FMCG Makers Plan Q2 Price Hikes of 2-5% as Britannia Pushes 1.5-2% Shrinkflation

3 articles · Updated · dailypioneer.com · Aug 9

Britannia, HUL, Dabur, Godrej Consumer and Tata Consumer signaled fresh September-quarter price actions, with companies using selective hikes and smaller pack sizes to defend margins against persistent cost inflation.
Britannia expects another 1.5-2% pricing gain through shrinkflation in Rs 5 and Rs 10 biscuit packs, while HUL sees sequential inflation of 2-5% and says it will keep pricing calibrated.
Godrej Consumer, after about 5% June-quarter hikes, is holding off on a large new increase until crude-linked input costs become clearer; Brent at about $80-$85 a barrel is seen as broadly manageable for now.
Dabur said price and value growth are now outpacing volume growth as inflation squeezes consumers, while Nestle warned overall consumption could moderate in the short term.
Geopolitical tensions in West Asia, commodity inflation and weather risks including monsoon disruption and El Nino are keeping the sector cautious even as companies still cite resilient demand and premiumisation.