Dabur’s core strength lies in its “Custodian of Ayurveda” identity, leveraging ancient knowledge to create natural and efficacious products. This heritage provides a unique selling proposition, resonating with health-conscious consumers seeking natural alternatives. The company’s commitment to quality and innovation, backed by extensive research and development, ensures its products remain relevant and competitive in a dynamic market.
Strategically, Dabur has focused on expanding its reach, particularly in the significant rural Indian market, building a robust distribution network that penetrates deep into the hinterlands. Simultaneously, it recognizes the growing influence of digital channels and actively invests in e-commerce and digital marketing to connect with younger demographics.
While facing competition from both domestic and international players, Dabur’s strong brand equity, built over decades, provides a significant advantage. The company’s ability to adapt to changing consumer preferences and its focus on sustainability and social responsibility further bolster its long-term prospects in the ever-evolving FMCG landscape. Recent strategic moves, such as a shorter three-year vision cycle and acquisitions in the spices and hair care segments, signal a proactive approach to navigate market volatility and capture emerging opportunities, positioning Dabur for continued growth.
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From Hindustan Unilever to Nestlé, traditional fast-moving consumer goods companies are repositioning their iconic brands to cater to a new premium market.
The Indian consumer goods industry is undergoing a significant transformation, with legacy brands reworking their promise of reliability at scale to cater to the changing needs of younger consumers. For decades, brands like Godrej, Marico, and Tata Consumer Products have been synonymous with reliability and affordability. However, with the rise of digital-first brands and changing consumer preferences, these companies are now shifting their focus towards premium, lifestyle-led offerings.
Younger consumers, particularly Gen Z, are driving this change. They are more exposed to global trends, less loyal to labels, and demand more from the brands they engage with. In response, companies like Hindustan Unilever, Nestle, and Dabur are reinventing their brands, introducing premium variants, and expanding their product lines to cater to the evolving needs of their customers.
For instance, Hindustan Unilever has updated its Lifebuoy soap brand to focus on skin protection, while Nestle has introduced Korean-style noodles under its Maggi brand. Dabur has launched premium variants of its Vatika shampoo, featuring ingredients like red onion and argan oil. Unilever has also launched Vaseline Lip Derma Therapy in South Korea, targeting Gen X and Gen Z consumers with a premium face-care product.
This shift towards premiumization is not just about launching new products or increasing prices. It requires a deeper transformation in how legacy companies present themselves and engage with consumers. Digital-first brands have set a new standard for packaging, visual language, and storytelling, and legacy brands must adapt to remain relevant.
The challenge for legacy companies is to balance reinvention with trust. Decades of familiarity and quality have built trust with consumers, but familiarity alone is no longer enough. Companies must layer relevance and aspiration on top of their foundation to remain competitive. As the Indian consumer market continues to evolve, with rising aspirations and increasing demand for premium products, legacy brands must be willing to adapt and innovate to remain relevant.
The premiumization trend is no longer limited to metro cities, with rural and semi-urban markets now accounting for over 40% of premium FMCG sales. Companies must deliver value-led premium experiences through the right formats and channels to cater to the growing aspirations of consumers across income groups. Ultimately, the key to success lies in understanding the changing needs of consumers and being willing to evolve and innovate to meet those needs.
Nestle and Reckitt find a beacon of hope in India amidst worldwide challenges.
Nestle SA, a Swiss packaged foods company, has highlighted India as a market with “strong performance and good momentum” in its post-earnings call. This is the first time India has been mentioned in such a context by the company, amidst global challenges. Nestle’s global CFO, Anna Manz, attributed the strong performance to investments made in high-priority areas, citing India, Malaysia, Indonesia, and Pakistan as examples. The company’s India unit reported a 10.8% year-on-year increase in domestic quarterly sales, reaching ₹5,411 crore, its highest-ever quarterly sales.
Another European company, Reckitt Benckiser, also cited India as a “standout market” despite disruptions caused by changes in the goods and services tax (GST). The company’s CEO, Kris Licht, stated that emerging markets, including India and China, had a standout performance, growing 15.5% in the quarter. However, the company’s CFO, Shannon Eisenhardt, noted that India posted low single-digit growth in the quarter due to the GST changes, which impacted revenue growth.
