Prices of Cosmetics, Soaps to Rise as Rupee Skids
Monday, 05 December 2011, 15:23 IST
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Bangalore: The cost of essential household products like cosmetics, soaps and detergents are set to rise in the wake of massive depreciation of the rupee, a top industry official has said. "The cost of cosmetics, soaps and detergents will go up due to high raw material prices after the drastic depreciation of the rupee, making imports expensive," Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (Chemexcil) Chairman Satish Wagh said. Echoing similar views, Godrej Industries Managing Director Nadir Godrej said, "The weakening rupee has hit domestic refineries badly as the imported raw material cost becomes higher. A majority of independent refineries which are not able to pass on the price increase to consumers are facing closure." The Rs 2 trillion home and personal care market has been witnessing a steady growth in the recent past, driven by rising demand across market segments. While there has been a healthy 18-20 percent growth in the personal care products space, there has been an 8 percent spike in demand for laundry products this year so far. However, this rapid growth may be hit due to the falling rupee and increasing raw material costs, Wagh said. Agri prices have not come down much in the recent past, Godrej noted and said the mounting losses due to higher raw material rates may force companies to pass on the price increase to consumers. There are also concerns regarding domestic tariff structures that can negate growth, Wagh said. In this challenging scenario, the Indian Home & Personal Care Industry Association and Oil Technologists Association of India, in association with Chemexcil, is organising an international summit here from December 10-13 to discuss issues related to sustainability, markets, innovation and issues of the HPC industry, Wagh said.
Source: PTI
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