Famous Soap Brands Lifebuoy, Lux Prices Reduced Up To 15% For Diwali

New Delhi: FMCG companies Hindustan Unilever Ltd and Godrej Consumer Products Ltd (GCPL) have slashed the prices of some soap brands by as much as 15 percent as palm oil and other commodities become relatively cheaper. HUL has reduced the prices of its offerings under the popular soap brands Lifebuoy and Lux ​​in the western region by 5 to 11 percent. Godrej Group branch GCPL, which owns soap brand Godrej No 1, has also slashed the prices of soap by 13 to 15 percent.

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Analysts believe the price cut would contribute to volume growth in the second half of the current fiscal year, especially as general demand remains weak on the back of high inflation.

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One of the reasons for the price cut is the fall in global prices of palm oil and other commodities, she added. Commenting on the development, GCPL CFO Sameer Shah said: “As commodity prices fall, GCPL is one of the first FMCG companies to pass on the benefit of price reduction to consumers.”

“For soaps in particular, GCPL has cut prices by 13 to 15 percent. We have reduced the price of the bundle pack (five units of 100 grams each) of Godrej No.1 soap from Rs 140 to Rs 120,” he added .

A HUL spokesperson told PTI: “For Lifebuoy and Lux, there is a price drop in the West region,” he said without commenting on the size of the reduction and whether similar cuts will be rolled out in other regions. However, according to reports, the prices of these soap brands have been reduced by 5-11 percent.

However, the spokesperson denied reports of price cuts from other brands such as Surf, Rin, Wheel and Dove.

Commenting on HUL’s price cut, Abneesh Roy, Executive Vice President of Edelweiss Financial Services, said it is a proactive move by the company to maintain market share in an era of falling commodity prices. “When commodity prices fall, regional players often come back.”

He expects this to drive volume growth for HUL in H2FY23 and FY24. “Last year volume growth for HUL was impacted by gram weight reductions and price increases. Now the reverse is happening with gram weight increase/price reductions,” Roy said.

FMCG companies faced challenges of high retail inflation and slowdown in rural areas in September, Q2 2022. These companies had ramped up production of “bridge packs” priced between popular entry-level packs and big packs.

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