Dabur India

** Macquarie flags risks to rural-focused consumer brands Britannia BRIT.NS and Dabur DABU.NS as demand sentiment likely to be hit by monsoon weakness caused by El Nino

** BRIT last up 0.3%, Dabur last up 1.1%

** Food inflation impact likely to be limited due to govt's proactive approach to counter weak monsoon impact - brokerage

** However, past periods where monsoon has been at or below 90% of long-term period avg can have sharp impact on rural incomes, affecting spends - brokerage

** Weather forecasting agencies expect monsoons to be at 90% of long-term avg in 2026, with June recording less than 60% of long-term avg; central, west, northwest India at risk of significant deficit - brokerage

** YTD, BRIT down 12.4%; DABU down 14.7%

(Reporting by Abhirami G in Bengaluru)

(([email protected]))

BENGALURU, June 11 (Reuters) - The U.S. Food and Drug Administration has issued an import alert for drugs manufactured at one of Dabur India's DABU.NS plants following an inspection, the consumer goods company said on Thursday.

(Reporting by Nishit Navin; Editing by Shailesh Kuber)

(([email protected];))

By Praveen Paramasivam and Chandini Monnappa

CHENNAI/BENGALURU, June 8 (Reuters) - From smaller packs on shelves to higher prices at checkout, Indian companies are scrambling to protect their margins as surging oil, freight and insurance costs - and strained household budgets - pile on pressure.

The U.S.-Israeli war on Iran has disrupted trade routes and lifted input costs globally, hitting import-reliant economies like India harder, where a weaker rupee is adding to inflation and complicating pricing decisions as demand remains uneven.

"We are among the world's most vulnerable countries," economist Jayati Ghosh said, warning higher oil and fertiliser costs, weaker Gulf demand, softer remittances and potential capital outflows could stoke inflation and slow growth.

Consumer goods makers Hindustan Unilever HLL.NS, Godrej Consumer Products GOCP.NS and Dabur India DABU.NS have already rolled out low- to mid-single-digit price hikes across categories, with Britannia BRIT.NS preparing similar moves.

Pricing power remains weak in mass segments, with companies holding the line on 10- to 20-rupee (11- to 21-cent) packs and shrinking product sizes instead of raising prices outright.

"We are reducing grammage because we can't breach those price points," said Mohit Malhotra, global CEO at Dabur.

Automakers Maruti Suzuki MRTI.NS, Mahindra & Mahindra MAHM.NS, Tata Motors Passenger Vehicles TAMO.NS and Hyundai Motor India HYUN.NS have also hiked prices.

"We were left with no choice," said Partho Banerjee, Maruti's senior executive officer for marketing and sales, adding that raising prices was not good for customers, especially first-time buyers.

Airlines IndiGo INGL.NS and Air India are trimming capacity, especially on fuel-heavy international routes, and increasing fares to offset higher aviation fuel costs.

Consumers are feeling the squeeze.

"I have no family to feed, no school fees, and no monthly payments on a car. I'm still watching my spending as prices are up for almost everything, from travel to packaged food," said Aditi Anjana, a Mumbai-based communications professional who is in her 30s.

BELT-TIGHTENING MODE

With limited room to pass on costs, companies are turning inward and cutting costs to cushion margins.

Hindustan Unilever HLL.NS has cut advertising spend, while others are trimming non-essential travel and marketing costs.

"The scope for further cost-cutting is gradually narrowing," Axis Direct analyst Uttam Kumar Srimal said, adding prolonged commodity and fuel inflation could force sharper price hikes or margin hits.

Sectors with high global exposure, including aviation, oil and gas, chemicals, logistics and capital goods, may remain under margin pressure, said Shweta Rajani, associate director at Anand Rathi Wealth.

RESETTING SUPPLY CHAINS

Firms are also reworking supply chains to manage disruptions. Companies with Middle East exposure are rerouting shipments, diversifying sourcing, and shifting production.

Dabur, an Indian rival of Colgate-Palmolive, is using alternative routes via Egypt and Turkey, while packaged goods maker Britannia is bringing some production back home.

Some firms are also front-loading purchases and closely tracking demand to avoid overstocking, underscoring tighter working capital discipline.

Arvind Fashions ARVF.NS has advanced inventory buys to lock in costs and is relying more on local suppliers, while Tata Group retailer Trent TREN.NS is tweaking raw materials, packaging, and product development.

"My priority is not to take prices up," said Umashan Naidoo, head of customer and beauty at Trent, which offers Gen-Z-focused affordable trendwear through its brand ​Zudio.

