The cost of paints will go up soon if the market trends are any indication. The Asian Paints and Berger Paints have decided to increase the cost of paints. Several brokerage agencies have predicted that the price hike is going to be unprecedented.
Asian Paints – a market leader in decorative paint segment – has decided to affect a hike ranging between 7 to 10 per cent of its range of products, according to Kotak Institutional Equities. This is in addition to the recent 7.5 per cent hike in prices during the past six months. Barring the prices of enamels, the company hiked prices on rest of its products by 10 per cent, the Kotak Equities observed.
However, the company restricted the hike in enamel prices between 6 and 7 per cent.
Similarly, the Berger Paints has decided to hike the prices of its paints with effect from November 12. It commented that a large scale increase did not take place after 2008 and this is the only instance.
The cost of production has increased remarkably due to inflationary tendencies experienced during the last one year. The increased cost of production is eating into the profits of the company, forcing it to increase the prices of its products.
Asian Paints CEO and MD Amit Single hinted about possible increase in prices it in the first week of October. While declaring the company’s results in the second quarter, he noted that the raw material costs have increased significantly affecting the profitability of the company.
