Calcutta, Sept. 19: Domestic paint makers expect margins to remain under pressure in the third quarter because the price of rutile, a key imported raw material, is set to increase from October.
“The prices of titanium dioxide (rutile) have been fairly stable in the first four-five months of this fiscal. But from October it could go up by about $200 per tonne,” Ramakanth Akula, president of the Indian Paint Association, said today at the industry body’s 50th annual general meeting.
Only about 8-10 per cent of the total requirement of rutile of the industry are met through domestic sources. The rest is imported from Europe and China. High currency volatility has impacted margins of paint makers. Akula said paint makers had to hike prices by about 3.5-4.5 per cent this year.
He said the industry would adopt a cautious approach on any further price hikes, keeping the festive season under consideration.