Leading FMCG companies are preparing for fresh price increases across essential products including soaps, detergents, biscuits, packaged foods, and beverages. Companies have already undertaken price hikes of around 3 to 5 percent recently and are now evaluating further increases, citing volatile crude oil prices, higher logistics costs, currency depreciation, and geopolitical disruptions to global supply chains.
Dabur India's CEO Mohit Malhotra said the company is facing 10 percent inflation this fiscal and has already implemented a 4 percent price increase across different parts of the business. The company expects double-digit growth this year, which will be a mix of value growth through price increases along with volume growth.
Britannia, the bakery and biscuits maker, is contending with nearly a 20 percent rise in fuel and packaging costs due to geopolitical developments. Managing Director Rakshit Hargave indicated the company will pursue both price increases and grammage reduction, particularly for packs priced above Rs 10, alongside adjustments to package sizes.
HUL has seen cost inflation of around 8 to 10 percent on its material cost base and has already taken price increases of 2 to 5 percent depending on portfolio. CFO Niranjan Gupta said the company will undertake further pricing interventions if required as it navigates the volatile cost environment.
Pidilite Industries, which owns Fevicol, Dr Fixit, and FeviKwik, has already raised prices twice this year in April and May and is evaluating further increases to offset a weighted average surge of 40 to 50 percent in input costs.
Most companies are also pursuing cost efficiencies such as trimming discounts and promotions, tightening inventory management, and streamlining supply chains. In the beverages segment, some companies are cutting discounts rather than raising prices so far, though further action could follow if fuel prices rise.