Hindustan Unilever reduces prices of popular products following GST reduction
The strategic timing is set to provide relief to households during a peak shopping period, improve the affordability of essential personal care and food products, and stimulate market activity.
INDIA – Hindustan Unilever Limited (HUL) has announced significant price reductions on key personal care and food products following the Indian government’s decision to reduce the Goods and Services Tax (GST) rates from 18% to 5% on these items.
This move aligns with the GST Council’s reforms effective from September 22, 2025, aimed at easing consumer costs and boosting demand ahead of the festive season.
HUL’s new pricing includes notable cuts such as Dove shampoo (180 ml) reduced from ₹165(USD 1.87 ) to ₹145(USD 1.65), Lux soap (100 gm) now ₹30(USD 0.34) down from ₹35(USD 0.40), and Lifebuoy soap (125 gm) dropping to ₹28(USD 0.32) from ₹33(USD 0.37).
In the food and beverage category, Kissan Jam (500 gm) sees a ₹20(USD 0.23) cut to ₹140(USD 1.59), Horlicks (1 kg) is down ₹40(USD 0.45) to ₹350(USD 3.98), and Bru coffee (100 gm) is priced at ₹160USD 1.82) versus the earlier ₹180(USD 2.04).
These reductions, ranging from 10% to about 15% across product lines, reflect the company’s commitment to passing on tax benefits directly to consumers while maintaining product quality.
A spokesperson from HUL emphasized the company’s focus on value addition through these price adjustments in line with GST reforms.
The spokesperson stated, “We are focused on providing value to consumers by adjusting our prices in line with the recent GST reforms, while maintaining the quality of our products.”
This pricing adjustment is occurring amid government mandates requiring companies to notify consumers about such changes transparently through advertisements.
The price-reduced products will soon be widely available in retail outlets nationwide, marking a significant step toward enhancing consumer accessibility to daily-use goods and supporting demand growth for FMCG products post-GST reform.
This move follows HUL’s recent announcement of its financial report for the quarter ended March 31, 2025, which reported a 3% Underlying Sales Growth (USG).
The company’s EBITDA margin stood at 23.1%, reflecting a year-on-year decline of 30 basis points.
Meanwhile, both the Profit After Tax before exceptional items (PAT before) and the overall Profit After Tax (PAT) recorded a 4% increase.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
