Nestle products in India might soon become more expensive

Nestle products in India might soon become more expensive

Nestle India, the company behind popular brands like KitKat and Maggi, has hinted at possible price hikes.

This comes as a response to rising input costs due to the ongoing West Asia conflict.

The company's Chairman and Managing Director Manish Tiwary said they are seeing commodity inflation in milk and wheat prices, with fuel being an unexpected challenge.

Volume-led growth remains priority

Despite the challenges, Nestle India is focused on volume-led growth.

Tiwary said, "Of course, if it persists, while we do want more volume-led growth, we might have to make some price adjustments."

He further explained that pricing could be reintroduced into their strategy depending on how commodity costs evolve.

Nestle India's robust Q4 FY26 performance

In the fourth quarter of fiscal year 2026 (FY26), Nestle India posted a whopping 27% YoY jump in consolidated profit to ₹1,110.9 crore.

The company's revenue from operations also witnessed a significant increase of 22.6% to ₹6,747.79 crore for the same period.

Tiwary said they are focusing on controllable factors like cost optimization rather than external factors such as weather and fuel prices.

Different approach compared to HUL

Unlike Hindustan Unilever Ltd (HUL), which has already started implementing price hikes of 2-5% and adjusting packet sizes, Nestle India is not following suit.

Tiwary said their approach is to provide consumers with transparent choices via thoughtful pack and price architecture while maintaining quality, trust, and long-term brand equity.

Despite the challenges, he noted that demand trends remain steady with no signs of downtrading.

Focus on rural market expansion

Nestle India's growth ambitions are increasingly tied to the rural markets.

The firm has been expanding distribution into smaller towns and villages, with Tiwary noting that 23-26% of their portfolio is sold in rural areas.

This is a stark contrast to many consumer packaged goods peers, where this figure can go as high as 48-55%.