Major Indian FMCG companies are preparing to pass rising costs to consumers through a mix of direct price increases and shrinkflation, the practice of reducing pack size while holding the price steady.
Crude oil, LNG, and LPG volatility has lifted input costs and logistics expenses across soaps, detergents, biscuits, packaged foods, and beverages. According to company executives interviewed by PTI, firms including Dabur, Britannia, Hindustan Unilever (HUL), Pidilite, Marico, and Varun Beverages are weighing calibrated price increases, shrinkflation, or both.
Dabur India Global CEO Mohit Malhotra said the company faces 10 percent inflation this fiscal and has already implemented a 4 percent price increase. He said Dabur expects double-digit growth this year driven by both value growth through price increases and volume growth. HUL CFO Niranjan Gupta reported material cost inflation of 8 to 10 percent and noted that the company has taken price increases of 2 to 5 percent depending on portfolio, with further interventions under review if commodity pressures persist.
Britannia MD and CEO Rakshit Hargave confirmed the company is evaluating both direct price hikes and shrinkflation strategies to offset a near 20 percent rise in fuel and packaging overheads. Hargave said Britannia will adjust grammage selectively and raise prices on packs above 10 Indian rupees. Pidilite Industries has already executed two rounds of price hikes this year to address a weighted average surge of 40 to 50 percent in input costs, and is evaluating further increases while maintaining its EBITDA corridor of 20 to 24 percent.
Varun Beverages Chairperson Ravi Jaipuria said packaged-beverage sellers are cutting discounts amid rising costs, with further reductions possible if fuel prices climb. Marico MD and CEO Saugata Gupta highlighted price hikes of 6 to 7 percent in its Value Added Hair Oils portfolio. By retaining low-cost price points of 5, 10, and 15 rupees for popular products, FMCG companies aim to maintain sales volume in rural areas while allowing actual cost per gram to rise.