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Friday, September 03, 2010
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Chemicals Price Revision : Effective August 15, 2008
Dear Customer,
We are passing through a very dynamic economic situation. The whole world is affected by the unprecedented increase in crude oil price. India is particularly affected by the fall of Rupee coupled with the economic and political uncertainty. Direct and indirect costs are going up disproportionately. Printing industry has been no exception with major raw materials and machinery becoming dearer day-by-day.
"Today you can book options or futures for oil delivery in any month of 2008 at around $ 140 per barrel. I think the government should buy options to purchase 10 to 25 percent of India’s oil import for the last four months of 2008, this will provide insurance against oil spiking to $ 200 per barrel"
- Swaminathan S Anklesaria Aiyar.
Source: Times Of India: Swaminomics Sat July 5,2008.
This quote helps us understand the impact and the uncertainty in the Crude oil price that can influence
every aspect of mankind as of today.
We at TechNova are committed to and abide by the self-imposed guidelines for price revision. We have
maintained that,
- TechNova should absorb escalation of overhead costs through improved productivity and enhanced efficiency.
- Cost increase in raw materials, consumables and direct variable costs may be passed on where inflationary pressures are unbearable.
- Full information should be provided to the customer.
- Cost saving options should be offered before or along with price revision.
Cost-escalation Facts of TechNova since last price revision in Apr 08:
- Cost of petroleum products have gone up by 32 %.
- Cost of packing material like HDPE has gone up by 20%.
- Cost of packing material like HDPE has gone up by 20%.
- Transportation cost has gone up by 8 %.
- Cost of other raw material has gone up by 24 %.
- Cost of corrugated boxes, labels tapes etc. have also increased substantially.
Petroleum Solvent Cost-escalation chart
HDPE cost escalation chart
Other raw materials chart
In the given scenario we are forced to pass on a portion of the increased cost burden of direct inputs in the form of a price revision. This revision will be effective from Aug 15, 2008.
Cost saving and cost stability options
- We have deliberately subsidized the cost increase on larger packs (210 lts.) of all bulk products. In addition to substantial savings in cost of the product, bulk packs are easily recycled having substantial re-sale value and helps reduce the plastic waste.
- We have rationalized our Press Washes product range to safeguard you against frequent price increases. We have introduced AmberWash, which will guarantee you price stability within the duration of a three-month standing order in writing, in spite of the continuing uncertainty in international oil prices. In addition to price stability, AmberWash offers you a product that is truly world class and available in both water miscible and non-water miscible versions. This aromatic free, plate safe, general-purpose wash is easily biodegradable and offers the additional benefits of very low odour and very low irritation.
| Existing Products | Proposed Range | Purpose |
| Emulsion Wash | AmberWash
NovaWash
Universal
EconoWash KR | AmberWash : Aromatic free, Plate safe, low odour, low irritation wash |
| NovaWash Econo |
| EconoWash 201 | NovaWash Universal: Plate safe, general purpose wash |
| EconoWash 206 | EconoWash KR: general purpose non water miscible wash for economic use |
| NovaWash Universal |
- We also propose to offer you a rationalize range of fountain solutions with enhanced features to reduce your cost-in-use.
We will make every effort to ensure that the cost increases are neutralised by proactive measures. Our
technical support team will be more than happy to explain the full benefits of the rationalized range of
products.
As always we stand committed to revise the prices downwards if and when the petroleum raw material
prices should decline.
We look forward to your wholehearted support and continued patronage.
Thank you!
With warm regards, |
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| Kuruvilla Abraham |
C G Ramakrishnan |
| Chief Operating Officer, Chemicals |
Executive Director &
COO |
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