InfoSAWIT, NEW DELHI – Leading fast-moving consumer goods (FMCG) producers such as Hindustan Unilever Limited (HUL) and Wipro have raised soap prices by 7-8 percent. This move is in response to a surge in palm oil prices, a key raw material for soap production, which has increased by over 30 percent since the beginning of the year.
Neeraj Khatri, CEO of Wipro Consumer Care, explained that the price increase is a response to raw material cost pressures. “All major players in the industry have adjusted prices by about 7-8 percent to offset some of the increase. Our price adjustments align with market trends,” he stated, as reported by InfoSAWIT from IndiaTimes on Thursday (January 9, 2025).
Wipro, which owns soap brands like Santoor and Chandrika, joins market leader HUL, which has raised prices for soap products such as Dove, Lux, Lifebuoy, and Pears. The price of Lux soap (five-pack) has risen to Rs 155 from Rs 145, while Lifebuoy soap increased from Rs 155 to Rs 165.
In addition to soap, HUL has also raised prices for tea and other personal care products. “Selective price increases have been implemented for tea and skin cleansers due to inflation in crude palm oil and tea,” said an HUL spokesperson.
Reports indicate that palm oil prices have risen by 35-40 percent since September, driven by increased tariffs and global prices. Palm oil, primarily imported from Indonesia and Malaysia, is currently priced at Rs 1,370 per 10 kg.
Meanwhile, Tata Consumer Products Ltd (TCPL) has also gradually increased tea prices by 25-30 percent. “We are raising prices gradually to maintain volume momentum and avoid demand shocks,” said TCPL CEO Sunil D’Souza.
Godrej Consumer Products Ltd (GCPL), producer of Cinthol and Godrej No. 1 soaps, has noted a double-digit increase in palm oil prices. However, GCPL management has chosen not to pass the entire cost increase onto consumers. “Price growth will lag behind input price increases. We want to remain competitive in the market,” said GCPL management.
According to Abneesh Roy, Executive Director of Nuvama Institutional Equities, HUL's actions as a market leader are likely to be followed by other FMCG producers. “In the FMCG sector, generally, everyone follows the market leader, so this price increase will gradually spread,” he noted.
With these price increases, FMCG producers are striving to balance profit margins and consumer purchasing power amid raw material inflation pressures. (T2)
