Prices of paints, which have already inched up since March, may go up again if raw materials don’t get cheaper any time soon, say officials of paint companies
This could be the right time to give your home a fresh coat of paint.
Prices of paints, which have already inched up since March, may go up again if raw materials don’t get cheaper any time soon, say officials of paint companies.
And with demand expected to remain robust, it wouldn’t be difficult for them to pass on price hikes.
“Raw material prices are continuing to show an upward trend, in titanium dioxide, monomers and solvents. We need to watch out particularly for Titanium dioxide prices which continue to rise,” Srijit Dasgupta, CFO of Berger Paints has told analysts.
Raw materials like vinyl acetate monomer (used in water-based adhesives) and titanium dioxide, which accounts for 15-18% of the total purchase basket of a paint company, are on a sharp rise since the beginning of 2017.
Berger Paints had announced a price hike of nearly 3% for its decorative segment with effect from March 1 followed by another 2.5% rise in May.
This is in line with what other industry players have done and is in sharp contrast to fall in raw material prices in FY17.
“While cumulative price decreased around 2.6% in fiscal 2017 in the decorative segment, raw material prices have seen an upward trend in the last two quarters,” Kansai Nerolac said.
Prices of titanium dioxide which was ruling at Rs 135-200 per kg in February touched Rs 140-210 a kilogramme on June 3, as per trade reports.
“Raw material price is expected to inch up further. Rupee volatility needs to be watched out,” says Asian Paints, country’s largest paint maker.
While the hike in March was delayed considering the impact of demonetization, the price increase in May came on the back of sharp rise in raw material prices.
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