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Kolkata-based hosiery brand Dollar Industries Ltd. had effected a price hike on its products for the fifth time during the current fiscal to combat a sharp increase in raw material and other costs, said a top official.
“Since November 2020, every month we have been effecting a price hike ranging from 1-1.5% to 4%. On Monday, Dollar announced a price hike of 1.5%,” said Vinod Kumar Gupta, MD.
Justifying the price increase, he said the prices of cotton had risen by 30% in recent times and that of yarn by 40-45%. This led to a 15% increase in the cost of finished products and it was completely passed on to the channels.
Besides, Dollar there was an increase in packaging material, freight, chemicals and dyes’ cost, inflation, rise in minimum wages and labour costs.
“We have written to the Union Finance Minister and Union Textile Minister seeking intervention as a steep rise in prices of cotton and yarn are affecting most of the MSMEs. Small players in West Bengal are in deep trouble due to raw material shortage and production is hit by 50%. Some of them, may be forced to close down their units,” he said.
Mr. Gupta said that he was not certain about the drop in yarn prices in the near future and hinted the industry might go in for another set of price hike by April 2021.
Despite the 45-day lockdown, the company might end the current fiscal with a 10-12% growth over the last fiscal’s total revenue of ₹974 crore. Dollar’s plans of reaching a turnover of ₹2,000 crore has been delayed to March 2025 due to CoVID-19, he said.
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