A company spokesperson when contacted confirmed a price increase in Advanced Pepsodent. The spokesperson said that the company would consider a price increase in other toothpaste brands as well. Toothpastes contributed about four per cent to the company's turnover of Rs 10,142 crore in 1999.

The price escalation is on account of a hike in prices of key raw materials - which are imported - due to the value of rupee depreciating against the dollar. The multinational had previously increased prices of toothpastes nine months back.

The spokesperson said that the price increase is in line with inflation and also due to rupee depreciation as the company resorts to imports for certain key raw materials which go into toothpaste manufacturing.

The price of Advanced Pepsodent has gone up to Rs 52 for 200 gm from Rs 49.90. The prices of HLL's other toothpaste brands are as follows: Pepsodent G at Rs 33.25 for 100 gm, Pepsodent 2-in-1 at Rs 33.25 for 100 gm, Close Up at Rs 33 for 100 gm and Close Up Oxyfresh at Rs 33.25 for 100 gm. HLL's latest offering in toothpaste is Aim toothpaste which was launched on the USP of being popularly priced at Rs 8 for 50 gm. The toothpaste market had witnessed a slow-down last year and is thus price-sensitive in nature, industry analysts said.

The increase in prices of HLL's other toothpaste brands will depend on their respective stock positions, as and when these replenish.

The company had taken a post-Budget price increase of about seven per cent in toothpastes following the levy of an eight per cent excise duty in the Union Budget 2000-2001. The post-Budget price revisions were across the personal products category, including toothpastes. Price mark-ups were taken in not only toothpastes, but also skincare and shampoo products. On toothpowders, there was a reduction in the post-Budget price. Personal Products, as a category, contribute 17.4 per cent to HLL's overall turnover.

HLL is the second largest marketer of toothpastes in India. It has a market share of about 36 per cent (1999) in the Rs 1,000-crore toothpaste market, where Colgate-Palmolive is the leader with an over 50 per cent marketshare.

It is, however, not known whether Colgate-Palmolive would also undertake a price increase.

While the two rivals are constantly fighting a stiff battle for market share, recent hectic activity in toothpastes witnessed the relaunch of HLL's leading gel toothpaste brand Close Up as "Super Fresh Close-Up", which commands a share of about 20 per cent. A similar move was seen in rival brand Colgate Fresh Energy Gel. Colgate has also rejuvenated its flagship brand Colgate Dental Cream with Super Shakti and Calcium.