Consumer durables to cost more from June

“On the cost side, right now, we are seeing a bit of turbulence... We do see the cost creeping up. Oil and rupee hit everyone and we do expect the industry to inch up prices as a response to that. We will move in line with the industry,” Whirlpool of India MD Sunil D’Souza said.

On the quantum of hike, he said it would be difficult to estimate, but added that the industry would start hiking prices from June. 

Imported raw materials account for quite a significant portion of the company’s costs and with the rupee moving from about Rs 63.50 against the US dollar from about three months back to over Rs 67 at present, the cost is getting impacted, he said. D’Souza noted that commodity prices started climbing from July 2017 onwards but had started plateauing.  

“However, oil moving from $ 60 a barrel to $ 77-78 a barrel recently, will have a spiral inflationary impact on all commodities and business costs,” he said. D’Souza expects a healthy consumer demand in the current financial year, backed by a good GDP growth, rural electrification and good monsoon, and is targeting a double-digit volume growth.

The subsidiary of the USbased home appliances firm, Whirlpool, reported a 24 per cent growth in revenues in fiscal year 2017-18 at Rs 5,000 crore, and is targeting to be a billion-dollar company by 2020, according to him. The company expects semi-urban areas to outpace the urban areas in terms of growth..