Iran conflict pushes India plastic costs up about 40%
Thanks to the ongoing conflict in Iran, the price of plastic raw materials has shot up by around 40%.
Since plastics are made from oil, higher oil prices and worries about supply have made essentials like bottled water and packaged goods more expensive.
Indian companies like Alternicq are now passing these extra costs on to shoppers.
India packaging firms' profits squeezed
The spike is hitting India's packaging industry hard, especially big players like Alternicq, who supply brands such as Marico and Hindustan Unilever.
Key plastics like PET and polypropylene have become costlier, squeezing company profits.
While Alternicq's close ties with refiners such as Reliance Industries help a bit, Thimmaiah Napanda says it could take four to six months for prices to settle — if things calm down in Iran.
For now, major brands are staying quiet and watching how things unfold.