“Our Channel checks suggest price hikes have happened in many SKUs of Surf Excel Easy Wash, Surf Excel Quick Wash, Vim bar and liquid, Lux and Rexona soaps, Ponds Talcum powder, among others,” said Abneesh Roy, executive director at Edelweiss Financial Services.
Incidentally, HUL, that leads the soaps and detergents market in India with its array of brands, has increased prices of these products almost every month since October. In November, it raised the price of its Wheel detergent 1Kg pack by 3.4 per cent. And in December, prices of mass market Lifebuoy soaps, mid-segment Lux, Surf Excel detergent cake, and Rin detergent bar went up by 7 to 13 per cent.
Last month, HUL had hiked prices for certain SKUs of Wheel detergent powder, Pears soap and Surf Excel again.
According to Edelweiss’ estimates, during the October-December quarter, HUL increased prices across categories by 8 per cent year-on-year. However, steady gains in its market share during the period gave it the confidence to raise prices further.
Sanjiv Mehta, Chairman and Managing director, HUL, said during a post-earnings call that the company has gained share in most of the categories in December quarter — taking its share above the pre-pandemic levels in 2019. HUL’s gain in market share was the highest in a decade for the December quarter. This helped its earnings before interest, tax, depreciation and amortisation (EBITDA) margin to grow by 99 basis points. One basis point is 100th of a percentage point.
According to industry experts, steep rise in cost of raw materials for soaps and detergents — like soap noodles and oleochemicals — in the past six months is forcing the personal and home care majors like HUL to hike prices repeatedly.