($1 = 94.9450 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Chandini Monnappa in Bengaluru; Additional reporting by Surbhi Misra; Editing by Dhanya Skariachan and Himani Sarkar)

(([email protected];))

June 1 (Reuters) - Dabur India Ltd DABU.NS:

• DABUR - ACTIVELY ENGAGED WITH THE USFDA ON THE FINDINGS

• DABUR - SILVASSA PLANT REMAINS OPERATIONAL; CORRECTIVE ACTION PLAN SHARED WITH USFDA

• DABUR - NO IMPACT ON FINANCIAL OR OPERATIONAL ACTIVITIES FROM USFDA OBSERVATIONS

Source text: ID:nNSEbGWfZ8

Further company coverage: DABU.NS

(([email protected];))

By Rishika Sadam

May 29 (Reuters) - The U.S. Food and Drug Administration has flagged data integrity, manufacturing and maintenance lapses at one of Dabur India's DABU.NS plants following an inspection earlier this year, according to an inspection report.

Dabur is one of India's oldest and largest consumer goods companies, describing itself as one of the world’s largest suppliers of Ayurvedic products with a legacy of over 140 years. It sells a range of over-the-counter and consumer health products in the United States, including cough and cold rubs, antifungal creams, pain relief gels and oral care products.

The findings, issued after the FDA inspected the company's factory in the country's western region of Dadra and Nagar Haveli in January, said some units in the facility posed risks of microbiological contamination.

The report also said critical manufacturing records were falsified to conceal that equipment meant to make certain products had been used for multiple other products.

A live bird and bird droppings were found in the raw material warehouse, about 30 feet from packaging materials. An apparent unidentified black substance was also seen covering more than 25% of ceiling surfaces in both the raw material warehouse and the finished drug product storage warehouse, according to the report, which was made public earlier this week.

The findings come amid heightened regulatory scrutiny of Indian drugmakers over quality controls for medicines and health products exported to the United States, their largest overseas market.

The FDA inspector also questioned the reliability of testing at the plant, noting that although microbiology test results were reported as within limits, significant contamination was observed in multiple samples during the inspection.

Dabur did not immediately respond to a Reuters request for comment.

Following a form 483, which is issued after a U.S. FDA inspection, companies usually respond to the regulator with corrective steps taken to address the concerns.

The report also said management had not reviewed drug production and quality records to determine compliance with regulatory requirements before batches were released to the market, and cited deficiencies in equipment cleaning and maintenance procedures.

(Reporting by Rishika Sadam in Hyderabad and Kashish Tandon in Bengaluru; Editing by Ronojoy Mazumdar)

(([email protected];))

May 19 (Reuters) - Dabur India Ltd DABU.NS:

• DABUR - UNIT INCORPORATES PRAVAAH CONSUMER GROUP INC IN DELAWARE, USA

Source text: ID:nBSE2D1x9p

Further company coverage: DABU.NS

(([email protected];))

** Dabur DABU.NS beats Q4 profit view; plans 4% price hikes across portfolio as ongoing Iran war raises manufacturing, transportation costs

** DABU gains 1.6% to 477.40 rupees

INDIA GROWTH LIFTS OUTLOOK

** BofA ("buy"; PT: 520 rupees) sees favourable risk-reward as India growth accelerates; expects pricing, product mix to lift earnings, scope for estimate upgrades

** Morgan Stanley ("underweight"; PT: 412 rupees) says management commentary constructive; expects pricing hikes, cost control to help protect margins despite input inflation

** JP Morgan ("neutral"; PT: 525 rupees) says India momentum building on strong home, personal care demand; forecasts double-digit FY27 growth driven by pricing, volume recovery

** Goldman Sachs ("neutral"; PT: 515 rupees) says growth improving off low base, with India business driving revenue and margins seen stable despite inflationary pressures

(Reporting by Kashish Tandon in Bengaluru)

((kashish.tandon@thomsonreuters.com; Mobile: +91 8800437922))

BENGALURU, May 7 (Reuters) - Diary of India economic, corporate events on May 7

ECONOMIC, CORPORATE .BSE500 EVENTS:

NTS - 'No time scheduled'

(Compiled by Bengaluru Newsroom)

(([email protected]))

May 6 (Reuters) - Dabur India Ltd DABU.NS:

• DABUR - DABUR INTERNATIONAL TO INCORPORATE WHOLLY OWNED SUBSIDIARY IN USA

Source text: ID:nnAZN4SUJHK

Further company coverage: DABU.NS

(([email protected];;))

** Shares of Dabur India DABU.NS rise as much as 1.8% to 441.40 rupees

** UBS upgrades stock to "neutral" from "sell", but cut its PT to 490 rupees from 540 rupees

** Brokerage notes Dabur has lagged peers, with the stock down about 20% over the past five years amid weak execution in international businesses

** Says Q4 data showing an uptick in domestic demand, though high-single-digit growth is unlikely without further acceleration

** It adds that international operations remain a drag, with recovery expected to be gradual and earnings growth driven mainly by domestic performance

** For FY27, UBS sees consolidated revenue and EBITDA to grow by 8.3% and 11.1%, respectively

** Thirty-seven analysts have a "hold" rating on avg; median PT is 527 rupees - LSEG data

** YTD, DABU down 13%

(Reporting by Urvi Dugar in Bengaluru)

(([email protected]; +91 9558725583;))

April 3 (Reuters) - Indian consumer goods maker Dabur DABU.NS expects consolidated fourth-quarter revenue to grow by a mid-single-digit percentage.

