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 / 01:19 PM 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.
