16/10/06 (The Times of India)  MUMBAI: To offset rising costs of palm oil derivatives that go into soap making, Godrej Consumer Products has effected a price increase in soaps.

The price hike is in the range of 5-8%, said GCPL executive director and president HK Press. Though the trade has been informed about the price hike, it is yet to hit retail shelves. This is expected to take place soon, said dealers.

Industry analysts expect this to improve the company's profitability significantly.

GCPL is the second largest soap maker in the country after Hindustan Lever (HLL). The company's move to increase prices on soaps comes close on the heels of the price increase taken by HLL over the last few months.

HLL recently hiked price of laundry brand Rin Advance and Surf Excel Blue by around 5%. It had also raised the price of Lifebuoy -- the largest selling toilet soap brand in the country -- and Pears by about 10%, a few months back.

Prices of fast-moving consumer goods (FMCG) have been on the rise due to rising input costs. FMCG firms have been exercising their pricing power with the sector witnessing limited resistance from consumers.