Hindustan Unilever and Dabur India reduced their permanent workforce in FY26, even as many competitors raised median employee pay. This shift reflects a growing industry trend toward automation and digital efficiency across manufacturing and supply chain operations. Investors may track how these workforce adjustments impact long-term operating margins and productivity levels.
The Indian fast-moving consumer goods sector is witnessing a shift in human resource strategy, with major companies opting for leaner permanent workforces even as median salaries across the industry continue to climb. According to disclosures for the fiscal year ending March 31, 2026, industry leaders Hindustan Unilever (HUL) and Dabur India recorded a notable decrease in their permanent staff counts.
Workforce Reductions at Industry Leaders
Hindustan Unilever reported its permanent headcount at 5,898 as of March 31, 2026, down from 6,604 in the previous fiscal year. Alongside this reduction, the company reported a 6.08% increase in median employee pay for FY26. While this median hike was lower than the 8.39% growth recorded in FY25, the company did report a higher salary increment for its non-managerial staff, which rose to 6.85% from 4.62% a year earlier. Similarly, Dabur India ended the fiscal year with 4,770 permanent employees, compared to 5,343 in the prior year. The company provided a median pay hike of 7.7% for FY26, up from the 6% increase noted in FY25.
Automation as a Strategic Driver
The industry-wide trend toward smaller permanent workforces is largely attributed to increased capital spending on automation. Companies are increasingly integrating AI-driven analytics, automated packaging technology, and sophisticated enterprise resource planning systems across their manufacturing plants and supply chains. By utilizing digital tools to handle routine operations, these firms aim to improve output efficiency. For shareholders, the move toward automation is a strategic attempt to maintain or improve profit margins despite rising labor costs and competitive pressure in the FMCG market.
Diverging Trends Among Peers
Not all FMCG players have followed the same path. While HUL and Dabur reduced their permanent staff, other companies adopted different approaches. Tata Consumer Products Limited (TCPL) increased its permanent workforce to 4,558 from 4,079 in the previous year. TCPL also led the sector in median salary growth with a 12.1% increase, though this followed a steeper 16.9% hike in the prior year which was linked to post-merger adjustments. Marico also expanded its permanent headcount to 1,983, while Nestle India maintained a relatively stable total employee base of 8,680.
These disclosures are required under the Companies Act, 2013, which mandates that listed firms report details on employee remuneration and headcount changes. Investors may continue to track whether this push toward automation translates into sustained margin expansion or if companies face challenges in maintaining operational flexibility as they rely more on digital processes and smaller permanent teams.