Daily necessities are going to become expensive. Fast-moving consumer goods or FMCG goods are going to become expensive in the country soon. Due to the increase in raw material prices due to the war, the expenses of companies have increased. Keeping this in mind, major FMCG companies are planning to increase their product prices in the current quarter. Earlier, in the April-June period, companies had increased product prices by 2 to 5%. Companies are not only increasing prices, but also reducing the weight of the package even if the product price is the same (shrinkflation).
According to the companies, margins have been affected due to the increase in prices of palm oil, sugar, and crude oil. Companies like Hindustan Unilever, ITC, Nestle, Dabur, Britannia, among others, are active in such product sectors. The country’s leading bakery and snack company Britannia may increase product prices by 2% in the current quarter as it plans to reduce packets. The impact of this can be seen in the company’s biscuits priced between Rs 5 and Rs 10. The company’s MD and CEO Rohit Hargve said that sugar and palm oil prices have gone up. In the previous quarter, growth was mostly dependent on shrinking.
This trend will have to continue in the current quarter. On the other hand, market demand has also improved. Hindustan Unilever is also considering increasing the prices of its various products. It may increase prices by 2-5% in the September quarter compared to the June quarter. Godrej Consumer Products Limited increased prices by 5% in the June quarter. The company has not yet decided on any such large-scale price hike in the current quarter. It is waiting for the commodity market to stabilize. The company’s CEO Sudhir Sitapati said that the company’s various input costs depend on crude oil. Crude oil will not require a big price hike at the current level. The revenue target can be achieved easily.
Dabur India’s global CEO Mohit Malhotra said that concerns about rising crude oil prices may continue in the coming days. Companies will be forced to increase prices in such a situation. Tata Consumer Products Limited MD Sunil D’Souza said that the company will increase prices further if necessary. Nestle India said that the Middle East war and the impact of El Nino have become a concern for the food and beverage sector. Even after the price hike, the companies remain optimistic that demand will remain strong in both rural and urban areas. The company is focusing on reducing their operating costs, increasing production, and increasing premium products, which will enable them to maintain margins in the 2026-27 period.
