Dabur India: Don’t see pricing as a trigger in terms of moving the top line: Sunil Duggal, Dabur India | The Economic Times

So what is the outlook on the pricing strategy post GST?

Sunil Duggal: Well at this point in time there would be no pricing action in terms of upward movement of prices, we have been selectively taking prices downwards where there has been a net beneficial effect of GST in oral care and hair oils in particular. I think some pricing action may commence in the third quarter if the input cost rise, if they do not then I do not see much pricing action happening in this year. So at this point in time the raw material environment remains generally benign other than a few pockets of inflation let us see how the outlook is and we will take pricing decisions in the third quarter depending upon the input cost and the impact on the whole value chain.

But just to sum up this angle of the discussion because it really talks about the top line performance for your business at this stage and I know that these numbers might change so I am not going to be holding on to these numbers as we go along in the second half of this year but what kind of guidance or target can you lay out in terms of how much pricing would go up by in the second half as also what kind of demand or volume growth pick up do you see in the latter part of the year?

Sunil Duggal: As I said earlier I do not see pricing to be a bit trigger in terms of moving the top line. It will really be volume growth and perhaps 80% of our top line will be driven by volume and just 20% by price so the whole initiatives and the whole focus of the management is on how to get top line moving into if not double digits at least in the high single digits in the second half of the year. I believe that is possible because like I said there is underlying demand and the pricing will follow its own path so we do not have any pricing strategy as such in terms of how much will take up price as like I said it is contingent upon input cost. Second quarter there will be no upward price action, there are issues obviously with regard to anti-profiteering etc. but even so I do think the market today will support any increase in prices we will have to wait till October or November or thereabouts.

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Dabur India: Don’t see pricing as a trigger in terms of moving the top line: Sunil Duggal, Dabur India.