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According to a report, Britannia Industries Managing Director Varun Berry said in an analyst call that the inflation rate is expected to remain between 4-5 percent in the coming months and if that happens, we will have to increase. In an analyst call after the first quarter results, Britannia MD said bluntly – “We have done what we could. We have not raised prices for a long time but now is the time to start consolidation.”
Dabur India Limited hints at raising rates in food business
Dabur Chief Executive Mohit Malhotra said that due to rising food inflation, we may have to increase some prices in our food business. This increase can be up to 2 percent. Let us tell you that Dabur has increased the prices of healthcare products by 6 percent in the first quarter of the current financial year. While prices in the home and personal category have increased by 1.5 percent.
Parle Products also started increasing prices
Mayank Shah, Vice President of Parle Products, has also admitted that due to the increase in the prices of sugar and cocoa, they will also have to make their products expensive. The company has already increased the prices of some of its brands. Sugar, flour and cocoa are the main raw materials for the company and due to the increase in inflation rate, the path of rate hike will have to be adopted. However, this increase will not be as much as it should have been due to the Covid crisis.
What does HUL say?
According to Hindustan Unilever, prices of most items will remain stable except tea leaves. In an analyst call, top HUL officials said that we cannot give any guarantee on tea, but prices may remain in single digits in the remaining months of this financial year.
Mondelez India Foods Pvt Ltd
Just last week, Mondelez Global Chairman and CEO Dirk van de Put had said that food inflation will impact the household costs of lower and middle class families. Mondelez India is famous for popular chocolate brands like Cadbury Dairy Milk and Toblerone.
Why are FMCG companies going to increase prices- know the reason
-Britannia, Parle, Dabur and Mondelez are planning to increase prices of their products by 4-10 per cent soon.
-The prices of cocoa, flour and sugar have increased which has increased the cost of their products and now companies are ready to increase the prices.
-For a long time, i.e. for several quarters, FMCG companies kept postponing the decision to increase prices to boost demand. Now the burden of rising food costs and increase in global commodity prices will have to be passed on to the consumers.
How much have the prices of flour, sugar and cocoa increased so far?
-Flour prices for packaged food companies have increased by 20 per cent in two years.
-Sugar prices have increased by 40 percent in two years.
-The price of flour for packaged food companies has increased by 60 percent in two years.
Why did prices come down after the Covid period?
The FMCG industry faced a lack of demand in the post-Covid period, with prices increasing by almost a quarter in the two years following Covid to compensate for higher input costs. Now that consumers are clearly opting for cheaper products, prices have been cut in the last four quarters.
The future of FMCG sector is bright
According to a recent report by Crisil, the FMCG sector in India will be able to achieve a growth of 7-9 percent this financial year. If you have paid attention, remember that when the Indian stock market crashed on the day of the country's Lok Sabha election results on June 4, only the FMCG sector rose. The momentum of volume growth will continue due to strong urban demand and an increase in rural demand. People will remain interested in regional or local brands, especially in the case of tea, snacks and biscuits because their prices are low.
