India's top Fast-Moving Consumer Goods companies, including Hindustan Unilever and Dabur, are navigating a complex landscape of workforce reduction and rising median employee remuneration, driven by increasing investments in automation and digital transformation in FY26.
Key Points
- Hindustan Unilever and Dabur India significantly reduced their permanent employee headcount in FY26, with HUL cutting over 700 employees and Dabur shrinking its workforce by more than 500.
- Despite workforce reductions, both HUL and Dabur increased median employee remuneration in FY26, with Dabur's hike at 7.7% and HUL's at 6.08%.
- Nestle India saw a marginal overall increase in employee strength, though its permanent employee count slightly dipped, while Marico and Tata Consumer Products Ltd expanded their permanent staff bases.
- Tata Consumer Products Ltd recorded the sharpest median pay hike among peers at 12.1% in FY26, attributed partly to headcount additions from recent mergers.
- Experts suggest that FMCG firms are increasingly investing in automation, digital tools, and AI-driven analytics, enabling them to boost production and distribution with fewer employees.
India's top FMCG companies presented a mixed picture on staff strength in 2025-26, with Hindustan Unilever and Dabur trimming their permanent workforce even as most players in the sector raised median employee remuneration, according to disclosures in their annual reports.
While Nestle India, Marico and Tata Consumer Products Ltd (TCPL) added to their headcount during the fiscal, Hindustan Unilever (HUL) and Dabur saw a decline in permanent employees on their rolls, the filings showed.
Median Remuneration Trends
Median remuneration increases across companies in FY26 ranged between 6.08 per cent and 12.1 per cent, with Tata Consumer Products leading and HUL trailing among the five majors.
HUL's permanent employee count fell to 5,898 as of March 31, 2026, from 6,604 a year earlier, a reduction of over 700 employees.
The percentage increase in the median remuneration of employees for the financial year was 6.08 per cent, lower than the 8.39 per cent increase recorded in FY25.
However, in FY26, the average salary hike for employees, other than managerial personnel, was higher at 6.85 per cent compared to 4.62 per cent in the previous fiscal.
Home-grown fast-moving consumer goods company Dabur India's permanent workforce shrank to 4,770 as of March 31, 2026, from 5,343 in the previous year.
The company, however, gave a higher median pay hike of 7.7 per cent in FY26, up from 6 per cent in FY25.
Impact of Automation on Workforce
According to experts, FMCG firms are increasingly investing in automation of manufacturing, warehousing, supply chain management and back-office functions.
Investments in digital tools, AI-driven analytics, automated packaging lines and integrated ERP systems allow companies to produce and distribute more with fewer employees.
Nestle India's total employee strength rose marginally to 8,680 in FY26 from 8,629 in FY25, though the number of permanent employees on its rolls dipped slightly to 8,382 from 8,419.
Median remuneration for employees of the makers of Maggi, KitKat and Nescafe rose 7.3 per cent during the year.
Growth in Other FMCG Firms
In contrast, Marico and TCPL expanded their permanent staff base during the fiscal year.
Marico's permanent employee count, inclusive of workmen, rose to 1,983 as of March 31, 2026, from 1,908 a year earlier. Median remuneration of the Mariwala family-promoted entity, which owns brands such as Parachute, Saffola and Livon, increased to Rs 14,44,177 in FY26 from Rs 13,58,244 in FY25, a rise of 6.33 per cent.
Tata Consumer Products Ltd's permanent employee strength climbed to 4,558 as of March 31, 2026, from 4,079 in the previous year.
The Tata group FMCG arm posted the sharpest median pay hike among peers at 12.1 per cent in FY26.
This was lower than the 16.9 per cent increase seen in FY25, which the company attributed to headcount additions following the merger of NourishCo Beverages, Tata SmartFoodz and Tata Consumer Soulfull into the parent entity.
Section 197 (12) of the Companies Act, 2013, mandated every listed firm to report median employee pay, percentage increases, and permanent headcount in the annual report each fiscal year.
