In the FMCG sector, packaging materials such as HDPE (high-density polyethylene) and other polymers are directly linked to crude oil. Packaging accounts for 15–20% of total costs for manufacturers of soaps, detergents, oils, and shampoos. Rising crude prices increase packaging costs, thereby impacting margins.
Impacted Stocks: HUL, Marico, Emami, Dabur, Godrej Consumer, ITC, Jyothy Labs