FMCG companies are expected to hike prices of soaps, detergents and shampoos. Analysts and dealers anticipate companies will pass on rising raw material costs to consumers.
Hindustan Lever Ltd recently hiked prices of its toothpaste brands, Close-Up and Pepsodent, attributing it to a rise in input costs.
Oil prices have risen by around 10 per cent in the last three months, while chemical costs too have risen substantially.
Hoshedar K Press, executive director and president, Godrej Consumer Products, said: "We will watch the market. We will not rule out price hikes to manage rising costs and to maintain parity with other players in the market."
FMCG major Procter and Gamble, however, refused to comment on possible price hikes for any of their brands. HLL too declined to comment on whether their toothpaste price hikes would be followed by increased prices in any of their other categories.
HLL's rival in the toothpastes category, Colgate-Palmolive, thus far been has been tightlipped on whether it will also increase prices. HLL has increased the price of its Pepsodent 175 gram pack from Rs 40 to Rs 42, while the price of Close-Up 150 gram pack is up from Rs 42 to Rs 44.
FMCG analyst Nikhil Vora at SSKI said, "More than input cost pressures, the price hike also has to do with the fact that there is a semblance of stability returning to the toothpaste market in terms of volume growth and maintenance of market share. Companies feel they will not necessarily lose out on margins by increasing prices. The pressure from lower-end players is also receding."
Colgate-Palmolive currently leads the Rs 2,000 crore (Rs 20 billion) toothpaste market with a share in excess of 50 per cent, while HLL has 32 per cent.
Third-rung players Dabur and Anchor make up around 15-20 per cent of the market though analysts say they have not been gaining share for some time now.
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