Some FMCG companies increase pack sizes, others reduce prices
Some such as Hindustan Unilever Ltd (Hul) and Bikaji Foods add more volume to protect the spell La1, La5 and La10 price points. Others such as parle, coca-Cola and reliance consumers, La5 and La10 packs download them down La4.5 and La9 For small biscuit packages, confectionery and beverages respectively.
On Tuesday, India’s largest packaged consumer goods company Hul said that instead of reducing the prices of small packages, it increases the benefits of reducing goods and service tax (GST) by increasing weight or volume.
“For Price Point Packages, we chose to increase the price or volume to ensure the simplicity of pricing to avoid strange pricing and money -related challenges.” He said. Mint. “This means that consumers will now receive more products at the same price and effectively reduce the price per gram or per milliliters.”
Hul sells shampoo bags and soaps priced at such popular price points.
Snack Maker Bikaji Foods International Ltd, La15 will remain the same. “There are some categories where brands change (such as cookies) LaTo 5 La4.50 because they cannot change immediately during the package dimensions of how the packages are configured, Bika Bikji Foods International Ltd.
“We can definitely add more grams to our Bhujia packages. Instead of getting price cuts in these packages, we can easily do so.
However, Bikaji reduced prices by 6-8% in the priced packages priced above. La20, depending on package size. Sells big packages La300. Bikji’s Bhujia and Namkeen portfolio have previously attracted a 12%GST and is now taxed by 5%.
On the other hand, in an interview Mint On Monday, Paritosh Ladhani, General Manager of Slmg Beveges, one of Coca-Cola’s largest bottles in India, reduced prices in the bottled water and juice portfolio at various price points following the company’s GST announcement.
For example, 125 ml Maaza Tetra Pack, previously priced La10, now he sells retail La9, 250 ml Kinley Water Bottle LaTo 8 La7. Similarly, La20 packages downloaded La18 wherever it is suitable.
Background
At the beginning of this month, the government took action to rationally rational rates in the country. As of September 22, the old 12% and 28% were combined to 5% and 18%, exempted. A new 40% plate has been added for luxury and ‘sin’ goods such as tobacco, dessert ventilated beverages and high -level cars.
The government’s decision to renew the GST will lead to lower tax rates in a number of daily use items. Hair oil, shampoo, toothpaste, toilet soap bars, toothbrushes and shaving cream will now attract 5% GST less than 18%. Similarly, the tax rate on butter, ghee, cheese, milk exhibitions, pre -packaged namkeens, bhujia and mixtures will drop from 12% to 5%.
While the movement is expected to make the products more suitable, it has created pricing difficulties for companies. Consumers Buying at Price Points La1, La2, La5 and La10 Generally, it prefers to pay the exact amount of coins in these sects. Retailers also present candies instead. La1 or La2 coins to adjust for change.
However, the popularity of Ladhani, UPI or digital payments from SLMG Beveges said that it makes it easier for companies to offer such price points. “We had a restriction before, but thanks to the widely available UPI, we can easily do it,” he said.
