P&G hikes prices by 4-11% across the product portfolio

Asia's Tech News Daily

#P&G price hikes, #PG, #Procter & Gamble Hygiene and Health Care, Procter & Gamble Hygiene and Health, Hindustan Unilever Ltd (HUL), Godrej Consumer Products, Marico, Dabur India

Procter & Gamble Health | Of late, several FMCG companies such as Hindustan Unilever, Godrej Consumer Products (GCPL), Marico, Dabur have increased the prices of their products to offset the impact on their margins due to the inflation in input costs.

Fast-moving consumer goods (FMCG) major Procter & Gamble Hygiene and Health has hiked the prices of most of its products by 4-11 percent as it battles inflation in key raw materials.

According to a retail intelligence platform, the company has raised prices of larger pack sizes of detergent powder brands Ariel and Tide by 4-5 percent since July, while its personal care brands Pantene and Head & Shoulders have seen a price uptick of as much as 10-11 percent in the period. The development was also confirmed by distributors of the company.

Moneycontrol reached out to the company for a confirmation on the development but it declined to comment citing a silent period ahead of its second-quarter results.

P&G has undertaken similar price hikes globally. Last week, the company announced it is increasing the price of its grooming, oral and skincare products on account of higher freight and raw material costs. This is the second price hike by the company in the country after the mid-to-high digit price increase earlier.

Of late, several FMCG companies such as Hindustan Unilever Ltd (HUL), Godrej Consumer Products (GCPL), Marico and Dabur India have increased the prices of their products to offset the impact on their margins due to higher input costs.

Dabur had increased the price of its products by 3 percent across categories in the last quarter of FY21 and was mulling a further price hike if costs did not ease in the quarters ahead. GCPL raised the prices by 4-5 percent in the first quarter of FY22.

Paint companies such as Asian Paints and Berger Paints have undertaken the highest ever price hikes, up by 9-11 percent, brokerages said on October 27.

Also read: Asian Paints, Berger Paints hike prices in highest-ever increase)

Large SKUS bear the brunt

P&G has strategically introduced price hikes in the larger pack sizes of 1 kg and above, leaving smaller packs aimed at the masses and lower-income households untouched.

“When it comes to detergent powders like Ariel and Tide, the company has not taken any price hikes in the smaller pack sizes. However, mid to large sizes, which are meant for urban consumption, have seen a 4-5 percent increase since July,” an industry expert said.

According to a distributor, a 2 kg pack of Ariel Matic Front Load Detergent Powder, priced at Rs 480 in September, will come for Rs 499 from November 1. The price of a 1 kg pack of Tide Ultra 3 in 1 Clean, Rs 130 in September, was increased to Rs 140 in October.

For its personal care brands such as Pantene and Head & Shoulders, the company has taken a 4-5 percent price increase in the mid-size packs while here, too, smaller pack sizes of 180 ml and sachets have not witnessed any hikes. Larger pack sizes—650 ml and above—however, are now 10-11 percent more expensive.

P&G has not raised the prices of Whisper Sanitary pads in India.

Margin pressure mounts

Operating in a high inflationary environment has dented the margins of most FMCG companies globally and in India. The prices of key commodities, including palm oil, and even agri-commodities are skyrocketing.

While reporting its second-quarter results last week, HUL CMD Sanjeev Mehta had underlined this. “Inflation in certain commodities like palm oil, crude-based derivatives and ocean freight has been unprecedented. We haven’t seen this kind of inflation for many years,” said Mehta.

According to analysts, the biggest impact of inflation is on the vegetable oil basket.

“Edible oils like palm oil, sunflower oil, rice bran oil, safflower oil, the prices of these commodities are up by 35-50 percent year-on-year (y-o-y) and the companies which sell edible oil such as Dabur, Marico are most impacted,” said Himanshu Nayyar, lead analyst, institutional equities, Yes Securities.

The second-most affected segment, said Nayyar, is crude derivatives where the companies are witnessing 30 percent inflation YoY. Light liquid paraffin, a crude derivative, is a key commodity used in personal care products such as shampoos. Apart from this, companies are also battling high freight and packaging costs.

Analysts indicate that if input costs do not subside, more companies in the consumer products segment may raise product prices in the months ahead.

