Absorbing Rising Costs

Analyze how consumer-facing companies in India can respond when food, energy, packaging, or other input costs rise while customers are sensitive to price increases. Compare strategies such as absorbing costs, changing package sizes, adjusting product mix, renegotiating with suppliers, and raising prices gradually. Explain how each choice affects profit margins, affordability, supplier relationships, and customer trust, and propose a decision framework for a company facing a prolonged cost shock.