Fevicol maker says may jack up prices

Pidilite Industries, the maker of Fevicol adhesives, on Thursday said prices of certain raw materials had started pressurising costs and that the company was evaluating hiking prices.

The company had increased product prices in both consumer and industrial products during the first half of the financial year to mitigate the cost pressure partly.

Sandeep Batra, director-finance, said on an analyst concall on Thursday that price hike in the consumer segment, where the company has brands like Fevicol, FeviKwik, M-seal, Hobby Ideas and others, is possible. He did not say how much the increase would be.

“Our pricing strategy, however, is not tactical, so we will not increase prices that are short-term in nature,” Batra said.

The company operates in two segments — consumer and bazaar, which make up more than 75% of its business, and industrial chemicals, which includes adhesives, resins, and organic pigments.

The company has also increased advertising spends this financial year, which, along with the increase in cost of raw materials, impacted profits during the September quarter.

Batra said that the company had invested `280 crore in its pilot project — the Elastomer plant at Dahej, that it has acquired from Polimeri Europa Elastomers few years ago.

“The pilot is the down-sized version of the main plant, which is yet to be built. We are starting to test the technology now,” he said.

Pidilite is the market leader in adhesives and sealants, construction chemicals, hobby colours and polymer emulsions in India.