India Appliance Makers Set to Raise Prices by Up to 8% Ahead of Festive Season

Appliance and consumer electronics manufacturers in India plan to raise prices by up to 8% from October 1, ahead of the peak festive shopping period. The price increases will affect air conditioners, washing machines, refrigerators, and LED TVs, with some companies already implementing the hikes. Blue Star Managing Director B Thiagarajan said commodity costs have risen due to the war, citing copper, steel, and plastics as examples.

Compared to last year's festive season, costs have increased by around 15%, according to Thiagarajan. However, with GST benefits of about 10% available to consumers, the net impact for buyers would be roughly 5%. Kamal Nandi, Business Head and Executive Vice President of Godrej Enterprises Group, said another industry-wide price increase was inevitable due to rising commodity prices.

Haier India President NS Satish said the company had little choice but to raise prices as input costs continued to climb. The company plans to increase prices of room air conditioners by around 5% from October 1 and may undertake further increases after Diwali and again in January if input costs remain elevated.

The timing of the price increases is significant, with the festive period typically accounting for around 30-40% of annual sales for appliance manufacturers. However, some companies are already assessing the impact of higher input costs and may delay implementing further price hikes until after Diwali.