Britannia Industries Ltd., led by Executive Vice-Chairman and Managing Director Varun Berry, has announced plans for a cautious approach to price hikes over the next nine months, aiming to strike a balance between pricing and volume growth.
With concerns over volume pressures, Berry indicated that any decision to adjust prices would be carefully considered, ensuring the brand remains accessible to consumers while managing rising input costs.
The company expects a 4-5% price increase in the upcoming quarters, responding to inflationary pressures, but with a strategy to maintain demand. This deliberate approach reflects Britannia's focus on sustaining market share, where the need for price adjustments will be weighed against the impact on consumer volumes, Berry emphasised.
Notably, Britannia's restraint from taking price hikes in recent quarters has helped it maintain better volumes than the industry, achieving high single-digit to early double-digit growth. This approach has positioned the company favourably, even as other players in the sector faced volume pressures due to inflationary trends.
Several FMCG companies have announced price hikes in the second quarter, to counter rising input costs, with managements across the sector indicating that additional price increases may follow if raw material prices stay elevated. This cautious yet responsive approach reflects the industry's need to manage margin pressures while balancing consumer demand in a challenging inflationary environment.
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