Daily item prices may rise: Britannia, HUL, Dabur and Tata Consumer plan hikes

FMCG companies including Britannia, HUL, Dabur, Godrej Consumer and Tata Consumer are weighing September price hikes and shrinkflation. For shoppers, the impact may appear either as higher prices or less product at the same price.Dabur sees volume pressure as inflation pushes price and revenue growth. (Photo: PTI) Households could see a rise in montly budget as daily items face another round of price increases in the September quarter as companies grapple with elevated commodity costs, geopolitical uncertainty and rising input inflation, reported news agency PTI.The FMCG sector, which had already implemented average price hikes of around 2-5% in the June quarter, is now looking at further calibrated increases. Companies are also considering shrinkflation, reducing the quantity or grammage of products while keeping the price point unchanged, to protect margins without sharply raising the price consumers see on the pack.Companies are also keeping a close watch on inflation, crude oil prices and weather-related risks, including the monsoon and El Nino, as they decide how much of the higher input costs can be passed on to consumers.BRITANNIA MAY REDUCE NET WEIGHT OF RS 5, RS 10 PACKSBritannia Industries is preparing for another 1.5-2% pricing action in the September quarter, mainly through shrinkflation in its Rs 5 and Rs 10 biscuit packs, as sugar and palm oil prices remain elevated. The company had already relied on shrinkflation to drive pricing-led growth in the June quarter and has indicated that more pricing action could follow."If the overall impact was 1 per cent, you would probably see maybe another 1.5-2 per cent coming in," Britannia MD and CEO Rakshit Hargave said in the earnings call, as quoted by PTI. At the same time, Britannia remains positive about demand. Hargave said the "demand environment is strong" and that the trend remained good. The company expects to preserve its FY27 EBITDA margins at least at FY26 levels if input costs remain elevated.For consumers, the pricing action may not necessarily mean a higher MRP. If the grammage of a Rs 5 or Rs 10 packet is reduced, the consumer pays the same amount but receives less product.HUL SEES 2-5% INFLATION IN SEPTEMBER QUARTERHindustan Unilever is also expected to raise prices across multiple product categories in the September quarter.HUL expects sequential inflation of 2-5% compared with the April-June quarter and plans to continue with "calibrated" pricing action to offset inflation while protecting volume-led growth.HUL CEO and Managing Director Priya Nair said the company expects inflation to rise sequentially in the September quarter."Between the September quarter versus June quarter, we see sequential inflation, which could range between 2 to 5 per cent. We will continue to take calibrated pricing into the quarter, depending on how inflation pans out," Nair said, as quoted by PTI.HUL had already raised prices by 2-5% in the June quarter.DABUR SAYS INFLATION IS ALREADY HITTING VOLUMESDabur India also expects elevated input costs to persist in the near term and plans calibrated price increases, along with productivity and cost-efficiency measures to protect margins.Dabur India Global Chief Executive Officer Mohit Malhotra said the company's growth would increasingly be driven by revenue and pricing as inflation forces it to pass higher costs on to consumers."The growth will be more driven by revenue and price. Because of inflation, we had to pass it on to the consumer. Price growth and value growth are becoming higher than volume growth. Volumes will be under pressure as the inflation is too much," Malhotra said in the earnings call, as quoted by PTI.Dabur remains confident of delivering double-digit revenue growth in FY27, supported by its brands, innovation pipeline and execution. However, the company continues to monitor rising costs linked to geopolitical uncertainty.GODREJ CONSUMER MAY TAKE ANOTHER HIKEGodrej Consumer Products, which took an average price increase of around 5% in the June quarter, may also implement another increase in the September quarter.However, the company is waiting for greater clarity on commodity costs before taking further pricing action.CEO Sudhir Sitapati said the company had held back from taking larger price increases because of volatility in crude oil prices."No... We may get a similar kind of price increase in Q2 as well," Sitapati said, as quoted by PTI.Several input costs for Godrej Consumer are linked to crude oil and generally reflect changes in crude prices with a lag of three to four weeks.With Brent crude currently around $80-$85 a barrel, the company believes its existing pricing is broadly adequate and does not see the need for a significant additional increase at present.TATA CONSUMER MAY RAISE PRICESTata Consumer Products has also indicated that it could take further pricing action if input costs remain elevated.Managing Director Sunil D'Souza said the company could make further pricing interventions because costs have remained dynamic."If need be, we will also make further pricing interventions because the cost has been fairly dynamic and we are also coming to terms with the exact inflationary impact on the margins," D'Souza said in the earnings call, as quoted by PTI.However, Tata Consumer does not want to move ahead with price increases that are not supported by actual cost pressures. The company also continues to monitor the impact of the West Asia situation.Tata Consumer is targeting mid- to high-single-digit growth.SHRINKFLATION COULD BECOME THE QUIETER PRICE HIKEThe use of shrinkflation is emerging as an important way for FMCG companies to manage inflation without immediately raising the MRP of popular products.For products sold at low price points, such as Rs 5 and Rs 10 packs, a visible price increase can have a stronger impact on consumer behaviour. Reducing grammage allows companies to preserve the price point while effectively increasing the price paid per gram.Britannia is already using this strategy for smaller biscuit packs, while the broader sector is combining shrinkflation with selective pricing actions to protect margins.This means consumers may need to look beyond the MRP when comparing prices. A packet that still costs Rs 10 could contain less product than it did earlier.WHY ARE FMCG COMPANIES RAISING PRICES AGAIN?The immediate pressure is coming from input costs.Sugar and palm oil prices are weighing on biscuit makers, while crude oil remains an important factor for companies whose raw materials and other inputs are linked to oil prices.Geopolitical uncertainty is adding to the pressure. Companies are also watching the impact of the West Asia conflict on commodity prices and supply chains.Weather is another risk. FMCG companies are monitoring monsoon conditions and the potential impact of El Nino on rainfall and agricultural commodities.Nestle India, for instance, has identified the West Asia conflict and the potential impact of El Nino on the monsoon as key factors to monitor for growth in the food and beverage sector.- EndsPublished On: Aug 10, 2026 10:39 IST