The management of FMCG major Dabur Ltd made a statement yesterday informing that the company had reduced prices by 9% in order to pass through the benefits of GST tax rate reductions.
Other FMCG companies like HUL, ITC and Marico have also lowered prices to allow customers to benefit from the reduction in GST tax rates. The FMCG industry is one of the major industries to benefit after the GST council revised tax rates lower for a wide range of categories.
The management of Dabur guided that they would continue to maintain their high single-digit guidance though the price cut could have a positive impact on demand.
Dabur is one of the largest FMCG companies in India. The company primarily operates in four segments: consumer care, international business, foods and retail. Last one week high and low of the scrip stood at Rs 341.5 and Rs 325 respectively.