...to up prices: 3rd since June

Written by Corporate Bureau | Kolkata, Jul 30 | Updated: Jul 31 2008, 06:37am hrs
With raw material costs spiralling due to the steep rise in prices of crude oil, Berger Paints, the country's second largest paint maker, is hiking prices again, from August 1.

"This is the third hike in three months," Berger Paints managing director Subir Bose told reporters after the company's 84th annual general meeting.

"In three months, prices of solvent-based paints have gone up by 15-20% and that of water-based paints by 5-8%," he added. The company had earlier raised prices on June 1 and July 1.

"With crude oil prices hovering between $120-$140 a barrel mark and most of our raw materials being derivatives from crude oil, we have seen our raw material prices going up by 15-20%," said Bose.

"For water-based paints too, it's been a difficult quarter in terms of managing raw material prices and availability," he said.

But Bose pointed out that the long-term outlook of the company, whose net turnover in 07-08 was Rs 1,340 crore and net profit Rs 92.08 crore, "is positive with the price hike just a blip due to rising raw material costs".