India’s leading FMCG players are tightening headcounts even as salaries climb, with Hindustan Unilever (HUL) and Dabur trimming permanent roles in FY26 while peers like Tata Consumer Products (TCPL) and Marico expanded staff. Median pay hikes across the sector ranged from 6.08% to 12.1%, signaling a shift toward efficiency-driven growth.

Workforce Cuts at HUL and Dabur Amid Pay Rises

HUL’s permanent workforce dropped to 5,898 in FY26 from 6,604 a year earlier, a reduction of over 700 employees. Despite this, the company’s median remuneration rose by 6.08%—lower than FY25’s 8.39% but paired with a higher average non-managerial salary hike of 6.85% (vs. 4.62% in FY25).

Dabur’s permanent headcount fell to 4,770 from 5,343, yet it delivered a 7.7% median pay increase, up from 6% in FY25. Experts attribute the trend to automation in manufacturing, supply chains, and back-office functions, enabling higher output with fewer employees.

Peer Expansions and Pay Disparities

In contrast, Nestle India saw total employees edge up to 8,680 (from 8,629), though permanent roles dipped slightly to 8,382. Its median pay rose 7.3%. Marico added permanent staff, growing to 1,983 from 1,908, with median remuneration climbing 6.33% to ₹14,44,177.

TCPL led pay hikes at 12.1%—down from FY25’s 16.9%—as its permanent workforce grew to 4,558 from 4,079, partly due to post-merger integrations. The data stems from mandatory disclosures under Section 197(12) of the Companies Act, 2013.

Strategic Implications for Investors

The divergence in headcount and pay trends underscores a broader industry pivot: FMCG firms are prioritizing productivity through digital tools, AI analytics, and automated systems. For investors, this suggests margin protection via cost efficiencies—but also potential pressure on labor-intensive growth models.

With median pay outpacing inflation in most cases, the focus shifts to whether these firms can sustain profitability amid rising wages and automation investments. The FY26 filings offer a clear signal: scale and tech adoption are now as critical as market share.