The cost of many essential household products such as cosmetics, soaps and detergents are set to rise with the massive fall of the rupee, a top industry official has said.

“The cost of cosmetics, soaps and detergents will go up due to the high raw material prices after the drastic depreciation of the rupee, making imports expensive,” Basic Chemicals, Pharmaceuticals & Cosmetics Export Promotion Council (Chemexcil) Chairman Mr Satish Wagh said.

Godrej Industries Managing Director Mr Nadir Godrej concurred. “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 now.”

The Rs 2-trillion home and personal care (HPC) market has been witnessing steady growth in the recent past, driven by rising demand from across the market segments. While there has been a healthy 18-20 per cent growth in the personal care products, there has been an 8 per cent 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 cost, Mr Wagh said.

Agri prices have not come down much in the recent past, Mr Godrej pointed out and said the mounting losses due to higher raw material rates may force the companies to pass on the price increase to consumers.

There are also concerns regarding the domestic tariff structures which can negate growth, Mr Wagh said.

In this challenging scenario, Indian Home & Personal Care Industry Association and Oil Technologists Association of India, in association with Chemexcil, are organising an international summit here from December 10-13 to discuss issues related to sustainability, markets, innovations and issues of HPC industry, Mr Wagh said.

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