Britannia, HUL, Dabur Plan More Price Hikes on Daily Items

Indian households may face higher expenses for everyday products in the September quarter as major fast-moving consumer goods companies consider further price increases. Britannia Industries, Hindustan Unilever, Dabur India, Godrej Consumer Products and Tata Consumer Products are evaluating calibrated hikes amid rising commodity costs, geopolitical uncertainty and input inflation.

The sector implemented average price increases of about 2 to 5 per cent during the June quarter. Companies may now raise listed prices or use shrinkflation, where the quantity of a product is reduced while its retail price remains unchanged. This approach allows manufacturers to protect margins while retaining familiar price points, particularly for smaller packages.

Britannia is preparing pricing action of about 1.5 to 2 per cent, primarily by reducing the weight of its Rs 5 and Rs 10 biscuit packets as sugar and palm oil costs remain elevated. Managing Director and CEO Rakshit Hargave said demand remained strong, while the company aims to maintain its FY27 earnings margins at least at FY26 levels.

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Hindustan Unilever expects sequential inflation of 2 to 5 per cent compared with the April-June quarter. CEO and Managing Director Priya Nair said the company would continue taking calibrated pricing measures depending on how inflation develops. Dabur also plans selective increases and efficiency measures, with CEO Mohit Malhotra warning that higher prices could pressure sales volumes.

Godrej Consumer, which raised prices by an average of about 5 per cent in the June quarter, may take similar action after gaining greater clarity on commodity costs. CEO Sudhir Sitapati said crude-linked input prices generally respond with a three-to-four-week delay. Tata Consumer also indicated that it could intervene further if actual cost pressures continue to affect margins.

Companies are monitoring crude oil, the West Asia conflict, supply chains, monsoon conditions and the potential effects of El Nino on agricultural commodities. For consumers, the impact may appear either as a higher maximum retail price or less product for the same amount. Shoppers may therefore need to compare package weight alongside price when assessing value.

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