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India’s FMCG Giants Set to Lift Prices as Costs Surge

Executives signal calibrated hikes to defend margins under rising crude-linked input costs.

Overview

  • India’s biggest consumer-goods makers said they are preparing fresh price hikes on soaps, detergents, biscuits and beverages to offset higher crude-linked, packaging and fuel costs.
  • Dabur reported about 10% inflation this year and has lifted prices by 4% across parts of its business.
  • Hindustan Unilever said material costs are up 8% to 10% and it has raised prices by 2% to 5%, with further action possible if costs do not ease.
  • Britannia flagged a near 20% jump in fuel and packaging costs and plans selective hikes and grammage cuts, while Pidilite faces a 40% to 50% input surge and has already raised prices twice.
  • Beverage makers are trimming discounts instead of list prices and holding popular Rs 5, Rs 10 and Rs 15 packs, as crude-linked polymers used in packaging have jumped 60% to 70% since the Iran conflict, prompting redesigns and more local sourcing.