The Godrej group, a major player in the FMCG segment, today said it could hike soap prices in order to offset rising input costs, particularly those of vegetable oils.
"Soap is one category which is affected because vegetable oil prices are rising. We are meeting it by efficiency in manufacturing and distribution and by some price increase. There could be further price increases," Godrej Group Chairman Adi Godrej told PTI.
When asked by how much the prices could go up, he said: "It is difficult to predict how much, but it depends on how raw material prices will pan out. If the raw material prices go up significantly, we need to take a price hike."
Godrej group firm Godrej Consumer Products (GCPL), which sells soap brands such as Cinthol and Godrej No 1, raised prices of its soaps by 3-5% in early January. It had also raised the prices of its hair-colour products by 10% around three months ago.
Godrej, however denied on cutting down on retailers' margins.
On the acquisition front, he said the company is no longer aggressively looking out for prospective purchases after a spate of acquisitions last year, although it continues to keep its option open.
"We are looking for acquisitions, when suitable acquisition comes our way, we will. I won't use the word aggressively, but we are looking for it," Godrej said.
Last year, GCPL had seven acquisitions to its credit, including the takeover of leading African personal care brand Tura from Nigeria's Tura Group, Latin American hair colour firm Issue Group and Argentina's Argencos.
