Dabur Honey hit by Patanjali's aggressive pricing

Indian fast-moving consumer goods (FMCG) major Dabur launched 17 new products during 2016-17. While its profitability got a leg-up due to falling raw material prices and better cost management, the topline faced the brunt of demonetisation and tough competition from rivals, particularly Patanjali.

A case in point is Dabur Honey, a product that rakes in some Rs 500 crore in annual sales for the ayurveda major. According to the company’s report for FY17, the product faced “intense price-led competition” during the period.

Incidentally, Ramdev’s Patanjali had only raised the pitch over the lower price of its honey during the past few quarters.