India’s leading decorative paints manufacturer, Asian Paints will hike the prices of its decorative paints’ brands from July 1st. Other paints manufacturers too may follow the leader and hike the prices of their brands in the coming weeks. Asian Paints will go for 1.5-2% price hike in its various brands.
Interestingly, the company did not take a price hike in Q4 of FY21, as it did not want to adversely affect the reviving consumer demand sentiment. The company took a hike only in April of about 2.8% which was necessitated by the sharp inflation in input costs. And the proposed price hike will be the second one during the current financial year. “The quarter has been good, the material inflation has been very high, it started from December end and it has been fairly high in terms of the whole quarter. We have restrained in the quarter (Q4) from taking a price increase because we felt that the environment was not good and I think the demand sentiment would kind of get affected if we kind of take anything which is price increase in this point of time,” Amit Syngle, MD and CEO of Asian Paints had told in the analysts conference recently.
Most of the manufacturers in the industry are trying to negate the impact of high raw material prices via initiatives like improving sourcing efficiency, formulation gains and cost optimisation measures.
Asian Paints is likely to increase the price of entry level Tractor/Ace/Sparc brands by Rs 3 per litre. Prices of premium Ultima and Royale brands will be hiked by Rs 6 per litre. Prices of waterproofing brands too will be increased as the company expects huge growth potential in that segment. The company has already taken 6-8% price hike in wood finishes brands. The company may consider further price hikes as the market opens and demand recovers.