Marico to hold prices despite rise in input costs

Marico to hold prices despite rise in input costs

Kolkata: Personal care products maker Marico Ltd has seen raw material costs rising since October, but the firm will hold its product prices for now, its chairman said on Friday.

“We are seeing a marginal increase in the prices of inputs like Copra and Safflower from October. But this is not going to impact our prices as of now," Harsh Mariwala said on the sidelines of a conference.

“Going forward a lot will depend on the cost pressures on the system. We will have to see how the raw material prices move. It is not hitting us at present," Mariwala, who is also the managing director, said.

“The answer is no for now," he said when asked if Marico was going to raise prices due to rising costs.

Marico, best known for its flagship hair oil brand ‘Parachute’ and edible oil ‘Saffola´, had reduced product prices by 5-15% in the first half of the fiscal year when input costs were softening.

There would be a marginal impact on revenue in terms of value due to the lower product prices in the second half of the fiscal, though sales volumes would rise, he said.

“There will be a double digit volume growth in the third and fourth quarters".

He also said the firm was not facing any pressure on its margins at the moment and that profit margins in FY10 were likely to be in sync with FY09 margins.

Marico shares ended down about half a percent at Rs103.65 in a weak Mumbai market.