India's Consumer Durables Sector Prepares for Price Hikes Amid Rising Costs

Consumer durable companies in India are set to increase prices of air conditioners by 5-8% from October 1, ahead of the peak festival buying period. Other products such as LED TVs, washing machines, and refrigerators may also see price hikes, although some players have not yet confirmed their plans. Companies cited rising costs of raw materials like copper, steel, aluminum, crude derivatives, and adverse currency exchange movements as reasons for the price increases.

NS Satish, CEO of Haier Appliances India, said that his company is increasing prices by 5% for air conditioners, while LG Electronics India has informed trade partners that its AC portfolio prices will rise by 5-7%. Voltas and Blue Star are also hiking prices, with Blue Star's MD confirming a 5-8% increase from October 1. The consumer durable sector has already seen multiple rounds of price hikes this year due to the West Asia conflict.

Kamal Nandi, Business Head at Godrej Enterprises Group, said that commodity costs are hardening further and an industry-wide price hike between 5-7% is inevitable. He added that customers will have a festival window to buy at old prices as trade partners have stocked up for about a month.

LED TV makers such as SPPL and Videotex are also increasing prices due to higher memory chip and freight costs, with SPPL planning a 10% price hike in October. Consumers may see new base prices for consumer electronics after Diwali.