P&G, J&J cut sanitary napkin prices by 2-3%

Mumbai: Leading sanitary napkin makers Procter & Gamble (P&G) and Johnson & Johnson (J&J) on Friday passed on to consumers the benefits of the GST exemption on feminine hygiene products. The price reduction is said to be in the range of 2-3% across stock keeping units (SKUs), which is the benefit these companies received after offsetting input tax credit, said industry sources.

The GST exemption came into effect on Friday (July 27). Although the exact price reduction on SKUs is not known, a J&J spokesperson confirmed that the company has rolled out price cuts on sanitary napkins.

A P&G spokesperson said, “As a responsible corporate, P&G is committed to passing the net help of GST rate reduction to customers. We have updated our systems and are passing net benefits to the trade starting today. We have also expedited processes for MRP (maximum retail price) reduction on packs, which will start hitting stores in a few weeks.”

P&G said it is communicating the price reduction to all its trade partners, modern retail partners and distributors. “We will also communicate the price reduction via advertising in mass media to help increase awareness among consumers, shoppers and retailers,” the spokesperson said.

In its Friday (July 27) edition, TOI had reported that in the absence of input tax credit, the extent of price reductions on sanitary napkins would be much lower (up to 2.5%) than what was anticipated (12%).

Industry experts said it can take anywhere between three and five months for a new MRP to take effect in the market across the supply chain. When accelerated, the process can be accomplished in a few weeks. The Rs 4,500-crore sanitary protection market is under-penetrated in India, creating huge room for growth.

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