Internet Explorer Channel Network
Asia's Tech News Daily
News Related

OTHER NEWS

'Metaverse' hype fuels booming digital property market

Analysts say virtual land on websites like Decentraland is already functioning as an asset, much like real land PARIS – The idea of spending millions on non-existent land may sound ... Read more »

Why binding treaty on pandemic response is not best way forward

We were up in Big Sky, Montana, close to Yellowstone Park. It was May 2011 and 400 or so of us came together for the second of Apec’s major meetings ... Read more »

RBI likely to keep key policy rate unchanged, say experts

Reserve Bank of India (RBI) Governor Shaktikanta Das Amid global scare due to new coronavirus variant Omicron, the RBI is likely to maintain status quo in its upcoming monetary policy ... Read more »

China to issue regulations on futures to encourage leading firms to raise funds through listing

China will help leading futures companies to speed up their development and encourage qualified firms to be listed, the China Futures Association said in a statement, citing an official from ... Read more »

Tata Motors, Honda mulling price hike from next month

Tata Motors | Representative image With input costs continuing to rise, automakers like Tata Motors, Honda and Renault are looking to increase vehicle prices from January next year to offset ... Read more »

Green finance: Hong Kong agency to offer net-zero certification for firms under pressure to disclose carbon footprint and climate ambitions

The Hong Kong Quality Assurance Agency (HKQAA), a food-to-sustainable finance products certification provider, will launch a net-zero certification programme by March for financial and listed firms facing rising pressure to ... Read more »

Early catering closure ensures comeback dinner boxes

Dinner boxes from star chefs and other restaurants are making a comeback, now that the catering industry has to close at 5 p.m. every day due to the corona measures. ... Read more »

Crimea plans to host delegation from Syria to discuss economic links

Deputy Chairman of the Council of Ministers of Crimea, Permanent Representative of Crimea under the Russian President Georgiy Muradov reiterated that in 2019, an agreement on cooperation in the sphere of trade and economy was signed between the Crimean government and the Syrian ministry yet the trade was limited due to the coronavirus pandemic Read more »

Aurobindo, Unichem recall products in US market

Aurobindo Pharma and Unichem Laboratories are recalling different products in the US market, the world’s largest market for medicines, due to manufacturing issues. As per the latest enforcement report issued ... Read more »

More people rely on internet payments since Covid: poll

More people are using the internet to pay for goods and conduct other financial transactions. (Bangkok Post file photo) More people have turned to the internet for financial transactions and ... Read more »

SBI invites bids to sell NPA account KSK Mahanadi Power with dues over Rs 4,100 cr

SBI has invited bids from asset reconstruction companies, and other financial institutions to sell an NPA account KSK Mahanadi Power Company, with total outstanding against the company standing over Rs ... Read more »

Hong Kong digital insurers such as OneDegree, Bowtie Life expand offering to tap tech-savvy clients, but yet to challenge traditional firms

Hong Kong’s digital insurers are expanding their product ranges to tap tech-savvy customers who buy their policies online, but are years away from mounting a challenge to the city’s traditional ... Read more »

iPhone 13: Hidden iPhone tricks most people don't know

Surprisingly, there are a ton of hidden features on the iPhone, along with helpful built-in short cuts that you may have missed. They all exist in your iOS device just ... Read more »

Watch: Dubai policeman dons 'Iron Man' suit, flies around expo plaza

A police officer in Dubai defied gravity and flew around Al Wasl Plaza wearing a suit similar to Marvel’s Iron Man, during UAE‘s 50th National Day celebrations. Wearing a white ... Read more »

Jeff Bezos catches dog Luna being 'naughty', 'time for a bath', says girlfriend Lauren Sanchez

Jeff Bezos’s dog Luna. (Image credit: Instagram) Billionaire entrepreneur Jeff Bezos on Sunday shared a photo of his dog Luna on Instagram with the caption, “Luna’s on the naughty list.” ... Read more »

Codeshare with IndiGo likely to be implemented by March 2022: American Airlines official

American Airlines is in the process of getting requisite approvals from the US government for its codeshare agreement with IndiGo airlines and the partnership is likely to implemented by March ... Read more »

2022 likely to be more challenging for returns in equities, fixed-income investments

As we enter the last month of 2021, it is a good time to review the year gone by as well as look forward to what we can expect during ... Read more »

Cryptocurrency Prices today on December 5: Bitcoin, Ethereum recover; LUNA up 19%

The global crypto market capitalisation is down 5.53 percent over the last 24 hours to stand at $2.3 trillion. The total crypto market volume over the last 24 hours is $203.74 billion, ... Read more »

Daily Voice | Expect first rate hike by RBI in second or third quarter of CY22, says Sharad Chandra Shukla of Mehta Equities

Sharad Chandra Shukla, Director at Mehta Equities says they expect the first rate hike by Reserve Bank of India in the second or third quarter of CY22, but a lot ... Read more »

COVID-19: Travel industry says return of pre-departure tests for all UK arrivals is a 'devastating blow' - as Nigeria is added to the red list

British Airways and Airlines UK are among those who have criticised the move - while Labour is in favour of the government's decision but has said it has come too late. Read more »

Tega Industries IPO | Check share allotment & listing dates, latest grey market premium

Tega Industries IPO share allotment After garnering sixth largest subscription, investors are anxious to know their allotment status for Tega Industries IPO which is likely to get finalised next week. ... Read more »

