- Nestle has reduced Maggi noodles packet weight by up to 9% due to rising costs
- Retail prices for Maggi noodles remain unchanged despite the grammage reduction
- Packet sizes from Rs 7 to Rs 120 have seen grammage cuts ranging from 7% to 9%
Nestlé India has reduced the grammage of its flagship Maggi noodles by 7-9% across multiple pack sizes while keeping maximum retail prices (MRPs) unchanged, according to distributor checks by NDTV Profit in June.The move comes as the company faces higher input costs, particularly from palm oil and packaging materials.
The grammage reduction spans almost the entire Maggi portfolio. The Rs 7 pack has been reduced from 35 grams to 32 grams, a cut of around 9%. The Rs 12 pack has been reduced from 52 grams to 48 grams, while the Rs 15 pack has been trimmed from 75 grams to 70 grams. Larger packs have also seen similar reductions, with the Rs 30 pack reduced from 150 grams to 140 grams, the Rs 60 pack from 300 grams to 280 grams, the Rs 90 pack from 450 grams to 420 grams, and the Rs 120 pack from 600 grams to 560 grams. Except for the smallest pack, most of the revisions translate to a grammage reduction of about 7%.
The move comes at a time when FMCG companies are facing renewed cost pressures following a sharp rise in palm oil prices and higher packaging costs. Analysts say companies are now consuming raw material inventories that were procured at elevated prices, resulting in margin pressure.
Rather than immediately passing on the higher costs through price hikes, Nestlé has opted to reduce pack sizes, .The approach allows companies to maintain affordable price points, particularly in the mass market where even small price increases can impact consumer demand.
Maggi remains one of Nestlé India's most important brands. Industry estimates suggest the instant noodle franchise contributes nearly 25% of the company's overall revenue and enjoys EBITDA margins of around 25%, making it a key profitability driver for the company.
Responding to NDTV Profit's queries, Nestlé India said grammage adjustments are part of its broader strategy to manage inflationary pressures while protecting consumer value.
"We continuously review our portfolio to balance the consumer proposition. Grammage adjustment is one of the routes for optimizing various levers," the company said.
Nestlé added that increasing prices is considered only after exhausting other cost-management initiatives.
"Pricing is always the last lever. We first drive efficiencies, strategic buying, portfolio choices and capacity optimization. Only after these are evaluated do we consider pricing or pack-size changes, and always with caution," the company said.
The move comes as several FMCG companies have resorted to a combination of selective price hikes and grammage reductions over the past few months to offset rising commodity costs.
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