Leading FMCG companies signaled further price increases across earnings calls this week, citing inflationary pressure from volatile crude oil prices, higher logistics costs, currency depreciation, and global supply chain disruptions tied to geopolitical tensions.
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 its business, with plans for more calibrated hikes. HUL CFO Niranjan Gupta reported cost inflation of around 8 to 10 percent on material costs, against which the company has taken price increases of 2 to 5 percent depending on portfolio, and flagged readiness for further intervention if commodity pressures persist.
Britannia faces nearly a 20 percent rise in fuel and packaging costs and indicated it will pursue both direct price increases and grammage reduction, particularly on packs above Rs 10. Pidilite Industries 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. Marico has taken price hikes of about 6 to 7 percent in its Value Added Hair Oils portfolio.
Beyond direct price increases, FMCG companies are deploying multiple levers to protect margins. These include shrinking pack sizes while retaining popular smaller SKUs of Rs 5, 10, or 15, trimming discounts and promotions, tightening inventory management, and streamlining supply chains. Varun Beverages noted that companies in the water and beverages segment have begun cutting discounts rather than raising prices directly, with further reductions possible if fuel costs climb.