oil in the last three to four months and that is putting pressures on our margins and costs. As of now, we have not taken any price hike but we are closely monitoring it and if it goes like this then probably, we may go for a price hike,” Parle Products Senior Category Head Mayank Shah told PTI.

According to him, these commodities are cyclic in nature.

When asked about the price hike, Shah said: “It will be across products as edible oil is being used in all products. It would be at least 4 to 5 per cent.”

Dabur India CFO Lalit Malik said the recent months have seen inflation inching up for some key raw materials like amla and gold.

“Going forward too, we expect some inflationary pressure in key commodities. Our efforts will be to absorb the raw material price increase through our synergies and cost efficiencies, and undertake only selective and judicious price hikes, which will also depend on the competitive scenario in the market,” said Malik.

While for Haridwar-based Patanjali Ayurveda, it’s still a ‘wait and watch’ situation and yet to take a final call on this but hinted that it is also moving in that directions.

“We always try to absorb the market oscillation but if compelled by the market factors, we would take a final decision on that,” said Patanjali spokesperson S K Tijarawala.

Marico, which own brands as Saffola and Parachute, has faced inflationary pressure and had to go for an effective price hike.

“The quarter (October-December) was also characterised by inflationary pressure in key raw materials necessitating cutting back on some promotions and taking effective price increases across both Parachute and Saffola edible oil portfolios,” said Marico in its quarterly updates for Q3 last week.

Edelweiss Financial Services Executive Vice President Abneesh Roy said many key raw materials are up sharply such as palm oil, tea, copra, edible oils etc.

“Price growth will come back in 2021 for the consumer companies after raw material pressure starts impacting their gross margins,” he said.

However, Roy also added that the consumer companies have other cost levers to cushion this impact at EBITDA margin level.

“FMCG companies have very high pricing power. They normally take a price hike in a gradual staggered manner but eventually pass on the entire price hike. We expect the same to continue, given the demand is robust and most of the FMCG products have the advantage of low unit packs of Rs one, two, five and ten price points,” Roy said.

EY Partner and National Leader (Consumer Products and Retail) Pinakiranjan Mishra said: “While FMCG companies have seen a rise in cost especially of agri inputs, they will try and limit price increases through cost control measures to support consumer offtake in the current environment.”

Previous Post

Currency in circulation rises Rs 3.23 lakh cr in first nine months of FY21

Next Post

Govt creates special unit in I-T dept for probe into undisclosed foreign assets

Press Trust of india

Press Trust of india

Next Post
Cash-strapped Pakistan inks 3 loan deals worth USD 918 mn with World Bank

Govt creates special unit in I-T dept for probe into undisclosed foreign assets

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

ePaper

  • About us
  • Contact us
  • Our team
  • Terms of Service
E-Mailus: [email protected]

© 2024 Kashmir Images - Designed by GITS.

No Result
View All Result
  • TOP NEWS
  • CITY & TOWNS
  • LOCAL
  • BUSINESS
  • NATION
  • WORLD
  • SPORTS
  • OPINION
    • EDITORIAL
    • ON HERITAGE
    • CREATIVE BEATS
    • INTERALIA
    • WIDE ANGLE
    • OTHER VIEW
    • ART SPACE
  • Photo Gallery
  • CARTOON
  • EPAPER

© 2024 Kashmir Images - Designed by GITS.