Your biscuits, detergents and soaps are set to get expensive once again. FMCG majors like ITC and HUL are likely to hike prices anywhere between 3 to 21 percent, sources have told CNBC-TV18.
HUL has hiked the prices of its soaps and detergents, while ITC has increased the prices of its soaps and perfumes. Both the companies alluded to unprecedented commodity inflation in the second quarter as prices of Brent crude, palm oil, PFAD all have gone up over 60 percent on a year-on-year basis.
HUL has hiked prices of Wheel Powder by about 3.5 percent for the 1 kg pack and about Rs 2 for the 500-gram pack. So, the 500-gram Wheel Detergent Powder will now cost about Rs 30, up from Rs 28. The Rin Bar price too has been hiked by about 5 percent for the 250-gram multi-pack.
Commenting on the hike, HUL said with unprecedented volatility in commodity prices, it has seen significant inflationary pressures and in this environment, its priority is to provide value to consumers and invest behind brands.
“We mitigate cost inflation first by driving our savings agenda harder. Considering the inherent strength of our brands and our execution prowess, we continue to take judicious and calibrated pricing actions as needed using the principles of ‘Net Revenue Management’, our science of pricing. We have been able to provide the right price-value equation to the consumer, thus helping protect our business model in a highly inflationary scenario,” the company told CNBC-TV18.
ITC too has hiked soap prices. The cost of Fiama soap is up about 10 percent whereas the Vivel soap price is up by about 9 percent for the 100-gram pack. With regards to deodorants, the Engage deodorant price is up by about 7 percent and the Engage perfume is up around 7 percent.
ITC has said that it has hiked prices of select items because it has seen significant raw material inflation over the past couple of months. It is trying to mitigate costs through other ways as well and price hikes would be the last option, the company said.