India’s largest consumer companies are gearing to raise prices on products from toothpaste to tires and paint ahead of the festival season and for the second straight quarter, as the prolonged Middle East conflict drives up commodity costs and threatens to keep inflation elevated.
Hindustan Unilever Ltd. will have measured price increases over the coming quarter in categories including detergents and dishwashing bars. At least seven other companies, from Dodla Dairy Ltd. and Asian Paints Ltd., also plan to raise prices, according to their post-earnings calls and media briefings.
“Given the external volatility, we continue to see inflation in crude-linked derivatives and are taking calibrated price increases across the segment” for home care products, India’s largest consumer goods firm Hindustan Unilever Chief Financial Officer Niranjan Gupta told analysts this week.
Consumer prices rose above the Reserve Bank of India’s 4% target for the first time in nearly a year and a half in June as food and fuel costs climbed. Though the gauge remained within the central bank’s 2%-6% tolerance band, price pressures are expected to intensify in the coming months as companies raise prices and a deficient monsoon raises the risk of higher food prices. The RBI expects inflation to average 5.1% in the fiscal year ending March 2027.
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The persistently high energy costs in the wake of the Iran war means no quick relief is expected anytime soon. With the US-Iran fight flaring up again, companies are planning a second round of price hikes for everything from home appliances to kitchen staples. Havells India Ltd. has raised prices by as much as 8%, while salt from Tata Consumer Products Ltd. is pricier by about 7%.
