Appliance Makers Hike Prices Amid Rising Commodity Costs
Consumer appliance prices are set to rise again this year due to increasing costs of copper, steel, aluminium, and crude derivatives. From October 1, leading manufacturers such as Blue Star, Haier, Godrej Appliance, Daikin, and Super Plastronics will implement price hikes ranging from 5% to 10%. The increases are the industry's third this year, with some companies expecting a net impact of around 5% more due to GST benefits.
Blue Star managing director B Thiagarajan attributed the price increase to rising commodity costs, which have gone up by around 15% compared to last year's festive season. However, he noted that the company has already raised prices of air-conditioners and deep-freezers by 5-8% due to higher input costs.
Haier India President NS Satish said manufacturers had little room to absorb the higher costs, adding that the company plans a cumulative increase of about 15% between now and January. Haier will raise RAC prices by around 5% from October 1 and may increase them again after Diwali and in January if input costs continue to rise.
Daikin Airconditioning India Chairman and Managing Director Kanwaljeet Jawa also announced an 8-10% price hike, citing rising copper prices and strengthening dollar. SPPL, which manufactures Thomson, Kodak, and Blaupunkt TVs in India, plans to increase TV prices by around 7% after October.