Other companies, such as Hindustan Unilever, Godrej Consumer Products, and Dabur, have also flagged short-term impacts on sales and profitability due to GST-related disruptions. Despite these challenges, Reckitt Benckiser expects India to continue contributing to its growth, with Licht stating that the company has a “very successful business in India” and is focused on taking other markets to the same level of excellence.
Globally, Nestle SA’s sales fell 1.9% year-on-year to $82.8 billion in the first nine months of 2025. The company has undergone significant changes, including the exit of its chairman and the termination of two chief executives. The new global chief, Philipp Navratil, announced 16,000 worldwide job cuts, describing it as a “hard but necessary” decision. Reckitt Benckiser, on the other hand, reported like-for-like net revenue growth of 7% across the group, led by emerging markets. The company expects India to continue delivering high single-digit growth in the future, despite the short-term impact of GST changes.
Dabur India faces a revised income tax demand and intends to pursue additional rectification measures.
Dabur India, a leading Indian consumer goods company, has received a revised income tax demand. The company plans to further rectify the matter, as it believes the demand is not in line with the tax laws and regulations.
The revised demand is related to the assessment of the company’s income tax liability for a specific financial year. Dabur India has already paid a significant amount of tax for that year and is of the opinion that the revised demand is unwarranted. The company’s management is currently reviewing the demand and is likely to file an appeal against it.
Dabur India is a well-established company with a strong track record of compliance with tax laws and regulations. The company has a robust system in place to ensure that all tax payments are made on time and in accordance with the applicable laws.
The revised income tax demand has not had a significant impact on the company’s operations or financial performance. Dabur India continues to focus on its growth strategy, which includes expanding its product portfolio, increasing its distribution network, and enhancing its digital presence.
The company’s management is confident that the matter will be resolved in its favor, as it has a strong case to support its position. Dabur India has a history of successfully resolving tax disputes in the past and is likely to do so in this case as well.
It is worth noting that tax demands and disputes are not uncommon in India, and many companies face similar issues. The Indian tax authorities have been actively pursuing tax evaders and defaulters, which has led to an increase in tax demands and disputes.
In this context, Dabur India’s decision to further rectify the matter is a prudent one, as it will help to ensure that the company’s tax liability is accurately determined and that it is not unfairly penalized. The company’s management is likely to work closely with its tax advisors and legal experts to resolve the matter amicably.
Overall, the revised income tax demand received by Dabur India is a minor setback for the company, and it is likely to be resolved in the near future. The company’s strong financial performance and growth prospects remain intact, and it continues to be a attractive investment opportunity for investors.
Dabur Amla Reimagines Karva Chauth With A Contemporary Spin, Weaving A Heartwarming Narrative Of Devotion, Resilience, And Intergenerational Bonding.
On October 10th, 2025, Dabur Amla Hair Oil, a leading hair oil brand in India, launched a digital film that offers a fresh perspective on Karva Chauth, a traditional day of love, devotion, and togetherness. The film features a young couple, Dev and Maggi, engaged in a playful debate about whether to observe the Karva Chauth fast. The conversation is light-hearted and relatable, reflecting the balance that modern couples strike between age-old traditions and personal choice.
The film concludes on a warm note, with Maggi reaching for her Dabur Amla bottle, symbolizing the idea that just as the hair oil strengthens hair from within, true relationships are rooted in strength, care, and understanding. According to Ankur Kumar, Head of Marketing – Hair Care at Dabur India Ltd, the campaign aims to celebrate the evolving essence of Karva Chauth, where love is expressed through companionship rather than compulsion.
The campaign is a reflection of modern relationships, which are strong, equal, and rooted in care. Ms. Jasleen Kohli, DGM – Marketing at Dabur India Ltd, noted that the film captures the dynamic of modern relationships, where partners support each other’s choices. The film is now live on Dabur Amla’s digital and social media platforms, celebrating the bond that grows stronger with strength, love, and a touch of fun.
