The cost of white goods in India, including refrigerators, washing machines, and air-conditioners will increase by 5 percent. Manufacturers blame the rising cost of steel and other raw materials that is forcing them to rewrite price tags after almost two years, the Business Standard reported.
“The input costs are related to direct material cost which have gone up by almost 20 percent over the last few months. The prices of our products will go up by three to five percent,” Ajay Kapila said, head of sales and marketing for ElectroluxKelvinator Ltd. “The revision in prices is driven primarily by the increase in input costs of steel and a few other commodities."
Consumer durables have been shying away from hiking prices due to intense competition and quest for greater market share in India. While volumes in the refrigerator industry grew about 8 percent, sales showed a decline of 1 percent.
Several other white good makers including Samsung, Whirlpool and Voltas are also raising their prices across all product segments by 3 to 5 percent.
“We have no other option but to pass the cost increase to the consumer. We will make an announcement sometime next month,” Ravinder Zurshi said, vice-president of Sales for Samsung India.
Voltas increased its prices on some of its one tonne air-conditioner models by 3 percent, and 1.5 tonne models by 4 percent. (Business Standard)
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