The Hindu Business Line : Nirma, Henko also to cost more

Market sources said both Nirma and Kanpur Trading Company (maker of the Ghadi brand) have raised prices of their detergent brands over the last few days. And Chennai-based Henkel Spic India Ltd also is expected to go in for a price hike.

According to the sources, Kanpur Trading has raised prices of Ghadi detergent powder and cake by a rupee and 80 paise respectively, but company officials could not be reached for comments. Again, while Nirma officials remained unavailable, sources said the company has raised prices by a smaller quantum. In Henkel Spic too no official comment was forthcoming, but sources said the company had decided to raise prices of the Henko Stain Champion brand by Rs 4 to Rs 79 for a kg and Rs 42 for 500 gram. For Mr White, the raise will be Rs 6 for the one kg pack to Rs 42 and Rs 3 for the 500 gram pack to Rs 22.

The present round of price increases by all major detergent manufacturers comes close on the heels of prices of Liner Alkyl Benzene (LAB — one of the major ingredients in detergents) spiralling by about 30 per cent over the last three months to touch Rs 66 per kg.

"LAB is a major component in manufacturing detergents. Its prices have been hitting the roof for the last three-four months and have already touched Rs 66 per kg, but due to global shortage of benzene (main ingredient of LAB), the market expects LAB prices to touch Rs 100 per kg by June this year. This will mean further pressure on detergent makers," an official with a leading detergent maker said.

An analyst tracking the Fast Moving Consumer Goods (FMCG) market said that with LAB prices expected to continue their upward spiral, there could be another round of price increase for detergents in the offing. But Mr Nikhil Vora at SSKI Securities said, "If LAB prices do rise as they are expected to, detergent makers may tinker with prices somewhat but I do not foresee any major hikes immediately. No company at present is in a position to risk market share loss."

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