Asian Paints Raises Prices Around 12% Amid West Asia Conflict, Higher Crude-Linked Raw Material Costs Pressure Margins
· Free Press Journal
New Delhi: Asian Paints has increased product prices by around 12 percent to tackle the sharp rise in raw material costs caused by the ongoing conflict in West Asia. The move is the biggest price increase announced by a major paint company in India in the recent period.
Conflict Raises Input Costs
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Speaking at the company's 80th Annual General Meeting held on July 9, Chairman R Seshasayee said the conflict in West Asia has pushed up the prices of crude oil-linked raw materials, creating strong inflationary pressure on manufacturing costs.
Crude Spike Hits Aviation, Paints Stock; IndiGo, Asian Paints Slip 2%He said the company introduced measured price increases of about 12 percent to reduce the impact of these higher costs while ensuring that customers are not burdened more than necessary.
Balanced Pricing Strategy
Seshasayee said there are early signs that tensions in West Asia are easing. However, he cautioned that the situation remains uncertain and raw material prices may take time to return to normal levels.
He added that as the market leader, Asian Paints will continue to follow a balanced pricing strategy and increase prices only when required. The company also aims to protect consumer demand while managing rising costs.
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According to the company, FY26 remained challenging because of global uncertainty, changing trade policies, tariff-related developments, geopolitical tensions and supply chain disruptions.
The conflict in West Asia became more intense during the final quarter, leading to higher energy prices and increasing the cost of imported raw materials used in paint manufacturing.
Among leading paint companies, Asian Paints has announced the sharpest price increase. Berger Paints India and Kansai Nerolac Paints raised prices by around 2 percent to 3 percent, while JSW Dulux implemented a 10 percent increase.
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For the March quarter, Asian Paints reported a 69 percent year-on-year rise in consolidated net profit to Rs 1,185.5 crore, compared with Rs 701 crore a year earlier, helped by the absence of the previous year's exceptional loss.
Revenue increased 10.6 percent to Rs 9,247 crore from Rs 8,359 crore in the corresponding quarter last year.
Despite the announcement, shares of Asian Paints closed 1.06 percent lower at Rs 2,649.40 on the NSE on Monday.