Major FMCG companies are signaling readiness to raise prices further after recent hikes of 3 to 5 percent, citing mounting cost pressures from volatile crude oil prices, higher packaging and fuel expenses, and currency depreciation driven by geopolitical disruptions.
Dabur India Global CEO Mohit Malhotra said the company faces 10 percent inflation this fiscal and has already implemented a 4 percent price increase across the business. Britannia, the bakery and biscuits maker, is confronting nearly 20 percent rises in fuel and packaging costs and signaled both direct price increases and grammage reductions for packs above Rs 10. Its Managing Director Rakshit Hargave cited laminate price hikes and reliance on LPG and PNG as major cost drivers.
HUL has seen 8 to 10 percent cost inflation on material and has taken price increases of 2 to 5 percent depending on portfolio. CFO Niranjan Gupta said the company will undertake further pricing interventions if necessary. Pidilite Industries, owner of Fevicol and Dr Fixit, 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, according to Managing Director Sudhanshu Vats.
Marico has taken price hikes of about 6 to 7 percent in its Value Added Hair Oils portfolio through calibrated pricing actions. In beverages, Varun Beverages noted that companies have started cutting discounts rather than raising prices, but further action could follow if fuel costs climb further.
Companies are also balancing margin pressures through internal efficiency measures such as trimming discounts and promotions, tightening inventory management, and streamlining supply chains. Smaller pack sizes at Rs 5, 10 or 15 remain in market to maintain sales volumes.