HUL, Wipro Products Costly: Major companies making daily use items like HUL and Wipro have increased the prices of soap by about seven-eight percent to reduce the impact of increase in palm oil prices. Palm oil is a major raw material for soap products. Companies like HUL and Tata Consumer have also recently increased tea prices as production has declined due to irregular weather.
During September quarter results, many listed companies indicated increase in soap prices in the current quarter to protect their margins. These companies were facing increasing costs of commodities like palm oil, coffee and cocoa.
Increase in prices of key raw materials for soap making – Wipro
Neeraj Khatri, Chief Executive Officer (CEO), Wipro Consumer Care, said, “There has been a significant increase in the prices of key raw materials for making soap. It has increased by more than 30 per cent since the beginning of this year. Due to this, all major traders are facing financial difficulties.” To partially balance the increase, we have increased the prices by about seven-eight percent and have worked in accordance with these market trends. Wipro, a unit of Azim Premji-led Wipro Enterprises, owns brands like Santoor.
HUL products become expensive
Giant 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. According to a distributor, the prices of HUL’s other personal care products have also increased.
How much have the prices of palm oil increased?
Due to increase in import duty as well as increase in global prices, palm oil prices have increased by about 35-40 percent since mid-September. Palm oil is mainly imported from Indonesia and Malaysia. At present the price of palm oil is around Rs 1370 per 10 kg. According to Abneesh Roy, Executive Director (Research), Nuvama Institutional Equities, after HUL, now most companies will increase prices.
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