Lifebuoy and Lux get cheaper as HUL reduces prices because of low demand
Hindustan UnileverLimited has cut prices for Lifebuoy, Luxand Dove in lieu of low demand.
- The Indian economic slowdown has hit FMCG companies.
- Biscuit manufacturers Parle G and Brittania too have a worried outlook for the
While demand is one reason for it, tapering commodity prices also allowed them to take a call and pass on the benefits, the company told Mint.
While the price of Lux range will go down by 4%, that of Lifebuoy will go down by 6%.
The Indian economic slowdown has impacted all major companies in the FMCG sector.
Parle G, a leading biscuit manufacturer said it is planning to slash 10,000 jobs due to weak demand. Even though Parle G has denied the same, it has also said it is “an eventuality if our demand for lesser tax rates is not met.”
In the latest earnings conference call of Britannia, the company’s MD Varun Berry raised some serious concerns about the Indian economy. "We've grown only 6% and the market is growing slower than that. And that's a little bit of a worry, because even for a ₹5 product if the consumer is thinking twice before buying it, then there is some serious issue in the economy,” he said.
After biscuits, Indian villagers are cutting down on clothes and hair oil too