Berger Paints sees demand dip in FY12 on rising prices, int rates

Mumbai : Berger Paints India Ltd expects demand for paints to be ease slightly in the current fiscal year as rising interest rates and a surge in paint prices dent consumer sentiment. "We are anticipating a slight dampening of demand. Volume-wise about 5% deduction could be there," Subir Bose, managing director, told Reuters on Wednesday.

"Paint prices have increased by 15% and that in itself dampens demand to a certain extent and then interest rates have gone up so much and all along there is hardening of the interest regime," he said. Berger Paints gets 80% of its revenue from the decoratives segment, which largely caters to housing, and the remaining from industrial, with a minimum exposure to the automotive segment which is seeing a slowdown. The company, which raised prices by 6.8% in the June quarter, expects to hike prices by a further 2 percentage points in coming weeks.