Iran war: HUL hikes prices of Dove, Pears, Surf, Red Label

Hindustan Unilever Limited has hiked prices across its soap portfolio, passing on rising raw material and packaging costs to consumers, The Times of India reported, with increases ranging between Re 1 and Rs 20.

“Given current commodity inflation in crude, palm oil and plastics, we are taking selective price increases across our portfolio. While making any price changes, we always ensure that we maintain a consumer price-value equation,” a HUL spokesperson told TOI.

Read more: Price hikes on the horizon: Expect a hit on your budget as Iran war's impact becomes clear


For FMCG companies that were counting on GST cuts to revive consumption after a prolonged slowdown, the current situation may push back a demand recovery just as early signs of improvement had begun to reflect in recent quarterly earnings.
Since the start of the US Iran war on Feb 28, crude oil prices have soared, breaching the $100 per barrel mark, pushing up raw materials and logistics for companies. FMCG firms use crude derivatives such as polypropylene and alkyl benzene to manufacture a range of products and for packaging.

Adding to the uncertainty, private forecaster Skymet has predicted a below-normal monsoon, which could negatively affect rural demand. The rural market has been a major contributor to FMCG growth in recent quarters, particularly as high inflation and stagnant incomes have curbed spending among urban consumers. Dabur stated that it is closely monitoring the changing geopolitical situation and will continue to take preventive steps to protect its operations and manage costs effectively.

Also read | India’s sugar and edible oil demand dips as restaurant gas shortages bite

Marico, which expects double-digit growth in operating profit for Q4, emphasised that the broader economic impact of developments in West Asia remains an important factor to track. It noted that increasing prices of vegetable oils and other crude-linked inputs are pushing costs higher, and the company intends to manage this through careful use of pricing strategies across its brands. Across the wider consumer space, initial signs of pressure are becoming visible. In the quick-service restaurant segment, Jubilant FoodWorks reported that Domino’s India posted like-for-like growth of only 0.2% in Q4, indicating a drop in same-store sales.