The launch of the digital film is part of Dabur Amla’s efforts to connect with its audience and promote its brand values. By showcasing a modern take on traditional practices, the brand aims to resonate with its target audience and reinforce its position as a leading hair oil brand in India. The campaign’s message of strength, love, and companionship is likely to appeal to viewers and spark conversations around the themes of love, choice, and togetherness. Overall, the film is a creative and engaging way to celebrate the spirit of Karva Chauth and promote the Dabur Amla brand.
Key FMCG companies such as HUL, Nestle, Dabur, and Britannia are set to reveal their Q2 FY26 earnings results in the near future, according to the Goodreturns earnings calendar.
The Q2 FY26 earnings calendar is upcoming, and several fast-moving consumer goods (FMCG) giants are set to announce their results soon. Companies like Hindustan Unilever (HUL), Nestle, Dabur, Britannia, and others will be declaring their quarterly earnings, providing insight into their financial performance.
Hindustan Unilever, one of the largest FMCG companies in India, is expected to announce its Q2 results. The company has a diverse portfolio of brands, including food, beverages, and personal care products. Investors will be watching closely to see how the company has performed, given the current market trends and consumer demand.
Nestle, another global FMCG major, will also be declaring its Q2 results. The company has a significant presence in India, with popular brands like Maggi, KitKat, and Nescafe. Nestle’s results will be closely watched, as the company has been investing heavily in digital transformation and expanding its product portfolio.
Dabur, a leading Indian FMCG company, is also set to announce its Q2 results. The company has a strong presence in the Ayurvedic and natural products segment, with brands like Dabur Chyawanprash and Vatika. Dabur’s results will be closely watched, as the company has been expanding its product portfolio and increasing its digital presence.
Britannia, a well-known Indian food company, will also be declaring its Q2 results. The company has a diverse portfolio of brands, including biscuits, bread, and dairy products. Britannia’s results will be closely watched, as the company has been investing in new product launches and expanding its distribution network.
Other FMCG companies, like Marico, Godrej Consumer, and Emami, will also be announcing their Q2 results. These companies have a significant presence in the Indian market, with popular brands like Parachute, Good Knight, and Boroplus. Their results will provide insight into the overall performance of the FMCG sector in India.
The Q2 earnings season will be closely watched by investors, as it will provide insight into the financial performance of these FMCG giants. The results will also indicate the trends and outlook for the sector, given the current market conditions and consumer demand. As the earnings season approaches, investors will be eagerly waiting to see how these companies have performed and what their future plans are. The results will be crucial in determining the future direction of these companies and the overall FMCG sector in India.
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Consumer goods companies face supply chain setbacks in September, but remain optimistic about revenue expansion in the latter part of the fiscal year 2026.
The implementation of new GST slabs in September has led to disruptions in trade for leading FMCG companies, including HUL, Dabur, and Marico. Despite stable demand trends in July and August, these companies faced a decline in sales in September as consumers deferred purchases in anticipation of lower prices after the GST rate rationalization. The government’s decision to lower duties on most daily essentials, including food and personal care products, led to a temporary disruption in trade channels as distributors and retailers focused on liquidating existing higher-priced inventory.
Dabur reported a “short-term moderation in sales” in the second quarter, with its retail business seeing a temporary disruption due to the deferment of purchases by consumers. However, the company’s non-GST impacted brands, such as Dabur Honey and Anmol Coconut Oil, performed well. Dabur expects 60% of its India business to benefit from the lowering of GST, which will drive affordability and enhance purchasing power, boosting consumption across categories.
HUL, another leading FMCG major, witnessed a transitory impact on sales in the September quarter due to the disruption at distributors and retailers. The company expects this impact to continue into October as well. HUL owns popular brands like Lux, Rin, and Surf Excel, and has seen a postponement of ordering in anticipation of receiving new stocks with updated prices and lower orders across the overall portfolio.
Marico also reported a benefit from the GST rationalization, with 30% of its India business expected to stimulate demand and help in long-term growth. Despite the disruption, the company’s underlying volume growth remained in high single digits, albeit moderating sequentially. The GST Council’s decision to replace the four-slab structure with two broader rates of 5 and 18% has put most common-use items and food products under a lower tax rate, prompting consumers to delay purchases until the new rates took effect on September 22.
