3 weeks ago
Britannia, HUL, Dabur, Godrej to Raise Prices in September Quarter
The companies that make biscuits, soap and shampoo in India are planning to charge a little more for them soon.
This is because the raw materials they need cost more than before.
Britannia, HUL, Dabur and Godrej are part of a group called FMCG companies, which make products people buy very often.
To deal with higher costs, they sometimes make the packet smaller instead of raising the price.
That trick is called shrinkflation — the price stays the same but you get less inside.
Britannia says it will put slightly less biscuit in some of its small packs.
Godrej is waiting to see what crude oil prices do, because many of its costs are linked to oil.
The companies still believe people want to buy their products, so they hope to keep growing.
They just need to balance prices so shoppers keep buying while they still earn enough money.
Leading Indian FMCG companies are preparing selective price increases in the September quarter as higher commodity costs and geopolitical uncertainties pressure margins.
The sector is turning toward shrinkflation, reducing grammage in some packs alongside targeted pricing measures.
Britannia expects an additional 1.5-2% pricing action in the second quarter, mainly through shrinkflation in its ₹5 and ₹10 biscuit packs, citing elevated sugar and palm oil costs.
HUL and GCPL anticipate sequential inflation of 2-5% versus the June quarter, with GCPL monitoring crude-linked costs as Brent trades around $80-$85 a barrel.
Despite inflation, the companies remain positive on consumer demand, and Dabur expects double-digit revenue growth in FY27.
- Who
- Major Indian FMCG companies including Britannia Industries, Hindustan Unilever Ltd (HUL), Dabur India and Godrej Consumer Products Ltd (GCPL)
- What
- Planning selective price increases and shrinkflation measures to protect profit margins
- Where
- India
- When
- September quarter (Q2 of FY27)
- Why
- Higher commodity costs, crude oil price volatility, geopolitical uncertainties and weather-related risks are pressuring margins
Key facts
- Sector
- FMCG (fast-moving consumer goods) in India
- Companies
- Britannia Industries, Hindustan Unilever Ltd (HUL), Dabur India, Godrej Consumer Products Ltd (GCPL)
- Planned action
- Selective price increases and shrinkflation in the September quarter
- June quarter price hikes
- Average 2-5% across the sector; GCPL raised prices by about 5%
- Britannia Q2 pricing action
- Additional 1.5-2%, mainly via shrinkflation in ₹5 and ₹10 biscuit packs
- Expected sequential inflation
- 2-5% for the September quarter versus the June quarter
- Brent crude price
- Around $80-$85 per barrel
- Dabur growth outlook
- Double-digit revenue growth expected in FY27
Quotes
Rakshit Hargave
Britannia MD and CEO
“"We had avoided larger price increases because of uncertainty surrounding crude oil prices, and with Brent crude trading around $80‑$85 a barrel, we believe our current pricing remains broadly sufficient."”
livemint.com
“"Going ahead in the quarter, you will see something more coming in. If the overall impact was 1 per cent, you would probably see maybe another 1.5-2 per cent coming in,"”
livemint.com








