Heritage Foods to Raise Prices of its Products to Counter Expenses
This fiscal year, Heritage Foods, an Indian dairy company, announced raising the prices of its goods to compensate for growing expenses including fuel and raw materials.
Major consumer products companies, such as Nestle India and Godrej Consumer Products, which makes cinthol soap, are raising prices in an effort to combat the combined effects of rising costs and a slowdown in consumer spending.
"The price increase will be across the board, not specifically on milk," Heritage CEO Srideep Kesavan said last week. "It will also be on paneer and other dairy products ... in line with covering our costs increase."
Heritage toned milk costs 53 rupees (62 US cents) for a one-liter pouch. In the fiscal year that began on April 1, the corporation plans to raise the price by 1 to 2 rupees, or two percent to four percent.
According to government data, milk and milk product prices in India increased 2.6 percent to 2.9 percent during the January–March quarter, which was still less than the overall rate of inflation.
Earlier this year, Heritage, which primarily serves Southern states, increased milk prices for the first time in almost two years.
Additionally, it intends to deepen its growth in present markets like Chennai and increase its footprint from the current 250,000 outlets to 350,000 this year.
As wealthy Indians work to achieve their daily protein needs, dairy companies like Amul and Milky Mist have recently been emphasizing the protein content of everything from cottage cheese to curd.
Based on surveys, most Indians lack enough protein because they eat mostly vegetarian food.
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However, instead of reformulating its products to add additional protein, Kesavan says Heritage would concentrate more on preserving the flavor of its products.
"Taste is more important than loud claims," he said.