Why Asian Paints has hiked prices in India by 12%
What's the story
Asian Paints, India's largest paint manufacturer, has announced a price hike of around 12%. The increase is aimed at countering the rising raw material costs due to the ongoing conflict in West Asia. This is the biggest price hike in the industry so far. The company's chairman, R Seshasayee, said that the situation in West Asia remains volatile and it may take time for input costs to stabilize.
Market impact
Other paint manufacturers have also increased prices
In his annual report, Seshasayee said that the recent escalation in West Asia has led to major inflationary pressures on raw materials, especially crude oil-linked inputs.
He added that despite the company taking pricing measures to offset higher input costs, it is still mindful of consumer demand.
This comes as other paint manufacturers such as Berger Paints India and Kansai Nerolac Paints have also increased their prices earlier this year.
Strategic approach
Balanced approach to price adjustments
Seshasayee noted that FY26 was marked by global uncertainty with businesses navigating changing trade policies, tariff-related developments, geopolitical tensions, and supply chain disruptions.
He said the West Asia conflict intensified in Q4, resulting in a sharp spike in energy prices and putting pressure on imported raw material costs.
Despite these challenges, Asian Paints is taking a balanced approach to price adjustments while keeping consumer demand at the forefront of its strategy.