(Reporting by Komal Salecha and Urvi Dugar in Bengaluru
Editing by David Goodman
)

(([email protected];))

India File is published every Tuesday. Think your friend or colleague should know about us? Forward this newsletter to them. They can also subscribe here.

March 3 - By Ira Dugal, Editor Financial News, with global Reuters staff

Just when things seemed to be finally going right for the $3.8 trillion Indian economy, war has broken out between Iran and U.S.-Israel and engulfed other parts of the Middle East, bringing to the fore risks to the South Asian nation's external sector that have not been fully priced in.

Can a protracted conflict prematurely end the economy's Goldilocks phase? That's our focus this week. Write to me with your views at [email protected]

To stay updated on developments, sign up for Reuters Gulf Currents newsletter and follow live coverage here.

And, technical incidents at Air India have risen. Scroll down for more on that Reuters exclusive.

THIS WEEK IN ASIA

** Khamenei killing shatters Iran's order, triggers high-stakes succession race

** How Dubai's safe-haven status is being put to the test

** Bank of Japan deputy governor says rate hikes likely to continue

**China's annual parliament meet to unveil roadmap for tech race with the West

** 'Will it give me a job?': Nepal's election promises don't stop youth exodus

PRESSURE ON OIL COSTS

With the overhang of U.S. tariffs lifted recently, the Indian economy has been chugging along at a strong pace of growth with low inflation. But the Iran versus U.S.-Israel military conflict threatens to upend it.

The risks of an extended conflict in the Middle East, analysts say, could range from higher commodity prices to lower worker remittances and disruptions to businesses that have diversified to the flourishing economies in the region.

"A prolonged conflict, alongside a large jump in energy prices, would be a major macro negative (for India)," brokerage Jefferies said in a note on Monday.

The region accounts for 17% of India's exports, provides 55% of crude oil and 38% of worker remittances, it said.

Oil prices surged 8% on Monday following the military strikes over the weekend, with Brent crude LCOc1 for a while trading above $82 a barrel.

Prices could spike to $100 per barrel, Barclays said.

Global energy markets could face one of their gravest crises in decades with the scale of disruption likely to be determined by the duration of the conflict, Reuters Open Interest columnist Ron Bousso wrote. Read that piece here.

India could be among the most vulnerable if higher oil prices are sustained, analysts said. Read here to understand why. Government officials said on Monday steps will be taken to ensure local fuel supplies.

Every $10 per barrel increase in oil prices widens India's current account deficit to GDP ratio by 0.5%, Mumbai-based brokerage Emkay Global Financial Services said. It can add up to 35 basis points to retail inflation and hit GDP growth by 15-20 basis points, the brokerage added.

Nomura economists said that an extended increase in fuel costs could prompt governments in the region to use higher subsidies and lower taxes to protect consumers from the impact.

"Higher oil prices solidify the case for central banks to stay on hold," Nomura said.

Disruption of crucial sea routes could also hurt. Roughly a third of global seaborne crude oil exports pass through the Strait of Hormuz, with most volumes destined for economies such as China, India, Japan and South Korea, Moody's Analytics said.

An added risk for India is another spurt in already-high gold prices. Together oil and gold accounted for nearly a third of India's import bill in value terms in the current financial year till January.

Indian asset markets reflected these risks in Monday's trading, with equities and the rupee sliding and bond yields rising.

WORKER REMITTANCES MAY DWINDLE

India is walking a tightrope in the conflict, boasting historical cultural ties with Iran and strong strategic relations with Israel. Prime Minister Narendra Modi held talks with Israeli Prime Minister Benjamin Netanyahu in Jerusalem last week.

Weakness in the economies of Middle East nations could also hit large remittances that India gets from workers in the region, while putting businesses at risk.

Larsen and Toubro LART.NS, India's largest engineering and construction company, has nearly 40% of its engineering, procurement and construction order book coming from the region, Jefferies said. A few consumer goods companies, such as Dabur DABU.NS and Titan TITN.NS, along with pharma firms, also have material revenues linked to the Middle East, it said.

Additionally, airlines and tourism companies could be at risk of hits to profits if oil prices remain high and travel remains disrupted.

Extended uncertainty could also weigh on the near 10 million Indian workers in the Middle East, according to government data, many of whom send earnings home, boosting household finances and acting as a major source of foreign currency inflows into India.

