New Delhi: Facing the brunt of rising raw material costs and global economic headwinds, FMCG giant Dabur India is contemplating a gradual increase in the prices of several of its consumer products. The strategic move aims to cushion the company’s profit margins against relentless inflationary pressures, largely driven by escalating crude oil prices amidst ongoing conflicts in the Middle East.
In a recent interaction with investors, Harjeet Bhalla, Chief Executive Officer of Dabur India’s domestic business, detailed the challenges posed by these geopolitical tensions. He explained that the surge in crude oil prices has significantly disrupted the supply chain and inflated overall production costs. To navigate these hurdles, Dabur is undertaking a comprehensive review of its entire product portfolio. According to Bhalla, this strategic overhaul encompasses need-based price adjustments, stringent cost-cutting measures, and an enhanced product mix. The company plans to heavily focus on high-margin premium products, while carefully calibrating the prices of items operating in highly competitive segments to ensure consistent customer retention.
Despite these cost-cutting efforts, the company remains firmly committed to investing in its core brands, which presently contribute approximately 60 per cent to its total revenue. Dabur believes that fortifying these key brands will solidify customer loyalty and stimulate sustained demand. Furthermore, the FMCG major plans to optimise its advertising and promotional expenditures, potentially increasing investments by 150 to 200 basis points for targeted advertising across select categories.
Financially, the company has maintained a positive trajectory. During the September quarter of the financial year 2026-27, Dabur’s Indian FMCG business reported a robust growth of 10.7 per cent. This expansion was fueled by a 5.5 per cent volume growth and a 5.2 per cent increase driven by price adjustments. Going forward, Dabur intends to eliminate non-essential expenses and redirect those savings towards new product development, brand building, and impactful marketing campaigns. The performance of underperforming products will be closely monitored, with the possibility of discontinuing certain lines if deemed necessary.
To further bolster its financial health, the company has set an ambitious savings target under its ‘Samruddhi’ cost efficiency programme. According to Chief Financial Officer Ankush Jain, the initiative has already yielded savings of approximately Rs 115 crore. The management is now projecting total savings of Rs 170 to 200 crore. Jain emphasised that these financial efficiencies will be primarily achieved by refining production processes, streamlining the supply chain, and maintaining an optimal product mix.