Heritage Foods, a leading Indian dairy company, is set to increase the prices of its dairy products—including milk and paneer—by 2% to 4% during the current financial year to mitigate the impact of escalating input costs.
The price hike, which will apply across the company’s product portfolio, comes in response to rising fuel and raw material expenses. “The price increase will be across the board, not specifically on milk,” said Srideep Kesavan, CEO of Heritage Foods. “It will also apply to paneer and other dairy products as we aim to balance the cost pressures we’re currently facing.”
A one-litre pouch of Heritage toned milk, currently priced at ₹53, will see an increase of ₹1 to ₹2 in the coming months.
This move mirrors a broader trend among major consumer goods firms like Nestle India and Godrej Consumer Products, which are grappling with the dual challenges of higher production costs and sluggish consumer demand.
Despite inflationary pressures, Heritage Foods is pushing forward with growth plans. The company aims to expand its retail presence to 350,000 outlets by the end of this year, up from 250,000 currently. This includes deeper penetration in existing markets such as Chennai, reinforcing its stronghold in southern India.
The price adjustment comes after the company’s earlier hike this year—its first in nearly two years—indicating the cumulative pressure on dairy firms in managing margins amid volatile input markets.
According to government data, prices for milk and milk products rose by 2.6%–2.9% in the January–March 2025 quarter, still below overall inflation levels.
While several dairy brands are leaning into the growing health consciousness of Indian consumers by fortifying products with added protein, Heritage is taking a different route. Kesavan emphasized the company’s focus on taste as its core differentiator.
“Taste is more important than loud claims,” he said, signaling that the brand will not aggressively pursue protein-enriched offerings despite rising awareness around protein deficiency in India’s predominantly vegetarian population.