The widening of the conflict across the region could slow down remittances, said Emkay Global, adding, though, that this was not their base case.

MARKET MATTERS

India's economy grew at 7.8% in the October-December period and is seen expanding at 7.6% in the current financial year, according to data released by the government under a revamped GDP series.

Read here for the key takeaways and catch up on views from economists here.

The new series is expected to provide a clearer read on the economy as it widens the sources of information, shifts to a more technically sound way of computing real GDP growth and updates the base year.

THIS WEEK'S MUST-READ

Technical incidents such as engine oil and fuel leaks affecting Air India flights reached their highest rate in at least 14 months in January, Reuters' Abhijith Ganapavaram and Aditya Kalra reported.

The airline in December admitted there was a "need for urgent improvements in process discipline, communication, and compliance culture".

In January, Air India recorded 1.09 technical incidents per 1,000 flights, quadrupling from levels of just 0.26 in December 2024.

Read that exclusive report here.

(Reporting by Ira Dugal; Editing by Muralikumar Anantharaman)

(([email protected]; +91-9833024892;))

March 2 (Reuters) - Dabur India Ltd DABU.NS:

• INVESTS IN RAS BEAUTY

• TO ACQUIRE MINORITY STAKE FOR 600 MILLION RUPEES

Further company coverage: DABU.NS

(([email protected];;))

Feb 17 (Reuters) - Dabur India Ltd DABU.NS:

• DABUR - MOHIT MALHOTRA REDESIGNATED AS GLOBAL CEO

• DABUR - HERJIT S. BHALLA APPOINTED AS CEO - INDIA BUSINESS

Source text: ID:nNSE8TzRTk

Further company coverage: DABU.NS

(([email protected];;))

Feb 11 (Reuters) - Indian consumer goods maker Patanjali Foods PAFO.NS reported an almost 60% rise in third-quarter profit on Wednesday, aided by steady edible oils sales and tax cuts that increased consumer demand.

The Sunrich brand oil maker's profit rose to 5.93 billion rupees ($65.33 million) for the three months ended December 31, up from 3.71 billion rupees a year earlier.

Demand for edible oil has remained strong over the past few quarters even as other consumer goods have faced a slowdown, as it is a staple for cooking in the world's most populous country.

Revenue from Patanjali's edible oils segment, which makes up about 70% of the company's total revenue, rose about 9% to 73.36 billion rupees.

That led to nearly 17% growth in overall revenue to 104.84 billion rupees.

“Driven by disciplined execution of our business strategies over recent quarters, the Company achieved its strongest financial performance to date across multiple metrics, even amid a dynamic operating environment," CEO Sanjeev Asthana said.

Revenue from the food and fast-moving consumer goods segment rose nearly 40%, helped by tax cuts.

Indian consumer goods makers such as Britannia BRIT.NS, ITC ITC.NS and Dabur DABU.NS have been seeing a gradual recovery in demand, after several quarters of pressure, aided by the tax cuts and slowing inflation.

Earlier in the month, larger peer Adani Wilmar ADAW.NS reported a slump in quarterly profit as it took a large one-off gain in the year-ago period due to sharp commodity price increases.

($1 = 90.7680 Indian rupees)

(Reporting by Komal Salecha in Bengaluru; Editing by Ronojoy Mazumdar and Tasim Zahid)

(([email protected]; 6354975591))

Jan 29 (Reuters) - Dabur India Ltd DABU.NS:

• DABUR INDIA Q3 CONSOL NET PROFIT 5.6 BILLION RUPEES; IBES EST. 5.56 BILLION RUPEES

• DABUR INDIA Q3 CONSOL REVENUE FROM OPERATIONS 35.59 BILLION RUPEES; IBES EST. 35.75 BILLION RUPEES

Source text: [ID:]

Further company coverage: DABU.NS

(([email protected];))

- Source link: (https://bitl.to/5bQr)

- Note: Reuters has not verified this story and does not vouch for its accuracy

(Bengaluru newsroom)

(([email protected];))

** Dabur India DABU.NS falls 2.7% to 507 rupees

** Co expects mid-single-digit growth in Q3 consolidated revenue, with operating profit seen growing faster than revenue

** Says consumer sentiment improved in urban and rural areas after trade stabilisation; rural demand continued to outperform urban demand in Q3

** Centrum ("Buy"; PT: 625 rupees) says co flagged mixed performance despite uptick in demand due to muted performances in beverage, Chyawanprash portfolio

** Nomura ("Buy"; PT: 580 rupees) says good growth in Health and Personal Care Segment not enough to lift overall growth; sees consolidated sales rising 6% year-on-year

