FMCG Companies Balance Higher Pay With Leaner Workforces

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 India's leading FMCG companies presented mixed workforce trends in FY26, with

and reducing their permanent employee base while continuing to increase employee compensation. HUL's permanent workforce declined from 6,604 to 5,898 employees, while Dabur's fell from 5,343 to 4,770. Despite the reduction in headcount, HUL increased median employee remuneration by 6.08%, and Dabur raised it by 7.7%. In contrast, Nestlé India, Marico, and Tata Consumer Products expanded their workforce during the year. Median employee remuneration across the five major FMCG companies increased between 6.08% and 12.1%, with Tata Consumer Products recording the highest increase. Industry experts attributed the shift to greater adoption of automation, AI-driven analytics, digital tools, and integrated ERP systems, enabling companies to improve operational efficiency while maintaining competitive compensation for employees. Industry & Economic Impact: The trend reflects the ongoing transformation of India's FMCG sector, where companies are increasingly investing in automation and digital technologies to improve productivity and optimize costs. While workforce requirements in certain operational areas may decline, demand for skilled professionals in technology, analytics, and digital operations is expected to grow. From an economic perspective, automation-led efficiency can improve profitability and global competitiveness of Indian FMCG companies. However, it also highlights the need for workforce reskilling as businesses transition toward technology-driven operations. The sector is likely to continue generating employment, but with a greater focus on higher-skilled roles rather than traditional manufacturing and administrative positions. Source: NDTV Profit No Recommendations