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Hot summer: Fridges, ACs to cost more
NEW DELHI MAR 16 (AGENCIES)
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Published on 16 Mar. 2010 10:49 PM IST
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On the back of an increase in excise duty and raw material prices, consumer durable companies such as LG, Voltas, Samsung and Godrej & Boyce began increasing prices of refrigerators and air conditioners (ACs) from today. Consumers may expect an increase in prices by around three per cent across all brands and price ranges. Samsung India increased the prices of its refrigerators by about Rs 1,000 today and would raise those of its ACs next month. Market leader LG Electronics would increase prices from tomorrow, stated Economic Times. “With excise and raw material prices shooting up, and an increase in the CVD (countervailing duty) by another 2%, the increase in prices is inevitable,” noted Pradeep Bakshi, vice president, sales, Voltas India. Consumer durable firms do not believe the price rise would affect sales. They feel there is huge scope for growth, with the segment already growing at a compounded annual rate of around 25%. LG says it would talk to other players to request the government for a relaxation in the duty. The increase in excise duties by two per cent that was announced by the finance minister in this year’s Union Budget was the main cause for companies in the consumer durables market to increase prices. There was also a simultaneous increase in raw material prices of copper, aluminum and steel. Panasonic was the only major player in the market to decide on delaying any price increase.

 
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