** Stock rated "Hold" on average; median PT is 535 rupees, per data compiled by LSEG

** DABU fell 0.67% in 2025

(Reporting by Mridula Kumar in Bengaluru)

(([email protected];))

Jan 5 (Reuters) - Dabur India Ltd DABU.NS:

• RURAL DEMAND OUTPERFORMS URBAN DEMAND IN Q3

• DURING QUARTER, EARLY SIGNS OF DEMAND RECOVERY WERE WITNESSED

• CONSOLIDATED REVENUE EXPECTED TO GROW IN MID-SINGLE DIGITS IN Q3

• WE EXPECT CONSOLIDATED REVENUE TO GROW IN MID-SINGLE DIGITS WITH OPERATING PROFIT AND PROFIT AFTER TAX TO GROW AHEAD OF REVENUE FOR QUARTER

• FAVOURABLE MACRO CONDITIONS,TAX REFORMS TO SUPPORT SUSTAINED RECOVERY IN DEMAND

• INTERNATIONAL BUSINESS TO POST NEAR DOUBLE DIGIT GROWTH IN Q3

• DEMAND RECOVERY IN Q3 AIDED BY GST RATE REVISIONS

Source text: ID:nBSE31s8nZ

Further company coverage: DABU.NS

(([email protected];))

Oct 24 (Reuters) - Dabur India Ltd DABU.NS:

• LIC INCREASES STAKE TO 6.985% FROM 4.918%

Source text: ID:nBSE2ZyfF8

Further company coverage: DABU.NS

(([email protected];;))

Oct 7 (Reuters) - Indian honey-to-packaged juice maker Dabur DABU.NS said in a business update on Tuesday that it expects a short term moderation in sales during the second quarter of fiscal 2026, on account of a temporary sales disruption after the government's sweeping goods and services (GST) tax cuts.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Ronojoy Mazumdar)

(([email protected];))

Sept 24 (Reuters) - Dabur India Ltd DABU.NS:

• DABUR INDIA - TAX DEMAND CONFIRMED AT 2.72 BILLION RUPEES WITH PENALTY

• DABUR INDIA LTD - NO IMPACT ON COMPANY OPERATIONS DUE TO TAX ORDER

Source text: ID:nBSE9FChk8

Further company coverage: DABU.NS

(([email protected];;))

By Praveen Paramasivam

CHENNAI, Sept 5 (Reuters) - Dabur DABU.NS, Indian rival of Colgate-Palmolive, is making its toothpaste a test of nationalism by asking consumers to shun American brands, as companies intensify promotion of local goods amid worsening trade ties with the United States.

Prime Minister Narendra Modi on Thursday reiterated his call to use "Swadeshi", or made-in-India goods. Children should "make a list" of foreign-branded goods, Modi said, while teachers should push them to not use them.

U.S. President Donald Trump last week imposed tariffs of up to 50% on imported Indian goods, prompting Modi's supporters to start a WhatsApp campaign to boycott American brands including McDonald's MCD.N, Pepsi PEP.O and Apple AAPL.O.

Consumer goods company Dabur, valued at $11 billion, took out a front-page newspaper advertisement this week carrying photos of unbranded toothpaste packs that resemble Colgate packaging. Without naming its rival, the ad said India's favourite toothpaste brand was American, and Dabur was the "Swadeshi" choice.

"Born there, not here", it said, referring to the unnamed toothpaste, in a font styled with the red, white and blue of the American flag.

Dabur declined to comment on the advertisement, and Colgate did not respond to queries from Reuters.

Colgate CL.N has a 43% share of India's toothpaste market, followed by the Indian unit of Unilever ULVR.L, home to Pepsodent brand in the country. Dabur is in third place with a 17% share, according to Euromonitor data for 2024.

India's population of 1.4 billion is a major market for American consumer goods, often purchased from U.S. online retailer Amazon.com AMZN.O, and over the years the reach of U.S. brands has expanded deep into smaller towns.

The Dabur ad in the Times of India newspaper even carried a QR code that took consumers to a shopping link on the Amazon India website, which captures about a third of domestic online sales.

Karthik Srinivasan, a communications consultant, called the advertising strategies of Dabur and others "moment marketing".

"How can we gain from that sentiment at least for this week and next? That's literally what all these brands are doing," he said.

Others using a similar tactic included Amul, India's largest dairy, which has published cartoons featuring "Made in India" products on its social media accounts, with one animated ad showing its mascot holding an Indian flag and a slab of butter.

Indian e-mail provider Rediff, popular years ago before the rise of Yahoo and Google Mail, also took out a newspaper ad calling its service the "mail of India" that helps to keep customers' business intelligence local.

(Reporting by Praveen Paramasivam in Chennai; Editing by Aditya Kalra and Tom Hogue)

(([email protected]; +91 867-525-3569;))

Updates shares in paragraph 2, adds new quotes

Sept 4 (Reuters) - India late on Wednesday announced tax cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand, and simplified its complicated goods and services tax structure to two rate slabs from four, with some exceptions for luxury and "sin" goods.

