FMCG price hikes back in focus: How Dabur, HUL, Tata Consumer are navigating cost pressures

Data show that the NIFTY FMCG index has rallied over 5% over the past one month. In comparison, the benchmark NIFTY50 index has slipped over 2% during the window.

Barring ITC, almost all FMCG companies have unveiled their March quarter earnings, and the numbers broadly have been encouraging; however, management commentaries have cited the West Asia crisis as the key headwind that needs to be monitored.

Given this scenario, leading FMCG companies are preparing for another round of price increases on account of rising crude-linked inflation, higher packaging costs, and fuel expenses from geopolitical disruptions that are squeezing margins.

According to a recent PTI report, the executives of FMCG makers, which have already gone for recent price hikes of around 3% to 5%, in their latest earnings calls have indicated either ongoing price increases or readiness to raise prices further, citing inflationary pressure arising from volatile crude oil prices, higher logistics costs, currency depreciation, and disruptions in global supply chains amid geopolitical tensions.

This pressure is being felt across sectors, including food, personal care, beverages, and household products, as FMCG companies are attempting to balance their margins and are resorting to either price hikes or shrinking pack sizes, retaining the popular smaller SKUs of ₹5, ₹10, or ₹15 in the market, to maintain sales volumes.

Though FMCG companies are focusing on price elasticity and internal cost efficiencies, such as trimming discounts and promotions, tightening inventory management, and streamlining supply chains to cushion the impact, consumers are still expected to bear part of the burden through calibrated price hikes and reduced grammage.

Dabur

Home-grown FMCG maker Dabur India Global CEO Mohit Malhotra said the company is already facing 10% inflation this fiscal and has initiated price increases to cushion the impact.

"We have already implemented a 4% price increase across different parts of the business to partly mitigate this impact. We are also undertaking cost rationalisation initiatives. Despite inflation picking up in the India business, we expect growth this year to be in double digits, which will be a mix of both value growth through price increases along with volume growth," said Dabur India Global CEO Mohit Malhotra.

Britannia Industries

Leading bakery products and biscuits maker Britannia has also indicated imminent price hikes to offset nearly a 20% rise in fuel and packaging costs due to geopolitical developments.

The company, known for brands such as Good Day, Marie Gold, Milk Bikis and Tiger, is looking at both alternatives - a direct price increase and grammage reduction, said its Managing Director and CEO, Rakshit Hargave.

"Yes, selectively, we will have to take price increases. And this includes both grammage adjustment and some of the packs which are above Rs 10, some kind of a price increase," the CEO said while replying to a query. With a larger pack size, prices will increase.

Besides rising fuel costs, higher prices of laminates used in packaging are also a major pain point. Moreover, the company relies on LPG and PNG, whose inflationary impact is directly visible in operating costs, Hargave added.

HUL

Leading FMCG maker HUL, which has popular brands such as Surf Excel, Brooke Bond, Lifebuoy, Dove, Clinic Plus, Sunsilk, Lakme, also signalled more price hikes if commodity pressures persist.

"We have seen a cost inflation of around 8% to 10% so far on our material cost base. Against that, we have already taken a price increase to the extent of 2% to 5% depending on portfolio to portfolio," said HUL CFO Niranjan Gupta.

Crude oil-linked supply chains have been disrupted, pushing up commodity prices, while continued currency depreciation has further raised input costs, he said, adding the company will continue to evaluate the cost environment and undertake further pricing interventions if required.

"And as we navigate this, depending on how the costs pan out, we will be taking further price increases as may be necessary," Gupta added.

Varun Beverages

In the beverages segment, Varun Beverages Chairperson Ravi Jaipuria said companies selling packaged water and beverages have already started cutting discounts amid rising costs, while further action could follow if fuel prices climb.

"We see the B-brands and the other players selling water; they have not increased the price, but they have reduced the discounts," Jaipuria said.

Jaipuria said the company remains covered for raw material requirements for the current quarter, but gasoline prices remain a vulnerable area.

"If the prices go up, then we will further reduce our discounting to some level," Jaipuria said.

Marico

Marico MD & CEO Saugata Gupta said while the company is benefiting from softer copra prices, cost pressures are being mitigated through "calibrated pricing actions" and cost management initiatives.

The company, which owns brands such as Parachute, Saffola, and Livon, has already taken price hikes of about 6%-7% in its Value Added Hair Oils portfolio.

Tata Consumer Products

Tata Consumer Products Ltd Managing Director and CEO Sunil D'Souza also pointed to rising packaging and LPG-linked costs, although he said margin pressures remain manageable for now because of the company's diversified portfolio.

Nestle India

Nestle India Chairman and Managing Director Manish Tiwary said times are volatile and difficult for anyone to predict what's going to happen even two months down the line.

"So, that is something which we have to be ready for. So, that's a little bit of a yellow flag in the future which we see," Tiwary said.

India's FMCG sector

The Indian FMCG market generated revenue of ₹25 lakh crore (US$ 289.1 billion) in 2025 and is expected to grow at a compound annual growth rate (CAGR) of 17.3% through 2025–30, reaching nearly US$ 642.87 billion by 2030.

In 2025, the urban segment contributed 62% while rural India accounted for more than 38% of annual FMCG sales, highlighting the importance of both markets in driving growth, according to a report by India Brand Equity Foundation (IBEF).