Petrol, diesel prices on December 5: Check fuel rates in Mumbai, Delhi, other cities

The petrol and diesel prices remained unchanged in Kolkata at Rs 104.67 per litre and Rs 89.79 per litre, respectively. (Representative image) Petrol and diesel prices remained unchanged on December ... Read more »

Hong Kong, other Asian cities shut out of world's top 10 tourist destinations amid tough travel restrictions

The stringent approach of many Asian cities to shutting out Covid-19 may have kept case numbers in check and taken some pressure off local economies. But it has done nothing ... Read more »

Sir Ian Taylor: All the tech missteps in the Government's Covid response

Prime Minister, I understand that Minister Hipkins has a lot on his plate as the Covid Response Minister and that probably explains why I have yet to receive the response ... Read more »

Sir Ian Taylor: All the tech missteps in the Govt's Covid response

Prime Minister, I understand that Minister Hipkins has a lot on his plate as the Covid Response Minister and that probably explains why I have yet to receive the response ... Read more »

Kiwi brothers raise huge amount on Kickstarter for wool-based runners

Kiwi brothers raise huge amount on Kickstarter for wool-based runners. Read more »

Spotify removes many comedians' work from streaming platform over royalties dispute

Jim Gaffigan performs onstage during the 15th Annual Stand Up For Heroes benefit at Alice Tully Hall presented by Bob Woodruff Foundation and NY Comedy Festival on Nov. 8, 2021, ... Read more »

UK tightens travel testing rules amid omicron concerns

The Associated PressA man dressed as Santa Claus gestures as people walk past, in London, Saturday, Dec. 4, 2021. Britain says it will offer all adults a booster dose of ... Read more »

‘Invest 90 million in social development companies to tackle staff shortage'

Invest 90 million euros in workplaces at social development companies, so that people with a greater distance from the labor market also find work. This is the appeal made by ... Read more »

Bitcoin prices plunge dramatically overnight

Cryptocurrencies began falling on Friday following data showing that job growth slowed in the U.S. last month and news of the Omicron variant of the coronavirus. Read more »

COVID-19: Pre-departure tests return for all UK arrivals to tackle Omicron - as Nigeria added to red list

All international arrivals to the UK will again be required to take pre-departure COVID-19 tests to tackle the spread of the new Omicron variant, the health secretary has announced. The ... Read more »

Omicron scare: South African official says children sick with COVID-19 have mild infections

Representative image: Reuters Higher hospital admissions among children during a fourth wave of COVID-19 infections in South Africa that has been driven by the Omicron coronavirus variant should not prompt ... Read more »

'China economy will turn more to local market'

China‘s economy will become more dependent on its domestic market even as it opens up further for global trade, former Chongqing mayor Huang Qifan said at the annual International Finance ... Read more »

Govt gives final approval to Rs 5,000 crore AK 203 rifles deal ahead of Putin's visit

Representative image The government has given its final approval to a nearly Rs 5,000 crore deal to manufacture over 5,00,000 AK 203 Kalashnikov rifles by an Indo-Russian joint venture at ... Read more »

5 tips for saving money on entertainment expenses as a college student

Catherine Landers, a graduate student at the University of Georgia, watching something on Hulu on her laptop.Source: Katie Creech Personally, I am not the type of girl to spend hundreds ... Read more »

McDonald's Canada offers new Bacon' N Crispy Onion Quarter Pounder

The single and double patty variants of McDonald’s Bacon’ N Crispy Onion Quarter Pounder McDonald's has begun offering the Bacon' N Crispy Onion Quarter Pounder, only in Canada. The sandwich ... Read more »

MSME minister urges entrepreneurs to grab opportunity created by closure of plants in China

Union Minister Narayan Rane Union Minister of Micro, Small and Medium Enterprises (MSME) Narayan Rane on Saturday urged Indian entrepreneurs to take advantage of closure of factories in China. Indian ... Read more »

The first metaverse experiments? Look to what's already happening in medicine

Surgeon Shafi Ahmed poses for a photograph wearing a Microsoft HoloLens headset inside his operating theater at the Royal London Hospital on Thursday, Jan. 11, 2018.Bloomberg | Bloomberg | Getty ... Read more »

Buy now pay later boom shows no signs of slowing this holiday season

Betsie Van der Meer | DigitalVision | Getty Images The buy now, pay later phenomenon is showing little signs of slowing down. Shoppers have flocked to the option over the ... Read more »

GE and Johnson & Johnson are splitting up, but investors aren't biting

A monitor displays General Electric (GE) signage on the floor of the New York Stock Exchange.Michael Nagle | Bloomberg | Getty Images Last month's announcements from GE and Johnson & ... Read more »
On free-english-test.com you will find lots of free English exam practice materials to help you improve your English skills: grammar, listening, reading, writing, ielts, toeic