Companies Raise Prices as Supply Chain Disruptions and Higher Input Costs Drive Up Summer Expenses

Indian Consumers Brace for Higher Prices Amid Iran War

The ongoing Iran war is set to make the summer even hotter for Indian consumers, with manufacturers across various sectors, including bottled water and air conditioners, raising prices due to cost pressures arising from the West Asia conflict. The conflict has disrupted the flow of crude and gas, leading to elevated raw material and packaging costs, and disruption in the supply of gas.

Industry executives anticipate a robust demand, even as unseasonal rains keep the temperature low in central and northern parts of the country. This demand, combined with the ongoing conflict, is forcing manufacturers to raise prices.

Beer Makers Face 20 Percent Increase in Costs

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Beer makers are staring at a 20 percent increase in costs, primarily due to the impact of the war on the supply of glass bottles and cans. In the absence of can supply, beer makers are looking to import them, which could further push up costs. The war has also pushed up PET resin, plastic bottles, caps, and cardboard box prices, with some raw material costs increasing by up to 50 percent.

Beverage Giants Hold Prices, Regional Brands Raise Prices

While beverage giants are holding prices, regional brands such as Lahori Zeera have selectively raised prices, with a greater impact on larger pack sizes. Mohali-based Archian Foods, the maker of the popular fizzy drink, has raised prices, but the company's co-founder and chief operating officer, Nikhil Doda, expects prices to normalise going forward.

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Air Conditioner Sales Grow, But Price Hikes Loom

Room air conditioner sales grew well in the first two months of 2026, but offtakes remained weak in March due to unseasonal rains in some parts. Despite this, AC makers are mulling price hikes to offset the impact of higher commodity prices and exchange rates. Panasonic Life Solutions India, which has a 7-8 percent share of India's room AC market, is planning a 12-15 percent hike in a phased manner.