India's leading paintmakers are implementing their second price increase this fiscal year ahead of the festive season. Asian Paints Ltd, the country's largest paintmaker, will increase prices by an indicative 3% across its product range from 1 November, according to dealer communications issued by the company and seen by Mint. In a letter dated 25 September, the firm attributed the revision to geopolitical developments that have driven a "substantial increase in the cost of raw materials, packaging and logistics." The company will share detailed information on the revision with dealers in October. Berger Paints has informed dealers of a 3-4% price hike across products starting between late October and the first week of November. Meanwhile, Birla Opus, the paints business of the Aditya Birla Group, is planning a 3-4% price increase as well, with specific dates to be announced shortly and urging dealers to maximize purchases before the revision to close monthly and quarterly sales targets.
The price increases come as Brent crude, a key global oil benchmark, has climbed above $100 a barrel, squeezing margins on several inputs used in paint manufacturing. Crude derivatives form essential components in solvents and resins, while packaging and transportation expenses add to overall costs for manufacturers. According to Mint, the timing is critical as the festive season represents a crucial period for decorative paint sales, with better weather and longer home-renovation windows raising expectations for stronger October sales. Abhijit Roy, managing director and CEO of Berger Paints India, the country's second-largest paintmaker, earlier told Mint that rising oil prices are fueling inflation and weighing on consumer spending, noting that input prices have risen significantly in recent months and while selective price increases have been taken, they do not fully offset the increase in raw material costs.
Despite the price increases, demand is expected to remain intact during the festive season. Manoj Menon, head of research at ICICI Securities, told Mint that consumers planning home painting are likely to proceed with purchases despite higher prices, as home painting is a discretionary expense consumers tend to prioritize during festive seasons. The cost of paint forms a relatively small portion of overall painting expenses compared to labour, minimizing the impact on total job costs. Following a subdued Diwali last year, paintmakers are counting on the festive period to spark fresh growth this time around. Better weather, a longer home-renovation window and an early pickup in demand have raised expectations for a stronger October, as reported by Mint on 28 September.
This follows the first round of staggered price hikes starting 1 April, when paintmakers sought to trim dealer trade discounts as conflict in West Asia drove up crude-linked input costs. According to Mint, these pricing adjustments helped deliver a better-than-expected June quarter for top Indian paint companies, including Asian Paints and Berger Paints. Since 1 April, shares of Berger Paints have climbed 12.51%, followed by JSW Paints at 5.75%, Asian Paints at 5.58%, and Kansai Nerolac at 1.95%, all outperforming the benchmark Nifty 50's 1.4% gain. Typically, competing paintmakers such as Kansai Nerolac and JSW Dulux follow the market leader's lead by raising their own prices.
