New Delhi, May 1 -- Hindustan Unilever Ltd., the company behind Lux, Dove, Lakme, and a lot more in your bathroom cabinet, is raising prices by 2-5%. Reason: geopolitical tensions in West Asia have sent crude-linked input costs spiralling, squeezing margins on everything from packaging to surfactants.

But even with the price hikes, HUL just posted its strongest volume growth in 15 quarters at 6%. Net profit jumped 21.3% to Rs.2,994 crore, beating analyst estimates comfortably. So, consumers are still buying. The question is how long that holds.

When everyday essentials like detergent and shampoo get pricier, do people trade down or simply buy less? HUL's CFO Niranjan Gupta is betting on low elasticity-these are daily necessities, after ...