common people Another blow to inflation has been suffered by large companies that manufacture consumer goods. Many FMCG companies, including HUL and Tata Consumer, have increased prices of soap and tea. Let us tell you that major companies manufacturing daily necessities like HUL and Wipro have increased soap prices by 7-8 per cent to reduce the impact of rising palm oil prices. Palm oil is an important raw material for soap products. Companies like HUL and Tata Consumer have also recently increased tea prices as production has slowed due to erratic weather.
Wipro, a unit of Wipro Enterprises led by Azim Premji, owns brands like Santoor. Leading company Hindustan Unilever Limited (HUL) has also increased the prices of tea and skin cleansing products. These include its soap business under the brands Dove, Lux, Lifebuoy, Liril, Pierce, Rexona, etc.
Why did the price of soap increase?
During the September quarter results, many listed companies indicated an increase in soap prices in the current quarter to protect their margins. These companies faced rising costs of basic inputs such as palm oil, coffee and cocoa. Neeraj Khatri, chief executive officer (CEO) of Wipro Consumer Care, said there has been a significant rise in the prices of key raw materials in soap manufacturing. This has increased by more than 30 percent since the beginning of this year. He said that as a result, all major merchants have increased prices by seven to eight percent to partially offset the increase. Our price adjustments are in line with these market trends.
Palm oil rose between 35 and 40 percent more expensive
Palm oil prices have increased by 35 to 40 percent since mid-September due to rising global prices along with rising import duties. Palm oil is mainly imported from Indonesia and Malaysia. Currently, the price of palm oil is around Rs 1,370 per 10 kg. Additionally, according to a distributor, prices of other personal care products from HUL have also increased. According to Abneesh Roy, executive director (research) at Nuvama Institutional Equities, after HUL, most companies will now increase prices.
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