BERGEPAINT

Margin pressure due to rising raw material costs

1. Margin pressure due to rising raw material costs Berger Paints has been facing pressure from rising crude oil-linked raw material prices. Input costs for solvents, resins and packaging materials have increased, impacting operating margins across the paint industry. 2. Price hikes to protect profitability The company has implemented selective price hikes to offset rising raw-material inflation. Management continues balancing margin protection with maintaining demand growth. 3. Strong decorative paints demand Decorative paints continue to remain the largest growth driver for Berger Paints. Demand from housing, renovation and urban consumption trends has remained relatively healthy. 4. Competition intensifying in paint sector The Indian paint industry has become highly competitive due to aggressive expansion by: Birla Opus Asian Paints JSW Paints Indigo Paints Investors are closely tracking market-share movement in the sector. 5. Capacity expansion and manufacturing growth Berger Paints continues investing in manufacturing capacity expansion to support long-term demand growth and improve supply-chain efficiency. 6. Focus on premium and waterproofing products The company is increasing focus on: Premium interior paints Waterproofing solutions Construction chemicals Designer finishes Premiumisation is expected to improve margins over time. 7. Strong brand and distribution network Berger Paints continues strengthening its dealer network and retail reach across urban and rural India.