Paint firms may raise prices in December

Domestic paint firms are likely to hike prices in December, a move that was on a hold owing to the recent festive demand. The industry had last hiked prices by 7 per cent between December 2004 and early January 2005.

M R Rajaram, chief financial officer and executive director, ICI India, said, "The industry is evaluating the possibility of a price revision. Paint companies could not correct prices owing to the festive season which ended with Diwali."

Though oil prices are declining now, the industry was significantly hit by surging prices throughout the year, he added. "Prices of other raw materials along with oil were too on the rise. Once the season is over, it is suitable time when the industry might undertake a price correction," explained Rajaram.

For ICI, the move was currently under evaluation, he said hinting that the hike could be all across product segments.

Subir Bose, managing director, Berger Paints India said, "There would be around 3 per cent to 4 per cent rise in prices of few oil-based products." The current average price in this product category would be around Rs 70 a litre, he added.

There would be a similar price hike by Shalimar Paints Ltd, said S L Agarwal, managing director. "We are planning to increase price of oil-based paints by around 4 per cent in December.

Sandeep Sarda, chief operating officer, Shalimar, further said the paints major was planning to play in volumes to reduce the impact they had faced owing to an increase in raw material costs. Jenson & Nicholson (India) Ltd, however, may not join the bandwagon.

"We may not take any move in correcting the price," said Ashim Kumar Mukherjee, chief of operations, J&N. Industry experts though believe the proposed price movements are a seasonal affair which is repeated post-Diwali every year.