The benchmark BSE Sensex .BSESN and Nifty 50 .NSEI rose as much 1.1% on Thursday. By 11:55 IST, they pared some gains and were up about 0.5% each.

Here is how the industry has reacted so far:

ANISH SHAH, GROUP CEO & MD, MAHINDRA GROUP

"The next-generation GST reforms... mark a defining moment in India's journey towards building a simpler, fairer, and more inclusive tax system.

"At Mahindra, we view these reforms as transformative. They simplify compliance, expand affordability, and energise consumption, while enabling industry to invest with greater confidence."

SAURABH AGARWAL, PARTNER & AUTOMOTIVE TAX LEADER, EY INDIA

"The rationalization of GST rates on automotive vehicles and parts is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry."

SAMIR SHAH, EXECUTIVE DIRECTOR & CFO, HDFC ERGO GENERAL INSURANCE COMPANY

"The GST Council decision to exempt individual health insurance from GST is a welcome development. This move aligns perfectly with the broader ambition of the regulator of 'Insurance for All by 2047,' providing a tangible step forward in that direction.

"While it is anticipated that there will be lowering of the premiums due to lowering of the taxes, we are yet to understand the extent of this reduction as this will also depend upon availability of the input tax credit, which will become clearer over the coming days."

NILESH SHAH, MANAGING DIRECTOR, KOTAK MAHINDRA ASSET MANAGEMENT CO

"The GST announcement lowers inflation, increases growth, boosts consumer sentiment, doesn't disturb the path of fiscal consolidation, improves ease of doing business and partially offers adverse effects of tariffs."

SHAILESH CHANDRA, PRESIDENT, SOCIETY OF INDIAN AUTOMOBILE MANUFACTURES

"This timely move is set to bring renewed cheer to consumers and inject fresh momentum into the Indian automotive sector. Making vehicles more affordable, particularly in the entry-level segment, these announcements will significantly benefit first-time buyers and middle-income families, enabling broader access to personal mobility."

C S VIGNESHWAR, PRESIDENT, FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS

"The 56th GST Council meeting marks a watershed moment for India's automobile retail industry. This is a decisive step that will boost affordability, spur demand, and make India's mobility ecosystem stronger and more inclusive.

"One area that may need earliest clarification is about levy and treatment of cess balances currently lying in dealers' books, so that there is no ambiguity during transition."

SANJEEV ASTHANA, CEO, PATANJALI FOODS LIMITED

"At Patanjali Foods, we are fully committed to passing on these benefits to our consumers. This initiative will not only enhance FMCG penetration across urban and rural India but also act as a catalyst for broader economic revival by lifting consumption and supporting allied sectors.

"Our categories such as ghee, soaps, biscuits, noodles, honey, and chyawanprash will benefit from this reduction."

RADHIKA RAO, SENIOR ECONOMIST AT DBS BANK

"Lower GST rates will be positive for growth in the second half of the year and FY27, besides improving operational efficiency and expanding the size of the formal economy."

SHRIPAL SHAH, MD & CEO, KOTAK SECURITIES

"The GST rate cuts come at the right time which is just ahead of the festive season and against the backdrop of U.S. tariff tiffs. Lower taxes on essentials, FMCG products, autos and cement will leave consumers with more money in hand.

"This should directly boost demand, help traders and businesses see higher volumes, and may even favourably impact next quarter's earnings. It also carries the potential to ease inflation. The key will be how quickly companies pass on the benefits to customers."

DEVARSH VAKIL, HEAD OF PRIME RESEARCH, HDFC SECURITIES

"The GST reforms represent a paradigm shift toward economic rationality, with rate reductions on essentials like dairy, medicines, and food directly benefiting consumers due to their inelastic nature.

"Combined with RBI rate cuts, FY26 income tax rebates, and moderating inflation, these reforms create multiple stimuli for consumption and economic growth."

SUDARSHAN VENU, CHAIRMAN, TVS MOTOR COMPANY

"The GST tax cuts are a major move by the government to further turbocharge growth. For our industry especially, it’s a welcome move as it will help two wheelers become more accessible and also help those looking to upgrade."

NEERAJ AKHOURY, PRESIDENT, CEMENT MANUFACTURERS' ASSOCIATION AND MANAGING DIRECTOR, SHREE CEMENT

"Bringing GST down to 18% corrects a long-standing anomaly, aligns cement with other core building materials, and enhances global competitiveness. As a key input for infrastructure and housing, fairer taxation is expected to boost consumption and support projects from affordable housing to large-scale infrastructure."

NITIN RAO, CEO, INCRED WEALTH

"History has shown that such measures add significantly to GDP growth and a repeat is expected.

