Dabur Honey hit by Patanjali's aggressive pricing

Indian fast-moving consumer goods (FMCG) major Dabur launched 17 new products during 2016-17. While its profitability got a leg-up due to falling raw material prices and better cost management, the topline faced the brunt of demonetisation and tough competition from rivals, particularly Patanjali.

A case in point is Dabur Honey, a product that rakes in some Rs 500 crore in annual sales for the ayurveda major. According to the company’s report for FY17, the product faced “intense price-led competition” during the period.

Incidentally, Ramdev’s Patanjali had only raised the pitch over the lower price of its honey during the past few quarters. Advertisements across platforms spread the message that Patanjali’s honey was over 40 per cent cheaper than other companies’, indirectly targeting Dabur.

The spat over honey between the two firms got bitter when Dabur approached the Advertising Standards Council of India (ASCI) against Patanjali’s “misleading” and “unsubstantiated” claims on purity in September last year.