FMCG companies battle to decrease costs with anything from light packaging to recycled cans.


NEW DELHI, INDIA: Don’t be startled if the plastic bottle of your favourite moisturiser squishes easily or if the 20 pack of your favourite chips brand seems smaller. Their producers are just employing smaller packaging to combat rising commodity, packaging, and freight costs. Companies are also utilising recycled aluminium for cans, reducing marketing and advertising budgets, and delaying new product introductions.

Parle Products, which manufactures biscuits under the Parle-G and Krack Jack brands, is searching for methods to save money by changing the carton shape, which means adding more biscuits or snacks per carton. This will help the firm save money on transportation. This follows a 7-8 per cent price increase by Parle in the past six months, which included both grammage decreases and outright price increases.

Parle is also lowering the size of its confectionery and snack package sizes. “As part of our cost-cutting initiatives, we’ve started lowering the amount of plastic we utilise in our packets.” According to Krishnarao Buddha, senior category head of Parle Products, “it’s not more practical to supply extra plastic needlessly.” This saves the firm money on packaging and shipping.

Britannia Industries, a competitor, said it is stepping up its cost-cutting efforts as the inflationary scenario appears “pretty dismal.” “. This involves shortening the distance to market and improving the efficiency of its procurement approach.

Britannia’s managing director, Varun Berry, said on a post-earnings call on 4 May that the company is implementing process automation to boost productivity, reducing the distance to market to cut costs and provide fresh products to customers, reducing wastage at the factory and in the marketplace, and moving toward a goal of using up to 60% renewable energy.

“That appears to be functioning effectively. In terms of materials, our purchasing approach is geared around ensuring that we receive the most bang for our dollars “Berry explained.

Varun Chaudhary, managing director of CG Corp Global, which produces Wai Wai noodles, said the business had to reconsider its intentions to expand into the biscuits market. “We’re re-evaluating our alternatives in light of the rising costs. “The biggest ratio of wheat and palm oil is seen in biscuits. Palm oil has achieved an all-time high in price “he commented.

PepsiCo India, a food and beverage company, said it is increasing the mix of higher revenue packs to offset the impact of rising commodity prices and inflationary pressures. “Rising input costs, especially for palm oil and paper, as well as rising freight costs, have put substantial pressure on profits,” says the firm “According to a company representative.

Brewer AB InBev has stated that the issues posed by rising raw material prices are unlikely to be resolved anytime soon. Budweiser is working with its suppliers to improve the recycled aluminium content of its cans, among other cost-cutting measures.

Because liquor prices in India are routed through state excise authorities, the beer business has limited alternatives for adjusting to rising expenses. “We see this influence throughout our supply chain, with inputs such as barley and packaging costs continuing high. “In terms of cost and availability, these fundamental resources for our company have always been the most consistent,” said Ashwin Kak, AB InBev’s procurement and sustainability head for India and Southeast Asia.

According to Kak, the firm has implemented circular packaging measures such as replacing cardboard packaging with material manufactured from barley straw.

After years of focusing on throwaway plastic bottles, Coca-Cola India Pvt. Ltd is marketing returnable glass bottles.

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