Dabur Weighs Calibrated Price Hikes as Input Costs Squeeze Margins

Dabur India is preparing calibrated price increases across its portfolio as elevated input costs, driven by higher crude oil prices amid the West Asia conflict, put pressure on margins.

The company disclosed its stance on November 10 in New Delhi. It wants to offset rising input costs while protecting profitability and maintaining growth momentum.

Dabur India CEO for India Business Herjit Bhalla said the company is examining its entire portfolio to identify opportunities to improve product mix, optimise costs and take selective price increases while remaining competitive.

What is Dabur's strategy beyond pricing?

Dabur is pairing selective price action with cost savings, a better product mix and higher investment in its core brands. Those core brands account for nearly 60% of the company's business. Management plans sustained investment in them to increase category penetration and create more consumption occasions.

The company also wants better returns from advertising. It plans to increase consumer-facing media investments by 150-200 basis points for selected brands and categories.

Dabur is reviewing its portfolio based on both the size and profitability of individual businesses. It could work to improve profitability in weaker product categories or consider exiting some SKUs that do not meet its objectives.

How fast is the India business growing?

The India FMCG business grew 10.7% in the September quarter of FY27 despite inflationary pressures. That figure split into 5.5% volume growth and 5.2% pricing growth.

Management plans to extract additional efficiencies from operations and reinvest the savings into growth initiatives such as brand building and consumer-facing marketing.

How much can cost savings deliver?

Dabur has already generated savings of around ₹115 crore under its Samriddhi cost-efficiency programme. It is now targeting savings of ₹170-200 crore going forward.

CFO Ankush Jain said efficiencies across the value chain, including improvements in production and product mix, would help fund the company's investment requirements.

The company has maintained its double-digit growth guidance for FY27. It expects continued momentum from core brands, premium products and alternative distribution channels.

Why does the premium mix matter?

Dabur is targeting an increase in the contribution of premium products to 23% over the next 18 months, up from around 20% currently. Its premium portfolio has expanded at four times the company's overall growth rate during the past 18 months.

That premium acceleration gives Dabur headroom that broad-based price increases would not. The strategy indicates the company plans to tackle inflation through a combination of selective price hikes, cost efficiencies and a shift towards higher-value products rather than relying solely on broad-based price increases.