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Indian consumer giants' R&D spend averages just 0.9% of sales in 2025-26, up from 0.5% five years ago
Average R&D spending at 20 large Indian consumer companies rose to 0.9 per cent of sales in 2025-26 from 0.5 per cent five years ago, an ET analysis found. Experts called this modest, and ITC's share fell to 0.2 per cent.
The numbers
Figures from ET BrandEquity,
| Samsung Electronics India R&D 2025-26: | Rs 37 crore |
|---|---|
| LG Electronics India R&D: | Rs 125 crore |
| Hyundai Motor India R&D: | Rs 68 crore |
| Hindustan Unilever R&D: | Rs 164 crore |
| Top 10 durables firms' R&D share of revenue: | less than 1 per cent |
Why it matters to operators and investors
With R&D at only 0.9% of sales across 20 large consumer firms (HUL at Rs 164 crore, Samsung India at Rs 37 crore), product innovation mostly arrives from parent labs or imports, so retailers and category managers should expect incremental launches and use their own shelf, private-label and local-insight data to shape assortments.
What to watch next
- Next annual reports showing whether the 20-firm average holds above 0.9% of sales
- Any rise in HUL's Rs 164 crore or LG India's Rs 125 crore in the next reporting cycle
- Disclosures from Hyundai India or Samsung India on local R&D centres or hiring
- A new government R&D tax incentive or scheme aimed at consumer and durables makers
- ITC reporting R&D intensity moving above or further below 0.2% of sales
Likely next moves
Our read of what comes next — analysis, not reported by the source.
- HUL is likely to keep R&D spend near or above Rs 164 crore and present it as part of its innovation and premium-portfolio story, rather than cut it.
- LG India may use its Rs 125 crore of R&D as a talking point on local product development, and could raise it as it expands locally designed products.
- Hyundai India and Samsung India are likely to stay well below the leaders in disclosed R&D (Rs 68 crore and Rs 37 crore), with most core development remaining with their parent companies.
- ITC is likely to keep R&D intensity near 0.2% of sales, since its spend is spread across a broad portfolio and the fall shows no sign of being a priority to reverse.
- Analysts and the business press may start benchmarking consumer firms on R&D intensity, pressing laggards to explain how little they spend relative to sales.
The source
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