The ‘Fevicol‘ maker has hiked prices between 2% and 12% across its Consumer and Bazaar portfolio, while hikes in the industrial business have been even sharper. Products saw one, two or three rounds of price hikes depending on their categories.
“Prices have come down for a few of our categories, so what we do there is pass on the rebate to the trade (segment), because we always believe if the demand remains intact with them, and they will sell well, we will sell well,” Vats said on Thursday.
For the June quarter, Pidilite saw a 11.3% growth in sales volumes as compared to the previous year, while value growth accounted for about 10%, helping the company clock in an over 21% growth in its consolidated revenue.
The crisis has impacted prices of a mix of raw materials including Vinyl Acetate Monomer, which is used for adhesives. It has also impacted the prices of butyl acrylate, styrene and toluene, Vats said, which were partly because of availability and partly because of logistics.
To shield itself better from supply shocks and make operations more resilient, Pidilite has also been diversifying its sourcing of raw materials – both in terms of companies and geographies. After the recent LNG shortage, Pidilite is also maintaining a buffer of feedstock to help its packaging material vendors, if needed.