FMCG Companies to Raise Prices Amid Inflationary Pressures

FMCG companies are bracing for another round of price increases amid inflationary pressures, with executives indicating ongoing price hikes or readiness to raise prices further. The companies, including Dabur India, Britannia, and HUL, are citing inflationary pressure from volatile crude oil prices, higher logistics costs, currency depreciation, and disruptions in global supply chains.

Dabur India Global CEO Mohit Malhotra said the company is facing 10% inflation this fiscal and has initiated price increases to cushion the impact. Britannia has also indicated imminent price hikes to offset a nearly 20% rise in fuel and packaging costs due to geopolitical developments.

HUL CFO Niranjan Gupta said the company has seen a cost inflation of around 8%-10% so far and has already taken a price increase to the extent of 2%-5% depending on the portfolio. Pidilite Industries is bracing for another round of price hikes, having already raised prices twice this year.

The price increases will affect daily essential products, and consumers are expected to bear part of the burden through calibrated price hikes and reduced grammage. The companies are focusing on price elasticity and internal cost efficiencies to cushion the impact.

The court will not be involved in this matter, but the companies will continue to evaluate the cost environment and undertake further pricing interventions if required. The immediate next steps will be for the companies to implement the price hikes and for consumers to adjust to the new prices.