Sequoia Capital-backed Indigo Paints on Wednesday said the company will take another 8-9 percent price hike from November 12, 2021.
In an interview with CNBC-TV18, Hemant Jalan, managing director, said the company reported earnings for the September-ended quarter which saw strong YoY revenue growth on a feeble base but margin too contracted.
According to Jalan, the paint industry has taken several price hikes in the last 6-8 months, "One cannot predict the future course of the raw material prices would be. This time, the price increase that we are taking is more significant than what has been doing in the past."
Talking about paint consumption, he said, "85 percent of consumption is from repainting of existing homes and only 15 percent is linked to new construction. Therefore, ups and downs in the real estate business do not impact the paint sector as significantly as it is thought to be."
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Jalan said, "As far as demand is concerned, I do not think there is any company in the paint sector which is witnessing any kind of a slowdown in demand."
For the entire management interview, watch the video