Purohit said, “Broadly, we are going with a double-digit volume growth.” He attributed this to structural tailwinds, stating that “this time the summer is normal, unlike last year, the Diwali is a bit delayed at around November 8th versus October 20th. Plus, wedding days are also higher.”
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He also highlighted that price hikes are unlikely to materially dent consumption, given the nature of demand. “Since 60% of it is labour cost and 40% is material cost, whatever price increase that happens, broadly doesn’t have a significant impact on the consumption because, I mean, the consumer is looking for painting a house from a need-based thing.”
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On pricing, companies have been taking calibrated increases, though more may be required. Purohit said, “A double-digit price increase is what we think would be required at this point.” He added that price hikes have been implemented in a staggered manner as companies wait for stability in input costs.
However, input cost volatility remains a key challenge. Purohit said, “The volatility is pretty high.” This makes it difficult to fully assess inflation trends across chemical derivatives beyond crude-linked assumptions.
Despite these pressures, demand conditions have held up so far. He said, “As of now, things are looking normal,” indicating no significant disruption in consumption trends, including in industrial segments, though the broader impact will become clearer over the next few quarters.
In terms of competitive positioning, larger players are better placed to navigate the current environment. Purohit said, “Asian Paints would, I would go with that assumption,” citing advantages in sourcing raw materials and scale, while smaller players face greater challenges in procurement and cost management.
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