Volatility in prices of crude-related products and other factors has led to paint manufacturing companies mulling to increase paint prices yet again.
While Asian Paints, the largest paint manufacturer, has increased the prices of oil bound paints by one per cent from the first week of March, AkzoNobel India, operating under the ‘Dulux’ brand, has increased its prices by one to two per cent in the enamels range.
Nippon India Private Limited is also mulling to follow suit.
It is interesting to observe that in the financial year 2010-11, while Asian Paints has five times invoked the price revision across different categories of paints, Nippon already has raised the prices three times. The prices, according to Nippon officials, have gone up by two to three per cent in the financial year 2010-11.
Similarly, AkzoNobel India, part of largest global paints and coating company AkzoNobel, said, during 2010, general price increase seen in the market was about five to six per cent depending on product lines. The reason for this the company attributes to cost pressures.
A senior executive in Nippon India Private Limited maintained the company was planning to invoke the price rise once again in various paint categories. He revealed the rise in prices of paints is primarily due to the increase in prices of Titanium Dioxide. The demand for which has outstripped its supply, resulting in its prices sharply moving up.
Also, volatility in prices of crude-related products has forced paint companies to take a call on price revision.
