Prices have been reduced in line with falling raw material prices, accordingto Marico Industries CEO (Healthcare Division) Pranab Datta. Analysts said that the move will augur well for the companies as it will lead to a spur in demand which had otherwise turned slightly sluggish.

There was a slight drop in the demand for branded sunflower edible oils following a price hike in branded edible oils last year, subsequent to an increase in the raw material prices. The price drop now is expected to roll back the effect of dip in volumes, feel analysts.

Marico Industries has brought down the price of `Sweekar' sunflower edible oil to Rs 49.90 on a one litre pouch from Rs 63 on the same volume in January. The prices of other branded sunflower oils have also been brought downsimultaneously to similar levels.

Last year, companies had undertaken price markups in edible oils to the extent of 40 per cent during the period, said analysts. The overall performance of Marico's healthcare division was mixed during 1998-99, primarily on account of the domestic crop failure which led to spiralling edible oil prices.

However, all oil type variants under the Sweekar brand had a combined volumes growth of 45 per cent, led by a revenue growth of around 82 per cent due to price increases taken during the year to maintain spreads in the fiscal year 1999, say analysts.

The market share of Sweekar improved to 8.4 per cent from 7.8 per cent last year. The total volume of the packaged branded edible oils is close to 1.77 lakh tonne per annum.

Sweekar contributes around 17 per cent each to the company's sales. Marico Industries has posted a net profit of Rs 37.5 crore and total revenues of Rs 553 crore for the year ended March 1999.