Asian Paints PPG Private Limited

December 10, 2020

Dear Business Partner,

Sub: Increase in input costs necessitating a 10% increase in prices

At the outset, I want to take this opportunity to thank you for being a valued business associate. We value your
relationship with Asian Paints PPG Private Limited (APPPG), and we deeply appreciate the support received
from you, especially during this pandemic!

We however wish to draw your attention to various developments globally which have severely impacted the
costs as well as availability of key raw material going into protective coating products.

Firstly, there have been certain unplanned shutdowns owing to unfortunate incidents affecting Bisphenol A,
Propylene Oxides (PO) capacities resulting in significant supply shortages triggering heavy price increase in Epoxy
Resins and Isocyanates.

This is augmented with severe shortage of vessels, especially on intra-Asia routes, resulting in shortage of
Solvents, Monomers, Additives, Rutiles along with other imported feedstock & commodities, causing steep
inflation in Alkyd, Acrylic resins along with Epoxies, PUs.

While the Global demand is recovering from the clutches of COVID19, backed by strong government stimulus,
especially in China and other Asian countries, , there is a sharp demand supply gap which is further inflating the
prices of key commodities including Crude, Zinc, Steel, Oils along with Specialty Chemicals.

Please find below the price increases in key raw materials over last 2-3 months:

• Bisphenol A – 45% increase in last 2 months, with further increase in Dec/Jan

• Epoxy Resins – 40% increase in last 3 months
• Alkyd & Acrylic Resins – 20% increase in 3 months
• Zinc – 12% increase in last 3 months
• Solvents- 12% increase in last 3 months
• Freight cost from china – increased by 5 times over last 2 months

We have been trying to hold our prices despite this inflationary trend but are no longer in the position to absorb
the cost increases.

As we are overcoming various hurdles to support you better in these tough times, the above developments
compel us to increase our product prices by 10%. In certain products the increase could be higher which will be
communicated separately.

Disclaimer

The information given in this sheet is not intended to be exhaustive and any person using the product for any purpose other than that specifically recommended in this sheet without first
obtaining written confirmation from us as to the suitability of the product for the intended purpose does so at his own risk. Any warranty, if given, or specific Terms & Conditions of Sale are
contained in International’s Terms & Conditions of Sale, a copy of which can be obtained on request. Whilst we endeavor to ensure that all advice we give about the product (whether in this
sheet or otherwise) is correct we have no control over either the quality or condition of the substrate or the many factors affecting the use and application of the product. Therefore, unless we
specifically agree in writing to do so, we do not accept any liability whatsoever or howsoever arising for the performance of the product or for any loss or damage (other than death or personal
injury resulting from our negligence) arising out of the use of the product. The information contained in this sheet is liable to modification from time to time in the light of experience and our
policy of continuous product development.
 Asian Paints PPG Private Limited

This increase will be applicable from 20th Dec 20 and we shall be revising our new DPL effective from 20th Dec
2020. Please arrange to amend your orders accordingly. Please note this increase will only partially offset the
cost increases we are facing. We will review the situation continually and may be constrained to approach you
for further increases should the situation not improve.

Kindly acknowledge the price increase & help us serve you better.
We greatly value your trust and confidence in us and we are committed to provide you the best in class support,
as always!

Yours truly,

For Asian Paints PPG Pvt. Ltd.

Susheel Raina
National Head – Channel Sales

Disclaimer

The information given in this sheet is not intended to be exhaustive and any person using the product for any purpose other than that specifically recommended in this sheet without first
obtaining written confirmation from us as to the suitability of the product for the intended purpose does so at his own risk. Any warranty, if given, or specific Terms & Conditions of Sale are
contained in International’s Terms & Conditions of Sale, a copy of which can be obtained on request. Whilst we endeavor to ensure that all advice we give about the product (whether in this
sheet or otherwise) is correct we have no control over either the quality or condition of the substrate or the many factors affecting the use and application of the product. Therefore, unless we
specifically agree in writing to do so, we do not accept any liability whatsoever or howsoever arising for the performance of the product or for any loss or damage (other than death or personal
injury resulting from our negligence) arising out of the use of the product. The information contained in this sheet is liable to modification from time to time in the light of experience and our
policy of continuous product development.