Aug 16, 2012: Increase in cost of raw materials and slow economic growth are driving FMCG companies to cut pack weight so as to avoid increase in price. FMCG majors including ITC, Dabur India, Britannia and Parle are reducing the weights of the pack so that the volumes do not suffer.
Since July 2011, consumer goods companies have been increasing the price of the goods by 8-10% owing to rise in cost of raw materials and weakening rupee. Though these hike have been resulting in double digit growth for the companies, sources say that the focus will be turned to volume-led growth this year.
