As tensions in West Asia disrupt oil markets and global shipping routes, India’s consumer companies are confronting a familiar reality: size matters in a crisis. From soaps and edible oils to television sets, air-conditioners and washing machines, companies say the latest geopolitical turmoil is widening the gap between large brands that can absorb shocks and smaller rivals strained by inflation and weak margins.
Executives across sectors told FE that rising costs of packaging material, imported components, freight and fuel are beginning to reshape competition, with larger companies gaining market share as smaller firms struggle to secure supplies and protect profitability. The pressure is especially visible in industries dependent on global commodities and imports, where companies with deeper pockets are stockpiling inventory and taking judicious price hikes to minimise the impact on volume sales.
Impact on consumer electronic appliance industry
“In air conditioners, for instance, we took price hikes of around 10-12% since January because of the energy table revision and then elevated commodity costs. But we have seen market share gains of about 1-5-2% in the last two to three months as the heat wave grows and consumers gravitate towards organised brands,” NS Satish, CEO, Haier Appliances India, said. Brands such as Blue Star and Godrej have also pointed to market share gains in ACs despite price hikes taken over Q4FY26 and in the early part of Q1FY27, analysts said.
Last week, fast-moving consumer goods major Unilever pointed to a shifting competitive landscape in markets such as India and Southeast Asia, where supply chain disruptions and rising packaging costs driven by higher crude oil prices are squeezing smaller players.
A similar trend is playing out in refrigerators, washing machines and TV sets where price hikes have been to the tune of 5-12% in the last couple of months owing to the Iran war. Most organised players from LG to Samsung, Godrej and Haier say sales growth rates have been around 20-25% year-on-year for them in these categories in April-May, while ACs have been higher at about 30% year-on-year in this period.
Similarly, in FMCG, the formalisation trend is accelerating, says Saugata Gupta, MD & CEO, Marico, the maker of the Parachute and Saffola consumer brands.
“In a crisis, scale becomes a clear advantage, as larger players are better positioned to manage working capital and supply chain needs,” Gupta says.
“When there are supply disruptions or sudden spikes in commodity prices, larger companies are better placed because they have stronger supply chains and logistics capabilities. We saw that during the Covid-19 crisis as well,” Sunil D’Souza, MD & CEO, Tata Consumer, said.
Harsh V Agarwal, vice-chairman & MD, Emami said that organised players can navigate the volatility riding on the strength of their brands and pricing power.
“Large players have the advantage of brand power. So, passing on inflation is easier compared to smaller brands where recall may not be that strong. However, large companies have been judicious with price hikes to avoid disrupting demand,” Agarwal said.
Industry executives said larger companies are increasingly relying on their scale advantages to protect market share. Stronger balance sheets allow them to negotiate better supply contracts, maintain larger inventories and absorb temporary cost spikes without immediately passing them on to consumers.
Smaller companies, however, often have little room to manoeuvre. Many are being forced to raise prices quickly, even at the risk of losing customers, while others are cutting production or reducing product offerings to preserve cash flow.