Ever thought that the ongoing tensions in West Asia could affect the condom industry? Yes, that's true and you heard that right. The ongoing conflict has impacted an unexpected sector in India: the condom manufacturing industry. Disruptions in petrochemical supply chains linked to the conflict are creating shortages of key raw materials, putting pressure on production and costs across the Rs 8,000 crore market.
Supply chain disruptions hit production
According to a report by The Indian Express, India produces over 400 crore condoms annually, but manufacturers are now facing difficulties due to shortages in essential inputs. The industry depends heavily on silicone oil, used as a lubricant, and ammonia, which stabilises latex during production.
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Manufacturers are reportedly witnessing a severe shortage of silicone oil, creating uncertainty in the market. At the same time, ammonia prices are expected to rise sharply.
"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.
Rising costs of packaging materials such as PVC and aluminium foil are further adding to the pressure, creating a broader cost crunch for producers.
Major manufacturers feel the strain
Several companies are dealing with the impact, including state-run HLL Lifecare Ltd, which produces around 221 crore condoms annually, along with Mankind Pharma Ltd and Cupid Ltd. Supply constraints and volatility in raw material prices have affected production schedules and order execution, an official from a manufacturing firm told the publication.
Logistics disruptions have also contributed to the challenges, the official added. The situation could tighten further as petrochemical resources may be prioritised for critical sectors. Officials have indicated that petrochemical units could face up to a 35 per cent reduction in allocation, which may squeeze supply for industries such as condom manufacturing.
Wider industry impact
Experts say the issue extends beyond a single sector. Jatish N Sheth from the Karnataka Drugs and Pharmaceuticals Manufacturers Association said petrochemical-dependent industries are likely to feel the impact. "We are definitely impacted, but we need to assess the extent and depth of the impact on the industry," he said.
Concerns over affordability
Industry insiders warn that rising input costs may lead to higher prices. India's condom market operates on a high-volume, low-cost model, and any price increase could affect consumption.
"This has translated directly into pressure on the bottom line. While forced price increases may boost revenue, they will likely decrease sales numbers," an industry source said.
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With condoms playing a role in family planning, even small shifts in affordability could have broader implications.
