Wipro Consumer Care and Lighting said there was a dramatic increase in palm oil prices in global markets, coupled with an unusually high freight charge during the epidemic, which led to an 8% increase in soap prices.
Palm oil imports from Malaysia and Indonesia for soap manufacturing have become very expensive, according to CEO Vineet Aggarwal.
“Palm oil prices have gone up significantly and import costs have also gone up, as international freight charges are unusually high, with no signs of bettering,” he said. ”
Palm oil is one of the major ingredients of all types of soaps under the company's flagship brands Santoor, with annual sales of more than ₹ 2,000 crore, Hygienics and Yardley while coconut oil is used to make Ayurvedic oil Chandrika.
According to Mr. Aggarwal, the company plans to rationalize its product portfolio to include sanitizers, handwashes, surface sanitizers, floor cleaners and surface wipes by reducing the number of SKUs (stock keeping units) while retaining all segments.
“Between April and July 2020, there was a frenzy over sanitisers,” he said. Addressing the media round table, he said, “It is over now and there is a lot of stock accumulated with homes and retailers.”
“We will continue to focus on inorganic growth. If we find a strategic fit, we will be an enthusiastic buyer. Shri Aggarwal said that we are looking at emerging categories in different countries.
The company was traditionally set to increase market share and increase revenue to accelerate the inorganic game.