Dabur Signals Price Hikes Amid Rising Costs, ₹200 Crore Savings Plan To Protect Margins
· Free Press Journal
New Delhi: FMCG major Dabur India is considering selective price increases across its product portfolio as rising raw material costs and crude oil prices put pressure on profitability. The company is simultaneously strengthening cost-saving measures and expanding its premium product range to protect margins.
The proposed increases come as inflationary pressures intensify across supply chains, partly due to the ongoing West Asia conflict.
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Price Hikes Ahead
Dabur India CEO (India Business) Herjit Bhalla said the company would adopt a calibrated pricing strategy while maintaining competitiveness across categories.
The company plans to balance price increases with operational efficiencies and improvements in its product mix.
Its India FMCG business recorded 10.7% growth during the September quarter of FY27, supported by 5.5% volume growth and 5.2% pricing growth.
₹200 Crore Savings Target
Dabur has generated approximately ₹115 crore in savings through its Samriddhi cost-efficiency programme and is targeting further savings of ₹170–200 crore.
Chief Financial Officer Ankush Jain said improvements in production efficiency, portfolio management and operational productivity would help finance future investments.
Dabur India Delivers Strong Q2 With ₹505 Crore Profit And 11.6% Revenue Growth, FMCG And Global Markets Shine As Company Declares ₹3.50 DividendThe company is also reviewing underperforming products to improve profitability and strengthen its overall business mix.
Premium Products Push
Dabur aims to increase premium products' contribution to its portfolio from 20% to 23% over the next 18 months.
Its premium portfolio has expanded four times faster than the company's overall business during the previous 18 months.
Management expects premiumisation to support profitability and strengthen consumer demand.
Advertising Investments
Dabur plans to increase consumer-facing media investments by 150–200 basis points across selected brands and categories.
'100% Pure' Claim: Dabur Challenges FSSAI Order In Delhi High CourtIts core brands, accounting for nearly 60% of business, will remain central to this strategy.
The company intends to improve advertising productivity while expanding distribution and strengthening brand visibility.
Despite inflationary challenges, Dabur has maintained its double-digit growth guidance for FY27.
Management expects core brands, premium offerings and alternative distribution channels to support growth while cost efficiencies help protect operating margins.
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