In a press statement, the ink major said, “Unprecedented price inflation has been witnessed in resins, titanium dioxide, pigments, and key solvents; all of these feedstocks affect the cost base of both solvent-based and water-based inks and coatings.”

Upal Roy, managing director, Flint Group India, explained, “Despite our staunch efforts to mitigate these supply dynamics by deploying significant capital and internal resources to efficiency projects, the cost pressure remains relentless. Recent price increases have not been sufficient to offset the cost increase burden and Flint Group cannot continue to absorb the rising costs internally. The situation now necessitates that we pass some increases through the supply chain.”

The company underscored few specific factors that have contributed to the cost increase burden. This includes supply constraints and facility closures of resins and at the same time numerous pigment production facilities in China have reduced capacity, some have been ordered to close, in-line with the ‘Blue Skies’ initiative. The solvent market is under pressure due to production outages, supply tightening and escalation in crude oil costs, all resulting in a finished product cost escalation between 11-17%. Plus the persistent tightening and price escalation across the titanium dioxide market.

Rising material costs coupled with increased global trading challenges, currency fluctuations and economic challenges in some regions are presenting the industry with a complex and volatile cost landscape.

Roy added, “Product quality and consistency are essential for our customers which is why we will continue to prioritise efficiency improvements and the sourcing of high quality materials at a reasonable price. Customers can always rely on us for best in class products at the most economic cost possible.”

According to the company, its sales representatives are already discussing the impact with the customers.