Surf Excel, Vim, Rin to cost less as HUL cuts prices

Hindustan Unilever has slashed prices of its detergent and dish wash bar brands such as Surf Excel, Vim and Rin - here's why the FMCG major has decided to reduce prices.

HUL has increased the grammage of detergent and dishwash by 17-25 per cent and reduced rates by 10-25 per cent. Pic: hul.co.in/brands/

India's largest fast-moving consumer goods (FMCG) company Hindustan Unilever Limited (HUL) has reduced the price of certain detergent and dishwash products by 10-25 per cent. Interestingly, the company has also raised the grammage of some products along with decreasing prices.

Varun (Subhash) Dubey, senior research analyst and anchor at ZEE Business, said, this is not the first time that the consumer products conglomerate has cut the products' rate but this time they have increased the grammage also. This follows the slump in prices of palm oil and other raw materials. This year palm oil prices are reduced by around 14 per cent and 60 per cent in the last one year.

HUL has increased the grammage of detergent and dishwash by 17-25 per cent and reduced rates by 10-25 per cent.

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For instance, the company has raised the grammage of Rs 10 Rin Bar by 20 gm to 140 gm, Surf Excel Matic price is cut from Rs 220 to Rs 199 while Surf Excel Easy Wash Liquid 1 litre price is slashed from Rs 205 to Rs 190.

Check the new price and grammage of the products here:

"It can be seen that the company is focusing on its volume growth drive. Therefore, it is decreasing rate and increasing grammage so that the offer is more lucrative to customers. The co is setting a new trend in the consumer industry," said Dubey.

Last year in October, HUL and Godrej Consumer cut prices by up to 15 per cent due to relief in raw material prices.

The volume of the FMCG industry increased by just 0.54 per cent in the last one year (till January 2023) compared to the year before, according to the most recent study from Kantar.

“Consumers will continue to spend on these categories — grocery and daily essentials, such as toothpaste, shampoo, and soap. They are likely to manage their budget by moving to cheaper brands. However, discretionary products like convenience goods have a risk of getting dropped out,” the report said.

If prices go further up, nearly one-fifth of consumers may stop spending on categories such as packaged juices, soups, ketchup, entertainment, and eating out, Kantar said.

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