After announcing an initial price hike, Amritanshu Khaitan, ED, Eveready India says the company will now adopt a wait and watch approach and see how margins and the rupee behaves, and then take a call on further price hikes. Talking to CNBC-TV18, he says that as the price hike is marginal at Rs 5 on a pack of 10 batteries, he does not expect any contraction in demand.
Here is the edited transcript of the interview with CNBC-TV18
Q: You spoke to us on Tuesday, and mentioned that you will hike prices. You have announced them. Do you need to further increase prices, because that time you told us that you will need to increase prices maybe by more than 5-10 percent?
A: This price increase which we are taking is in our rubber layer category and this should be implemented in the next one to two months as and when our inventories get depleted of the current MRP stocks. We will then wait and watch and see how our margins are and how the rupee behaves and also if we require to take further increases. We would then do that in the second half of the year.
Q: Do you usually encounter demand resistance when you raise prices?
A: We sometimes do get a little bit of resistance, but if you see the quantum of increase it is pretty marginal. In the sense it is Rs 5 on a pack of 10 batteries which is actually only 50 paise. There could be a little bit of destocking for a month or two because of the wholesale market, but otherwise we do not expect any demand contraction to take place.