For India’s packaged-food industry, food safety regulation is becoming a bigger business issue as FSSAI steps up scrutiny of labels, product claims and hygiene standards.
Britannia Industries MD Rakshit Hargave has backed the regulator’s recent action according to the Economic Times, saying measures that protect consumer interests should move forward.
The comments come as packaged-food and beverage companies challenge some FSSAI actions, while Britannia itself prepares another 1.5%-2% pricing action in Q2 FY27.
FSSAI Tightens Food Compliance
The recent FSSAI action covers packaged foods and beverages across multiple categories and dozens of brands, according to Economic Times. The reported violations relate to labelling and hygiene standards, putting regulatory compliance closer to the centre of discussions around how packaged food is marketed and sold.
Hargave’s position is notable because several companies affected by the regulatory action are seeking additional time or contesting decisions. ET reported that some packaged-food and beverage companies have challenged FSSAI’s actions, while others have approached the courts.
For consumers, the immediate issue is straightforward: information displayed on food packaging has to comply with the applicable food safety and labelling requirements. For companies, however, changes to labels and product claims can require decisions across packaging, inventory and distribution.
Energy Drink Labels Face Deadline
The dispute over the term “energy drink” is one of the clearest examples of the regulatory pressure facing beverage companies.
Energy-drink makers including Red Bull and Reliance Consumer Products had written to FSSAI seeking a one-year extension to remove the word “energy” from their labels.
Reuters subsequently reported that FSSAI rejected requests from major beverage companies, including PepsiCo, Red Bull, Monster Beverage and Reliance, to extend the 90-day deadline.
FSSAI’s position is that Indian standards do not define “energy drinks”, and the regulator considers the use of the term on certain high-caffeine beverages non-compliant. Some state authorities have also begun acting against products over labelling violations.
The episode shows why food labelling is no longer simply a packaging decision for FMCG companies. Regulatory changes can affect what companies call products, how existing inventory is handled and how brands communicate with consumers.
Dabur Case Adds Pressure
The regulatory dispute also extends beyond beverages.
Dabur moved court against FSSAI’s prohibition on the sale of several products carrying “100%” claims. The products mentioned in the report include honey, sesame oil, coconut water and coconut milk.
The case is significant because product claims are closely tied to consumer perception. Terms suggesting absolute purity or composition can form part of a brand’s marketing proposition, making regulatory decisions over such claims commercially relevant.
For the packaged food industry, the combination of food safety enforcement and scrutiny of labelling claims means companies have to monitor not only ingredients and manufacturing standards but also the language used on the pack.
Britannia Balances Growth Costs
The FSSAI debate comes as Britannia is managing its own pricing and competitive pressures.
The company has indicated another 1.5%-2% pricing action in Q2 FY27, with some of the increase potentially coming through lower grammage in its ₹5 and ₹10 packs, according to ET.
Britannia’s latest financial performance provides some context. In Q1 FY27, the company reported consolidated revenue of ₹5,000 crore, an 8.2% year-on-year increase, while consolidated net profit rose 13.4% to ₹591 crore, Reuters reported.
The company’s FY2024-25 audited results show revenue from operations of ₹17,295.92 crore, up from ₹16,186.08 crore a year earlier.
At the same time, Britannia is responding to competition by strengthening its regional strategy. Hargave said the company is focusing on smaller regional markets through local products and more regional teams. He also pointed to ecommerce and quick commerce as channels that allow brands to reach consumers and compete for trials.
What It Means For Consumers
The latest developments point to a food industry where regulatory compliance and brand strategy are increasingly intertwined. FSSAI’s actions over food labelling, hygiene standards and product claims are forcing companies to respond to rules that directly affect how products are presented to consumers.
Britannia’s backing of the regulator does not mean the company is unaffected by the broader pressures facing FMCG businesses. Its planned Q2 FY27 pricing action shows that companies are simultaneously managing consumer affordability, competition and their own operating economics.
For consumers, the immediate benefit of tighter food safety enforcement is clearer scrutiny of the information and claims presented on packaged products. For food and beverage companies, the message is equally clear: compliance with FSSAI rules is becoming an increasingly important part of taking a product from the factory to the retail shelf.
Also Read: Dabur Gets Relief From FSSAI Order Over ‘100%’ Claims As Delhi High Court Steps In
