FMCG cos mull another round of price increase

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Tuesday , May 13, 2008 at 0048 hrs Yet another round of price hike has begun in India’s Rs 82,000-crore FMCG industry. Tata Tea Ltd is raising the price across categories this month while ITC Foods is increasing prices of its select brands. FMCG major Emami Ltd has hiked the price of its hair oil brands, and Marico Ltd is in the process of raising the prices of its select products.

As the FMCG industry is witnessing continued cost pressures both on inflationary pressures and an increase in input costs this year, major players are opting for fresh price hikes, reason industry analysts.

On Marico’s revised pricing strategy, Saugata Gupta, CEO, Consumer Products, Marico Ltd, said: “We have gone for price hikes for select brands in our stable which includes our hair oil brand. We are in the process of hiking prices of some of our products.” Emami Ltd has increased the price of its hair oil brand ‘Navratna’ in sachets from Re 1 to 1.50, a 50% hike.

According to Sangeeta Talwar, executive director-marketing, Tata Tea, the company is in the process of raising the prices. “We are increasing the prices of all our brands by Rs 4-6 per kilo,” she said.

As for ITC Foods’ strategy, Ravi Naware, CEO, said: “We are increasing prices of our select brands by 5% to 7% due to rising input costs.” Last month, FMCG majors Godrej Consumer Products, Dabur India and CavinKare opted for a price hike to improve margins.