The FMCG companies expect growth in the second half of the fiscal year, helped by stabilization of prices and stimulation in demand from the lowering of duties. They also expect sentiment to gradually improve during the festive season and months ahead, aided by easing inflation, above-average monsoons, a healthy crop outlook, and policy stimulus. Overall, the disruption caused by the GST reforms is expected to be temporary, and the companies are optimistic about the long-term benefits of the new tax structure.
Indian FMCG companies suspended or postponed operations in Nepal due to civil unrest.
Indian fast-moving consumer goods (FMCG) companies have suspended their operations in Nepal due to the escalating civil unrest and violent youth-led protests in the country. Britannia Industries, a biscuit and bakery products maker, has indefinitely suspended all manufacturing operations at its Simara plant in Bara district, citing the safety of its employees as the top priority. The plant, which was set up in 2017, has an annual capacity of 14,000 tonnes of biscuits and bakery items and employs about 350 workers.
Other FMCG companies, such as Bikaji Foods International and Dabur, have also been affected by the unrest. Bikaji Foods, which signed a joint venture deal with Nepal’s Chaudhary Group in July, expects the project to be delayed due to the current situation. Dabur, which has a subsidiary in Nepal, has asked its employees in Kathmandu to work from home and has advised its sales teams to prioritize safety and adhere to local curfew directives.
The suspension of operations by Indian FMCG companies is expected to have a significant impact on Nepal’s food processing sector and local consumers. Close to a dozen Indian companies have operations in Nepal, spanning packaged goods and hospitality sectors, and the closure of plants and disruption in supply chains are likely to trigger uncertainty and strain businesses operating in the country. Nepal contributes about 3% to Dabur’s consolidated sales, while Britannia Nepal generates annual revenue of ₹170-180 crore.
The ongoing unrest in Nepal is causing concern among Indian businesses operating in the country, and many are closely monitoring the situation. The shutdown of local supply markets amid the continuing unrest in Kathmandu and other cities is expected to further strain businesses operating in the country. As the situation continues to evolve, Indian FMCG companies are taking a cautious approach and prioritizing the safety of their employees and operations.
FMCG giants like Amul and ITC cut prices significantly with new GST rates in effect.
The Indian government’s implementation of the Goods and Services Tax (GST) 2.0 has led to a reduction in prices of daily essentials and food items. As a result, several Fast-Moving Consumer Goods (FMCG) companies have announced price cuts, passing on the benefits to consumers. This move is expected to boost demand and sales, especially with the festive season of Navratri and Diwali approaching.
Some of the major FMCG companies that have announced price cuts include ITC, Amul, Nestlé India, Dabur, PepsiCo, Ferrero, Procter & Gamble (P&G), Emami, Hindustan Unilever (HUL), and Patanjali. The price reductions range from 2-15% across various product categories, including packaged foods, personal care products, dairy products, and beverages.
ITC has reduced prices of its ghee by Rs 70, making it one of the steepest reductions in the FMCG sector. Amul has also slashed prices of its ghee, butter, paneer, and ice creams. Nestlé India has cut prices of its Maggi noodles and coffee range, while Dabur has reduced prices of its juices, health supplements, and oral care products.
Ferrero has announced the steepest cut in the chocolate segment, with a reduction of Rs 100 on its Ferrero Rocher product. P&G has reduced prices of its Vicks Action 500 Advance and other products, including diapers, shampoos, and razors. Emami and HUL have also rolled out price cuts across their personal care and food products.
Patanjali has announced steep cuts across its Nutrela, personal care, and health products, including a reduction of Rs 48 on its ghee. Varun Beverages, the distributor of PepsiCo, has reduced prices of its juice and packaged water portfolio. Overall, the price cuts are expected to benefit consumers and boost sales for the FMCG companies during the festive season.
The price reductions will be effective starting September 22, and consumers can expect to see lower prices on a range of products, including food items, personal care products, and beverages. The move is seen as a positive development for consumers, who will benefit from the reduced prices, and for the FMCG companies, which are expected to see an increase in sales and demand.
Dabur’s Mohit Malhotra expects a revival in demand with GST rate cuts and the return of attractive price points.
