The ongoing conflict in West Asia has begun to affect India’s $860 million condom manufacturing industry, as disruption in supply chains drives up production costs.

Industry players said shortages of key petrochemical materials used in production have created uncertainty for manufacturers across the country.

India produces over 400 crore condoms annually, with major companies such as HLL Lifecare Ltd, Mankind Pharma Ltd and Cupid Ltd now facing pressure from rising input costs and limited supply.

HLL Lifecare, a government-owned firm, produces about 221 crore condoms yearly.
Findings showed that condom production depends largely on silicone oil and ammonia. Silicone oil, which is used as a lubricant, is currently in short supply, while ammonia, used to stabilise raw latex, is expected to record a price increase of between 40 and 50 per cent.

Packaging materials have also become more expensive, further increasing production costs.

An official from a condom manufacturing firm told The Indian Express, “Supply constraints and price volatility in key inputs, such as PVC foil, aluminium foil, and packaging materials, have impacted production and order execution.”

The official added that logistics challenges have also affected production.

“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.

Also speaking, Jatish N Sheth of the Karnataka Drugs and Pharmaceuticals Manufacturers Association said the impact cuts across sectors.

“We are definitely impacted, but we need to assess the extent and depth of the impact on the industry,” he said.

Further findings revealed that the Indian government has started to prioritise key sectors. During an inter-ministerial briefing held on March 11, officials said petrochemical units may face a 35 per cent reduction in resource allocation, a move expected to further limit production.