Flagging off concerns regarding inflationary pressures, Dabur India said it is continuing to focus on developing strategic ways to offset the increase in raw material prices.
In its annual report released on Thursday, the FMCG major also stated that brands Meswak and Real Drinks have entered the ₹100-crore turnover club by the end of FY22.
Offsetting price rise
”With mounting inflationary pressures on key raw materials which is expected to grow even more in the coming months, Dabur plans to monitor the situation closely to develop strategic ways to offset the increase in prices through our synergies and cost efficiencies,” said Mohit Burman, Vice-Chairman of Dabur India, in a letter to shareholders.
He added that the company is continuing to enhance its rural footprint and stepping up investments behind its power brands to drive demand. ”Our rural outreach expands across a network of about 90,000 villages, of which 30,000 villages have been added in the past year,” Burman stated. The company said it has been tackling challenges of high input costs through cost control measures and pricing actions.
Tackling inflation
“Our consolidated revenue crossed the ₹10,000-crore mark for the first time with an annual growth of 13.9 per cent. This is despite accelerating inflationary pressure in the last quarter and demonstrates Dabur’s remarkable resilience and agility,” Burman added.
“By the end of last fiscal (FY21), we had a total of 18 brands with sales greater than ₹100 crore. At the end of fiscal 2021-22, this number has increased to 20,” the report added. The company’s power brands include Dabur Honey, Chyawanprash, Honitus, Pudin Hara, Lal Tail, Amla, Red Past and Real.
“With the Russia-Ukraine crisis pushing up overall costs of production, including the cost of raw material, transportation and packaging material, inflation continues to be the biggest concern as we enter FY23. Even so, India is expected to be one of the fastest growing economies in the world,” the report added.