Dabur India CEO Mohit Malhotra is optimistic about the impact of the Goods and Services Tax (GST) reforms on consumption in India. He believes that the rate cuts will provide a strong boost to consumption, particularly for middle-class households. Malhotra estimates that the reforms will result in a 300 basis points increase in overall consumption, with urban demand catching up with rural demand. He also expects a 500-600 basis points boost in demand from the shift to “magic price points” such as ₹1, ₹5, ₹10, ₹15, and ₹20 packs, which account for nearly 25-30% of FMCG consumption.
Malhotra explains that households with a monthly expenditure of around ₹25,000 could see an annual savings impact of ₹1,000-₹2,500, directly translating into additional disposable income. This, he says, can restart discretionary spending. He also highlights the structural shift the reforms could drive in favor of organized players, as GST reforms will help shift consumers from unorganized to branded products. For example, in categories like toothpaste and ayurvedic medicines, these reforms will enable Indian players like Dabur to compete more fairly with global MNCs.
However, Malhotra cautions that the withdrawal of area-based GST benefits may pose challenges, and the company may have to relook at relocating capacities since local incentives will no longer be available. Despite this, he is confident that the reforms will help Indian brands like Dabur compete on equal footing globally. As the world’s largest ayurvedic player, Dabur is focused on doing things the “swadeshi way”, and Malhotra believes that the reforms will support this vision.
Overall, Malhotra is bullish about the impact of the GST reforms on consumption and the Indian economy. He expects the reforms to provide a strong consumption boost, particularly for middle-class households, and to drive a structural shift in favor of organized players. With the reforms, Malhotra believes that Indian brands like Dabur will be able to compete more effectively with global MNCs, and that the company’s focus on ayurvedic products will continue to drive growth and profitability.
Delhi High Court rebukes Patanjali for misleading Dabur Chyawanprash advertisement, threatens to impose penalties
The Delhi High Court has criticized Patanjali Ayurved for appealing against a previous order that restrained the company from running advertisements that allegedly disparaged Dabur’s Chyawanprash brand. A division bench comprising Justice C Hari Shankar and Justice Om Prakash Shukla questioned the maintainability of the appeal, calling it a case of “generic disparagement.” The court noted that Patanjali’s advertisements had painted all other chyawanprash manufacturers as incompetent, implying that only Patanjali knew how to make the product correctly.
The bench warned Patanjali that it would impose costs if the appeal was found to be unnecessary, stating that it would not allow “frivolous” appeals. The judges pointed out that Patanjali’s advertisement claiming “why settle for ordinary chyawanprash made with 40 herbs?” was a clear reference to Dabur’s long-standing advertisement claim of using “40+ herbs.” The court observed that the use of the phrase “40 herbs” was an obvious reference to Dabur, and that Patanjali’s statement was a disparagement of not just Dabur’s product, but the entire class of chyawanprash available in the market.
Patanjali’s senior advocate, Jayant Mehta, sought time to confer with his client and the opposite side, and the court adjourned the matter for further hearing on September 23. The appeal arises from a July 3 order by Justice Mini Pushkarna, which directed Patanjali to modify its advertisements for ‘Patanjali Special Chyawanprash’. The single judge had held that a “clear case of disparagement was made out” and directed the deletion of certain lines from the advertisements.
Dabur India had accused Patanjali of denigrating its brand ‘Dabur Chyawanprash’ and misleading consumers by presenting rival products as substandard and “ordinary.” The company argued that Patanjali’s statements disparaged not only its product but the entire class of chyawanprash available in the market. The case will now return to court on September 23 for further consideration. The court’s remarks suggest that it is unlikely to entertain Patanjali’s appeal, and may impose costs on the company if it finds that the appeal is unnecessary.
The Delhi High Court has raised questions over Patanjali’s challenge to an order that prohibited the company from running advertisements disparaging other brands.
The Delhi High Court has questioned Patanjali Ayurved’s decision to appeal against an order that restrained the company from running disparaging advertisements against Dabur Chyawanprash. On September 19, 2025, a Division Bench of Justices C. Hari Shankar and Om Prakash Shukla warned Patanjali that the court would not entertain “frivolous appeals.” The court observed that the advertisements in question amounted to “generic disparagement” and were an obvious reference to Dabur.
