Price Increase effective 1st Jan 2021:

Dear Sir,

We thank you and wish to place on record our gratitude towards your organization and
you, for the continued patronage given to Shakti Hormann Pvt Ltd. We have always
strived to bring you world class products, coupled with the best manufacturing
practices, from our state of the art, platinum rated green factory premises. It has been
our endeavour to bring the right product to our clients not only in India, but across the
globe through our 32 manufacturing plants located across continents.

2020, has been a year, none of us will forget in our lifetimes. Each of us is dealing with
this unprecedented situation in ways we have not done before. This may well be the
new normal. We at Shakti Hormann are trying everything within our capacity to make
things easy for our customers.

As we see signs of the economy starting to come back on track, we are now hit with the
wave of price increases on all fronts. This too is unprecedented, in the manner at which
the increases have been happening especially on the raw materials front. We have tried
our best to absorb whatever we could, but are finally left with no choice but to pass on
the increase to you. We also are given to understand from the suppliers that this is not
the end of price increase with commodity prices expected to strengthen further and
hence increases in prices might continue for some more time. We, like you, look
forward to the cooling off of prices, but till such time since we have to
continue with business, we humbly request you for a price increase which we can
discuss at your convenience at the earliest to ensure uninterrupted supplies. Kindly let
us know when we can come down for a discussion to take this forward.

Towards this increase please find the justification as given below:

1. Steel prices (galvanised steel) has increased in the last 2

months by approximately 23% and we have still not seen it stop. It is expected to
further go up as we discuss. (Price in September –60,000/MT, December–74,000
/MT)

2. Diesel prices have gone up by 20% in the last 9 months, impacting freight costs

3. Import costs have been impacted by almost 35% due to increase in cost of getting
containers, i.e. if we get them (due to acute shortage of container availability
across markets)

4. Exchange rate fluctuations – USD had increased by around 4% and Euro has
appreciated by almost 13% in the last year.
 5. Increase in operational cost due to multiple shifts in order to maintain social
distancing norms, thereby leading to increase in consumables and overheads

We believe that you can empathize with us on the above points and that though the
impact is on a much higher side, we have been able to absorb part of the costs due to
various innovative methods that we have been forced to adopt in the current
situation (right from manufacturing to sales) by adopting technology to drive costs
down.

This price increase will be with immediate effect, and we request you to kindly issue
an amended PO towards this effect, enabling us to take this forward. Rest be assured
we will always be looking at ways and means and would urge you to give us suggestions
if any, on how to make this a win- win for both of us.

With Regards

Jagdish Anne
VP-Sales
Shakti Hormann Pvt Ltd.