Is HUL profiteering on Kisan ketchup
Can someone check HUL Kisan tomato ketchup product if base rate has been increased by the company to not pass the benefit of GST rate to consumers. more
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There is sufficient reason to suspect at least the possibility that HUL may have used mechanisms (e.g., base price inflation, ingredient change) that could be considered profiteering. However, there is not yet firm public evidence specific to the Kissan ketchup product that shows how much benefit (tax reduction, input cost reduction) occurred and whether the consumer price fully passed it on. Given the recent price cut, HUL appears to be complying currently — which is a positive sign. But past behaviour may still need scrutiny (especially if you purchased earlier and observed price/size changes). more
Oct 30
There is precedent that HUL was found by the National Anti‑Profiteering Authority (NAA) of not passing on benefits of GST rate cuts to consumers: for example, in 2018 the NAA found HUL had “undue profits” of ~₹535 crore by not reducing prices/benefits for consumers after tax‑cuts. An older article pointed out that, in the ketchup/ sauce category, the tomato‑paste content of Kissan ketchup had been reduced (from ~28% to ~22.5%) in response to cost pressures. Reducing ingredient quality or quantity while holding price can suggest hidden margin increases. If you see that the base cost or MRP has been raised even when tax rates have fallen, that is precisely the sort of mechanism “profiteering” would work through (increase base price, keep final price same, capturing margin). For example the 2018 case of HUL’s dealer increasing base price after GST cuts. more
Oct 30
Every business is profiteering in the guise of reduced GST. Haven't seen a drop in price of any of the common items or services. more
Oct 04
I think HUL's profitability is on the decline because of competition from Indian Companies. As suggested by Ashok Ashok a complaint should be lodged with GST Grievance Council at the earlist and supported by Local Circle. more
Oct 03
The malls have passed on the benefit but the kirana stores havenot. And they say unless the old stock is exausted and fresh stock arrives they will stick to old prices. This is in Pune more
Oct 03
