PALMOILMAGAZINE, NEW DELHI – Leading fast-moving consumer goods (FMCG) manufacturers in India, including Hindustan Unilever Limited (HUL) and Wipro, have increased soap prices by 7-8%. This move aims to offset the sharp rise in palm oil prices, a key raw material for soap production, which has soared by over 30% since the beginning of the year.
Neeraj Khatri, CEO of Wipro Consumer Care, stated that the price hike responds to raw material cost pressures. “All major players in the industry have adjusted prices by approximately 7-8% to partially absorb these increases. Our price adjustments are in line with market trends,” he said, as reported by Palmoilmagazine.com via IndiaTimes on Thursday (9/1/2025).
Wipro, known for soap brands like Santoor and Chandrika, joins market leader HUL, which has raised prices for popular soap brands such as Dove, Lux, Lifebuoy, and Pears. For example, a five-pack of Lux soap now costs Rs 155, up from Rs 145, while Lifebuoy prices increased from Rs 155 to Rs 165.
Also Read: India’s Palm Oil Imports Drop Sharply in December 2024
In addition to soap, HUL has also raised prices for tea and personal care products. A company spokesperson explained, “Selective price increases have been implemented for tea and skincare products due to inflation in crude palm oil and tea prices.”
Reports indicate that palm oil prices have risen by 35-40% since September, driven by higher import duties and global price hikes. Most palm oil is imported from Indonesia and Malaysia and now costs Rs 1,370 per 10 kg.
Tata Consumer Products Ltd (TCPL) has also gradually raised tea prices by 25-30%. “We have increased prices gradually to maintain volume momentum and avoid demand shocks,” said Sunil D’Souza, CEO of TCPL.
Meanwhile, Godrej Consumer Products Ltd (GCPL), the producer of Cinthol and Godrej No. 1 soaps, acknowledged the double-digit rise in palm oil prices but decided not to pass on the full cost increase to consumers. “Price growth will lag behind input cost increases as we aim to remain competitive in the market,” stated GCPL management.
Abneesh Roy, Executive Director of Nuvama Institutional Equities, noted that HUL’s pricing decisions as the market leader are likely to set the tone for other FMCG producers. “In the FMCG sector, most players tend to follow the market leader, so these price hikes will gradually spread,” he explained.
Amid rising raw material costs, FMCG producers are striving to balance profit margins with consumer purchasing power, navigating inflationary pressures while maintaining market competitiveness. (P2)
