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ACs, TVs and kitchen appliances to get costlier as firms look at price hikes

Prices of these products may go up by around 5 percent by March this year as industry experts believe the inflationary pressures are likely to continue in the medium term.

Published: 12th January 2022 09:10 AM  |   Last Updated: 12th January 2022 07:35 PM   |  A+A-

People watch Finance Minister Nirmala Sitharaman presenting Union Budget 2021-21 on television sets at an electronics store in Tirunelveli. (Photo | V Karthikalagu, EPS)

People watch Finance Minister Nirmala Sitharaman presenting Union Budget 2021-21 on television sets at an electronics store. (File photo| V Karthikalagu, EPS)

Express News Service

NEW DELHI: Air conditioners, televisions, kitchen appliances are all set to get expensive as most consumer durable companies are looking at price hikes. Prices of these products may go up by around 5 percent by March this year as industry experts believe the inflationary pressures are likely to continue in the medium term.

Hitachi has started the new year implementing new prices, which will be nearly 4 percent higher than December.

“Till December 2021, prices were higher than December 2020 by at least 6-8 percent. The way things are progressing on the Commodity and other fronts, prices will have to be taken up by another 3-4 percent in a short while,” according to Gurmeet Singh, Chairman and Managing Director, Johnson Controls-Hitachi Air Conditioning India Ltd.

For example, a 3 Star Inverter Split Air Conditioner that used to retail at `33.5k till last year has now reached 36.5k to 37k, Singh explains.

“The promotions which were being offered along with the ACs till last year have also been taken to a much lower level this year,” he said.

Fans and appliances major Usha International also say another 3-5 percent price hike across various stock keeping units (SKUs) is imminent in Q4. The company last year hiked prices by 12-15 percent across categories.

On if the surge in prices would cool down in the near future, Saurabh Baishakhia, President, Appliances, Usha International says, “As of now, it seems the price- hike is here to stay but with a pick-up in businesses, economic growth, we might be able to soothe the prices.”

The surge in the cost of raw materials, manufacturing, and logistics amid disruptions in global supply chains and an increase in fuel prices are mainly responsible for the price hike. 

Nirupam Sahay, ED & CEO, Lighting and Consumer Durables, Surya Roshni inform that the last price increase at the company was 5-10 percent in August 2021. “We are likely to take another price increase in the coming months,” he says.

Kitchenware firm Vinod Cookware had also increased the price by around 10-15 percent across products in September 2021. The Director of the company Sunil Agarwal says, “So far, the situation is volatile.”

TV company Daiwa noted that the cost of Open Cell has come down over the last few months, though freight cost has started to increase again. The brand will not increase prices this month but is watching the market situation.

Panasonic Life Solutions India, manufacturer of electrical construction materials, fans, water heaters, etc, says there has been a continuous increase in raw material prices over the last 12-18 months. While the company has absorbed a significant amount of increased input cost and has improved its manufacturing efficiencies through various means, a good chunk of cost escalation has still been passed on as increased price to the end consumer.



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