"Positive this will play out, though a small concern remains wherein recent measures like the rate cuts + budgetary measures taken on reduced taxes have not created necessary consumption boosters. We will have to wait and see if this welcome third step reverses the consumption trend or there is a deeper problem around availability of money with consumers."

RAHUL SINGH, CIO-EQUITIES, TATA ASSET MANAGEMENT

"The GST rate rationalisation, following the income tax cuts and lower interest rates, is a serious effort to boost consumption and hence the overall economic growth outlook.

"This coupled with certain process reforms is also positive for SMEs (small and medium enterprises). While the direct beneficiaries include consumer, autos, cement, healthcare and insurance sectors, the second order beneficiaries in terms of growth will be retail banks & NBFCs (non-bank financial companies)."

RAJNEESH KUMAR, CHIEF CORPORATE AFFAIRS OFFICER, FLIPKART GROUP

"By lowering input costs for farmers, simplifying compliance for MSMEs (micro, small and medium enterprises), and enabling small sellers, artisans/weavers and smallholder farmers to seamlessly join e-commerce across states, these reforms will further strengthen India's growth engine.

"Timely implementation of these reforms ahead of the upcoming festival season will surely give a huge boost to consumption across categories, widen market access, and accelerate our collective journey towards a Viksit Bharat."

SHEETAL ARORA, CEO, MANKIND PHARMA

"The GST revisions go beyond tax rationalization, they represent a structural shift in how India is enabling healthcare access. By removing GST on lifesaving rare-disease and oncology therapies and reducing it on essential medicines and diagnostics, the government has signaled that affordability and innovation can go hand in hand."

AMIT PAITHANKAR, CEO OF WAAREE ENERGIES

"The recent GST rationalization reflects the government’s commitment to India’s clean energy transition. The reduction will lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets. It also sends a strong signal to investors, improving the financial viability and attractiveness of the renewable energy sector."

(Reporting by Chandini Monnappa, Bharath Rajeswaran, Manvi Pant, Kashish Tandon, Meenakshi Maidas, Nandan Mandayam, Yagnoseni Das, Vivek Kumar M and Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)

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Rewrites throughout, updates stock moves

By Kashish Tandon and Chandini Monnappa

Aug 18 (Reuters) - Indian auto and consumer stocks rallied on Monday, with the auto index .NIFTYAUTO jumping nearly 5% to a 10-month high after the government's plans of sweeping tax cuts, including lower goods and services tax (GST) on small cars.

The government's plan to lower GST on small cars to 18% from 28%, among other changes, as part of tax reforms unveiled by Prime Minister Narendra Modi on Friday, is expected to spur demand and boost consumer spending.

The plans are likely to be announced by Diwali, a major, five-day Hindu festival in October and India's biggest shopping season as households traditionally splurge, leading to the country's consumption cycle peaking around the festival.

"These are strong tailwinds for the market with potential to take it higher," said VK Vijayakumar, chief investment strategist at Geojit Investments, calling the timing of the next major GST reforms a "big positive".

"Sectors like autos and cement, which are presently in the 28% tax slabs, are expected to benefit," he said.

Urban consumers have been tightening their belts in recent quarters, squeezed by high living costs and sluggish income growth. A cut in GST on small cars, the auto-market's most price-sensitive segment, could fire up festive season demand, giving middle-class buyers a break.

Auto stocks .NIFTYAUTO led sectoral gains on the Nifty 50 .NSEI index, and were set for their best day since June 5, 2024.

Maruti Suzuki MRTI.NS and Hyundai Motor India HYUN.NS jumped 8% and 9%, respectively, to a record high.

Additionally, the simpler two-rate structure - slabs of 5% and 18%, with the 12% and 28% slabs scrapped - would make a host of products cheaper, from butter and fruit juices to dry fruits, offering a lift to consumer goods firms and shoppers.

Consumption stocks such as Hindustan Unilever HLL.NS, Nestle India NEST.NS and Dabur DABU.NS gained between 4% and 7%, powering the FMCG index .NIFTYFMCG 1.8% higher.

(Reporting by Kashish Tandon and Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala and Janane Venkatraman)

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Recasts paragraph 1, adds comments from earnings call in paragraphs 2, 8 & 9

By Ananta Agarwal

July 31 (Reuters) - Dabur India DABU.NS beat quarterly profit estimates on Thursday and forecast a faster sales growth for the rest of the year, as it expects a recovery from monsoon-induced weakness in its beverage business.

The honey-to-fruit juices seller expects a high single-digit sales growth for the full year, it said in a post-earnings call with analysts.

Dabur's fiscal 2025 revenue rose 3.6% in constant currency, partly due to a one-time inventory correction.

