MUMBAI: Berger Paints Ltd will raise prices of its mass premium and luxury products by up to 10% over the next three weeks, joining peers in passing on rising input costs triggered by the ongoing conflict, even as it looks to turn the disruption into an opportunity to gain market share.
“In order to fully neutralize the impact of raw material price increase, we have to increase the prices of our products,” said Abhijit Roy, managing director (MD) and chief executive officer (CEO), in an interview with Mint. “The price increases have happened in the mass premium and luxury segment… the economy segment has been left untouched so far.”
The hikes follow a sharp rise in crude oil prices, a key driver of paint raw material costs. Roy said. The benchmark Brent crude traded around $98.15 a barrel on Tuesday, and has surged as much as 32% since the war started.
Berger, India’s second-largest paint maker, will implement the increases gradually: 1.5% from 25 March, 2–2.5% on 30 March, and 4–4.5% on 9 April, when the economy segment will also see hikes.
“All competitors have no choice…everyone has declared price increases,” said the chief executive.
Berger’s move follows similar actions by rivals such as Asian Paints and JSW Dulux, erstwhile India, which sells paints under the Dulux brand, all of whom have announced hikes in the last few days, he added.
“The announcement of a price increase could lead to some stocking by dealers which may shore up volumes in the short term and lead to brief market share gains. But, the current round of price hikes are more to do with passing on raw material cost increase. It is unlikely to cause any significant long to mid term market share gain for Berger,” said Amit Purohit, senior vice president, Elara Securities.
Raw material determiner
Purohit added that the raw material spread will determine whether the hikes cover cost increases. Given the current scenario, a low double-digit increase in the 10-12% range is expected. The price rises, mostly phased, will first cover 80% of Berger’s portfolio before extending to 100%, mirroring the approach of its rivals.
“Typically, if volume growth in paint in x%, then the value growth is lower. But with the current price hikes, this gap should ideally come down, if not reverse”, Purohit said.
Beyond pricing, paint-makers are adjusting trade discounts and promoting higher-margin products to mitigate rising costs. Dealers, anticipating further hikes, have begun stocking inventory, which could temporarily support March-quarter sales volumes, Roy said.
The West Asia crisis could also help Berger strengthen its market position. “Prices tend to shoot up then they (smaller players) can’t you know take those risks to that extent and hence there is always a suffering for the smaller players in the short run,” Roy said. “That seal again moves to the bigger players and therefore you tend to gain a little bit in these types of situations,” he added.
Roy believes there are positives and negatives to this crisis.
“We are looking at new areas that could open up and how we can cater to them. For instance, if the segment grows, we will focus more on that business and build on our existing presence. This also includes scaling up our industrial and coatings portfolio in that domain. That said, if the current situation persists, it will remain a challenge for the entire industry,” he said.
Larger players stand to gain as raw material availability may constrain production for smaller firms, Purohit said.
Berger has also been expanding its dealer network, particularly in southern and western markets, and aims to end the year with a market share of 19.5-20%. In FY26, it targets a 0.5-1% gain, hoping demand grows at a double-digit rate.