Mumbai, Jan 25: FMCG majors Hindustan Lever Ltd (HLL) and Procter & Gamble (P&G)-which have cornered over 70 per cent of the total shampoo market-have gone in for price mark-ups in leading shampoo brands owing to an increase in input costs.The price increase is in the broad range of three per cent to 10 per cent. While the companies, when contacted, said that the price increase is in line with inflation, analysts aver that the price hike could be on account of an increase in input costs. The reasons could, however, not be pin-pointed.HLL, which leads in the Rs 400-crore shampoo market with a market share of around 55 per cent, has increased prices on leading brands like Clinic All Clear and Sunsilk. Retailers say that a price increase on the other shampoo brands from the Levers stable could be in the offing.
P&G has taken a price mark-up on both its globally renowned shampoo brands-Pantene and Head & Shoulders. Both these brands have together garnered a market share of close to 20 per cent. HLL's ClinicAll Clear has witnessed a marginal three per cent price increase on the 80 ml volume to Rs 34.50 from Rs 33.50. However, the price of the 160 ml shampoo bottle remains the same at Rs 64.50.
The price of Sunsilk, the second largest shampoo brand, at Rs 90 for a 200 ml bottle has increased sharply by seven per cent from Rs 84 earlier. The 100 ml volume in the same brand has remained more or less the same. The price of the 50 ml Sunsilk has gone up by a margin of Rs 2 to Rs 27. There has been no price increase in Organics, the root nourishing shampoo brand from the Levers stable, say retailers.
Procter & Gamble has also taken a price increase in its premium shampoo brands Pantene and Head & Shoulders. The price of a 100 ml bottle of Pantene at Rs 55 is up by 10 per cent from the earlier level of Rs 50. The 200 ml bottle of Pantene has witnessed a mark-up of four per cent to Rs 104 from Rs 100.
The anti-dandruff brand of P&G, Head & Shoulders, which competes directly with HLL's Clinic All Clear shampoo hasexperienced an 8.6 per cent increase in price to Rs 113 for a 200 ml bottle from Rs 104. The 100 ml volume of the same shampoo has gone up to Rs 53 from Rs 51, say retailers.
Close to 20,000 tonne in volume, the shampoo market is growing at around 15-20 per cent annually.
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