Why Paint Market Leaders Increasing Prices? Major Reasons Here

The paint company’s shares saw a sudden hike in prices. There can be different reasons for the hike in the share market. However, the major reason is the expected price hikes by Asian Paints and Berger Paints, the top 2 Paint manufacturing companies in India. The share of 5-7 major paint companies saw a good rise. It includes Asian Paints, Kansai Nerolac, Indigo Paints, and more. Let us explore more about the Paint company’s price hikes below.

Why Are Paint Prices On A Hike?

The paint prices are expected to rise. Asian Paints and Berger Paints might consider the price hike from 0.7% to 1%. However, this might help these companies maintain their margin again. After the entry of Birla Opus, the industry is facing several challenges for sure. Asian Paints and other big companies reduced their price after Birla Opus’s entry to maintain their market presence. However, it also impacted the company’s profit margins. The paint companies may look up to the price hikes to regain their profitability to sustain strong.

Birla Opus is providing the paints at a much lower price with continuous expansion. Starting from north India the company now has its production in South India as well. The company wants to expand in 6,000 tows by next year increasing the competition even more. Thus, Asian Paints and Berger Paints considering price hikes might be positive in fighting the competition from Birla Opus.

Birla Opus might manage to go on lower prices for three years to turn profitable later. However, the already established companies might have difficulty in going down the price. This can be a major reason behind the expected price hike in the paint industry. Asian Paints stock rose today by almost 1%. Asian Paints has increased prices from 0.7% to 1% across its product portfolio. Berger Paints is also looking to follow the same. These price hikes will be valid from 22 July 2024 onwards in Asian Paints products.

The hikes will show that the industry still has the potential for price variation. The share market experts believe that this hike in share prices will not continue for longer. The companies often have a lot of pressure to maintain profitability. The public companies also have to maintain the profitability and trust of the shareholders in the company. In conclusion, Asian Paints and Berger Paints can see a price hike in their products by July end. The expectations from the price hikes are positive. Stay tuned for more information on our website.