TV, AC, home appliances prices to rise 7-8 per cent from Dec

To ensure smooth festive season sale, consumer durable manufacturers had temporarily absorbed impacts on their input costs, following the depreciation of the Indian rupee against US dollar and increase in custom duty. Panasonic India is set to increase the prices of its products by up to 7 per cent, while some others players have already increased it. “Over the last few months, the rupee has continually risen which in turn is impacting our inputs costs. While we try to absorb maximum costs for our consumers, but given the market situation, we will be forced to hike the prices by 5-7 per cent from next month,” Panasonic India President and CEO Manish Sharma said.

Haier India President Eric Braganza said: “We have ensured that the price rise comes into effect post the festive season since India tends to purchase consumer durables extensively during this time.

Braganza added “the decision was undertaken considering that cushioning of prices was no longer an option with tight margins coming into play.” In India, festive period, starts from Onam and is followed by Dussehra and lasts till Deepavali and accounts for nearly one third sales of the industry. According to the Consumer Electronics and Appliances Manufacturers Association (CEAMA), there was a rise of around 3 to 4 pc in prices in September, however, it did not get materialised.

“The price hike in September was not effective, due to sluggish demand and brands trying to garner maximum share in the market place during the crucial festive season,” said CEAMA President Kamal Nandi, who is also Godrej Appliances Business Head and EVP. “Onam was a washout for the industry due to the Kerala floods and the festive season did not perform as per initial expectations,” he added.

Sony however, said it has no plans to go for a price revision.