- Dabur, HUL, and Colgate raised toothpaste prices amid rising raw material costs
- Dabur increased prices by about 4.4%, raising Dabur Red 200g pack to Rs 141
- HUL's price hikes ranged 2-3%, with Pepsodent 200g now at Rs 135 after increase
India's leading fast-moving consumer goods (FMCG) companies are increasing toothpaste prices as rising raw material and packaging costs continue to squeeze margins. After recent price hikes by Colgate-Palmolive, both Dabur India and Hindustan Unilever (HUL) have raised prices across key toothpaste brands in June, signalling a broader industry response to persistent inflationary pressures.
According to dealer inputs, Dabur has increased toothpaste prices by around 4.4% this month. The company raised the price of its flagship Dabur Red toothpaste 200-gram pack by Rs 6, taking the retail price to Rs 141. Similarly, the 200-gram pack of Meswak toothpaste has also become costlier by Rs 6 and now sells at Rs 141.
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HUL has implemented relatively smaller increases, ranging between 2% and 3%. The company raised the price of the 200-gram pack of Pepsodent by Rs 4 to Rs 135, while the 150 gram pack of Closeup now costs Rs 132 after a Rs 3 increase.
The latest revisions come shortly after Colgate-Palmolive increased prices across several of its major toothpaste variants in May. The company reportedly raised prices by 4-5% on popular products including Colgate Dental Cream, Max Fresh Blue and Visible Purple toothpaste packs.
Industry executives and distributors attribute the price increases to higher input costs. FMCG manufacturers have been grappling with inflation across a wide range of commodities, including chemicals, packaging materials and transportation-related inputs. Rising costs have put pressure on profitability, prompting companies to pass on a portion of the burden to consumers through calibrated price hikes.
For Dabur, the oral care segment remains a critical contributor to its domestic business. Toothpaste accounts for approximately 18-19% of the company's domestic revenue, making pricing decisions in the category particularly important.
In contrast, toothpaste contributes only around 2% of HUL's overall revenue. However, the oral care business remains highly profitable for both companies, with EBITDA margins exceeding 25%.
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Management commentary from both companies had already indicated the possibility of pricing actions. Dabur had guided for selective price increases of around 4% during the first quarter of the financial year. HUL, meanwhile, stated that its pricing strategy would include direct price hikes in larger packs and grammage adjustments in smaller packs to offset cost pressures while maintaining affordability.
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