Mumbai, Sept. 23 -- India's packaged goods companies are walking a fine line on price cuts for 'price-point packs'-a common term in the industry for small packs-following a reduction on taxes across products. At the heart of the change lies the consumer's comfort with round numbers for which coins are available.

Some, like Hindustan Unilever Ltd (HUL) and Bikaji Foods, are adding more volume to retain the magic Rs.1, Rs.5 and Rs.10 price points. Others such as Parle, Coca-Cola and Reliance Consumer have opted for price reductions on their Rs.5 and Rs.10 packs, bringing them down to Rs.4.5 and Rs.9, respectively, for small packs of biscuits, confectionery and beverages.

On Tuesday, HUL, India's largest packaged consumer goods company, sa...