Indian consumer companies, including Dabur, have faced challenges from higher commodity costs and muted urban demand for several quarters.

A relatively cooler summer in parts of India, due to the early onset of monsoons, further weighed on the firm's revenue growth in the first quarter.

Consolidated revenue, which grew almost 2%, would have been 7% higher, if not for a decline in beverage sales, Dabur said.

However, it still posted a profit that was better than analysts' expectations, driven by healthy rural demand, price hikes and a wider distribution in rural areas.

Dabur also said that it has noticed some "green shoots" in urban demand, echoing early observations from companies across industries, from consumer conglomerate Hindustan Unilever HLL.NS to Asian Paints, a market leader in the segment.

Dabur could also initiate further price hikes or ramp up its cost-saving initiatives to offset cost inflation in the fiscal year, it said.

The company reported growth in categories such as its namesake honey, housed in the healthcare segment, and toothpastes, air fresheners, and hair care oils, which are part of the home and personal care segment.

Its consolidated net profit rose 3% to 5.14 billion rupees ($58.69 million), coming above analysts' expectations of 4.95 billion rupees.

Rival Hindustan Unilever HLL.NS also reported a profit growth, in part due to the ongoing recovery in rural sales.

($1 = 87.5850 Indian rupees)

(Reporting by Ananta Agarwal and Chandini Monnappa in Bengaluru; Editing by Harikrishnan Nair, Janane Venkatraman and Shailesh Kuber)

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** Dabur India DABU.NS expects Q1 operating profit growth to lag consol rev growth, which is expected in low single-digit pct range

** Post-close on Friday, consumer goods maker noted improving urban demand spurring volume uptick

** Shares up 3% to 513 rupees on Monday

UNDERPERFORMANCE CONTINUES

** Nomura ("buy", TP 550 rupees) says underperformance vs peers continues; believes both sales, vols down marginally

** "Despite having significant exposure to rural, and rural continuing to perform well for the industry, we note Dabur is not benefiting from the trend" - Nomura

** Morgan Stanley ("underweight", TP 396 rupees) says weak earnings growth seen continuing

** Adds, co's top-line growth largely in line, had estimated 1% growth

** Macquarie ("neutral", TP 480 rupees) says continued weakness in beverages "make us concerned about near-term growth rates"

(Reporting by Hritam Mukherjee in Bengaluru)

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July 4 (Reuters) - Dabur India Ltd DABU.NS:

• Q1 CONSOLIDATED REVENUE EXPECTED TO GROW IN LOW SINGLE DIGITS

• Q1 OPERATING PROFIT GROWTH TO LAG REVENUE GROWTH

• INTERNATIONAL BUSINESS EXPECTED TO POST DOUBLE-DIGIT GROWTH IN Q1

• EXPECT REVENUE GROWTH TO REGAIN MOMENTUM AND TREND HIGHERINTHE COMING QUARTERS

• INDIAN FMCG SECTOR SEES RECOVERY WITH URBAN VOLUME GROWTH

• BEVERAGE PORTFOLIO WAS IMPACTED DURING QUARTER DUE TO UNSEASONAL RAINS AND SHORT SUMMER

Source text: ID:nBSE4S8tTY

Further company coverage: DABU.NS

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** India's Trent TREN.NS, Titan TITN.NS, Dabur DABU.NS are among companies that will benefit from reported indirect tax cut plan, says Goldman Sachs

** Broadcaster India Today reported, citing sources, that the government plans to cut 12% GST on certain items to 5% or eliminate the 12% tax slab altogether

** GST council did not immediately respond to Reuters' request for comment

** GST is the abbreviation for Goods and Services Tax, an indirect tax implemented in 2017

** 12% GST applies on apparel priced above 1,000 Indian rupees ($11.7), footwear priced below $11.7, confectionery, fruit drinks, jam, toothpowder and eyewear, among others - GS

** Brokerage also adds Bata India BATA.NS, Nestle India NEST.NS in beneficiary list

** Says reported tax cut plan could help improve consumer demand for branded products, potentially accelerating volume-led growth

** NEST up 0.5%, DABU rises 0.4%; TREN, TITN and BATA down 0.8%, 0.2% and 0.15% respectively

($1 = 85.6820 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru)

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** Consumer staples producers Colgate-Palmolive India COLG.NS and Dabur DABU.NS rise 1.67% and 0.6%, respectively

** Indian government considering eliminating the 12% goods and services tax slab and reclassifying many items taxed at that bracket into the lower 5% bracket, NDTV reports

** Restructuring would target items such as toothpastes, umbrellas, sewing machines, kitchen utensils, report says

** Government believes lower prices could boost sales, and ultimately increase long-term GST collections, adds report

** YTD, COLG shares down 8.6% while Dabur down 4.2%

(Reporting by Ananta Agarwal in Bengaluru)

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