Come June, Valvoline Cummins to raise prices by 8%

Auto lubricant maker Valvoline Cummins today said it will raise prices of its products by upto 8% next month in order to offset rising raw material cost.

"We are eyeing for another round of price hike and it will happen in the month of June. Base oil price and raw material prices have not come down," Valvoline Cummins CEO Sandeep Kalia told PTI.

Asked how much the company plans to raise the prices Kalia said: "In the range of 7-8%."

The company had undertaken a price hike of 7-8% for its lubricant products in March this year. Its lubricants are available in the range of 40 ml to 210 litres, which are priced between Rs 7 and Rs 36,000.

The company is at present in the process of investing Rs 125 crore to set up its second plant in Maharashtra.

"We are expanding our production capacity by setting up another plant in Mumbai. We have acquired land and it is under construction. It will start production by may June next year" Kalia said.

The capacity of the plant will be 120 million litres annually, he added.

Valvoline Cummins already has a lubricant plant in Mumbai with an annual capacity of 70 million litres.

It had a turnover of Rs 725 crore in the last fiscal and expects a double digit growth in the current fiscal.