India's FMCG Firms Hike Prices Amid Input Cost Pressures
FMCG firms in India are signaling price hikes in Q2 as input cost pressures persist. Despite resilient demand, companies like Britannia and Godrej Consumer Products Ltd (GCPL) are implementing calibrated price increases to protect margins.
Britannia expects to add another 1.5-2% in pricing through 'shrinkflation' in its biscuit packs, while GCPL may implement a hike in the current quarter. Dabur India and Hindustan Unilever Ltd (HUL) are also expected to raise prices across multiple product categories.
The companies are taking a cautious approach due to inflationary pressures, crude oil volatility, and weather-related risks such as the monsoon and El Nino. However, they remain optimistic about demand, citing resilient consumption trends, premiumisation, and improved revenue growth.