The giant company in the FMCG sector, Dabur, has recently stated that it has decided to hike the prices of all its products by 5%, very soon with a view to accommodate the sharp rise in the price of flexible packaging material made of polymers. The sources from the company have informed that this is the sharpest price rise that has been effected by the company in the last eight years.
While talking about the companys recent decision of increasing the prices of its products, the CEO of Dabur, Mr. Sunil Duggal said, "The inflation in packaging material is almost 11 per cent because of the rise in crude oil prices". He said that the company is likely to be forced to revisit some "sacred" price points for its products like 50 paise, Re 1, Rs 5 and Rs 10, if the price rise was to continue unabated.
The sources from the industry have informed that the other major FMCG company, Godrej Consumer Products is also likely to take a similar decision very soon. The Executive Director & President of Godrej Consumer Products, Mr. HK Press has also confirmed the news and said, "The price of packaging material made from petroleum derivatives is going up". He informed that the company is planning to raise the prices in the margin of 5-6 per cent.