Nestle India is considering a slight increase in product prices to mitigate the impact of rising costs in coffee, cocoa, and edible oil, a senior company executive stated on Monday. The company aims to keep the price hikes minimal to avoid a significant impact on sales volume.
Speaking at an industry conference in Mumbai, Nestlé India Managing Director Suresh Narayanan emphasized the necessity of selective price adjustments. “Wherever a price increase is essential, we will have to take some pricing action,” he said. However, he reiterated that the company intends to limit these hikes as much as possible.
Nestle India, a subsidiary of the Swiss consumer goods giant, recently reported lower-than-expected profits for the October- December quarter. The decline was attributed to reduced consumer spending in major cities and higher input costs.
Narayanan cautioned against relying on price hikes as a long-term strategy, noting that they could affect volume growth. “Price increases are not the salvation for the industry because they impact consumer demand,” he added.
Meanwhile, India’s proposed personal income tax cuts for the fiscal year 2026 are expected to increase disposable income, potentially boosting consumer spending. However, affluent consumers continue to favor quick commerce platforms such as Swiggy’s Instamart, Zomato’s Blinkit, and Zepto, which have disrupted traditional retail sales channels in urban markets.
While these platforms have gained significant market share, Narayanan expressed skepticism about their long-term sustainability, pointing out that they are still operating at a loss.
Nestlé India remains focused on balancing cost pressures while maintaining consumer demand as the company navigates the challenges posed by commodity inflation and changing market dynamics.