FMCG companies plan more price hikes

Source: Financial Express, Apr 27, 2011

New Delhi: Leading consumer good firms Dabur, Godrej, and Wipro Consumer Care & Lighting today said they will consider going for another round of price hike to offset high input cost as high raw material prices continue to be a challenge.

“We have taken up prices of a few products in March, the impact of which is yet to flow in. Going forward, we will be watching the inflation very closely and will put in place calibrated price hikes wherever necessary,” Dabur India Chief Executive Officer Sunil Duggal told PTI.

He, however, did not provide further details by how much and by when it is likely to increase.

In March, Dabur had increased the prices of some its products like hair oils, cooking pastes and fruit juices by around 4-5 per cent.

Similarly, Wipro Consumer Care & Lighting, which sells ‘Santoor’ brand of soaps, said it will look at raising the prices of its products in the near future.

“Raw material prices are definitely a challenge for us. Commodity prices have not softened. We will wait and watch the situation,” Wipro Consumer Care & Lighting (WCCLG) Vice-President Anil Chugh said.

He said the company will decide based on how its rivals react to the rising input costs.

WCCLG had effected a price hike of 5-6 per cent on soaps in January this year.

On the other hand, Godrej Consumer Products Ltd (GCPL), which raised prices of its soap brands in January this year, also plans for another around of hike within the next three to four months.

“We are looking at increasing the prices of soaps. It is one segment which is getting the impact of the rising commodity prices. We will raise the price in the next three to four months,” GCPL Managing Director A Mahendran said.

The company sells two soap brands — ‘Godrej No 1’ and ‘Cinthol’ – among other products.