Rising input costs force paint makers to hike prices
Paint makers have hiked prices by 2.5-3 per cent since the beginning of this month. This is the second time prices have gone up in the decorative paints category this fiscal, and the third during the calendar year. Earlier hikes of around 2 per cent each were initiated in March and May.
Rising input cost, particularly, driven by northward movement of crude prices and falling rupee are said to be the reasons for the hike. Compared to the decorative segment, price hike across the industrial paints sector could be a bit steeper, at around 6-7 per cent. But, it will be the first hike in the category during this fiscal.
All major paint companies, including market leader Asian Paints, Berger Paints, Kansai Nerolac and Akzo Nobel, are said to have revised prices. According to Mr. Abhijit Roy, MD and CEO, Berger Paints, an upward revision in price had to be initiated in order to ease margin pressure.
On a year-on-year basis, the price of a key input, titanium dioxide, saw a 6 per cent increase in the second quarter, while prices of monomers have also increased. Majority of the raw materials used by paint companies are crude oil derivatives like phthalic anhydride and others (including monomers).
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