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Dec, 04 2015

Dabur expects juice sales dip 10-15% on supply issues

\"We have lost some part of juice sale in October and November, 2015 and estimated juice sale during Q3 of FY2015-16 will be lower by 10 to 15 per cent against previous year\", said Dabur in a BSE filing.

Dabur has become the first major private Indian company to be hit by prevailing political tension in Nepal as the home-grown FMCG giant is expecting its juice sales to dip 10-15 per cent in October-November due to disruption of supplies from its plant in the Himalayan nation, reported PTI.

"We have lost some part of juice sale in October and November, 2015 and estimated juice sale during Q3 of FY2015-16 will be lower by 10 to 15 per cent against previous year. This is a onetime issue beyond our control and will have a near term impact on Q3 FY2015-16 performance," said Dabur in a BSE filing.

There is no improvement in the eco-political situation in Nepal till date and the India-Nepal border continues to remain closed, it added.

Dabur has a plant at Birgunj in Nepal, which is currently catering only the domestic market there as it is unable to send supplies across the border. The company also says it has made alternate arrangements to overcome the hurdle.

"We had already ramped up the production of juices in Sri Lanka and Newai, Rajasthan and have also engaged with third parties to cater to our demand requirement for the month of December and going forward," said Dabur.

An overall implication is that the company said depending upon the timing of opening of the border, the impact on inventory and other cost will be evaluated.

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