The Hindu Business Line : Dabur expects input costs to surge in Q4

NEW DELHI: FMCG company Dabur expects input costs to surge in the fourth quarter of this fiscal, which may force it to increase the price of its products to tide over the situation.

“We expect input costs to rise in the fourth quarter of this year,” Mr Sunil Duggal, Chief Executive Officer, Dabur said.

Commodity prices, specially that of sugar, used in the preparation of fruit juices have increased significantly over the past few months touching up to Rs 36 per kg as India faces a shortfall this year.

The country's sugar production in 2008-09 season ended September is estimated at 15 million tonnes down from 26.4 million tonnes in the previous year.

Mr Duggal said the surging input costs will put pressure on the overall cost structure but is hopeful that the company can manage the situation without “significant price increase”.

“We will try our level best not to take any price increase but having said that we cannot promise that there will not be any price increase in future,” he said.

Duggal said the company will cut down its expenses in other activities in an effort to avoid hiking products prices.

“We will cut cost somewhere else. We have spent a lot of money on the first two quarters. We can cut back a little bit and we will cut our expense a little bit,” he said. - PTI

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