Sheela Foam, which makes mattresses under the Sleepwell brand, has raised prices by 5-7 percent. In an interview to CNBC-TV18, Rahul Gautam, MD of the company, attributed the price hike to a sharp rise in raw material prices.

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Prices of tolylene diisocyanate (TDI), the main raw material used by the foam manufacturers, has risen sharply over the last 4-5 weeks after global manufacturer Covestro reported a plant failure.

Gautam said TDI prices are currently at Rs 235 per kg an average price of Rs 124 per kg during the June quarter. He said there was a downside risk to the 13 percent EBITDA margin target because of the sudden surge in raw material price.

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