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India’s largest fast moving consumer goods company by market capitalisation, Hindustan Unilever Limited, has raised the prices of detergents by 3.5-11% in August passing on the rising cost of raw materials to the consumers.
The sharpest hike among detergent powders was most likely carried out in the high-end category, Surf Excel, Informist reported on September 7. This hike comes on the back of a price-hike by HUL in August, when it had increased the price of Surf Excel Easy Wash 3-kg packet by 10% to 330 rupees. The price of the 1-kg pack was increased by 9% to 109 rupees, while the price of Surf Excel Quick Wash 1 kg pack was hiked by 11% and now stands at Rs 200.
Rising detergent prices
The media report claimed that the pressure on the company to hike prices was made clear after the FMCG giant increased prices of even some entry-level segment detergents last month. While the price of one kilo of Rin detergent was hiked by 8% to Rs 70, the price of one kilo of Wheel detergent powder was hiked by 3.5% to Rs 57.
The price-bump was also visible in washing bars, with a 50gm Surf Excel bar now costing Rs 30 compared to its earlier price of Rs 29. The price of a 300 gm Vim dishwashing bar was hiked by Rs 2 to Rs 22.
However, HUL has not officially commented on the reasons behind the recent price hike for certain products.
No respite likely in near future
The consistent rise in inflation and disruptions caused to global supply chains from natural disasters such as hurricane Ida in the United States, the spread of the Delta variant of novel Coronavirus in some South Asian countries and China’s strict zero-tolerance COVID-19 policy have caused FMCG manufacturers to increase price of many of their products.
Not just detergents, but prices of shampoos and other home as well as personal care products have also increased since the supply chains for chemicals and raw materials needed for these products have been disrupted.
Supply chain disruptions have challenged raw material sourcing for consumer majors such as Unilever group, ITC Ltd, Reckitt Benckiser, Marico Ltd, and Dabur India Ltd, the report noted.
Jyothy Laboratories Ltd, had also raised product prices in some markets, but refrained from reducing weight and increasing prices of detergents sold in rural areas, as the company is focussed on sales volume growth.
In the coming days companies may have no option but to raise prices further as the raw material inventories are being bought at inflated rates and there is no respite in terms of logistics costs as well, the report added quoting Edward Menezes, Rossari Biotech’s executive chairman and co-founder. Rossari Biotech is a maker of several raw materials, like acrylic acid-based chemicals, used in production of detergents.