Demand scenario is looking good and Kansai Nerolac Paints maintains a double-digit growth outlook for the industry, said HM Bharuka, vice chairman and MD of the company.

The rise in crude oil prices brings significant pressure on the margins for paint companies, a segment that’s been doing well because of the consumption story.

It will force pain companies to hike prices. Bharuka spoke at length about the same and gave his outlook.

We are seeing a lot of volatility in the crude oil prices, he said.

The company may see a dip in margins in the near-term going ahead, added Bharuka.

“On the industrial side we expect some slowdown in the automotive sector and we feel that growth should be a single digit growth,” he added.