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Kitchen first, bedroom next? How West Asia conflict is crippling India’s $860 million condom industry
With major players like HLL Lifecare and Mankind Pharma facing a spike in input costs, the high-volume, low-margin model of the Indian condom market is under threat.
Condom manufacturers say they face a shortage of silicone oil and ammonia, which are essential in the production of the contraceptive (Image generated using AI).
The ripple effects of the ongoing conflict in West Asia have reached an unexpected sector: India’s $860 million condom manufacturing industry.
As supply chains for critical petrochemicals and lubricants are disrupted, the Indian condom manufacturing industry, which produces over 400 crore units annually, is experiencing raw material shortages and soaring production costs.
Major players, including state-run HLL Lifecare Ltd, which produces approximately 221 crore condoms annually, Mankind Pharma Ltd, and Cupid Ltd, are all currently grappling with the supply chain shock.
The manufacture of condoms relies heavily on two critical inputs: silicone oil and ammonia. Silicone oil is a vital lubricant, and the material is currently facing a “huge shortage”, causing massive market uncertainty. Ammonia is essential for stabilising raw latex, and its prices are expected to surge by 40–50 per cent. The rising costs of packaging materials have also not helped either.
Speaking to The Indian Express, an official from a condom manufacturing firm said, “Supply constraints and price volatility in key inputs, such as PVC foil, aluminium foil, and packaging materials, have impacted production and order execution.” Logistics disruptions have contributed to the challenges, he added.
“A price increase of 40–50 per cent is expected for ammonia, which is essential for condom production. There has been a significant rise in the price of silicone oil, leading to uncertainty in the market,” added the official.
Jatish N Sheth from the Karnataka Drugs and Pharmaceuticals Manufacturers Association told the Indian Express that any material containing petrochemicals is affected. “We are definitely impacted, but we need to assess the extent and depth of the impact on the industry,” he said.
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The government has already begun prioritising resources. During an inter-ministerial briefing on March 11, it was revealed that petrochemical units may face a 35 per cent reduction in resource allocation to protect higher-priority sectors, further squeezing products such as condoms.
Risk to family planning
Industry insiders warn that this crisis is not just a business hurdle but also a social risk. Unlike Western markets, India operates on a high-volume, thin-margin model, keeping prices low to ensure accessibility for its nearly 140 crore people, said an employee at a condom manufacturing company.
“This has translated directly into pressure on the bottom line. While forced price increases may boost revenue, they will likely decrease sales numbers,” the employee said.
For a product tied so closely to family planning and population control, any drop in usage could have long-term social consequences, he added.
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