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GST effect: Some cos hike pack sizes, others cut prices
Mint Mumbai
|September 24, 2025
India’s packaged goods companies are walking a fine line on price cuts for ‘price-point packs’—a common term in the industry for small packs—following a reduction on taxes across products.
At the heart of the change lies the consumer's comfort with round numbers for which coins are available.
Some, like Hindustan Unilever Ltd (HUL) and Bikaji Foods, are adding more volume to retain the magic ₹1, ₹5 and ₹10 price points. Others such as Parle, Coca-Cola and Reliance Consumer have opted for price reductions on their ₹5 and ₹10 packs, bringing them down to ₹4.5 and ₹9, respectively, for small packs of biscuits, confectionery and beverages.
On Tuesday, HUL said it is passing on goods and services tax (GST) reduction benefits by increasing weight or volume rather than cutting prices of small packs.
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