Cars costly, soaps costly, chocolates costly... '12 costly
Keep aside some extra cash this New Year. For, cars, consumer goods and even chocolates will cost more from January. And not a little more.
Automobile companies that have held back a price rise for a long time in view of slowing demand have decided to bite the bullet — push up prices by 1.5-3%. These include Maruti Suzuki, Hyundai Motor India, General Motors and Toyota Kirloskar Motor.
The companies blame it on rising import costs. The currency has depreciated from 46.50 to 51 against the dollar in a month. And this makes imports more expensive. Most automobile companies have significant import content and as the rupee depreciates, their margins take a direct hit.
Market leader Maruti Suzuki is still to decide on the quantum of hike; but given an import content of 15-22%, it is bound to be significant. "Hike is in the pipeline," said Mayank Pareek, managing executive officer, marketing & sales, Maruti Suzuki.
Hyundai, the second-largest car-maker, has made up its mind to hike prices by 1.5-2% across models. "Prices will rise from January. We are in the process of working out the specific increase on the various models," said Arvind Saxena, director marketing and sales, Hyundai Motor India.
Toyota may be looking at a bigger hike, say 1.5-3%. "This could be the steepest price hike from Toyota," said Sandeep Singh, deputy managing director (marketing), Toyota Kirloskar Motor India.
On its part, General Motors will raise prices by 1-2% across models. Its Beat diesel, for one, will cost Rs15,000 more.
Analysts say price hikes will dent demand further in the short term. "The impact could be more if fuel prices and interest rates go up," said Deepak Jain of Sharekhan.
Consumer goods too might see a rise in prices. Hindustan Unilever and Godrej Consumer Products have raised toilet soap prices. Marico and Dabur have raised hair oil prices. Now, more players are readying hikes in a bid to safeguard their margins against rising input costs. Package and transport cost, along with raw materials, has been pinching them.
Among others, GlaxoSmithKline Consumer — the maker of Horlicks — which usually takes an annual price hike in January, will effect a 5-10% hike on the brand later this month.
The company had hiked Horlicks prices by 6% exactly a year ago, after a 4-6% hike in January 2010. It has also recently hiked the price of its 5gm Eno pack by Re1 to Rs6.
Dabur India, the maker of Hajmola candies, Real juices and Chyawanprash, is looking to increase prices of its health and food brands, despite last quarter's hikes. Toothpaste could be one of the categories that will see an increase.
Among others, Emami, which sells personal care and over-the-counter products, has hiked prices of its Navratna hair oil, Mentho Plus balm, Zandu balm and Himani Fast Relief by 5-14% in the past one month. A few months ago, it had also hiked price on creams — Boroplus and Fair&Handsome by 5-10%.
In September, Jyothy Laboratories Ltd, which makes the Ujala fabric whitener, had to take a 7% hike across products (mosquito repellants, dishwash bars, detergents and fabric care) and stock-keeping units.
And fast moving consumer goods aren't alone. Consumer durable makers Samsung, Whirlpool and LG, too, have increased prices by 4-8% effective December 1.
Asian Paints, Berger Paints, AkzoNobel and Kansai Nerolac too have increased prices as much as 8% in the past six months, after pushing them up 14% last fiscal.
Worse of all, the bitter trend is seen extending even to chocolates. As such, Nestle and Cadbury have doubled product prices in the past one year. Nestle's KitKat, for example, is up from Rs5 a year ago to Rs10 now. On the other hand, Cadbury's has substantially reduced the grammage or pack sizes of many of its chocolates substantially, translating into an indirect price hike.
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Keep aside some extra cash this New Year. For, cars, consumer goods and even chocolates will cost more from January. And not a little more.
Automobile companies that have held back a price rise for a long time in view of slowing demand have decided to bite the bullet — push up prices by 1.5-3%. These include Maruti Suzuki, Hyundai Motor India, General Motors and Toyota Kirloskar Motor.
The companies blame it on rising import costs. The currency has depreciated from 46.50 to 51 against the dollar in a month. And this makes imports more expensive. Most automobile companies have significant import content and as the rupee depreciates, their margins take a direct hit.
Market leader Maruti Suzuki is still to decide on the quantum of hike; but given an import content of 15-22%, it is bound to be significant. "Hike is in the pipeline," said Mayank Pareek, managing executive officer, marketing & sales, Maruti Suzuki.
Hyundai, the second-largest car-maker, has made up its mind to hike prices by 1.5-2% across models. "Prices will rise from January. We are in the process of working out the specific increase on the various models," said Arvind Saxena, director marketing and sales, Hyundai Motor India.
Toyota may be looking at a bigger hike, say 1.5-3%. "This could be the steepest price hike from Toyota," said Sandeep Singh, deputy managing director (marketing), Toyota Kirloskar Motor India.
On its part, General Motors will raise prices by 1-2% across models. Its Beat diesel, for one, will cost Rs15,000 more.
Analysts say price hikes will dent demand further in the short term. "The impact could be more if fuel prices and interest rates go up," said Deepak Jain of Sharekhan.
Consumer goods too might see a rise in prices. Hindustan Unilever and Godrej Consumer Products have raised toilet soap prices. Marico and Dabur have raised hair oil prices. Now, more players are readying hikes in a bid to safeguard their margins against rising input costs. Package and transport cost, along with raw materials, has been pinching them.
Among others, GlaxoSmithKline Consumer — the maker of Horlicks — which usually takes an annual price hike in January, will effect a 5-10% hike on the brand later this month.
The company had hiked Horlicks prices by 6% exactly a year ago, after a 4-6% hike in January 2010. It has also recently hiked the price of its 5gm Eno pack by Re1 to Rs6.
Dabur India, the maker of Hajmola candies, Real juices and Chyawanprash, is looking to increase prices of its health and food brands, despite last quarter's hikes. Toothpaste could be one of the categories that will see an increase.
Among others, Emami, which sells personal care and over-the-counter products, has hiked prices of its Navratna hair oil, Mentho Plus balm, Zandu balm and Himani Fast Relief by 5-14% in the past one month. A few months ago, it had also hiked price on creams — Boroplus and Fair&Handsome by 5-10%.
In September, Jyothy Laboratories Ltd, which makes the Ujala fabric whitener, had to take a 7% hike across products (mosquito repellants, dishwash bars, detergents and fabric care) and stock-keeping units.
And fast moving consumer goods aren't alone. Consumer durable makers Samsung, Whirlpool and LG, too, have increased prices by 4-8% effective December 1.
Asian Paints, Berger Paints, AkzoNobel and Kansai Nerolac too have increased prices as much as 8% in the past six months, after pushing them up 14% last fiscal.
Worse of all, the bitter trend is seen extending even to chocolates. As such, Nestle and Cadbury have doubled product prices in the past one year. Nestle's KitKat, for example, is up from Rs5 a year ago to Rs10 now. On the other hand, Cadbury's has substantially reduced the grammage or pack sizes of many of its chocolates substantially, translating into an indirect price hike.
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