Indian Firms to Hike White Good Prices in Q2 of 2005
Mar 29, 2005
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The consumer durable companies in India are set to increase prices following the announcement by steel companies to hike prices in the second quarter of 2005.
LG Electronics India plans to hike prices of its microwave ovens by an additional 5 percent to 10 percent, while Samsung India has claimed that it will increase prices of its washing machines and refrigerators by 3 percent to 4 percent.
While prices of Onida washing machines are expected to rise by 4 percent, Blue Star Ltd too is looking at the possibility of increasing price of its central air-conditioning by 5 percent.
With the objective of countering the price hike and pass on the benefits to end-consumers, companies plan to introduce multi-utility appliances at revised prices.
The appliance division of Godrej & Boyce Manufacturing Company Ltd, Soumitra Ghatak said, "We have already hiked prices of washing machines and refrigerators by less than 5 percent. But, if need arise, we will hike prices of Godrej appliances even further."
As a result, its penetration too is expected to increase from 0.3 percent to 0.8 percent by then. The refrigerators segment is expected to witness growth in penetration levels from 17 to 19 percent. (The Financial Express)
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