FMCG cos repackage to meet new norms

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SummaryIn compliance with the government’s new guidelines for standard pack sizes, major FMCG like Parle Products, ITC Foods and Britannia Industries are changing their packaging strategy, which will also see a revision in prices of some products.

biscuits, breads, rusks and dairy products.

“These changes have also meant some price revisions across our products which are, by and large, in line with the industry. The new legal metrology guidelines for packaged products called for some changes in our product-pack configurations,” said a Britannia spokesperson.

PepsiCo India, which offers products at various price points from Rs 2 to Rs 60 in snacks and Rs 7 to Rs 99 in beverages, is fine-tuning its pack sizes to comply with the government's new rules. “While we will comply with the new packaging norms, it will be our endeavour to minimise the impact of such change on the pricing by leveraging local and global expertise in sourcing, supply change management and production efficiencies,” said a PepsiCo India spokesperson.

Like other companies, Duncan Tea is revamping its line of 50-g tea packs. “With tea prices going up, the prices of 50-g packs had gone beyond the Rs 10 mark. With this ruling, we had to reduce the price of these packs to Rs 10 levels. We are revamping the line of 50-g packs,” said MC Appiah, COO of Duncan Tea.

A shift to standard packaging will mean higher retail cost of products, which may dent a company's sales performance. Will Indian consumers benefit from the government's new rules? “It’s too early talk about the impact of these new packs. As consumers are now getting lower weightage of products for the same price, I think it is not beneficial for consumers,” said Parle Products' Kulkarni.

However, RS Sodhi, managing director of Amul, said with the government's new rules, consumers can compare different products available in standard sizes. “It's a welcome move and is very beneficial to consumers. At Amul, we have complied with the new guidelines for standard packaging,” he said.

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