FMCG Giants Gear Up for Another Round of Price Hikes and Shrinkflation

Leading FMCG companies in India are preparing for another round of price hikes and shrinkflation strategies to cope with rising commodity costs. The sector implemented average price increases of 2-5% during the June quarter.

Britannia, a major bakery firm, plans to raise prices by 1.5-2% in the current quarter, mainly through shrinkflation on its Rs 5 and Rs 10 biscuit packs due to higher sugar and palm oil costs.

Hindustan Unilever (HUL) projects sequential inflation to rise by 2-5% in the September quarter compared to the April-June period. The company implemented price hikes of 2-5% in the first quarter and plans calibrated pricing to defend its margins and volume-led growth.

Godrej Consumer Products (GCPL) might deploy a comparable increase in the current quarter, contingent on commodity cost trajectories. GCPL is holding back on larger increases due to crude oil volatility, as input costs trail crude price changes by three to four weeks.