HUL Raises Prices Second Time In A Month
Hindustan Unilever Ltd., India's largest consumer goods maker, raised prices of soaps, detergents and bodywash in the second such increase in a month.
Prices are up across HUL’s home and personal care category by 1-9%, Edelweiss Securities said on Monday citing its channel checks. Stock-keeping units of brands such as Surf Excel Matic, Comfort fabric conditioner, Dove body wash, Lifebuoy, Lux and Pears now cost more.
The company increased prices by 3-10% earlier in February. Surging raw material costs have prompted consumer firms increase prices multiple times in the past year.
"The previous hike was across its Surf Excel Easy Wash detergent, Surf Excel Quick Wash, Vim bar and liquid, as well as Lux and Rexona soaps, and Ponds Talcum powder," Abneesh Roy, executive director–institutional equities, Edelweiss Securities told BloombergQuint.
Addressing analysts and investors after the third-quarter results, the chief executives of Hindustan Unilever Ltd., Marico Ltd., Dabur India Ltd., Emami Ltd. and Britannia Industries Ltd. had predicted more prices hikes. They cited “exceptional price instability” in most of their raw materials, packaging and transportation costs, with some hitting 20 to 40-year highs between October and December last year.
With the price of crude soaring past $100 a barrel after Russia's invasion of Ukraine, analysts expect persistent inflationary pressures. “The price hikes will help the companies overcome incremental inflation,” Edelweiss' Roy said.