Berger Paints sees demand dip in FY12
Berger Paints India Ltd expects demand for paints to be ease slightly in the current fiscal year as rising interest rates and a surge in paint prices dent consumer sentiment.
June 29, 2011 / 13:19 IST
Berger Paints India Ltd expects demand for paints to be ease slightly in the current fiscal year as rising interest rates and a surge in paint prices dent consumer sentiment.
"We are anticipating a slight dampening of demand. Volume-wise about 5 percent deduction could be there," Subir Bose, managing director, told Reuters on Wednesday."Paint prices have increased by 15% and that in itself dampens demand to a certain extent and then interest rates have gone up so much and all along there is hardening of the interest regime," he said.Berger Paints gets 80% of its revenue from the decoratives segment, which largely caters to housing, and the remaining from industrial, with a minimum exposure to the automotive segment which is seeing a slowdown.The company, which raised prices by 6.8% in the June quarter, expects to hike prices by a further 2 percentage points in coming weeks. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
