Berger Raises Prices Amid Crude Oil Price Surge, CEO Cites Stable Demand

Berger Paints Hikes Prices by Up to 10% Amid Crude Price Surge

Berger Paints, India's second-largest decorative paints maker, has announced a three-stage price hike of up to 10% for most of its product line, effective immediately and by the end of March and April.

The price increase, a result of the surge in crude prices to above $100 a barrel following the Iran war, affects around 30% of the cost of producing paints used in decorative and industrial coatings. The company's managing director and CEO, Abhijit Roy, stated that the actual impact of the increased prices at dealerships may be felt in May-June, as the company retains stock at older prices.

Berger Paints maintains a 40-45 day finished goods inventory and 25-30 days of raw material stock, which is expected to last until April. However, the company will have to continue buying inputs at current high prices, affecting the selling prices of its products.

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Despite ongoing demand uncertainty in the paints sector, Roy remains bullish about prices being accepted by customers, citing the largest cost component in the painting process as labor rather than paints. He noted that a 10% price increase translates to a 3.2% increase in the overall painting cost, which is not significant enough to postpone a decision.

The Indian paint industry, estimated at $10-12 billion in FY26, continues to be dominated by Asian Paints, followed by Berger Paints and Kansai Nerolac. Birla Opus, an Aditya Birla Group venture, has rapidly captured around 7% market share within a year, aided by aggressive dealer discounts and strong marketing initiatives.

The company expects consumer sentiment for the next three to four months to be dependent on the duration and intensity of the ongoing war. If the war stops, demand is expected to return immediately, but if it stretches for months, people may prioritize essential purchases over discretionary spending.

Market Share and Industry Overview

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• Indian paint industry: estimated at $10-12 billion in FY26
• Organised segment: constitutes around 75% of the domestic paints market
• Decorative paints: account for nearly three-fourths of demand
• Industrial and other non-decorative coatings: account for the remaining demand