- FMCG companies plan further price hikes on essentials.
- Rising raw material costs, supply chain issues cited.
- Dabur, Britannia, HUL considering price adjustments.
FMCG Price Hike: Everyday essentials, such as soaps, detergents, biscuits, packaged foods and beverages are likely to become more expensive as major FMCG companies consider further price hikes to offset rising production costs. Following recent quarterly reports, industry officials indicated that prices have already climbed by 3 to 5 per cent across several categories.
According to a report by Jagran.com, if pressure on profit margins persists, companies are expected to implement further increases. However, these adjustments will likely be introduced gradually.
FMCG Firms May Increase Price Due To THESE Reasons
- According to leading FMCG companies, ongoing tensions in the Middle East have disrupted global supply chains, leading to increased costs for raw materials, logistics, and packaging.
- These challenges, compounded by a weakening rupee, are putting significant pressure on profit margins.
As a result, major FMCG companies are expected to increase prices across several sectors, including food products, personal care, beverages and household appliances.
How FMCG Companies Are Dealing With Rising Costs?
To protect profitability against rising costs, FMCF companies are adopting several strategies, including:
- Leading FMCG firms have already implemented price increases of 3 to 5 per cent and may introduce further hikes if pressures on profit margins persist.
- Additionally, many brands are reducing the quantity of products on the pack while keeping the retail price, such as Rs 5, Rs 10 and Rs 15 unchanged.
- Companies are reducing non-essential promotional expenses, strengthening storage management, and making the supply chain more efficient to absorb as much of the input cost as possible before passing it on to consumers.
Dabur Is Facing 10% Inflation
According to Dabur India's Global CEO, Mohit Malhotra, the company is facing an inflation of approximately 10 per cent this financial year. To reduce the impact of inflation, the company has increased prices by an average of 4 per cent across its various business segments.
Dabur is pursuing internal cost-control measures to reduce pressure on profit margins.
Britannia Considers Price Hikes, Weight Adjustments
Britannia, which owns brands like Good Day, Milk Bikis and Tiger, indicated that consumers may soon see price hikes due to an increase in fuel and packaging costs by 20 per cent. According to MD and CEO Rakshit Hargev, the company is weighing two options: direct price increases and a reduction in pack weights.
HUL Signals Price Hikes
Hindustan Unilever (HUL) has indicated that it may implement further price increases if commodity price pressures persist. HUL owns major brands, including Surf Excel, Brooke Bond, Lifebuoy, Dove, Clinic Plus, Sunsilk, and Lakme.
(With Jagran.com Inputs)