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This is an archive article published on September 28, 2011

‘Inflation putting pressure on biz’

We are not able to pass on the entire cost to the consumer,says Reckitt Benckiser (India) Chairman.

FMCG firm Reckitt Benckiser,the owner of ‘Dettol’,among other brands,today said high inflation rate is a key concern for the company,as it is putting pressure on its overall business.

Inflation is biting and is a concern area for us and for others. We are not able to pass on the entire cost to the consumer,nor do we think we should,” Reckitt Benckiser (India) Chairman and Managing Director and Regional Director (South Asia) Chander Mohan Sethi told reporters here.

“However,that automatically leads to pressure on our overall operating model,” he said. In July,the company said it has effected a marginal increase in the price of some of its products.

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“On different products,we take marginal price increases from time-to-time. We are hoping that inflation will come under control and hoping that commodity prices will come under control,” Sethi said.

Asked about media reports that the firm is looking at selling off the personal care business of Paras Pharma,which it acquired last year,he replied in the negative,clarifying that the company is not looking at any such move.

“The problem is if you have brands which are all number one and number two,everybody is looking at my brands. Everyone wants a ‘Dettol’ and everybody wants ‘Harpic’,but that doesn’t mean that we give anything to anybody,” he said.

Last year,Reckitt Benckiser acquired Ahmedabad-based Paras Pharmaceuticals for Rs 3,260 crore.

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Releasing a report called ‘The Dettol Habit Study’,which highlighted global hygiene behaviour across 12 countries,the company said it will continue to work on strengthening its presence in urban and rural areas.

In addition,the company said it will continue to expand its product range by bringing more brands from its global portfolio to the country. However,he did not give further details on the kind of products the firm plans to introduce in India.

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