Dabur Weighs Selective Price Hikes as Input Costs Climb

Dabur India grew its domestic FMCG business 10.7% in the September quarter of FY27, and now it is weighing selective price increases to defend margins against rising input costs.

Herjit Bhalla, Dabur's CEO for India business, told investors on a post-earnings call last week that rising crude oil prices amid the West Asia conflict had added cost pressure across the supply chain. He said the company was reviewing where it could raise prices and where it needed to stay competitive.

Volume growth delivered 5.5 percentage points of the quarter's 10.7% India FMCG growth. Pricing contributed the other 5.2 points. The company retained its double-digit growth guidance for FY27, with management expecting support from core brands, premium products and alternative distribution channels.

What stays at the center of the portfolio?

Dabur will keep investing in its core brands, which generate nearly 60% of its business. Bhalla said the company wants consumers to use these products more often and to reach more households in categories where it already holds a strong position.

The company plans to raise consumer-facing media investment by 150–200 basis points for selected brands and categories. Bhalla said Dabur would reinvest operational savings in initiatives such as brand building and consumer marketing.

Dabur is also reviewing individual products based on sales and profitability. Bhalla said the company would work to improve the profitability of weaker products and could discontinue some of them. These reviews will become a regular part of how Dabur manages its portfolio.

How will Dabur fund the investment?

Dabur has saved around ₹115 crore under its Samriddhi cost-efficiency program and is targeting ₹170–200 crore going forward. Chief Financial Officer Ankush Jain said production efficiencies and changes to the product mix would help fund the company's planned investments.

The premium portfolio is the clearest growth lever. Dabur aims to raise the contribution of premium products from 20% to 23% over the next 18 months. The premium portfolio grew four times as fast as Dabur's overall business over the previous 18 months, the company said.

Key facts at a glance:

• India FMCG growth in the September quarter: 10.7%, split 5.5 points volume and 5.2 points pricing
• Samriddhi savings to date: about ₹115 crore; target of ₹170–200 crore ahead
• Media investment increase: 150–200 basis points on selected brands and categories
• Premium share target: 23% within 18 months, up from 20%
• FY27 guidance: double-digit growth retained

The pricing review, cost program and premiumization push together signal how Dabur intends to hold its double-digit FY27 guidance while absorbing crude-driven input cost pressure.