January: FMCG companies are considering a marginal price hike of their products in order to normalise the inflationary pressure they have been facing on their raw material inputs. Marico, an FMCG company has already gone for a price hike, but simultaneously companies like Dabur, Patanjali and Parle and monitoring the situation closely.

Mayank Shah serving as Parle Products Senior Category Head, told PTI, “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. It will be across products as edible oil is being used in all products. It would be at least 4 to 5 per cent.”

However, it is a wait and watch situation for Haridwar-based Patanjali Ayurveda. A Patanjali spokesperson, S K Tijarawala quoted, “We always try to absorb the market oscillation but if compelled by the market factors, we would take a final decision on that.”

Also read: FMCG brands should find a new way to work, say experts

Talking about the inflation inching up for some key commodities in the recent months, Dabur India CFO Lalit Malik said, “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.”

However, FMCG companies are trying to absorb the raw material inputs price increase such as coconut oil, edible oil and palm oil. Holding the prices of their commodities for a long time would impact the gross margins of the companies.

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