With the sharp rise in the sales of passenger cars, are OEMs commanding greater bargaining power now?
With the auto industry experiencing pressure on their bottomlines, suppliers, too, are bound to feel the pressure. We have not been able to pass on the full increase in raw material prices to them. Goodlass already enjoys a good market share in the auto segment 65 per cent currently and it is rising consistently. Could you comment on the price outlook for raw materials, especially titanium dioxide and pthalic anyhydride, which make up more than 50 per cent of sales? The prices of titanium in the international market have been on a rise, but the increase is getting offset against rupee appreciation against the dollar. The price upsurge can be seen if consumption levels improve in the US and Europe. Pthalic prices have been comparatively stable. You have consciously chosen to focus on the decorative market, as it constitutes 75-80 per cent of the Indian paint market. Over the next three years, what is the market share you are targeting in this segment? Currently, Nerolac holds 15 per cen
