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Dabur, Marico mull price hike, Emami's products become costlier

Daubr may increase prices of hair oils due to higher raw material costs

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Press Trust of India New Delhi
Last Updated : Jan 21 2013 | 2:54 AM IST

Homegrown FMCG firms Dabur and Marico may hike prices of some of their products as has already been done by rival Emami in the wake of increase in excise duty hike and higher input costs.

Dabur, which operates in key consumer products segments like hair care, oral care, health care, skin care, may increase prices of hair oils due to higher raw material costs.

"We may explore the possibility of hiking the price of hair oils in view of the input cost pressures," Dabur India CEO Sunil Duggal said.

The company currently sells various hair oils, including Vatika Enriched Almond Hair Oil and Amla hair oil.

Mumbai-headquartered Marico, which sells various brands including Parachute, Saffola and Hair & Care, is also looking for an appropriate time to go in for a price hike.

"Marico is planning to follow a wait and watch strategy before deciding on any further price increase," Marico Consumer Products Business CEO Saugata Gupta said.

Earlier this month Kolkata-based Emami had increased prices of its Zandu Balm and Navratna Oil. It has increased price of its Zandu Balm by Re 1, from Rs 24 to Rs 25 for a 8 ml packing. It has also increased prices of Navratna Oil in the range of Rs 2-5 across different bottle sizes.

"This (hike)is primarily because of the 40% increase in the key raw material prices like menthol and excise duty hike," Emami CEO Sales Krishna Mohan said.

Finance Minister Pranab Mukherjee increased excise duty by 2% to 12% in the 2012-13 Budget.

Price of palm oil, one of the key ingredients of many FMCG products, has increased in the recent past by nearly 10% thus putting pressure on the FMCG firms.

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First Published: Apr 08 2012 | 10:44 AM IST

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