India's Appliance Makers Hike Prices Ahead of Festive Season

Ahead of the peak festival season in India, leading appliances and consumer electronics makers are increasing prices of air conditioners, LED TVs, washing machines, and other products by up to 8% from October 1. The price hike is due to rising costs of inputs such as copper, steel, crude derivatives, and currency exchange volatility caused by the ongoing West Asia crisis.

According to industry executives, air-conditioner prices are set to rise by 5-8%, while some companies are also increasing prices of washing machines, refrigerators, and LED TVs by 3-4%. Companies like Blue Star, Godrej Appliance, Haier, Daikin, and Super Plastronics have already announced or confirmed price hikes ranging from 4-10% across categories.

Blue Star Managing Director B Thiagarajan said prices of ACs and deep freezers have already increased by 5-8% due to higher commodity costs. He added that this is the third price increase undertaken by the company this year, with costs rising around 15% compared to last year's festive season.

Kamal Nandi, Business Head and Executive Vice President, Appliances Business, Godrej Enterprises Group, said another industry-wide round of price increases has become 'inevitable' after commodity prices rose 8-10% since the last revision. He added that consumers would still have an opportunity to buy products at existing prices during the festive season as inventory procured before the hikes remains available in the distribution channel.

Haier India President NS Satish said the company plans to raise prices by around 5% on RAC from October 1 and may undertake further increases after Diwali and again in January if input costs continue to rise. He noted that copper prices have risen significantly over the past year, sharply increasing manufacturing costs.