Consumer Durable Firms Hike Prices Amid Rising Raw Material Costs

Consumer durable companies are set to raise prices of air conditioners by 5-8% from October 1, as well as for LED TVs, washing machines, and refrigerators. The price hikes come due to sustained rises in costs of raw materials such as copper, steel, and aluminum, along with adverse currency exchange movements.

LG Electronics India has informed trade partners that its AC portfolio prices will increase by 5-7% from October 1, while Voltas is hiking prices by 5-7% for room air conditioners. Blue Star will raise prices by 5-8%. Haier Appliances India CEO NS Satish stated, 'We are increasing prices of our air-conditioner portfolio by 5 per cent, while 3-4 per cent price hike will be taken in other categories including LED TVs, washing machines and refrigerators.'

Godrej Enterprises Group's Kamal Nandi noted that commodity costs have hardened further since the last price hike, leading to an industry-wide price increase of between 5-7%. Some companies are evaluating the timing of their price hikes. SPPL will raise prices by 10%, while Videotex plans a price increase of up to 20% for smaller screen sizes and up to 10% for larger ones.