The advertisement in question asked, “Why settle for ordinary chyawanprash made with 40 herbs?” The court noted that the use of the phrase “40 herbs” was a clear reference to Dabur, as their product is known to contain 40 herbs. The Single Judge court had previously treated the advertisement as disparaging and issued an interim order. The Division Bench saw no reason to overturn this discretionary order.
The court cautioned Patanjali’s lawyer that if the appeal was found to be “useless” or “luxury litigation,” costs would be imposed. The court asked Patanjali to demonstrate what irreparable loss they would suffer if the appeal was not heard. The lawyer requested time to discuss the matter with his clients, and the court listed the appeal for further hearing on September 23.
This development is the latest in an ongoing dispute between Patanjali and Dabur. On July 3, the Single Judge court had restrained Patanjali from running disparaging advertisements against Dabur Chyawanprash, citing a strong prima facie case of disparagement in both TV and print ads. The court’s decision to question Patanjali’s appeal suggests that the company may face significant costs if the appeal is deemed frivolous. The outcome of the appeal, scheduled to be heard on September 23, will be crucial in determining the future of Patanjali’s advertising strategy.
Patanjali challenges Delhi High Court order to stop airing ads that disparage Dabur Chyawanprash.
Patanjali Ayurved, a company founded by yoga guru Ramdev, has approached the Delhi High Court to challenge an order that restrains the company from airing advertisements that allegedly disparage Dabur Chyawanprash, a product of Dabur India Ltd. The order was passed by a single-judge bench of the High Court, which had directed Patanjali to stop airing the advertisements that were deemed to be derogatory to Dabur’s product.
Patanjali had launched an advertising campaign for its own Chyawanprash product, which allegedly made certain claims that were found to be disparaging to Dabur Chyawanprash. Dabur had approached the court, alleging that Patanjali’s advertisements were misleading and deceitful, and were intended to harm the reputation of Dabur’s product. The court had agreed with Dabur’s contentions and passed an interim order, restraining Patanjali from airing the advertisements.
However, Patanjali has now challenged this order before a division bench of the Delhi High Court, arguing that the single-judge bench had erred in passing the order. Patanjali’s counsel argued that the advertisements in question were not disparaging to Dabur’s product, and that they were merely highlighting the benefits of Patanjali’s own Chyawanprash product. The counsel also argued that the order passed by the single-judge bench was premature, and that Patanjali should have been given an opportunity to respond to Dabur’s allegations before the order was passed.
The division bench of the High Court has now issued a notice to Dabur, seeking its response to Patanjali’s appeal. The court has also directed Patanjali to maintain the status quo with regards to the advertisements, until the next date of hearing. The matter is scheduled to be heard next on a date to be fixed by the court.
The dispute between Patanjali and Dabur is significant, as both companies are major players in the Indian ayurvedic products market. Patanjali has been expanding its product portfolio in recent years, and has been aggressively marketing its products through various advertising campaigns. Dabur, on the other hand, is a well-established company with a long history of producing ayurvedic products, including Chyawanprash. The outcome of this dispute will be closely watched, as it will have implications for the way in which companies market their products in India.
Patanjali disputes Delhi High Court ruling on Dabur Chyawanprash advertisements.
Patanjali, an Indian Ayurvedic products company, has challenged a Delhi High Court order regarding its advertising campaign for Chyawanprash, a traditional Indian herbal supplement. The court had earlier directed Patanjali to delete certain parts of its ad campaign that allegedly disparaged Dabur, a competitor in the Chyawanprash market.
The dispute between Patanjali and Dabur began when Patanjali launched an advertising campaign claiming that its Chyawanprash product was superior to others available in the market, including Dabur’s. Dabur alleged that Patanjali’s ads were misleading and disparaging, and filed a lawsuit against the company. The Delhi High Court ruled in favor of Dabur, ordering Patanjali to remove the allegedly offending parts of its ad campaign.
However, Patanjali has now challenged this order before the appellate bench of the Delhi High Court. The company argues that its advertising campaign is legitimate and does not disparage Dabur’s products. Patanjali claims that it has the right to promote its products and compare them to those of its competitors, as long as it does so in a truthful and non-misleading manner.
