3 weeks ago

Britannia, HUL, Dabur, Godrej to Raise Prices in September Quarter

Britannia, HUL, Dabur, Godrej to Raise Prices in September Quarter
Britannia, HUL, Dabur, Godrej Consumer may raise prices in September quarter: Report · livemint.com

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.

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

Sources

Related news