INFLATION HITS COSMETIC MANUFACTURERS

Inflation in double digits (over 11 per cent) is a matter of concern in a country where nearly30% of the population still lives below the poverty line. Whilst inflation is largely a result of global pressures- both crude and food prices shooting up, the Reserve Bank of India has hiked its short term interest rate at 8.5 per cent. The cosmetic industry also reels under inflationary pressures worldwide as well as in India. Says Director Marketing, Nitin Passi, for Lotus Herbals “it is the biggest challenge facing the industry now a days. Our input cost on average is up by 55% year on year and 15% month on month, which is alarming!”

Indian FMCG manufacturer Dabur India Ltd has, in the recent months, hiked prices of some products in key categories like hair care (both hair oils & shampoos) and oral care (toothpastes) by 2- 5%. As per a Dabur spokesperson “going forward too, we will look at price hikes as a tool to neutralize the impact of rise in input costs”.

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