The case highlights the ongoing competition between Patanjali and Dabur in the Indian Chyawanprash market. Both companies are major players in the market, and the dispute over advertising claims reflects their efforts to gain an edge over each other. The outcome of the case will be closely watched, as it will have implications for how companies in India can advertise and promote their products in comparison to those of their competitors.
Patanjali’s decision to challenge the Delhi High Court order suggests that the company is unwilling to back down in the face of competition from Dabur. The company is known for its aggressive marketing and advertising strategies, and it appears to be taking a similarly assertive approach in this dispute. As the case continues to unfold, it will be interesting to see how the court ultimately rules on the matter, and what implications this will have for the Indian advertising and marketing landscape.
Dabur’s CEO praises the GST reform as a catalyst to increase consumer demand.
Dabur India CEO Mohit Malhotra has expressed strong support for the government’s recent goods and services tax (GST) reforms, believing they will have a positive impact on the economy. The reforms, which include the removal of differential tax treatment between branded and unbranded goods, are expected to revive sluggish consumption and create a ripple effect of benefits throughout the economy. Malhotra described the changes as a “pleasant surprise” and predicted that they will increase consumer confidence and lead to higher demand for goods and services.
The removal of differential tax treatment is seen as a significant positive, as it eliminates the “penalty” on higher quality branded products. This will allow companies to lower prices and pass on benefits directly to consumers, making products more affordable for urban consumers who have been affected by high food inflation. Malhotra noted that the reforms will not only benefit urban consumers but also strengthen the value chain, driving investment and putting more money in the hands of farmers.
The reforms are also expected to fuel spending among India’s middle class, a segment that is often overlooked! in welfare-driven policy. Malhotra believes that the reforms will lead to a “middle-class surge,” as they will increase affordability and boost consumer confidence. The Dabur chief’s remarks reflect growing optimism among consumer goods companies that tax parity and affordability will inject momentum into India’s consumption-led growth story.
Overall, the GST reforms are seen as a significant step towards boosting consumption and driving economic growth. By reducing taxes and increasing affordability, the government is hoping to stimulate demand and create a positive impact on the economy. Malhotra’s endorsement of the reforms suggests that consumer goods companies are confident that the changes will have a positive impact on their businesses and the wider economy. With the removal of differential tax treatment and the expected increase in consumer confidence, the GST reforms are likely to have a positive impact on India’s economy, driving growth and increasing prosperity for all.
Dabur CEO believes companies will inevitably transfer GST reduction benefits to customers as part of efforts to boost consumer spending.
The CEO of Dabur India has stated that companies will pass on the benefits of the Goods and Services Tax (GST) rate cut to consumers, which will lead to an increase in consumption. This statement was made at a Confederation of Indian Industry (CII) event, where the CEO expressed confidence that price reductions will take place once the new GST rates are in effect. The 56th GST Council meeting recently approved an overhaul of the indirect tax system, introducing a standard rate of 18% and a merit rate of 5%. A special de-merit rate of 40% will be applied to select goods and services.
Most daily use items will now be in the 5% slab, and the classification issues that existed earlier have been largely resolved. The CEO cited the example of popcorn, which had different tax rates depending on whether it was sold loose or pre-packed and labelled. Under the new regime, popcorn mixed with salt and spice, as well as caramel popcorn, will attract a 5% GST rate. The older rate structure had been criticized for its complexity, but the new rates aim to simplify the system.
However, the CEO noted that the “inverted duty structure” problem is not fully resolved. This refers to the fact that the industry has to pay 18% GST on services such as warehousing and media costs, but the end-product only attracts a 5% GST. As a result, companies do not get input tax credit on these services, which can increase their costs. The CEO hopes that these issues will be addressed in the future.
The GST rate cut is expected to boost consumption, as companies pass on the benefits to consumers. The new rates aim to simplify the tax system and reduce complexity, which should make it easier for businesses to operate. The CEO’s statement suggests that companies are committed to passing on the benefits of the GST rate cut to consumers, which should lead to increased demand and economic growth. Overall, the new GST regime aims to create a more streamlined and efficient tax system, which should benefit both businesses and consumers.